5 Common Mistakes Made in Managing Sales and Distribution

December is here and companies are getting ready for the biggest commercial campaign of the year: Christmas. This season usually increases sales for many businesses; however, there are factors that put entrepreneurs in check: the global economic crisis, the foreign trade crisis and containers, fluctuation of the dollar, among others.

In this scenario, it is of vital importance for companies to take care of sales and manage a good distribution chain during the Christmas campaign. Both factors can be responsible for the growth or failure of a business.

MISTAKE 1: NOT KNOWING THE CUSTOMER

The increase in sales is directly proportional to how well the business’ target audience (customers) is known.

It is necessary to keep a record of past customers and thus build a “customer profile” (knowing what needs they satisfy with our products or services, why they buy from us, etc.).

With this information we will be able to improve our current offer, offer additional products, among others. This profile will be nourished and perfected with new clients and the reception of sales.

MISTAKE 2: FORGETTING TO FOLLOW UP

Not all sales are made in one day. Therefore, after providing a quote or proposal, following up with a customer is a fundamental action that must be carried out to resolve doubts or provide new purchase options.

Likewise, knowing the customer and following up properly can encourage repurchase. Continuous and effective communication with a prospect increases a company’s chances of closing a sale.

MISTAKE 3: INACCURATE PROJECTIONS

In the past year, the global marketplace has seen a number of consumer shifts as a result of the pandemic. Therefore, companies must project their sales effectively to avoid overstocking.

For example, it is recommended to review the demand for the same period of time in the previous year and then know how sales were in the last three months. Based on this, companies will be able to make analyses that will allow them to avoid monetary losses.

MISTAKE 4: LACK OF STOCK

The transportation crisis in Asia has caused many companies to have delays in receiving their imports.

Therefore, the expert recommends that companies communicate with their suppliers and validate how long it will take for their products to arrive.

This information will allow them to take advantage of opportunities, such as the Christmas campaign, in an efficient way.

In case the supplier is unable to deliver the goods, talking to local suppliers is an excellent option to avoid losing sales.

MISTAKE 5: NOT USING TECHNOLOGY

Some businessmen leave technology aside in their sales and distribution processes. However, this resource is an ally for the reduction of time and human capital in the processes (which translates into savings for the business).

Through ERP software,companies will be able to know the number of purchases of past cycles and thus make a real projection by analyzing the purchasing behavior of their customers.

Likewise, they will avoid losses, since alerts will be generated in case of minimum or maximum stocks of their products.

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