What is Outside Sales? A Comprehensive Guide for CPG Brands
In the world of consumer packaged goods (CPG), establishing strong retailer relationships is essential for success. While digital marketing and in-store promotions are crucial, outside sales remain a critical growth driver. But what exactly is outside sales, and why is it so vital to CPG brands?
What is Outside Sales?
Outside sales involve selling products or services through face-to-face interactions, often at the client’s location or external events like trade shows. Unlike inside sales, which are handled remotely via phone or online, outside sales require sales representatives to visit retailers, stores, and distribution points to build relationships and close deals.
For CPG brands, outside sales reps act as brand ambassadors, helping to secure prime shelf space, manage in-store displays, and strengthen retailer partnerships. These reps ensure that products are consistently visible and restocked in high-traffic areas, directly influencing sales.
How Does Outside Sales Benefit CPG Brands?
Outside sales reps are crucial for brands looking to expand their retail footprint and maintain a strong presence in stores. Here’s how outside sales positively impacts CPG brands:
- Securing Shelf Space: Reps negotiate with store managers to obtain premium shelf positions, increasing product visibility.
- Building Relationships: Long-term retailer relationships lead to repeat business and ongoing opportunities.
- Promotional Negotiations: Sales reps can secure in-store promotions, leading to higher sales during promotional periods.
- Ensuring Product Availability: By visiting stores regularly, outside sales reps can help maintain stock levels and reduce the risk of out-of-stock situations.
Characteristics of Effective Outside Sales
A successful outside sales strategy goes beyond closing deals. It’s about nurturing retailer relationships and identifying growth opportunities. Here are key traits of effective outside sales for CPG brands:
- Relationship Building: Establishing trust with retailers is key to securing better shelf placement and gaining market insights.
- Product Knowledge: Reps need to deeply understand their products and how they stack up against competitors. This knowledge allows them to confidently pitch to retailers.
- Market Insights: Staying informed about trends and consumer preferences gives sales reps an edge when pitching products.
- Adaptability: Every retailer is different. Effective sales reps tailor their approach based on the retailer’s unique needs.
- Persistence: Maintaining consistent follow-up and presence ensures long-term success in securing and growing retailer accounts.
Tools to Enhance Outside Sales
Managing numerous retail accounts can be complex. Account management software helps streamline the process by tracking communications, centralizing customer data, and facilitating order management. Additionally, route management software optimizes travel routes for sales reps, allowing them to visit more retailers efficiently.
Measuring the Success of Outside Sales
Tracking key performance indicators (KPIs) is essential to evaluate the impact of your outside sales strategy. Common KPIs include:
- Revenue Growth: Increased sales volumes indicate successful outside sales efforts.
- New Account Acquisition: Expanding distribution by securing new retailers is crucial for growth.
- Shelf Placement: Measuring product facings and their placement within stores shows the effectiveness of sales negotiations.
- Repeat Business: Strong retailer relationships result in consistent reorders, a key measure of long-term success.
Outside Sales vs. Inside Sales
Both outside and inside sales are important, but they serve different purposes. While outside sales focus on building relationships through in-person interactions, inside sales manage repeat orders and remote account handling. Together, they create a comprehensive sales strategy for CPG brands.
Why CPG Brands Need Outside Sales
For CPG brands, outside sales provide several advantages:
- Securing Prime Shelf Space: Personal interactions allow reps to negotiate premium shelf positions, boosting product visibility.
- Building Strong Relationships: Outside sales reps develop lasting relationships with retailers, ensuring continued business and better contract terms.
- Expanding Market Reach: By visiting new retailers and stores, sales teams help brands expand into new markets and regions.
- Supporting In-Store Promotions: Sales reps are instrumental in setting up and managing in-store promotional efforts.
The Importance of Outside Sales for CPG Brands
Outside sales are a critical strategy for CPG brands, providing the human connection necessary to build strong retailer relationships and secure product placement. By focusing on relationship-building and leveraging tools like account management software, brands can drive growth, expand market reach, and achieve long-term success. Engaging directly with retailers allows sales representatives to understand their needs better, address concerns, and foster loyalty, which ultimately enhances brand visibility and sales performance.
How SimplyDepo Supports Outside Sales Efforts
SimplyDepo enhances outside sales by equipping sales teams with powerful tools to streamline their operations and improve communication. The platform provides real-time data access, enabling sales reps to track their interactions with retailers and monitor product performance efficiently. Additionally, SimplyDepo’s mobile capabilities allow field teams to update information on the go, ensuring that everyone has access to the latest insights. By integrating these features, SimplyDepo empowers CPG brands to optimize their outside sales strategies, ultimately leading to stronger relationships, improved sales outcomes, and sustained growth.