You probably still work with Field Sales door-to-door, dividing your team by region in order to prospect as many customers as possible.
If this statement is correct, know that your CAC (Customer Acquisition Cost) can rise and exceed your company’s profit.
In this scenario, working with door-to-door sales makes your cost increase, your profit decreases and makes your company’s risk of failure increase a lot!
You must know how to manage your employees and how to prospect your customers efficiently and assertively.
When we talk about CAC, many professionals think directly about Inside Sales (inside sales), but it is possible to reduce it in external sales too!
Find out how in the tips we’ll give you throughout this article. Let’s go together!
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- Using commercial intelligence
- How to reduce CAC for Field Sales?
Using commercial intelligence
It is necessary to think, analyze and understand processes in any area, and in sales, it would be no different.
When we talk about business intelligence, we want you to know that this magic card can also be applied in your company.
The techniques are simple, but worth gold! When using commercial intelligence in sales, it is possible to:
- Make sure the buyer wants what you’re offering;
- Know the buyer’s reason for not wanting to buy from the competition;
- Have in-depth knowledge of the product before offering it.
But if you are still not convinced of this technique, I ask you: how does your average ticket behave in terms of the cost spent on your team?
Your team must cost cheaper than your average ticket. If it’s costing you much more, your strategy will be to lower salaries, lower commissions, or fire employees.
This strategy is not the best, after all, without good commissions, your sellers will not be motivated to sell and earn even more. And everyone knows that unmotivated salespeople don’t move the company.
By managing your team well to reduce CAC, your company increases the Average Ticket and, consequently, the benefits of your salespeople as well.
Now let’s get to what really matters: efficient ways to reduce CAC in your field service company.
How to reduce CAC for Field Sales?
CAC is a metric that basically shows the monetary efficiency of a strategy: the higher the CAC, the more money is being spent to acquire a customer and the lower the return on the action.
But how to reduce customer acquisition costs through good team management?
Check out the tips given by the Head of Sales at Auvo Tecnologia, Felipe Campos:
#1 Inside Sales + Field Sales
The first tip is: implement Inside Sales elements in your Field Sales company.
Currently, your sellers make several visits from the beginning of the prospecting to the closing of the proposal, correct?
Know that this is raising the cost of travel expenses and decreasing productivity. After all, how many visits are made until the sale is completed? I’m sure there are many.
Therefore, I recommend the implementation of Inside Sales, whether by phone or email.
It is a way to get in touch with the customer, find out more about your company, what he wants with the service you offer, among other various information that can be obtained.
This is a way to break the ice and know if what you’re offering fits in with the customer you’re trying to prospect.
Thus, when your salesperson leaves for the customer, he will already have several cards up his sleeve and the chances of closing are much greater.
Note: Make the 1st call or the 1st contact with the customer very well so that further contacts are faster and easier.
#2 Invest in training
The sales training from a vendor on the field must be different from that work internally? The answer is yes!
To be able to reduce your company’s CAC, you must always be aware of the sales training you give your team.
You need to train them so they know exactly what the customer’s pain is, what that particular customer expects from your company or service, and how he can help you.
After all, with a shorter sales cycle, your cost is also lower!
Remember I said that you need to make the first contact with your customer very well?
This shortens the customer prospecting cycle and makes the sale much faster. But for that, training is essential!
Reading tip: The book SPIN Selling, by Neil Rackham, focused on the importance of asking the right questions when selling. It’s worth investing! 😉
#3 Sales as an Analytical Process
Sales are worthless if there is no analysis and follow-up process behind everything that is being done.
If you want a differentiator in your company: accompany your salespeople to ensure that all processes and sales cycles are fulfilled as necessary.
It is always necessary to seek validation, that is, ask questions that ask your customer to answer them and make him see and understand that he is in need of what you have to offer.
As each company is different and offers different products and services, the creation of these questions should come from you, the sales manager. But, we will give some very used examples:
- 1st step: What is your objective and how do you think we can help you?
- 2nd step: Do you believe that with what we offer you, your problem will be solved?
We’ve given examples of simple 2 steps, but depending on what you’re selling, these steps extend.
The important thing is to closely monitor everything that is being executed so that the processes are fulfilled.
#4 Investing in technology
We’ve reached the fourth and final step: with everything we’ve taught you to do to reduce your CAC, how will you do it without automated processes?
Let’s take a practical example: a new salesperson joined your team, how many days would you stop producing just to train him? About two days, correct?
You need to automate these processes, have planned shutdowns and not stop your work every time to solve this problem.
It’s no use following all the tips given here if your processes are not following trends.
What you can (and should) do, create a sales playbook, in which all the information. courses, books, podcasts, etc. will be available to your entire team.
Do they have doubts? The playbook is there to help!
Another thing you can (and should) do is use everything that technology offers.
Don’t be afraid to invest in good technologies! You can find great materials to help you with sales planning to reduce your CAC with the Field Sales team.