Commercial strategy: specialization in the south-east

 

Confronted with a highly competitive factoring market, Factofrance has implemented a dual commercial strategy comprising direct sales and third party sales. Our Paris and Lyon offices were the first to adopt this specialization strategy, and Nice and Aix are now following their lead.

The success of Factofrance´s new specialization strategy, first implemented six years ago in Paris and then in Lyon in 2000, is reflected in the company´s expansion into the south-east of France. Its Nice and Aix-en-Provence offices have been in a process of restructuring since May 2003, to create today´s two-team organisational structure:

• a network team made up of sales consultants (Marie-Ange and Jennifer) and sales technicians (Philippe, François, and Cédric);
• a direct sales team, based in Aix and made up of two sales consultants (Marilyne and Patricia) and two sales technicians (Christian and Christine).

Positive results already achieved

 

The misgivings that some employees may have had about changes in organisation and working patterns and the transition from a global approach to a specialized strategy have been allayed (see Marie-Ange´s employee statement below). Likewise, concerns were expressed about the risks associated with tackling an area with a lower concentration of businesses than Paris or Lyon. But only a few months after its launch, the initial results of this new venture have been impressive, with a 20% increase in new direct clients and a 30% increase in third party clients, based on like-for-like staffing levels. Since the beginning of 2005/4, the team has been strengthened by the addition of another sales consultant.

Specialization- the key to constant performance enhancement

 

The company´s original marketing strategy was based on a network of third party agents including banks, accountants and commercial lawyers, working in partnership with our sales teams. Faced with increasing competition, Factofrance implemented a direct marketing strategy as from the early 90s. This strategy was facilitated by the group´s positive image and its increasingly high profile, and by the popularisation of factoring services. A global approach to marketing requires two different strategies from sales consultants - one for approaching companies, the other for third party relationships. The difficulty was that to maintain a high level of performance in different areas is harder than to concentrate efforts on a single activity. Specialization was therefore the natural solution. The specialization of our sales staff in either direct or third party sales has enabled them to play to their personal strengths and has increased their professionalism, in turn leading to enhanced collaboration and a stronger corporate identity.

More effective direct sales

 

Being able to devote themselves 100% to direct sales means our teams can extend their potential client base further and deliver a more effective follow-up service. Specialization allows our sales units to operate in different markets to our third party networks and to improve task and priority management.

Third party reaction

 

When told about the implementation of a specialization strategy for the south-east region, our third party agents encouraged the initiative. Since then, according to André, Regional Sales Manager for eastern France, "they seem to have gained an appreciation of the opportunities for better planning and follow-up and closer client contact which the new set-up provides." The success of our specialization strategy- in the context of difficult market conditions - is clear. Following on from Nice and Aix-en-Provence, Lille has been implementing the strategy since November 1, and our Nantes office is soon to follow suit.

Lyon: revealing results

 

Between 2000 and 2002, the annual number of client relationships initiated by the two teams rose from 95 to 140. This was made possible by both specialization and an increase in the office staffing levels, from 5 to 8 sales technicians and from 4 to 9 sales consultants in the 2000 to 2004 period.

Marie-Ange- network sales consultant - is reassured 

"Before specialization was introduced I had always preferred direct sales, which offer immediate, tangible and therefore more satisfying results . At first, I found it difficult to accept my new role in network sales out of a fear of the unknown and concerns about not meeting my objectives and so losing income. After two months spent updating the third party database, getting trained up and adapting to my new job, I began to contact potential clients, picking up useful tactics as I went along. For me, the advantage of the network system is regular contact. I now gain recognition as a regular, personal point of contact because meetings are arranged in a more professional way, using financial data as a starting point. My time is dedicated solely to third parties; my job is to establish a two-way relationship of trust, based on my ability to interact and communicate. If I were to offer any tips, they would be: give things time to sort themselves out, don´t give up, and be patient."

The Nice office network team (from left to right) : Philippe, Marie-Ange and Cédric.

THE AIX TEAM

 

"Our mission is to: convince our fellow colleagues of the worth of the new organisational structure, to equip them with the tools needed to enhance their performance by providing ever-improving back-up in their search for clients and more focused sales and marketing support, and to strengthen the relationship between the sales technicians and consultants, with a view to producing optimal working conditions for the achievement of our common objective: to win new clients. The effort that each person has committed in accepting these changes, despite initial reluctance, is now beginning to show through in our positive first results. Through specialization, each member of our team has gained a more professional and structured approach, in the face of difficult market conditions.”

The direct sales team (from left to right) : Marilyne, Christian, Patricia, Hayett, Christine and Eric.

 

The direct approach, in the words of Eric, head of the Aix-en-Provence direct sales unit

 

"At Aix-en-Provence, we have based the organisation of our direct sales team on the model provided by the LYON DIRECT office, which has five years of success behind it, and have backed this up by creating the position of training and support provider to the sales consultants. The main changes brought about through the restructuring are an enlargement of our sales sector, the specialization of our staff in direct sales, and greater focus in our organisation and management strategies. ”