A KM framework for frontline sales

• Knowledge of how to sell. They need the basic knowledge of the sales process, such as relationship building, negotiation, and closing. This can be taught in theory, but the knowledge is really only acquired through practice, for example through role-play and coaching, as well as on-the-job learning and “learning before doing”. As one sales director told us, “we always do a lot of scenario planning. Before reviews I sit with my team and I plan what is the worst case that might happen, and how do we combat it? What is the most likely case, and how do we combat this?  What is the best case, and how do we maximize the outcome”?

• Knowledge of pricing. Sometimes the price of an item is flexible, with the potential for offers and promotions such as “buy one, get one free”. The sales force need to know the pricing strategy, the pricing options, and how to sell the benefits of the pricing approach to the buyer. This knowledge needs to be provided to the sales force by the experts in the sales organisation, who themselves rely on input from the sales force. Pricing strategies can usefully be shared between sales forces in different regions and different countries.

• Knowledge of product. The sales force need to know the details of the product, and to be rapidly briefed in any new products that may be developed. In the conversation with the buyer, the sales person has to be the product expert. This knowledge comes from the product development unit, and may also be informed by feedback from customers and consumers. One firm producing motor oil products delivers regular training to its sales and marketing departments to bring them up to speed in new products.

• Knowledge of the consumers and their behaviour. This includes knowledge of buying habits and how to influence them; through display, promotions, education and negotiation. The sales person selling to a retailer, for example, must be the recognised category expert and understand the category shopper better than the buyer, and better than the competing companies. “One thing that we offer is our understanding of the local consumer, and we need to use that knowledge to advise the retailer” said one sales manager. This knowledge can be used to sell the products and brands better, to build more shoppable displays, and to help to grow sales for the retailer, and thus for the sales force. The sales rep starts to act as a consultant to the retailer, offering a knowledge based service.

• Knowledge of the sales to that buyer. They need to know the sales data, the margins, and the trend. This knowledge will be delivered by the central sales organisation, based on studies and on aggregated sales data from across the firm. One sales manager told us “we have to know our data and information much better than the buyers do. They will use a set of information on how much they buy and sell from us, we need to know this data far better than they do”. If the buyer understands the data better than the seller, then the buyer is at an advantage.  This knowledge needs to cover the buyer’s competitors’ data as well, if possible. The sales rep selling to a retailer will probably have data for all of the retailer’s competitors, and although they cannot give away any specifics, they can talk about trends, and provide them insight in terms of what is going on across the overall marketplace. This knowledge is much appreciated by the buyer, and becomes an added service the sales force can offer.

• Knowledge of the buyers and the buying companies. The best sales work through mutual advantage, so that both the buyer and the seller benefit from the deal. Therefore the sales force need knowledge of the buyers (both individual and organisational) and their goals and objectives.  They seek to understand their big customers, their game-plan and drivers, and develop and define a customer profile which is shared with and understood by the entire sales force. Although much of this knowledge comes from the sales force themselves, it will again be aggregated by the central organisation. 

• Knowledge of the production capacity of the organisation. There is no point in selling something that can’t be delivered, so the sales force need to know what can be produced for and delivered to the client. Again, this knowledge needs to be delivered to the sales force, by knowledge transfer along the internal supply chain, and needs to be incorporated into sales targets

A KM Framework for sales