Gan Jiawei: To Share With You, "Direct Sale ABC" Is Full To Dry Goods.

Content source: in July 7, 2019, in the new leadership innovation class and 2019 (Nineteenth) Chinese enterprise's future annual meeting held by Chinese Entrepreneur Magazine, Gan Jiawei, a former US group COO and a highly qualified partner in capital operation, took the theme of "direct selling ABC". As a partner, the note runner is authorized by the organizers and speakers.

Speakers, Jiawei, Jiawei, today's notes, Ruby Huang Xiaotong

Mention of Gan Jiawei, everyone is affectionately known as "ah Gan", whether in Ali during his tenure, or during the work of the US regiment, he brought us different wonderful.

Next, walk into today's article with you, and feel the brilliant sharing of ah Gan's characteristics from To B's business, thinking framework, talent view and system construction.

Enjoy the following.

What I share with you today is "direct selling ABC". The material is printed on "how to build the Iron Army", which may be my habit or not, and we usually call it direct selling. I've been working in the Internet industry for almost 20 years, basically doing this.

Direct selling sounds a bit more advanced and has a lot of definitions. It's more common and common: it's not in your store, it's interacting with customers and selling behavior.

Over the past few years, the battle for pure C traffic has come to an end in the first half of the Internet, so more and more are going to the supply side. Therefore, more and more enterprises will encounter sales problems. Today, I would like to share with you the basic framework of "how to think about this issue".

4 modes of sales

Let's take a look at the usual sales patterns: abscissa C and B, C as personal consumers, B as an enterprise. Ordinate price, from low to high, customers from small to large, from individuals to enterprises.

1. net pin

Let's look at the lower left corner. The relative unit price will be lower for the individual. The so-called electricity providers sell a lot of things on the Internet. For example, Taobao, the Chinese electricity supplier, first sold some cheaper things on the Internet, including today's spelling, which is basically cut from this dimension.

2. shop sales

This is also mainly for individual consumers. Comparatively speaking, there will be a brand and a little more value in the things we sell here. So it's better and more expensive.

3. direct sale

Direct selling is the commonly used push sale. Direct selling is mainly aimed at B terminal (enterprise), and the price of products and services sold is relatively high.

4. electricity sales (telemarketing)

Electricity sales are also very standard job sequences. There are also some ToC oriented projects. Online education has been very hot in recent years, many of which are sold by telephone.

However, online education may be a combination of e-commerce providers and e-commerce providers. Generally you can listen to the course online and feel good after listening. The relevant salesmen will call back later to sign the bill.

5. meeting sales (Conference Marketing)

Sales seldom exist alone. If user communication is the process of boiling water from 0 degrees, then sales will often be the last part of the contract signed by customers (burning to 100 degrees). Therefore, selling is generally regarded as a more important form, and can also be combined with other sales modes.

These are the basic sales patterns commonly used by enterprises in their daily operations. In many cases, enterprises will mix and match according to product and market demand, usually 1-2, to serve the market.

What we mainly talk about today is "direct selling", which is mainly aimed at enterprises, which is called B2B (business oriented business) rather than B2C. B2C, we see more forms of selling and selling.

Two, two main characteristics of TO B business

What are the characteristics of To B business?

1. more than one key person

What is a multi key person? For example, a personal consumer wants to make a purchase decision, in fact, it is about himself or to buy a thing for his family and children. He can make decisions according to his own ideas.

However, ToB business is often more than a key person. It may be selected by the department heads and functional departments to make suggestions. It may also seek to purchase funds from his superiors. The approval process may go to the director or VP, and some general manager and chairman of the board for examination and approval.

Therefore, To B business often needs to push several roles together to make a common decision in effective time.

2. direct interests and interests of non key people

To C is what I want to buy. We often have a word called "grow grass", that is, I have been thinking about this for a long time. I bought it today, that is, "weeding".

This is relatively rare in B2B business, and few department managers or general managers have been planting grass for a long time. Because in addition to the founders, the rest are basically professional managers or work in this unit, and this company is not their own.

For them, using this product or service is certainly a great pleasure for the company, but from their personal wishes, they do not have such a great obligation or interest to understand the product and service in detail, nor will they spend much time studying what software and new national standards they have.

It is these two characteristics that lead TO B business to set up a special sales team to promote products and services. But all sales departments (telemarketing or direct selling) are basically B2B businesses.

Many B2C businesses, directly dealing with consumers, are generally not called sales departments. They may be called e-commerce department, or marketing department or marketing department.

Three, the thinking framework of To B business

If a company is involved in ToB business, we need to have a sales department. So, what angle do the sales department need to think about?

1. self run or channel?

The so-called self run is to set up a sales team by ourselves. The so-called channel is to find agents to help me sell. Self employment has its own advantages, and of course there is a threshold for self employment.

This question may not have a simple answer, specifically speaking, it is related to the actual development stage of the enterprise.

(1) the company has just been established, and the new product has just appeared.

In this stage, even if your products and services are very suitable for channels, even if there are already available channels and cases in the industry, I also suggest that we sell them first, and then we will first take a sample of ourselves.

Otherwise, you have not sold yourself, where do you know the feedback from the market? If you give it to the channel directly, you will have a series of problems.

For example, how to set prices for channels? How to divide profits among channels? How to set goals for channels? How to further optimize products and services, and so on, will lose the reference standard.

So at least we have to have a basic experience of self run sample, have a clear understanding of our products and services, know what the channel cost and sales efficiency are, and then we can select and manage the channel providers.

Second, grinding period, non-standard, low margin products cautious use channels.

The grinding period means that the product service may not be mature. At this time, it is very risky for both sides to give the channel business.

When I went to the US delegation in 2011, when it was "1000 regiment war", there were more than 5000 group buying companies competing in China. At that time, some group buying enterprises were using the way of channel agents. But when we discussed internally, I strongly recommended not to consider channel agents. Why?

First of all, we have not yet understood how we organize the sales form and how to improve our efficiency.

It is you who do not understand yourself, but think others can understand it, but in fact, others may not understand it.

Second, group buying products are low margin products. This means that group buying is a business that is not necessarily profitable at a high level of management. Because the agency is acting a lot of products, and he is definitely the best seller and the most profitable one. It will not take time to specifically optimize the service of your product.

Looking for agents blindly can only be an agent losing money, you lose money, and you lose more.

So when we consider self run and channel, if your product is grinding period or non-standard, in fact, we have no idea.

In this case, it is necessary to understand the matter first and then see how to do it in a more standard way or channel.

Now the US group is acting in many cities, especially the 345 tier cities. This is because, after six or seven years of operation, the US group has built a good sales system.

Moreover, the market has already had a concept for the product service of the US group, and, of course, we can not do without our own strong sales system capability. By opening channels and agents at this time, they can conveniently run forward on existing bases.

But when you don't have the standard of maturity, you are looking for trouble.

2. electricity sales or direct sales?

Whether it's a self run or a channel, we need to consider whether to sell electricity directly or directly with To B.

The electric pin is set up with a few, dozens, and thousands of call centers. Telemarketing has the advantages of management, easy standardization and low management difficulty. Like other jobs, there are walls, access control, fingerprint punching and collective work. Supervisors can see the working status of everyone at any time, and have questions to ask at any time.

What is direct selling? Direct selling is the office of the customer, the office of the direct selling clerk, and the direct selling clerk runs to the client side when he goes to work. When you see him in the office, either he is not working formally or comes back from work.

To some extent, the management of direct selling is more difficult than selling electricity. But the disadvantages of electricity selling are also obvious.

First, awareness.

If a new product or service is not well known and there is no standard concept in a large area, it will be very difficult to use electricity sales promotion, because it is very difficult for you to communicate effectively in a few words on the phone.

For example, when the "thousand regiment war" was launched, many restaurant owners did not know what group buying meant when they called the restaurant owners to promote group buying business.

What does it mean to cooperate with you in group buying packages? He simply can't understand.

Second, online experience.

In the absence of offline trust and online instant experience, the effective unit price radius of electricity sales is relatively low. The most suitable radius is about three thousand to five thousand or six thousand. Higher unit price is hard to promote decision-making through electricity sale marketing without meeting.

But the online education mentioned above, many customers are priced thousands or even tens of thousands of units. Users can feel the value of trial products very clearly through the way of online, so we can follow up the signing of electricity with electricity sales under this situation.

Third, the threshold of payment.

Electric products often have higher prepaid threshold. For example, Alibaba through train and insurance industry are all prepaid forms. As income is far behind the payment and can not be accurately quantified in purchase, it will also hamper the promotion of purchase decisions.

But regardless of electricity sales or direct sales, when we consider organizing target design, we need to use revenue as a standard. I think a good reference standard is that every salesperson needs to earn 1 million of the annual revenue.

Why 1 million?

Let's see, the same call center, electricity sales personnel salaries generally higher than customer service, now many call centers are built in Xi'an, Hefei, Chengdu, per capita is about 10 thousand per month. First tier cities are more expensive. If you want to be more efficient, more efficient and motivated, you can get about 15-20 yuan a year and have seats cost.

If the target of single 1 million revenue is calculated, 200 thousand of per capita will be removed, and 80 can be used for product development, service redundancy and corporate profits.

If the annual per capita income is only 30-40 million, then there is little room for business to move. Because employees should be motivated to give him 150 thousand, and the remaining 15-20, how can your product service be optimized? Where does the profit come from? There are no guarantees.

So, I think 1 million is 80 points, 85 points level, to achieve this level, continuous operation will be more OK.

3. direct marketing or localization?

What is nomadic? Many companies have direct sales teams or push teams, and everyone is at a headquarters, but their way of doing business is basically a business trip, which is nomadic. Nomadic sales, like hunters, carry guns out, fight and fight, and then come back hungry.

In my experience, nomadic is actually a very difficult sales way, because the depth and sustainability of customer development will be challenged.

General business travel can be a single purpose of investigation, communication, understand that these customer value is not worth going, before going to the examination and approval, after returning reports, there is a control process.

But in fact, sales need to keep interacting with customers and find opportunities in interaction. I didn't think about meeting today. Once I met, I could get it done. I think this is very difficult.

So nomadic will affect customer development at funnel hole. We are talking about big water and big fish in sales. You can't touch big fish in a basin all day.

Nomadic will restrict you, so that the cost of sales is very high, but in fact, the customer contact is not big, and can not continue in-depth.

Localization is localizing in locals. You live here. You can visit the target customers regularly by district and street. Just like farmers watering and weeding on their own acres, we should cultivate the whole market and cultivate the customer.

As you gradually cultivate the market and nurture users, the customer community will gradually mature. Only in this way can you get sustained and steady results.

Companies often come to discuss with me how localization works. The first thing I want to ask is:

How many target customers do you have?

How many do you think the product service is in China?

How do they probably distribute?

If our customers have 5, and a salesperson can manage 50 at the same time, that means 1000 direct sellers. If these 1000 direct sales personnel and 5 000 customers are located in the top 100 cities of China, then I may consider setting up the organizational structure in the prefecture level city.

There are more than 350 prefecture level cities and more than 2800 counties in China. At that time, there were more than 280 direct organizations (similar branches and subsidiaries) covered by the US mission, and the total number of cities we could reach reached 1100. In addition, the US group had the largest number of direct branches in the country, and more than many logistics companies.

As we all know, logistics companies have some lines of cooperation and outsourcing, but at that time, all of them were direct battalions.

So, as long as you know clearly how many people you need and where the customers are, you will know how to set up the institution and set it up locally.

Think about it, if 1000 people at headquarters, 1000 people on a business trip, a round trip to headquarters, what a horrible sight. There are also special persons to manage the travel expenses of these 1000 people, whether they have exceeded the standard, and daily telephone subsidies, performance subsidies, etc.

These jobs are huge and inefficient, but if you design the organizational structure clearly, for example, an average group of 10 people in each city will have completely different results.

4. how to build a business platform?

We often say that the sales department is like an army. But as a boss, we can not just encourage morale, we must have the concept of business integration and strategise.

Are we direct or channel? Are we selling or selling direct? How can we localize? Including how to set up the budget, how many people we want, how much our royalty system is and so on.

For example, in 2012, the US group had to go ashore and break even in December. At that time, we deduced a list of the annual cost of things. At that time, the result of the deduction was that our business needed to achieve gross profit margin of 4% to achieve breakeven.

The profit and loss balance is not a gross loss, but the money spent on buying traffic. The money spent in the supply chain includes every piece of paper in the office.

For example, the hotel sells 100 yuan set meal and gives you a 4 yuan Commission. But these 4 dollars are not 4% for every restaurant in the country, nor 4% for each city, or even for different industries in every city.

For example, in Shanghai, before the merger, the public comment has great influence in Shanghai, so in Shanghai, our market share has been lagging behind for a long time, and we have no more than 4%. Don't say 4%, maybe sometimes people are unwilling to do it.

That means different cities have different gross margins, and there are different gross margins in different industries in the same city.

Just like the OTA industry, the OTA platform is the source of 15-20%, and we charge 12%. These hotels and hotels feel that you are very generous. But the restaurant has never been distributed on the Internet. There is no such cost in its cost structure. If you suddenly accept a few points, he will save it from other places.

In 2012, we distributed in more than 70 cities, each city is about 15 categories. According to market share and competition situation, each city has different gross profit requirements.

Then the gross profit of the city is divided into 15 categories, such as buffet, cinema and so on. Finally, the whole country has accumulated more than 1000 gross profit management nodes.

At that time, the US group had thousands of people, tens of thousands of bills per day, and finally achieved 4% gross profit goals by the end of the year through more than 1000 Maori control nodes nationwide.

These are all dependent on a strong budget system. How do we control the more than 1000 gross points? In our sales CRM (Customer Relationship Management), all the orders must be automatically checked through the system. For example, a buffet in a city must be 3 points (gross profit).

Four, look for people, from top to bottom.

Considering things from top to bottom, the introduction of talents should be the same. Only in this way, the whole methodology of introducing talents can be applied to the whole company, so that there will be no upper and lower levels of fighting.

Do not drop from the middle of the executives, he will face many difficulties, to spend a lot of effort to communicate with the upper and lower, and even with his immediate boss to deal with.

So how do we find people?

Most of the time, we don't know whether to introduce talents from outside or not to know where to introduce talents. The simplest way is that most of the talents are wild and pure.

In fact, I see many resumes and few interviews, because most people do not see my resume when I read my resume. I think a lot of interview skills are not reliable. You can see that your resume is obvious.

Most of them are wild and pure. Maybe they have rich experience and experience, and have done many companies to do it step by step from the supervisor manager to the director. But in fact, the company he has worked for has never been heard in this industry.

This means that his company may not be doing well in the industry. If you really do a good job, you must know. For example, the products of Tencent, Baidu's technology, and the push of the US mission have a good system.

The second level is a good system. He has worked in a good system, and knows how the regular army does it. At least it will rely on it.

Many of these people are sold by headhunters. Basically, headhunters also prefer this kind of business. If you work for ten or twenty years, the headhunter will starve to death, so this is an ecological chain.

We should not look wild and natural, because the uncertainty is too great. Although it may also be very good, you will meet someone who is very aggressive in an unknown company, and you will never be a self-taught person. That is a great master, but this probability is relatively low.

But if you find someone in a company that is well known for your industry, it is probably that he has seen a good system and knows how to stand at attention, rest and how to lie down.

A lot of airborne executives are actually out of second levels. They have seen a good system, but they do not think enough about the underlying methodology. They only follow the example of copying and copying.

People who really have built a good system know that they know it. Therefore, teaching students in accordance with their aptitude according to local conditions will not be (acclimatized).

Five, build a reliable system.

1. target budget management

Most of the companies grow naturally. I think a better company or many foreign companies have the effect of target budget management this year. We know at least whether it is fast or slow now.

The next level is process management. Many enterprises only manage the results and do not control the process. That is the so-called "mortal fear of fruit, Bodhisattva fear". Just like some people go to the temple to worship the Bodhisattva, bless the health and get rich, that is, as long as the result is irrelevant to the process.

But in fact, the Bodhisattva can not bless you. Suppose the Bodhisattva really speaks, the Bodhisattva says to you, "you work harder and diligently, you eat less meat and exercise more." This is process management. Only if you do well in process management can you get healthy and get rich.

There are not many managers in effective process management. Many executives meet there all day, pointing to the reports, but in fact, they are not so valuable to the organization.

What is a truly valuable manager? I want to deduce what things I can do well, and I can get the result, and then I will do a few things.

Don't just stare at the result, only the manager will replace the phonograph. You can only reflect the value through the intervention process. Finish these processes, and naturally get the results.

At the annual meeting in 2012, I told the US mission that I would do one thing all year long. Later, Lao Wang said, the two "Crazy" is still very intelligent. Why? Because crazy visits and crazy lists are process management, and the business is thoroughly understood, focusing on the key process.

2. what is good management?

Let's think about what problems we encounter in management. If you don't talk about him, you are uncomfortable; if you tell him, you will be uncomfortable. Management is often faced with this problem all the time. He could not beat or scold him, but he also made him proud.

What is the best management?

Most of us are parents from small to large, but few of them are divorced from their father / daughter / daughter relationship because they are scolded by their parents. Why? Because you know that parents are for your own good.

Similarly, management can be simple, you are good for employees. What you should do is what you need to do, parents may have conflicts, there may be conflicts, there may be many unhappy things, but employees can grow up here and get fair treatment. They not only earn today's money, but also earn a lifetime's money.

When we first went to the US, sometimes employees complained that our management was too strict and too demanding. I said this is right, because the US group is the highest standard in the industry, but we can promise you that:

First, we are the three person to do five lives, four people. If you want to work for five people, I will give you four yuan, more than the industry average, and give you enough income for professional dignity.

Second, third years later, other people are willing to pay a few times to earn you a few times. This is our promise. If you want, let's play together. If you want to, you want to go easy.

Whether employees are our assets or tools depends on what kind of attitude we should use to manage them. Is there any difference between our managers' consumption of tasks or the use of tasks to train employees? The difference lies in what the heart thinks, and how to do it over a long period of time.

For the long term growth of employees, the right way and vertical climb will make your management better.