Are you a business owner? If so, some of you more or less already understand that in running a business, sales of goods or services are essential. You must consider in detail all components of the sales process, because as a determinant of how the sale will be successful or not. One of them is marketing activities that can increase the number of sales.
There are also several ways that you can use to increase sales. One of them is sales canvassing. This method works by increasing the buyer’s interest in the desired product.Â
So, what exactly are sales canvassing? On this occasion, we will provide complete information about canvassing for you.
What is Sales Canvassing?
Sales canvassing is a sales activity where you make the first contact with a prospect without an appointment. This thing can be done either over the phone or in person.
The method is an essential component of any business. All businesses, either large or small, use this technique to contact new people and convert them into customers. Sales canvassing is also known as cold calling or cold canvassing.
This is referred to as cold canvassing because the sales executive approaches the prospect with no prior knowledge. First, sales executives compile a list of prospects’ phone numbers and begin calling them one by one to elicit a positive response.
Many small businesses or start-ups choose this method because they lack the funds to establish an entirely new department and hire expensive sales consultants. This method has both advantages and disadvantages, which will be discussed further in this article.
On the other hand, sales canvassing can be an effective sales technique if you have experienced sales executives who are patient and know what they have to offer customers.
Also read: How to Write a Successful Sales Report
How Sales Canvassing Works in Companies
As previously explained, one of the many ways to work as a canvasser is to sell a company’s products or services directly to customers or door to door. A canvasser is also a distributor in the marketing and distribution of goods or services.
Canvassers typically engage in marketing activities while driving two-wheeled or four-wheeled vehicles. Of course, this type of sales differs from general sales in that it will sell and market products or services to a much larger audience.
A company with a canvasser will distribute and market to customers in remote areas or areas that are difficult to reach by distributors.
As a result, many companies are investing more in this area. In addition, business owners who recognize the importance of sales for their company are also attempting to offer a variety of facilities to large bonuses for canvassers to help their company succeed.
Four Characteristics of Sales Canvassing
1. Utilizing company operations
Because this marketing activity is carried out by a team or person appointed directly as a canvasser, the company will take advantage of the company’s operations. This aims to introduce as well as streamline the sales process they do. For example, the company uses its commercial vehicles to help canvassers carry out door-to-door sales activities.
2. Introducing new products
The primary purpose of sales canvassing is to increase sales. Therefore, they need to improve their new services and sales activities to introduce and sell products to buyers. In addition, potential buyers will understand, and there are opportunities for them to buy.Â
3. Selling goods by type
All goods sold by trading companies have specific characteristics or types. Commonly used terms are slow and fast-moving goods. This feature is also a benchmark to see what relevant sales methods the company can implement. For example, the sales goal is to increase sales, attract attention, and increase the number of reorders.
4. Selling at a price according to the target
This sales method makes it easier for companies to determine prices. Why is that? This is because sales canvassing must first plan the selling price of the product or service. And to increase sales, companies usually charge low prices for their products.
Also read: Understanding Sales in Companies
The Purpose of Sales Canvassing
To develop market potential
Sales through acquisitions can open up market opportunities to your company’s branches. Why is that? The company can determine the buyer’s destination as needed. Second, if your business establishes good communication with new buyers, this could be a potential market for you.
Product penetration
Sales canvassing can also accelerate the competitiveness of a product in the market. First, the product penetration process saves time because sales, distribution, and offering activities are carried out directly at the same time. Then, it can also save the company additional costs and expand the supply area if they can run sales optimally.
Even distribution of products
This sales activity helps distribute products evenly. In this way, companies distribute products evenly for them to sell directly through canvassers. However, to achieve this, companies need to plan their sales carefully to receive their products quickly and accurately.
Also read: Market Segmentation – The Importance for Your Business
Five Disadvantages of Sales Canvassing
The long and tiring process
Sales canvassing is a very arduous process. There may be times when you are hung up on your face without saying anything about your product, or you may encounter annoying prospects.
A few back-to-back unsuccessful calls will shatter your confidence.
Operating costs are pretty high.
One of the things you need to consider carefully when deciding whether to use this method of selling is the cost of ownership. Recruiter pay, overtime pay, and incentives you need to consider
Every canvasser needs a team leader and manager to handle their work. Unfortunately, this will undoubtedly increase the company’s operating costs.
Low success rate
As previously stated, sales canvassing is a physically demanding process. There may be times when you cannot say anything about your product because you are hung up on your face, or you may encounter annoying prospects.
Your confidence will be shattered if you make several unsuccessful calls in a row.
Most people do not prefer sales canvassing
With increasing competition, every business is experimenting with new methods to reach their customers as quickly as possible. Sales canvassing is one of the most popular methods used by businesses of all sizes.
In the United States, the average person receives 4-5 sales calls per day, which most people find incredibly annoying. Furthermore, no matter how much experience you have in sales canvassing, you will never be able to control the mind and mood of the person on the other end of the line.
When you call someone to try to persuade them, you never know what their mood is. This uncontrollable factor lowers the success rate of sales calls.
Obsolete technique
With the advancement of technology and internet penetration, other methods such as email marketing, online marketing, and so on have largely replaced sales canvassing. These methods are far superior to sales canvassing and have a much higher return on investment.
The ability to calculate the return on investment is one advantage of using advanced methods or sales canvassing. You can count the positive responses to your sales campaign, but it is difficult to count the success of your sales campaign using sales canvassing.
Also read: Maintaining Retail Sales Amidst the Covid-19 Pandemic
Conclusion
After a full explanation of the meaning and purpose and also disadvantages of this sales method, we can conclude that sales canvassing is one of the sales activities to establish direct contact or communication with consumers or potential customers without prior approval.Â
The company’s goal in implementing this way of selling in its marketing strategy is to increase business profits. However, because this also increases operational costs, companies must also manage their finances more precisely and accurately.Â
To prevent errors in bookkeeping and possible impact on financial statements, try using the Accounting Software Best for Enterprise from HashMicro for your business. A system that can assist in managing cash flow, making financial reports, to creating invoices automatically. Try now!
