Category Archives: Sectors


How can Agencies Demonstrate Value in a Competitive Marketplace ?

 

Providing a service to clients that manifestly increases sales will always be the cornerstone of a strong value proposition. Pricing this significant service at a rate that represents fair value for this impact on a client’s business is an increasingly difficult task in today’s competitive marketplace. But I strongly believe it is more important than ever to focus on the value of the offering and clearly articulate what difference this can make to the client’s business.  Admittedly, and realistically, price is not irrelevant. Mickey Drexler, ex-CEO of J. Crew, says “The real price of goods is always the selling price. The best price is to sell it for what it’s worth.”

 

So, how does an agency demonstrate worth, maintain a keen pricing structure, and avoid a negotiation where the only outcome is a spiraling descent to the bargain basement of both price and value, a process I describe as ‘the race to the bottom’?

 

Before even venturing to introduce a pricing model, an agency must start each relationship by making strenuous efforts to understand the client needs and then clearly demonstrate the value of their agency’s creativity and wisdom.

 

Understand what problem the client needs to have solved? Be clear about what insight the agency can bring to the table? Ask searching questions and encourage the client to really define what success means to them.  All of this helps to establish a level of trust and to forge common alignment.

 

It also embraces transparency and a deeper understanding on both sides. Interestingly for the potential client, a closer evaluation of their needs helps the client to evaluate potential providers on their approach and capability rather than solely on price.

 

What about the spectre of procurement? For many sales or new business teams, the mere mention of procurement evokes a rolling of the eyes or worse!

 

In my multifaceted role as a Global Chief Operating Officer, Asia President, and Senior Accounting Officer for the CPM Group of companies, I’ve endured many negotiations with zealous procurement teams, watching each element of our service being systematically broken down and assigned a price instead of a value. It’s a very straightforward, almost mechanical, process to place a price on inputs with no bearing on the benefits.

 

However, the procurement team/individual that can relate those inputs to the value created in the outputs, embraces the real added value the organisation seeks.  The procurement professional can help demystify the challenges of internal budget structures versus real output based pricing, and work collectively with marketing and their agency to build a cost model that rewards good work and demonstrates value.

 

This can be the huge benefit of procurement done well. Yes, they often force agencies to examine their costs and present them in a more transparent manner, but this can only benefit any business longer term. Understanding the price of service delivery is essential for agencies to then realise profit whilst ensuring clients get value.

 

PepsiCo has recently eliminated procurement from marketing negotiations, but 53% of companies still involve procurement and the onus is on sales teams to embrace this and positively influence the decision-making process, defending their value proposition by clearly demonstrating its impact whilst working in an open and transparent manner, building trust with its procurement client as well as the marketing teams.

 

If business is negotiated on the correct footing, with the service framed as an investment not an expense, then both the client and the agency can harness the power of synergy and create a mutually successful outcome, based, not simply on cost, but on value linked to insight and a robust ROI.

 

Winning business that has a miserably low margin while voraciously consuming precious resources, leads to an inevitable and sometimes bitter parting of the ways, which can have a big impact on the agency’s business overall.  It takes courage to hold your nerve around the negotiating table and look for new ways to add value, but it is imperative that your service is not viewed as a mere commodity. I’m afraid to say that all too often agencies have nobody but themselves to blame as they agree to commercial arrangements that are best described as suicidal. Who can blame client procurement, they are merely doing what we all try to do, which is secure the best product at the lowest price. I’d like to purchase a luxury car for the same price as a mid- range sedan, wouldn’t you? The fundamental issue here is procurement will keep asking for more concessions until the agency says no! The agency must find ways to say yes outside of simply cutting price and leverage the value-added aspects of the work the agency can and does do for the client.

 

The world is our marketplace and communication is getting faster. Whole industries, including retail, have undergone tremendous disruption. To be competitive, agencies must be agile, able to simplify process and embrace diversity. Rigidity is a thing of the past. Linear thinking and acting is hopelessly outdated. We must all work on a broader commercial approach. Business is global and it has never been easier to communicate and harness global learnings.

 

I recently attended a regional conference in Asia where teams from six countries pitted their collective problem-solving and creative skills to put forward several workable project plans designed to roll out across the region for a major client. The client was in the room and was electrified by the sheer energy and practical application achieved in a breathtakingly short amount of time. This was a clear demonstration of how enhanced service can be collectively achieved by harnessing the synergy of truly diverse teams.

 

Agencies must foster and encourage mental agility and flexibility amongst their people as they are the drivers of value. Business can’t be exclusively conducted from the isolation of a desk. Client service teams should actively network and absorb thoughts and insights from a diversity of sources. We all must keep up with current trends in the market and strive to be thought leaders, the respected “go-to” person in our field. This is especially important if we are going to master and exploit change and not be left an irrelevant colossus, too big and bloated to adapt in the face of fundamental upheaval.

 

In an increasingly digital world, the distance between clients and the field has never been closer.  Agencies must manage their reputations, earn respect and nurture authenticity in all areas of our business. Actions and character must be in-sync and agencies must align what they do with what they

say. Relationship building has always been central to a successful campaign and now it is critical to get closer to clients. This means actively involving field teams.

 

Communication, like a fountain, must flow upwards as well as downwards. Agencies must inspire everyone to take responsibility and be heard, not mumble in the corner if things are not right. In a world where word of mouth is king, agencies should empower all employees to be advocates, the field teams are brand evangelists and a powerful manifestation of value.

 

Agencies destined to survive and thrive will be rooted in strong foundations and adaptable in the face of change.  Always listening and globally aware, not complacently locked in silos. Not intransigent in the face of a problem and not taking the easy route of pointing fingers and blaming others. Instead, they must strive to think creatively about how to clear roadblocks as a team, with each member taking responsibility.     It’s too easy to say no constantly; find ways to say yes that make commercial sense, add value and bring creativity to the solution required.

 

The pressure of today’s marketplace will always make it attractive for clients to go for a cheaper option. But business is rarely won on price alone. Competitors can undercut, but it is up to each agency to demonstrate they can offer an intelligent, consistent depth of service, delivered by a committed, energetic and engaged field team. Cutting corners and spiraling ever downwards leads to a race to the bottom and is ultimately unsustainable. Instead, focus should be concentrated on insight and people as they adapt, thrive and make evangelists of clients. There will be no better way to demonstrate value and as a positive by product, earn a decent margin.

 

Paul Woolley, August 2017

News and Insight

 

The beauty industry is the sector who owns the greatest variety of shoppers given the different distribution channels available: perfumeries, pharmacies, parapharmacies (specific to some countries), institutes, department stores, supermarkets or Internet. The profiles of the beauty consumers change based on their favorite shopping place. On the Internet we have the Millennials, in the pharmacies the ones who are looking for quality and natural products, in the supermarkets those who rush and in the perfumeries the luxurious shoppers.

 

My brand, my store

 

The difficult task for a brand is to achieve to shine no matter what or where and to target more possible shoppers. But what exactly does a beauty brand have to do to reach different categories of consumers simultaneously? Open their own brand store of course! In a dedicated store it is easier to reach various consumers’ profiles. In France, CPM created BRANDSHOPS, a turnkey solution designed to offer its clients the possibility to have their own store, whatever the format: pop-up store, corner, shop in shop, truck or just a first traditional permanent store. For instance, when L’Oréal Paris, Nyx or Gemey Maybelline chose to open their first stores in France, they called out to CPM France for the recruitment, training and management of the sales team. There are several advantages in opening a store among which strengthening the proximity to its customers in order to better know them, increasing the multichannel reach or offering a new brand experience.

 

 

 

CPM Frankreich L'Oreal Pop-up in Paris

 

Beauty & Mortar

 

With the global increasing trend of online shopping, the brands must align with their consumers’ requests and rethink their strategies. We tend to say that the future of retail consists in online shopping, but even if this channel is growing day by day, the beauty industry is the less impacted sector. Even if there is a new generation of beauty shoppers who are more inclined to buy online, ie the Millennials, most shoppers continue to go to the stores because here they can find samples and beauty advisors, and even make-up sessions for free. Consumers still need to feel, touch and test the cosmetics, the physical store thus has a real competitive edge and this experience cannot be yet replicated online.

 

 

In France, more than 50% of the beauty shoppers are stubborn when it comes to online shopping. However, 43% of beauty shoppers are using their smartphones to keep informed and to compare prices, even when they are in the store. The power of online shopping thus remains a threat and retailers have to continuously drive loyal and new customers to their stores. The actions they can leverage include a well-executed merchandising and beauty advisors with state-of-the-art knowledge on new trends, products and innovations. As previously mentioned, the Millennials, a generation which represents a large portion of beauty consumers, are the first ones turning to the internet before purchasing products. This generation chooses to trust the makeup recommendations of a makeup artist or beauty influencer on Instagram or YouTube over a salesperson in the store. And here lies the challenge for in-store salespeople: re-establish this advocacy. In order to compete with online beauty experts, brands must allow their sales teams to concentrate on their core tasks: sell. For merchandising services, training and sales team activation, we can come in.

 

The beauty buyers are more and more omnichannel, and a total uber-isation of this industry is still far away. The challenge for retailers remains their capacity to sharpen their systems and processes to ensure that the customer experience is a seamless one, whatever the distribution channel.

 

 

Sectors

IT/Technology

IT and technology have been the fastest growing and dynamically evolving sectors for the last 30 years. That is why constant innovation is at the heart of CPM's award winning Technology Group.

Our tech and IT teams deliver vigorous field sales, brand ambassador and technical training solutions to and for some of the world’s largest technology and mobile communications brands.

 

Highly trained, technology specific retail experts work across in-store, off-site and online channels to actively drive sales and provide in-depth technical customer support.

 

Technology sales and customer support requires specialist merchandising, a thorough understanding of compliance, knowledgeable and engaging product demonstrations and a wealth of retail experience that is only available from CPM.

 

Winning experiential promotions, active selling, insightful mystery shopping and high-quality auditing are only half the story. CPM's technology ambassadors are the other half. Their clear purpose, to increase sales and improve retail traction, is achieved by winning the hearts and minds of store management and staff by becoming an enthusiastic member of their in-store team.

 

CPM’s Technology Academy, managed by our own dedicated Chartered Institute of Personnel and Development (CIPD) Technology Trainer, delivers brand and product focussed specialists who deliver exceptional sales results.

Our clients include

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Sectors

Financial

CPM’s financial services division offers end-to-end sales solutions designed to reach businesses, individuals and retail merchant clients.

Financial services is a highly regulated and highly competitive environment and CPM’s primary objective is to increase your sales and market share, drive customer brand loyalty and maximise merchant and card acceptance.

 

Through specialist financial services teams, we draw on a range of experts to provide you with a tailored mix of regular activities:

  • Traditional field sales programmes for card memberships
  • Merchant activation and terminal testing combined with customer support
  • Mystery shop auditing
  • Account management

Our highly skilled financial sales and service agents are trained to deliver superior concierge and customer services alongside in-depth product knowledge and compliance with the highest levels of quality assurance and industry regulation.

 

With experience of running successful financial services programmes at national, regional and global levels, our dedicated customer service capabilities include contact centres, digital, live chat and face-to-face communications.

 

All this means that, as a financial client, you can communicate more easily with your customers and build better, more profitable, relationships.

Our clients include

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Sectors

Consumer Electronics

CPM has a thorough understanding of the dynamics of consumer electronics in the retail sector and an enviable reputation for success.

As a client in the consumer electronics space, you will enjoy sales growth, increased market share and the promotion of your brand right where it matters.

 

This is done by activating your brand through individual programmes with a blend of assisted selling, merchandising, mystery shopping, brand ambassadors and product demonstrations.

Our clients include

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Sectors

FMCG

CPM was established to drive FMCG sales.
Back in 1936, CPM provided field sales and merchandising teams to our very first client and changed the way consumer goods companies connected with retailers and consumers forever.

Since then we have developed unrivalled know-how and pioneered new ways to attract and retain customers for our consumer goods clients right across the retail spectrum.

 

From traditional field sales activities, through to contact centre consumer care programmes and the more recent innovations of online merchandising, micro jobbing and digital consumer engagement experiences, CPM has been at the forefront of FMCG sales and marketing.

 

Never standing still, our teams work hard to continuously create and develop new techniques that enable our consumer goods clients to offer a complete omnichannel retail experience to their customers.

Our clients include

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Sectors

Retail

Retail is at the heart of CPM. No one knows more about B2B and B2C sales and marketing through the retail channel than us.

We have been running efficient in-store sampling and sales solutions programmes for over 80 years, gathering insightful retail merchandising and field sales experience across almost every retail sector.

 

Continually refining what we do to keep you at the top of your industry, we have pioneered new retail sales activation techniques, developed innovative point of sale (POS) placement, in-store campaigns and integrated sales strategies.

 

With changing consumer demands, we are continuously creating more innovative mystery shopping and retail auditing techniques that will provide you with near real-time information on the performance of your retail sales promotion.

 

Successful product launches, retail displays and presence marketing require real expertise. CPM’s knowledge and understanding of retailers and consumer behaviour in a retail environment provides you with valuable in-store insights and your customers with truly compelling experiential services.

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Sectors

Energy

CPM established a dedicated energy division several decades ago to provide power suppliers and energy companies with highly specialist sales teams.

Since its inception, our energy division has enjoyed unrivalled success in driving sales and retaining customers for energy clients in both B2B and B2C markets.

 

Supported by CPM’s training division, we have recruited, trained and built teams of energy focussed sales professionals offering direct sales, inside sales, active selling, retail activation, insights and reporting across field, phone and digital platforms.

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Sectors

Health & Beauty

Working with some of the world’s most innovative health & beauty brands, we offer a range of specialist health & beauty services.

Our field-based teams provide:

  • Experts in pharmaceutical sales to drive opportunities
  • Beauty sales professionals to educate and inform with in-store demonstrations and product sampling
  • Compelling visual merchandising to drive awareness and maximise in-store brand visibility

CPM also operates multi-channel consumer care programmes for global health brands, spanning case management, social customer service and live web chat services.

 

The health & beauty industry is rife with regulations that require the highest standards of quality and ethical service. CPM recruit highly-trained and experienced health & beauty specialists to engage with your consumers and customers, ensuring compliance with industry and regulatory standards.

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Sectors

Automotive

CPM’s Automotive Division provides you with premium customer service and sales generation services across field sales, contact centre, digital and social media interactions.

Our automotive team has a strong mix of sales, marketing, customer care and operational experience drawn from all sectors of the auto industry.

Combined with CPM’s own expert training, as an automotive client you receive:

  • Bespoke customer care teams
  • Fleet-sales contact centres
  • Dealer engagement strategies
  • CRM
  • Dealer auditing
  • Mystery shopping
  • Showroom merchandising
  • Live chat and social media monitoring

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