There are many ways to achieve growth in distribution business, such as adding agency brands, expanding distribution networks, and developing sales channels. These can all bring growth to distributors, but the most direct way is to increase the frequency of customer orders. As distributors, you should all understand a principle: the higher the customer activity, the more orders placed, and the greater the distributor's sales. So how to increase customer order frequency? The simplest way is still customer relationships and service. Relying solely on products to drive sales and increase order frequency is very costly. I have always insisted on one viewpoint: a salesperson who relies on products alone is not a qualified or excellent salesperson, but one who wastes time and energy. Distribution business is data-driven; if you pull up the data, you will see that those with good sales performance are those who have good relationships with terminals and are trusted by customers. Some distributors may think that customer relationships and service are not valuable, and that giving a few cents off is better. But have distributor bosses ever thought about why e-commerce platforms like Xintonglu, Retail Link, and Yijiupi have not replaced distributors? In terms of price, they are direct from the manufacturer, so prices are lower; in terms of delivery, they can guarantee next-day delivery for orders placed the same day, which most distributors cannot guarantee; in terms of promotions, platforms subsidize with money every now and then, burning cash to buy traffic. Compared with these big platforms, where is the advantage of distributors? It is still in customer relationships and service, which is also the value of distributors. For example, salespeople actually do the same thing every day: visiting customers and taking orders. So how to increase the frequency of customer orders? It is not that if a customer can sell 10 boxes of water a week, you only order 5 boxes each time, but if the customer can sell 10 boxes, you should make him order 15 boxes, ensuring it is 1.5 times what the customer can sell. How to make him order 1.5 times the quantity and increase the frequency of customer orders depends on the distributor's customer relationships and service, and whether they can gain the customer's trust. Specifically, how to do it? -01- Dispel customer doubts and give customers a reason to stock up! Customer concern 1: What if the product doesn't sell well? If the customer raises this question, it means that the salesperson has been irresponsible in the sales process before, such as overstocking, not timely exchanging or returning products with long dates, or not exchanging at all. Solution: Help customers make special displays, do visual merchandising to increase product exposure; give customers promotions, product bundling with gifts, to help customers move inventory; regularly hold off-site promotional activities, such as helping customers with off-site tasting activities; urge salespeople to implement the "Eight Steps of Visits" actions, especially checking product dates and damage, and timely exchanging goods. Customer concern 2: No place for display, warehouse is full, no place to put it. In fact, this is not a customer concern, but an excuse for not wanting to stock up. The customer's warehouse is not big, but how much space can ten or twenty boxes of your goods take up? Solution: If there is no customer relationship, first use expenses to impress the customer, such as support for cutting cases and display fees. If the customer's facilities are not complete, you can also give shelves as gifts. Secondly, the salesperson should have simple sales pitches, such as "Boss, first order two boxes to try, and order more after selling out," or "I'll help you tidy up the warehouse; there's definitely room for two boxes." Customer concern 3: No funds, and if it doesn't sell, it will tie up capital. Most small shops in traditional channels have been open for over a decade, especially in townships, where the house and shop are owned by the customers. 95% of small shops have sufficient funds. Only during holidays like Spring Festival and Mid-Autumn Festival, when funds are used for ordering meetings, are funds insufficient. At other times, funds are sufficient. This is my conclusion from market research. Solution: Check if there are competing products in the small shop. If there are, analyze the advantages of your product compared to competitors, such as product advantages and policy advantages. If there are no competitors, use other nearby stores as benchmarks to tell the shop owner that the product sells well and suggest he order a box or two to try. Customer concern 4: Can I make money? For customers, the most important thing is whether they can make money by selling your product. If your product is hard to move and has low profit margins, they will definitely not be willing to sell it. On the other hand, whether there are preferential policies and whether expenses can be covered are also concerns for customers. Solution: Manage the price system well, and ensure that new products have higher profit margins than old ones. In terms of product items, separate small shops from large shops, for example, use different colored labels for products sold to large shops and small shops, and also use different labels for different regions. Whoever disrupts prices will have supply stopped. At the same time, during the promotion period, the promotional intensity must be high, with gifts and generous profits. Customer concern 5: What about expired products? For example, a distributor reported a problem: in an area with 150 small shops, only 90 stocked up, and growth could not be achieved. After analysis, the problem was found to be with the salesperson: overstocking, a large number of products nearing expiration, and slow exchange or return, leading terminals to be afraid to stock up, worrying that expired products would not be handled. Solution: Establish a system, such as promising unconditional returns within 4 months; set benchmarks, such as nearby customers who are selling well, and if they really can't sell, transfer the goods to better-performing stores; arrange promotional staff to help sell in stores. -02- How to increase customer order frequency and achieve growth! There is a premise for increasing customer order frequency: place orders based on customer safety stock, i.e., at least 1.5 times weekly sales, not more or less. Specifically, how to get customers to order more can be divided into three dimensions: 1. Promotional policies When customers have low stock and are hesitating between ordering and not ordering, in this case, the salesperson can use promotional policy discounts to attract customers to order, and set a time node. For example, tell the customer that the policy was specially applied for from the company before coming, changing from the original 10+1 to 6+1, and the deadline is today. After today, the policy will revert, seizing the customer's desire to take advantage and order more. In-store promotions, store festivals, or off-site promotional activities should be held regularly. These activities are mainly aimed at township markets, because urban consumers now have higher brand awareness, and although they still have a mentality of taking advantage, it is not as strong. So it is best to go down to townships for such off-site promotional activities, where the effect is still very good. Maybe this customer usually sells about 10,000 yuan a month, but with two days of activities, they might sell 20,000. 2. Expense rewards Display rewards assess process indicators, with standards to encourage more orders. For example, terminal small shops have cashier display fees. If shelves are out of stock or sold out, the salesperson should replenish in time. Display and case-cutting fees have standards. The salesperson can use this to get customers to order more. If they previously ordered 10 boxes and sold well, let the customer order 15 boxes. Agreements stipulate that reaching rebate targets requires more orders. Most distributors sign rebate agreements with large stores, requiring a certain amount of sales each month, accumulating to a quarterly total, and checking and urging weekly. For example, if the rebate agreement requires 300 boxes in three months, the salesperson should not just let the small shop complete 100 boxes per month, but let the customer order more in stages. 3. Terminal management When small shops have old product inventory, the salesperson should not push old products hard. Instead, change the approach and tell the terminal owner about new products, letting the owner order new products. As long as you visit, don't return empty-handed. Based on market conditions, order more when prices change. For example, beer enters the peak season in June and July, and distribution begins in April. At this time, tell the owner that the peak season is coming, promotional policies will be withdrawn, and delivery times will become longer, so he should order more now. Compare benchmark customers to stimulate owners to compete and order more. In the same area, there are bound to be competing stores. The salesperson can use competing stores to stimulate customers, telling them that competitors have sold a certain amount, and they are no worse, so they should win back consumers and order your goods. Use customer relationships to order more. Generally, stores with good relationships, knowing that the salesperson has sales targets, will be willing to order more when asked. In conclusion: Salespeople visiting terminal customers must not return empty-handed; at least 80% should close deals. That is the ultimate goal. It is not about one customer placing a large order, but every customer visited placing an order.