Posts

Mapping Coverage Illustration

FMCG Companies Must Optimize Sales Coverage, Here’s Why!

Sales coverage or Area Coverage is basically the most important part of Territory Management on FMCG which is applied with a mix of the marketing mix (Product, Place, Price & Promotion). With the existing coverage area, FMCG company salespersons must be able to increase effective calls (outlets visited and make transactions) to ensure product distribution (availability and visibility), education, promotion, and price stability.

Sales coverage is the area coverage grouped based on certain criteria such as location, store name, and store type. With this grouping, all shops will be visited regularly by salesperson FMCG company according to a predetermined schedule.

It is undeniable that sales coverage is one of the keys to smooth business at an FMCG company. Therefore, FMCG companies should design a strategy so that sales coverage impacts on company revenue What are the reasons? Here it is!

All shops are well monitored

With the implementation of sales coverage, salespersons can schedule periodic and measurable store visits. The more regularly the salesperson visits the customer, in this case, the store owner, the more neat and orderly the store will be in managing our products in the store.

Salesperson, It also functions as an intermediary, between the company and the shop owner. Regular visits will make communication between the two better, including discussing the obstacles that may be faced. This means that companies can provide solutions and meet customer needs, better.

If these stores are properly monitored, the company can map out which stores have high incomes and which stores have not maximized their income. So, companies can also help overcome the challenges they face which in turn helps increase sales.

Target and sales increase

One way to optimize sales coverage is to improve salesperson performance. Set determining indicators, for example, the minimum number of visits made in one day, the routine of visits, and the target of visits that must be carried out during a certain period. The salesperson must also be able to estimate the distance and travel time when visiting the customer’s premises, as well as adding new customers within the same area. With sales coverage, salespersons can also learn about the character of consumers in their area. This is very helpful in the decision-making process for which items will be sold more or which items are not too in demand so that sales optimization can be realized.

Budget more planned

If the salesperson’s performance is regular and clear, the company can manage the distribution budget more neatly. Companies can streamline the budget needed for salesperson visits to various customer stores. All budgets will be recorded based on salesperson routines. So, no more cost overruns for unnecessary things.

Improve customer service

Optimizing sales coverage by maximizing the work of the salesperson, also means improving service to these customers. With a salesperson who regularly monitors partner stores with a fixed schedule of visits, it means that the store can predict the amount of product inventory to sell. Customers will also find it easier to calculate product needs, make sales predictions, and do things that can increase sales. In the end, FMCG companies also helped in increasing revenue.

Products are easy to find.

Sales coverage well laid out, it will also make it easier for consumers to get company products. By using demographic data of the population in its “coverage area”, salespersons can manage product availability in each area. The amount may not be the same at every store or at every point, where each can be decided based on the number of items sold in each store. The salesperson can also focus sales to areas with high demand for goods so that turnover also grows. Meanwhile, areas with suboptimal demand can be considered for the next sales strategy.

Those are some of the reasons FMCG companies must optimize sales coverage. In the end, the income of shops and retailers will be followed by an increase in the income of the principal company.