Commercial Policy: one of the keys to sales success!

For your business to operate efficiently and achieve excellent sales results, you need to invest in commercial policy. Understanding how it works and implementing actions that can help your company makes all the difference.

Sales success is generally linked to the performance of the sales team, but it is important to keep in mind that, beyond the efforts of each employee, it is the strategies and guidelines of sales policies that drive the result.

The process of implementing this policy ends up happening sooner or later in companies. In general, this need is identified when some characteristic signs of the absence of these guidelines begin to be identified by the manager, as we will see below.

Symptoms that indicate it is time to implement effective trade policies.

There are some signs that characterize the need for your organization to have commercial policies. Let's now look at the main symptoms that demonstrate this need.

Prices and payment terms undefined 

Not defining a pricing policy, much less payment conditions, indicates that your company will not be successful in its sales project, and may, for example, run the risk of selling at different prices to stores of the same size, in the same region, creating negative situations for the company.

Channel conflict 

When the various sales channels your company chooses to offer its products cannot coexist harmoniously, a major problem arises. Exorbitant price differences between them, among other conflicts, cause stress for the company and make customers of all types feel cheated or deceived. 

Having a transparent policy in sales channels is a must . Defining that a certain team of salespeople will serve small stores, and that larger representatives will serve large stores, is a practice that avoids such conflicts.

Deadlines and dates of indefinite service

There is nothing worse for a company than creating expectations in its customers for the delivery of the product or scheduled service, only to have these expectations frustrated by the cancellation of the delivery or postponement of the service. Setting deadlines and meeting them is essential for a company to be respected in the market and successful.

Discounts for nothing

One of the greatest assets in the sales process of a product is its discount policy. It is this policy that will definitely hook the customer. In other words, an inefficient policy, or worse, a non-policy, will generate confusion and insecurity on the part of the customer; discounts should be offered, but always as part of a sales policy, with clear compensation and profit margins.

Discount given by the manager's mood?

Discount policies should be set by the company, not by the salesperson or representative. If the company is clear with its salespeople, they will know how to use this policy whenever they deem it necessary, but always with a defined logic, and not randomly.

Low exposure or poor use of the product mix

If a company has a mix of products in its portfolio, this mix should be explored equally by its salespeople, as it should be assumed that each product has its own importance in the company. Insisting on always selling the same product indicates that the company does not have an adequate sales policy. 

Internal support team does not sell, just answers the phone

If this dynamic is common in a company, then it means that there is a lack of communication between the sales team and the customer. It is necessary to understand the entire sales process and the role of each person, so that the support team can be productive in the sales project, and not in the service project.

Releases and promotions are not offered by the seller

This is one of the biggest mistakes a company can make in the sales area and leads to fewer sales. Keep the sales team up to date with new releases and promotions, and tell salespeople that these releases and promotions should always be presented to customers. 

This list of situations are some of the many existing examples that point to the need to develop and implement a commercial policy that is effective.

What to look for in a trade policy?

Before implementing any commercial policy, it is necessary to evaluate issues such as: 

Who does the company want to sell to? Finding potential customers is one of the most important parts of a successful sales policy. Understanding the market means understanding everything from the end consumer to the sales channels. Roughly speaking, if your company is focused on car tires, then your target audience will – almost always – be customers who own cars. By understanding this, the company can answer the question: who should we sell to?

How will you sell? The current market offers a variety of sales methods, ranging from virtual platforms to physical companies, telemarketing services, social networks, affiliate programs, franchises, distributors, direct sales, and many other types of sales. Establishing a well-defined plan for how you will sell will be the key to a company's success. 

What will be sold? Mastering all aspects of the products that will be sold by the company will make a considerable difference in its commercial policy. Knowing how the manufacturing or creation process works, understanding all possible profit margins, and knowing how this product fits into a specific market is important for a company to survive in a competitive market.

Only then will it be possible to create a sales model to be followed, which will be fundamental for the balance and success of any company.

The use of commercial policy has a direct impact on the success of the business, enabling salespeople to obtain the information they need to achieve better results. Commercial policies can help the company within an existing context, without changing the reality of the corporation.

Some points that should be followed to ensure that the policy is effective:

Text must be clear and objective;

The ideal audience profile must be well defined;

Designed business process flow;

Clear and defined payment terms and conditions;

Rules for applying discounts;

Commissioning rules;

Rules defined regarding freight;

And how can we see success stories of companies that used a commercial policy as a key element in increasing sales? Well, it’s not difficult, since all the big companies we see in commercials or that we think of right away are success stories.