Click the image above for details Before getting into the main topic, I have a question for all distributors: What do you think is the most core asset in the distribution business? Is it capital? Brand? Warehouse? Or personnel? Indeed, these are all important, but I believe that the most core asset for a distributor is the network channel, i.e., the number of customers. With enough outlets, sales are guaranteed, the distributor's influence is greater, brand owners value you more, and you have more say in cooperation. When evaluating whether a distributor is strong locally, the first thing to look at is sales, and the number of outlets is the prerequisite for ensuring sales. Here I want to emphasize that developing new customers mainly refers to developing terminal small store customers, not wholesale customers, because wholesale customers can be unstable and may disappear at any time. Many sales teams are just marking time, visiting old customers every day without adding fresh blood. Many community small supermarkets are not actively explored, and as a result, they become exclusive stores for competitors. If you are in sales for a lifetime, you must develop customers for a lifetime; as long as your identity is a salesperson, you must develop customers. Take myself as an example: Although I am in management in the company, I also handle the operation of special channel group purchases. Every year, there are customer losses, and I also develop new customers. With two clerks, I can achieve annual sales of 40-50 million. So, how should frontline sales personnel develop new customers? Let's analyze from the aspects of preliminary preparation and specific methods. -01- How to Find Blank Spots! When salespeople visit customers, they often do so mechanically based on system route prompts. The stores visited are only those recorded in the system. Many newly opened outlets are not discovered, and by the time they are found, they have already been taken by competitors. Therefore, distributors must attach importance to developing new customers. It's not just about using simple assessments to urge salespeople to develop; they should formulate a complete strategy so that salespeople have goals and can develop new customers in a targeted manner. 1. Lock in new customer development targets by channel The number of modern channels is fixed, and most are directly operated by manufacturers, so they generally don't need to be considered. In addition, traditional channels, catering channels, special channels, and group purchases are all channels that need to be focused on for development. Different target customers should be locked in according to different channels. There are still many opportunities in many channels, but distributors just haven't seized them. For example, banks usually give gifts for deposits, such as a bag of rice for depositing 30,000 yuan, or a bottle of oil for depositing 50,000 yuan. For distributors, do banks count as new customers? If you can develop all the banks in your operating area as customers, that would also be a considerable increase. 2. Diagnose the number of new customers to develop by region and population The market is run by salespeople. When distributors ask salespeople to develop customers, salespeople often make excuses, telling the distributor that there are enough customers and no new ones to develop. But when you check, if the regional population is 200,000 and only 150 stores are being visited daily, it's obviously insufficient. Different regions have a rough outlet division based on population. For example, for grain and oil categories, it's generally one store per thousand people; for beverages, it's generally one store per eight hundred people. If the gap is too large, it means new customer development is not in place, and there are many potential customers not yet tapped. Therefore, based on regional population and size, diagnose whether the number of customers of sales personnel meets the company's requirements. The following table can be used as a reference: which area is responsible, what is the regional population, what is the current number of customers, how many new customers are planned to be developed, and how many have been completed. Based on the table, let salespeople track progress, and also use population to diagnose whether the data meets the requirements. 3. Department general manager leads the way in sweeping the streets to find blank spot customers As company management, you must take the lead. The department general manager should take the lead in developing new customers with salespeople from time to time. At least two days per quarter should be set aside to visit the market and check whether there are new customers around new communities. Salespeople all have inertia. When a new community opens a store and the security guard stops them, the salesperson just leaves. In such cases, you can negotiate. Tell the guard you are a salesperson, and a supermarket has opened in the community; register and go in. A while ago, I asked the general manager of the traditional channel department to visit the market, and in one day, they developed 7 new customers, all of whom placed orders. So, just shouting goals every day is useless. Managers must go to the front line to check. -02- How to Develop New Customers After diagnosing that salespeople still have blank spot customers based on regional population, and then finding blank spot customers through street sweeping, the next step is to consider how to turn these blank spots into your customers. Different channels have different strategies and methods. According to the three channels mentioned above, the methods for developing new customers differ. 1. Catering Channel When doing catering channel products, the most important thing is to find the key person. The catering channel is relatively special; the person in charge is often not the boss but the chef. Therefore, salespeople are required to know the restaurant's person in charge before visiting, cater to their preferences, and build a good relationship with them. The operation of the catering channel requires high standards for salespeople; they must understand the product's features and effects, and it's best to do on-site demonstrations so they can see the product is indeed good. After the other party approves the product, the salesperson should proactively give some products to the restaurant for trial. When promoting new products in the catering channel, pay attention to the promotion method. The best way is to hold a chef promotion meeting, inviting catering channel customers to the meeting. For example, hold a promotion meeting at a five-star hotel. When customers see that a five-star hotel is using your product, it sets a benchmark, persuading other restaurants to gradually use your product. 2. Special Channels Special channels are relatively difficult to work on, and it's harder to acquire customers. For example, banks, schools, etc., you might not even be able to get through the door to discuss cooperation. There are two effective ways to acquire customers in special channels: first, friend referrals, which are relatively stable and reliable; second, customer relationship, binding through intermediary interests. For such special channel customers, you can first lock in targets, set 40 targets, find the key points to handle one by one, and schedule visits. After completing each one, add another to ensure that all special channels in your area become your customers. Such customers place great importance on product safety. Distributors can take customers to visit the warehouse, letting them see your standardized processes, which makes them more reassured. 3. Traditional Channels Traditional circulation channels are the channels distributors work with the most and are most familiar with. Developing new customers in traditional channels is relatively simple for distributors. It can be summarized in twelve words: promote yourself, promote profits, promote products, and promote service. For blank spots, customers are completely unfamiliar with your information. What distributors need to do is first, promote yourself; tell customers who you are, which products you represent, and some information about your regional distribution, so customers can understand you. Second, promote profits; the essence of the relationship between distributors and small stores is interest. Make terminal customers believe that selling your products is profitable, and help them calculate profits. Include display rewards, purchase rewards, case cutting, floor display fees, etc., and calculate them for customers to see. These are all net profits for small store owners. Third, promote products; salespeople must have a thorough understanding of their own product information. When selling to new customers, let them know the advantages of your products, whether it's brand advantage, profit advantage, or price advantage. Finally, promote service. This topic has been constantly mentioned in the distributor industry, and distributors know how to do it. The key is to keep practicing it. Being inconsistent will only make customers accumulate more distrust. In conclusion: For distributors, they certainly hope for increasing sales. The sales brought by existing customers have actually gradually become saturated. If distributors want to further expand, they still need to develop new customers. The sales from new customers are entirely incremental. If distributors grasp this well, the new sales increase can be quite considerable.