Listen to the discussion on Beer Business Finance’s website here: https://beerbusinessfinance.com/sales-compensation-planning-with-stokes-distributing/
Podcast Date: August 9
Sales compensation has always been a critical component in driving sales and business growth. When executed correctly, it can result in significant improvements in team motivation, sales results, and operational efficiency. On a recent podcast, we delved deep into the transformative journey of Stokes Distributing and their experiences in sales compensation planning.
Hosted by: Kary Shumway of Beer Business Finance and Craft Brewery Finance, we had a great lineup of guests:
- Sparkman Walker – President, Stokes Distributing
- Matthew Mumme – Vice President of Sales & GM, Stokes Distributing
- Chris Leonard – CFO, Stokes Distributing
- Bud Dunn – Strategic Advisor, Volume x Profit (VXP)
The VXP Influence on Stokes Distributing
The introduction of VXP into Stokes Distributing’s operations has been nothing short of transformational. Here are some highlights of our discussion:
- The Immediate Benefits: VXP has ushered in an era of data-driven decision-making at Stokes. Their finished product loss was reduced by a staggering 90%, proving the efficiency of this system.
- Matthew Mumme on Initial Reactions: Matthew shared the initial skepticism that any change in compensation plans naturally attracts. But for Stokes, the VXP model was overwhelmingly positive. With a seamless goal-setting process and the team thoroughly engaged, they saw some amazing results.
- Competitiveness Among the Sales Team: A daily comparison of rankings has introduced a friendly competition among the sales teams, pushing them to outdo their past performances.
- Sparkman Walker’s Insights: The VXP app has transformed the daily routines of sales reps, making their tasks more efficient and enjoyable. Specific examples, though, remain in-house secrets for competitive reasons.
- Data-Driven Operations with Chris Leonard: Chris elaborated on the shift from a one-size-fits-all approach to a more focused, data-backed system. The efficiency has not just been in the number crunching but in using that data for actionable insights. This has helped in making better decisions at the sales level, leading to reduced product damage and better placement strategies.
Navigating the VXP Implementation Process
Implementing a new system always comes with its challenges. Stokes took their time reviewing various options for changing their compensation plan. They kept coming back to VXP as the best model, attracted by its promise to empower and make the right decisions. The process, in their words, was seamless.
Overcoming Initial Apprehensions
Change is never easy, and with VXP, the Stokes team had their set of apprehensions. The most common concerns centered around product management and portfolio reviews. But as they realized, profits are the true measure of success, and with VXP, they’ve been banking more. There was a shift in mindset from units sold to the dollar value, leading to more profound insights into individual employee development and sales skills.
Advice for Businesses on the Fence
For businesses contemplating a shift to the VXP model, the experience of Stokes Distributing stands as a testament to its effectiveness. Delving into data-driven decision-making, streamlining sales operations, and focusing on genuine profit can transform your operations.
Looking to learn more?
- Connect with Matthew Mumme, VP of Sales and GM at matthew.mumme@stokesdistributing.com
- To know more about VXP, contact Bud Dunn.
In a nutshell, the journey of Stokes Distributing with VXP serves as an inspiration for businesses looking to revamp their sales compensation strategies. The combination of the right technology and strategy can indeed pave the way for remarkable growth and efficiency.