Over the past few months we touched on the shift many acquirers are making to a direct/employee sales model. As you look to form an employee model you need to look at your organization and determine what ammunition you will provide your sales force. Employees have a higher fixed cost than independent contractors and therefore it is incumbent upon you, as the employer, to maximize your investment in the employee. I would argue that in today’s market, equipping an employee with the same ammunition as an independent contractor will not result in the returns you are seeking. Remember, these reps are on your payroll and are exclusive to you. What will you do to make them more successful in the market?
One thing that many acquirers will do is equip their employees with the knowledge and tools to be successful in a specific market segment. Heartland Payments is a great example of an employed sales force that grew to scale with the help of the organization’s focus on the restaurant segment. Heartland secured certifications with many of the POS integrators in the restaurant space. The acquirer became entrenched as the endorsed provider of many state and local restaurant associations. They even put together a suite of products and solutions geared toward the industry. Finally, Heartland produced marketing materials and designed sales presentations for their reps targeted at the restaurateurs. When a rep was hired they were focused on the industry and knew exactly what types of businesses they would have the greatest success at closing. This type of vertical or market segment approach, locally or nationally, can be beneficial and maximize the efforts of your employed sales staff.
Another tried and true way to increase the output of an employed sales force is to team them up with what I call “trusted advisors” of the merchant community. A good example of a “trusted advisor” is an agent bank. By securing agent banks and allowing your reps to work hand-in-hand with business bankers (the merchant’s trusted advisor) they will be much more successful. Nothing is more showing of this success than the First Data Alliance Programs. The employed reps in these alliances are more successful when selling leads handed from branch managers, going on joint calls with bankers, or even self generating business in the community carrying the brand of the bank.
There are other “trusted advisors” the acquirer can secure that may be just as beneficial. Some of these are: accountants, trade
associations, integrated systems dealers, and business consultants.
By securing “trusted advisors” for your employed sales force you can help them succeed in the market.
Lastly, lead setting can be a great way of aiding your sales force.
Generating warm leads can be done with a call center, via direct marketing, or even over the Internet, but can often be the boost a sales rep needs. By seeding a sales rep with just a few leads a week you can often create momentum that will carry him to the next level of success. I am not suggesting that an employed salesperson should not self-source business. In fact, even with the backing of any of these acquirer created programs, I believe an employed rep should self-source at least 50% of their business. Interestingly, what you will find is by helping the employee succeed they will become more motivated and push themselves to sell and self-generate even more.
Creating an employed sales force is not an inexpensive venture.
Acquirers testing this model should look to maximize their investment and reduce the payback period. This can be accomplished by giving your sales reps a leg-up on other salespeople in the market. Focus them on a vertical or segment, secure “trusted advisors” for them to team up with, and/or
create lead or referral sources for your reps. Any combination of
these tactics will aid in their success and will even help them in their efforts to self-generate business. In the end, their success correlates to your success. Give them as much ammunition as possible.
|
