With recent changes to the network commission models and the current economic climate constraints, UK mobile services distributor Fone Logistics has shaped its own top tips for dealers to help them overcome this challenging period.
There is no denying that the challenges have caused general concern among dealers, as the new commission structures mean that instead of being paid a pure commission on connection, dealers are experiencing cash flow burn as a percentage of their revenues will now be paid as a share of monthly billed revenue, stated the company.
This, combined with the contracting economy, means that dealers have to revisit business plans set a year ago and consider means of insulating themselves against the changes, Fone Logistics continued.
Fone Logistics has put measures in place to ensure that the new models will create long term value for its dealers by offering exclusive complementary products, enhanced upfront cash incentives, volume rewards, and extra support in managing the transition by way of business planning assistance and advice.
In order to ensure dealers survive the current climate and the commercial changes, here are Fone Logistics’ top 10 tips: Embrace the changes. The industry moves and changes, and that can be a positive thing, provided dealers work with the new environment not against it.
Set realistic targets and manage the business overheads against them. The situation means that commission being paid against monthly billed revenue needs to be taken into account when managing cashflow as there is not the volume of new business available to compensate for this interim funding deficit.
Involve your teams in helping to develop strategy, ensuring they remain motivated. Motivation is the key to meeting the sales targets so remember incentives can provide an excellent way of maintaining momentum.
Increase your saleable opportunities with customers. Selling new products and services, or offering add-ons to existing customers post-sale, can provide an easy way to reach sales targets. Fone Logistics can assist in offering and creating bundle packages.
Invest further in customer retention. It costs considerably more to acquire a new customer than to maintain and grow a relationship with an existing one. So, listen to what your customers are saying and ensure your product and service offering meets their requirements. Remember, they are feeling the same economic constraints that you are, so being flexible and proactive is key to cementing that relationship.
Understand your marketplace in more detail. Research your competitors and what they are doing; your customers, to determine their perception of your organisation; and your suppliers, to understand what is happening within the industry to allow you to shape your business to succeed.
Explore business efficiencies and outsourcing. This can provide an effective way of reducing costs without impacting on service. Fone Logistics’ infrastructure makes it possible for a dealer to operate with little or no logistical overheads.
Maintain consistent in the pursuit of strategy and objectives, and measure yourself against them to ensure they are being met. But don’t be afraid to challenge the strategy and remain open to embracing new ideas and avenues.
Portray a professional delivery image at all times. This is key to instilling customer confidence and the confidence of those within your organisation. Discuss any plans you may have to develop the business with Fone Logistics and ultimately remain positive and committed to the business. The changes can be a positive one if embraced correctly.
Finally, choose your partners wisely. One that is secure and sound, and insulated against much of the change, will offer you the ability to survive and succeed.