Every sales process requires methods that can help increase revenue. One effective approach is canvassing, which has been proven to address sales challenges and deliver more optimal results. Some of you may not be familiar with the term canvassing. Canvassing is a sales activity that involves direct contact or communication with customers and potential customers. Typically, this process is carried out without making prior appointments. By using canvassing, businesses can build relationships for offers, distribution, and order acquisition of products or services being sold. Additionally, this method is also used to convey and gather specific information from retailers to end consumers. Communication in canvassing can be done through phone calls, emails, or direct visits to customer locations. This ensures that sales offers are carried out effectively while also increasing customer and potential customer trust in the company.
Typically, the sales canvassing method is widely used in offering products such as four-wheeled vehicles. This is because the vehicles used are of high quality and capable of reaching remote areas. In the process, a sales canvassing team usually consists of two people—a driver and a sales person—who work together to offer products in various potential areas.
Sales Canvassing Pricing
Offering lower prices through canvassing attracts potential customers, increasing their interest in purchasing the products offered. As a result, the sales process runs more smoothly. In canvassing, two cost-related terms are commonly used: marginal cost and average cost. Since sales canvassing involves carrying a larger quantity of goods, products can be offered at a more efficient price. This is because the transportation cost per item is reduced. Sales canvassing is usually targeted at small grocery stores or minimarkets. Therefore, a successful canvassing strategy requires a good understanding of the potential buyers for the product being offered.
Advantages of Using Canvassing
When canvassing is carried out effectively, it provides several benefits. It can positively impact sales and increase business growth. Here are some key advantages of using canvassing:
- Accelerating Product Market Penetration
Direct sales eliminate unnecessary delays in transferring goods and handling administrative processes, allowing products to move quickly from the manufacturer warehouse to the distributor warehouse. This method is well-suited for small to medium-sized businesses. The business typically operates within a single city, province, or specific region. Manufacturer also place canvasser at distributor locations, especially in areas that are not easily accessible by the distributor’s sales team. - Generating High Prospects
If the canvassing process is carried out with the right target, it can generate high prospects. Direct communication has the potential to attract a large number of customers, allowing for more detailed buyer guidance. However, sales personnel must be equipped with extensive knowledge to attract more consumers. The delivery method should follow proper procedures and avoid unnecessary elaboration. The goal is for customers to understand and accept the sales offer, making them more likely to make an immediate purchase. However, marketing efforts should be done gradually and systematically. - Evenly Distributed Sales
Canvassing is used to expand B2B businesses, ensuring that distributors can still gain sufficient profits, even if sales come from a limited number of buyers. Canvassers distribute products evenly across various regions, following the proper procedures. This balanced distribution positively impacts sales performance. Additionally, potential customers who have not yet made a purchase will still receive information about the business. Later, when they are ready to buy, they will already be familiar with the product and can directly visit the centralized business location. - Providing Accurate Feedback
During the canvassing process, the team must collect detailed data on a given area, including store sizes, business locations, and consumer information. For a smooth process, sales representatives should allow customers to share feedback or suggestions regarding the products or services they have used. All collected data is then directly reported to the manufacturer, ensuring more accurate information without intermediaries. This data is analysed to meet consumer needs more effectively. This approach is more precise than relying on other sources of information since it is conducted first hand, providing real and accurate market insights.
By implementing an effective canvassing process, businesses can increase sales. Additionally, combining it with other key strategies will enhance profitability and create a more structured business model. To further improve operations and profitability, businesses can leverage accounting software TallyPrime.
