CRN Network, November 16, 2009, 1300
IT and consumer electronic majors in India may be losing up to Rs 84 lakh per store annually due to poor sales effectiveness, claims a study on IT and CE reseller effectiveness.
The study was commissioned by performance improvement solutions provider Grass Roots Group using 1,400 mystery shoppers across seven countries in Asia-Pacific namely India, Singapore, China, Australia, Thailand, South Korea and Indonesia.
The Grass Roots report based on the study findings claims not enough importance is being given by brands and resellers to the performance and behavior of the sales staff who, at most times, influence the decision making process around purchase.
“Ironically, the sales executives have little interaction with the brand, and therefore are least utilized to drive growth. The results indicate that IT and consumer electronic brands across Asia-Pacific are losing millions annually due to inadequate capabilities of the frontline sales at the reseller stores. Grass Roots estimates that in India alone the brands might be losing as much as Rs.84 lakh per annum per store in terms of missed sales opportunities,” the report added.
The Indian sales executives, in particular, greeted the customers well, showed superior product knowledge, listened to their customers attentively but they failed to establish customers’ needs by asking the right questions. Moreover, 53 percent of them made no attempt to close the deal, claimed the report. They did not ask customers the basic sales question “Do you wish to purchase the product?”
India lagged behind business competitor China by a huge margin in most of the categories. Only 19 percent of Indian sales staff made an attempt at up-selling as against 40 percent in China. These statistics are sure to have alarming implications for those industries which depend on channel partners such as distributors, resellers, franchisees or third party intermediaries for sales, said the report.
According to the Grass Roots report, the clear message from the data gathered is that a holistic approach needs to be taken to two inter-linked issues; the strength of the relationship between the brand and the channel, and the overall sales effectiveness of frontline sales staff to promote the brand.
Although entwined, each issue deserves a different method to achieve desired success. This can be through alignment of brand promise and key channel initiatives which will see sales staff changes from mere pushers of product to brand ambassadors. It will also support the channel to turn a store of sellers into a welcoming environment for buyers, the report concluded. |