With the proliferation and advancement of channel digitalization software, more and more manufacturers have come to realize the importance of terminal systems. As a result, almost all brand owners require their salespeople to use their own terminal mobile systems in their daily work. Otherwise, they impose 'measures' on distributors. Common 'measures' include:
If usage is not up to standard, market expenses cannot be reimbursed, and the company will not provide support;
If usage is not up to standard, the distributor's sales team cannot have their attendance recorded, and base salary support is not available;
If usage is not up to standard, data on outlets, inventory, and delivery timeliness will be incomplete, potentially leading to penalties or even account closure;
There are even more bizarre tactics, which I won't list one by one.
Distributors are also troubled. Sole agency for a single brand carries high risk, and some brand owners change distributors as easily as changing clothes, with countless reasons for elimination.
Thus, the phenomenon of 'shared salespeople' has emerged. Under pressure from brand owners, distributors favor the base salary and market expenses offered by brand owners, so they require their subordinates to use multiple systems simultaneously. That is, one salesperson uses a phone with multiple manufacturers' terminal system apps, and when they arrive at a terminal store, they take a flurry of photos.
During a visit to a distributor, I once saw the most extreme case: a salesperson had five brand apps installed on their phone simultaneously. When visiting a terminal store together, just taking the storefront photo (storefront plus selfie) took nearly a minute.
They carried a large-capacity power bank (since logging into terminal systems is battery-draining). After entering the store, they operated frantically, with photos taking up more than half of the visit time. Work efficiency dropped significantly, causing distress for the salesperson, the distributor, and the brand owner alike.
So why exactly should terminal systems be used? How should we view their value?
-01- Terminal systems are tools that need marketing thinking to empower them
Many manufacturers and distributors over-mythologize terminal systems, believing that simply choosing a suitable system can dramatically boost performance. They trust and rely on terminal systems excessively, and some system vendors also exaggerate their system's capabilities.
For example, one software claims it can achieve automated and intelligent sales management for enterprises, which is pure nonsense.
Terminal system software is just a tool, like eating utensils or paper and pen for writing. It helps achieve goals through tools.
For FMCG, the role of this tool is: to implement the sales-driving logic designed based on product differentiation, then integrate it into the daily work of frontline staff, and achieve continuous tracking, checking, and motivation.
The core is that product marketing strategies are efficiently realized through terminal system tools. A terminal system without marketing strategy is soulless, and software vendors that do not empower marketing strategies provide extremely low value.
Note: Whether it's an internal or external information system, the most important issue is that IT doesn't understand business, and business doesn't understand IT. We used to say IT supports business, but only when you understand the customer's business better than they do can you use IT to lead business and fully realize the value of terminal systems.
Let me give a simple example: A distributor uses a terminal system, first designs the sales-driving logic for their products, then manages it through software to achieve growth.
Zhang San operates a instant noodle brand. In July, he designed a sales-driving logic: bundle a washbasin with each carton of instant noodles, place it at the store entrance, and provide detailed promotional information.
After the policy is set, it is implemented through the system:
1. Visualization of the salesperson's outlet coverage rate for the noodle+basin combination;
2. Visualization of the display standards, location, promotional information, and authenticity of the display for the noodle+basin combination;
3. Visualization of terminal inventory and sales movement for the noodle+basin combination;
4. Visualization of visit frequency and quality for the noodle+basin combination;
5. Checking the noodle+basin combination and issuing personnel incentives.
This series of operations is completed through the system. Managers cannot be on the frontline all the time. Through system tools, channel visibility is achieved, placing the sales-driving logic of channels, terminals, and personnel in a visible environment.
Decision-makers use visualized data, images, etc., to discover terminal opportunities and then guide and adjust the next steps for frontline staff. This is the value of the tool, but the sales-driving strategy must be the crystallization of sales managers' experience and wisdom.
-02- The core of terminal systems is not managing people but managing tasks, with a focus on performance improvement
Many manufacturers and distributors use terminal systems with the aim of constraining salespeople to serve themselves, or to shift the focus of 'shared salespeople' toward their own brand.
This is a major misconception. The core of terminal systems is not excessive supervision and management (though people are inherently lazy, so supervision and management are necessary), but rather how to effectively improve performance.
A common mistake among manufacturers and distributors is that sales management departments spend too much effort on basic sales tasks such as the number of visits, visit success rate, transaction amount, working hours, in-store time, and travel time ratio, while paying insufficient attention to in-store actions, such as comparing the current display with the previous one, which are crucial for product sales.
Teacher Liu Chunxiong once pointed out: Problems that salespeople encounter in the channel are reported by the salespeople themselves, and then they solve them themselves. Once a real problem arises, this becomes a vicious cycle with no solution.
This is a common problem in the FMCG industry and a major flaw in management thinking. Managing people through terminal systems ultimately results in reporting outcomes. After spending a lot of money and effort, the conclusion is: it confirms that you haven't done well, and you fall behind in everything.
Managing tasks through terminal systems yields goal-oriented process management, identifying and solving problems in real time, and thus achieving ideal results. Of course, nothing should be taken to extremes; there must be priorities.
Finally: The logic of managing people through terminal systems is like a tight band on frontline workers, focusing on finding faults and preventing mistakes. The logic of managing tasks is like a good helper for frontline workers, focusing on discovering and assisting with market operation difficulties, and achieving business performance goals through effective incentives or policy support. The two are completely different in terms of frontline workers' preference.
-03- Integrate and optimize, reduce complexity, and improve human efficiency
A mature terminal system software is like a Swiss Army knife with hundreds of functions, but you don't use all of them for every task.
Terminal system software is the same: although it has many functions, it should be adapted to local conditions. Choose the functions you need, start with the urgent and important ones, and then gradually upgrade or replace functions.
I once met a distributor who had too high expectations for the system. As soon as they adopted it, they required all subordinates to use all functions simultaneously, including visits, orders, warehousing, delivery, and accounting.
After three or four days of off-the-job training, errors and loopholes still appeared during actual use. The salespeople complained bitterly, human efficiency dropped significantly, morale plummeted, and turnover rose. After two months, they had to stop, and later, because the salespeople's aversion to the system couldn't be reduced, they had to replace it.
In reality, everything needs to be done step by step. For example: If you are evenly matched with a competitor in the market, you can enable the competitor comparison function, allowing managers to monitor competitor movements in real time. Once salespeople are proficient in using the terminal, you can add inventory management functions, allowing managers to monitor warehouse and terminal store inventory status and sales movement in real time.
Here, I also want to appeal to terminal system vendors: R&D departments must personally go to the frontline market to experience the system's smoothness and complexity, and integrate modules as much as possible.
Reduce the number of clicks for frontline workers. Remember, if a store requires one less operation, that's 30 fewer operations a day and 800-900 fewer a month. Make the system as smooth as possible, avoiding waiting states or 'spinning circles' during use.