During his tenure at Meituan, Mr. Gan built Meituan's iron army of offline pushers, and since then, Meituan has risen to the throne of China's O2O sector step by step.
In April 2017, High Tide Capital confirmed Mr. Gan as an operating partner.
In the New Leader Innovation Class and 2019 (19th) Annual Meeting of the Future Stars of Chinese Enterprises organized by China Entrepreneur Magazine, Gan Jiawei appeared to share and made a speech titled "ABC of Direct Selling", which is nearly 10,000 words in its entirety.
He shared his in-depth thinking from the perspectives of the characteristics of To B business, thinking framework, talent concept, system construction, etc., with both methodology and systematic, both theoretical and practical, and a lot of dry goods.
The following is the organization of Gan Jiawei's speech, with abridged:
Today, we share with you the "ABC of direct marketing", the material printed on the "how to build an iron army of geo-promotion", I've been working in the Internet industry for almost 20 years, and basically I'm doing this. I've been in the Internet industry for almost 20 years, and basically I've been doing this. Perhaps my own habits or internal not to mention the ground push, we are generally called direct marketing.
Direct marketing sounds and feels a little more advanced, the definition is quite a lot, more commonly used, common is not in your store, and customer interaction, sales behavior.
These years may also be the first half of the Internet, the pure C-side of the traffic competition has entered the end, so more and more on the supply side. More and more companies will encounter sales problems, and usually have some exchanges with me. Today I will first share with you some basic framework.
First, the four modes of sales
Let's look at the sales model, the horizontal coordinate C and B, C is the individual consumer, B we talk about is the enterprise. The vertical coordinate is the price from low to high, customers from small to large.
We look at the lower left corner of the relative unit price for individuals will be a little lower, now called online sales, the so-called e-commerce, such as Taobao, the earliest online to sell some of the cheaper things, including today's Pinduoduo, basically from this cut in.
The second store sales, this is also mainly for individual consumers. Relatively speaking, in the store sales of this thing will have a little brand, a little better, a little more expensive.
The third direct sales, that is, we often use push sales. Direct sales is mainly for B (enterprise), relative to the sale of products and services prices are also higher.
The fourth telemarketing (telemarketing), this telemarketing is also a very standard job sequence, there are also some for To C.
This is the first time that I've seen a lot of people in the world who are not interested in telemarketing. Online education is very hot these years, a lot of sales through the phone. But online education may be a combination of online business and e-commerce, generally online to let you try to listen to the class, there may be some parents here have experience, I first go to listen to think it's not bad, the back of the phone in, the single signed off.
The fifth will be sold (conference marketing), in fact, will be sold rarely exist alone, customers do not understand you, the water from 0 degrees to start, to feverishly burned to 100 degrees, with you signing, will be sold is often the last link. So will sell may not exist alone, can be combined with other forms of sales. Enterprises encountered in the day-to-day operation of the basic sales model is here, many times the enterprise according to the product service market, there will be some combinations in the middle, may choose 1-2 kinds of combinations.
We are mainly talking about direct sales today, which is mainly a B2B business, not a B2C business. b2c we see more online sales, store sales.
Second, the characteristics of To B business
What are the characteristics of To B business?
First, multiple key people. What do you mean by multiple key people? For example, an individual consumer to make a purchase decision, in fact, it is about themselves or to buy a thing for their family or children, according to their own ideas can be completely decision-making. But To B business, often more than one key person, there may be department heads, functional heads to select the type of advice, may then ask his superiors to fight for the purchase of gold, may be to the director or VP, and some have to be general manager, chairman of the approval.
To B business, often need to promote several roles *** with the same in the effective time to do a *** with the same decision, this is the first characteristic of To B business.
The second is the direct interest and interest of non-key people.
To C is what I want to buy, we often have a phrase called "planting grass", that is, I have been thinking about this in my mind for a long time, and today I want to go to "pull weeds". But B2B business, very few department managers or general managers for a thing planted grass planted for a long time, very few.
Because in addition to the founder himself, basically other professional managers or work in this unit, the company is not my, so with this product or service, the company is good of course I'm very happy, but I actually do not have so much obligation or interest to understand the product and service in detail.
This leads to the fact that To B businesses often need to have a dedicated sales team to promote the products and services.
Third, the thinking framework for To B business
What perspectives does the sales department need to think from?
(a) Self-support or channel?
The so-called self-support is to set up their own sales team, the so-called channel is to find an agent, let the agent to help me go to market. Self-employment has the advantage of self-employment, but also the threshold of self-employment.
This question may not have a simple answer, or with the development stage of the enterprise.
First of all, even if your products and services are very suitable for the channel, and your peers are already doing well with the channel approach, there are ready-made channels, then I still recommend that if it is a new product, this company has just been established, it is recommended that you go to sell yourself first, and first self-managed to make a sample. Otherwise, you have not sold yourself, do not know the market feedback, directly to the channel how to set the price? To the channel how to share profits? How to set goals for the channel? How to further optimize products and services?
So, first of all, at least we have to have a sample of self-management, know the channel cost, sales efficiency is how, and then we can go to the screening and management of the channel.
Second, the polishing period, non-standard, low margin products carefully use the channel.
Polished products and services may not be mature, this time to the channel, in fact, this is a great risk for both sides.
When I went to Meituan (2011), it was a battle of a thousand groups, with more than 5,000 group-buying companies competing across the country. At that time, there are some group-buying enterprises in the way of using the channel agent, at that time we also discussed internally, I firmly said that this problem we do not have to consider now. Why?
First, we ourselves have not understood how to organize the sales form, how to improve efficiency, to find agents, I think this is a mysterious force dependency. You do not understand, you think others can understand, in fact, others may not understand. Because the agent agent a lot of products, he is sure to sell the best seller.
Secondly, our group buying products are low margin products, very high management level are not necessarily profitable, you go to the agent, he may sell many products, but also will not be specifically for you to optimize this product and service. You give him, that is not he lost money, you lose more than it?
Now the United States in many cities, three, four or five cities are all agents, because after six or seven years of operation, we have built such a system, the customer has a concept of our products and services, we have a very good system for our own sales, open up these channels, the agent can be very easy to run forward on our basis. When you don't have your own (system capabilities) to find the channel, in fact, is asking for trouble.
(ii) electronic marketing or direct marketing?
The so-called telemarketing is in a house with a call center with as few as dozens or as many as thousands of people.
What is direct marketing? The customer's office is your office. Generally we say that employees come to work, you see him, after work employees run away. But direct sales of this business is, the employee went to work on the disappearance, you see him when either not officially work, or back from work.
So to a certain extent, telemarketing in the management of its advantages, there are fences, access control, etc., the supervisor can always see everyone's work status, there is a problem at any time you can ask.
Three disadvantages of telemarketing
But what are some of the disadvantages of telemarketing? The first one is the degree of knowledge. It's difficult to sell a product or service over the phone when people don't have a concept of it in the marketplace.
For example, when the "war of thousands of groups" you go to telemarketing, you give those restaurant owners to make a phone call, said I am what what company, we have a group purchase, many restaurant owners do not know what the meaning of group purchase. What does it mean to cooperate with you group purchase package? He can't understand it at all. If it is a new product or service that is not known enough, it may be difficult for you to get customers to feel it in a few words on the phone.
The second online experience. The most typical is online education, in fact, there are a lot of classes are not cheap, a few thousand dollars, tens of thousands. But because these are available through the on line way, the user can clearly feel the trial product, so I can use the form of telemarketing to sign a single.
But the most appropriate unit price radius for telemarketing is about 3,000 to 5,000 or 6,000 dollars, and if the unit price is higher, it's very difficult for users to make this decision over the phone without meeting.
The third payment threshold. The most typical is that the original Alibaba through train is prepaid, nothing first give me tens of thousands of dollars, I give you an account, how the effect is still not sure. Including insurance, insurance is also prepaid. This kind of product if the degree of knowledge is not enough, the online experience is not, the payment threshold is high, that may use telemarketing this way will be more strenuous.
1 million / person
Regardless of whether telemarketing or direct sales, we come to design the organization, each salesperson 1 million in revenue per year, which is a better reference standard. Why 1 million?
Let's think about it, electronic marketing is generally more efficient, per capita about 10,000 a month. If in the north of Guangzhou and Shenzhen such a city, telemarketing per capita 10,000 / month may be a little worse, so many call centers are built in Xi'an, Hefei, Yancheng, in those places per capita 10,000 / month is OK. Direct marketing you want to be a little higher quality, a little more efficient, a little more motivated, generally about an average of 200,000 a year.
Marketing staff to get back 1 million income, a direct sales staff per capita 200,000, of course, the sales crown may be a little more, the sales crown to earn a big hundreds of thousands, millions are normal. Direct sales staff to take off 200,000, there are 800,000 to do product development, service, and company profits.
If your people sales calculated per capita 60 million a year, the space to vacate is not great. Because to keep employees motivated, give him 200,000, leaving 300,000, how to optimize your product service? Where do corporate profits come from? So I do think that 1 million is the level of 80 points, 85 points, to reach this level, ongoing business will be a little more OK.
(C) direct marketing nomadic or localized?
What do you mean by nomadization? I have also seen many companies have direct sales teams or so-called localization teams, the mode of operation is that everyone is in a headquarters, usually traveling.
In my experience, this is actually a very difficult way. Because you use nomadic (traveling) this way, the depth and continuity of customer development will be greatly challenged. General business trips also have to have approval, the equivalent of control, but in fact sales is to continue to interact with the customer, in the interaction to find opportunities, just like a relationship, day to day. You can't want to meet today, meet and get it done, I think this is very difficult.
So nomadization affects our customer development at the mouth of the funnel. In sales we talk about big water, big fish, you can't touch big fish in a face bowl all day. Nomadization will limit you and keep your costs high, but customer reach is not big.
What is localization? You live here, and you can visit your target customers on a regular basis, by district, by street, every day. This is just like a farmer farming.
What is nomadicization? Sales like a hunter, carrying a gun out, hit on the fight, can not hit on the return to starve. And what is localized sales? Like a farmer, visit these customers every day, on my acreage, like a farmer, watering, hoeing, cultivating the whole market, and then cultivate this customer. Gradually cultivate, my customers will gradually mature, so as to get a sustained and stable performance.
I often discuss this issue with companies: the first thing I have to ask is, how many target customers do you have? How many do you think there are in China for this product and service? How are they distributed?
If we have 50,000 customers, and a sales person can manage 50 of them at the same time, what does that mean? I would need 1,000 direct salespeople.
If those 50,000 customers are in the top 100 cities in China, then I might want to consider locating my organizational structure in prefecture-level cities. China is more than 350 prefecture-level cities, more than 2,800 counties, Meituan at that time, the direct organization similar to branches, subsidiaries in the country can reach the city a **** is 1,100, we also looked at that time, we have the most direct branches in China, more than many logistics companies. Many logistics companies have some lines are cooperative, outsourcing, we are all directly managed.
So you have to think this through, you probably want how many people, probably where the customers are distributed, you know how to set up this organization, can be set up to the local ten million have to be set up to the local. Think about it, if 1,000 people in the headquarters, 1,000 people to go on business trips, you think about how terrible a scene, but also someone to manage the 1,000 people on the train, air tickets have not exceeded the daily telephone subsidies, performance subsidies.
(D) business center
We often say that the sales department is more like a force. As the boss we certainly can not just say that we are brave, we have high morale, we have a meeting, we shaved a bald head, we rushed out, we do this thing better. It certainly isn't.
What we have to think about is strategizing. We direct or channel, we are store sales or direct sales, how we localize, including how to set the budget for the middle office, how many people we want, how about our commission system.
For example, the United States Mission in 2012 to achieve the shore, to break even in December, buy traffic to spend the money, supply chain to spend the money, including every piece of paper in our office should be counted for me. Deduct all these, we have to be able to break even.
At that time, we pushed a table, our business to achieve a gross margin of 4%, this restaurant sells 100 dollars of packages, give you 4 dollars of commission. We all know that this 4 dollars is not every restaurant in the country to give you 4%, and even not every city to give you 4%, each city different industries to give you different.
For example, in Shanghai, before the merger, Dianping had a very large influence in Shanghai, so our market share in Shanghai has long lagged behind, we simply want less than 4%. Not to mention 4%, there may be times when people are not willing to do it upside down. That means different cities to have different gross margins, and in the same city different industries also have different gross margins.
Just like the OTA industry, OTA platform is to collect 15-20% of the water flow, we go to collect 12%, these restaurants, hotels think you are quite generous. But catering has never been in the online distribution, its cost structure inside there is no cost of this piece, you suddenly charge people a few points, he has to save from other places.
In 2012, we are in more than 70 cities, each city is about 15 categories, each city according to market share and competition, gross profit requirements are different. In a city to divide its gross profit into 15 categories, the final country is more than 1,000 gross profit management nodes. Meituan was a few thousand people, every day on a few thousand orders, and ultimately through the country more than 1,000 gross profit management nodes, run to the end of the year, we realize profitability, these are all dependent on a strong budget system.
How do we control more than 1000 gross profit points? In our sales CRM, all the orders to be automatically audited by the system. For example, my buffet in a city must be 5 points (gross profit), you do not meet the order can not be up. Through the design of these systems and budgets, we can finally get this result.
Fourth, find people from the top down
Assuming that there is a general framework from the top down, it is often necessary to find the right people. We think about things from the top down, the introduction of talent should also be from the top down to the introduction of talent, not half-central to the introduction.
Why? Only from the top to introduce talent, the whole methodology is applicable to the whole company, there will be no fights. Don't be above the boss is your old brother, with your business, turn around and you see this old brother is not a little out, I'm looking for a director below, looking for an executive. Airborne executives itself is to face a lot of difficulties, to spend a lot of effort to deal with the above. So I think a more appropriate way is to solve the problem from the top down.
So how do you go about finding someone?
Very often we do not know whether to introduce talent from the outside or do not know where to go to introduce talent, the simplest way is that most of the talent is wild and purely natural.
In fact, I look at the resume to see more, the interview face very little, because most people I look at the resume will not go face. I think a lot of interview skills are not reliable, you look at the resume is visible.
There are a lot of people, I think there is no system of experience, you see his experience is very rich, here to do a few days, there to do a few days, are executives, step by step from the supervisor-manager-director to do up, the feeling is quite powerful. In fact, you see, he has done those companies, first, a lot of you have not heard of (in this industry), have not heard of what it means? This company may not do so well. He did a good job you can certainly hear. For example, Tencent's products, Baidu's technology, and Meituan's ground promotion.
The second, see a good system, is that he knows how to do this thing, is to follow the gourd to draw a dipper. In fact, many people are just sold by the headhunter to sell, basically the headhunter also prefer such a business, of course, you do a dry ten years twenty years, the headhunter will starve to death, so this is an ecological chain.
We don't want to wildly and purely natural to find, because that uncertainty is too big, there may be very good, that is a generation of masters, but this probability is relatively low.
But you go to the company that suits your industry industry has a reputation for looking for that person, the probability is that he has seen a good system, know how to stand at attention, at ease, how to enlightenment.
A lot of airborne executives out of the problem is actually out of the second, see a good system, but not so integrated, but just in the copy, after copying, resulting in incompatibility. Really seen a good system of people, know what they know, in fact, there will not be (not suit) this problem.
Build a reliable system
(a) target budget management
Most of the company is a natural growth, I think a better company or a lot of foreign companies, there is a target budget management. I think the next level is the process management, many companies just manage the results, do not manage the process, we called the so-called "mortals afraid of the fruit, the bodhisattva afraid of the cause", as we go to the temple to worship, basically to ask the bodhisattva to bless the health, promotion and wealth, this is the target budget management, is the management of the results.
Assuming that the bodhisattva can really talk, the bodhisattva will say, "You work harder, be more diligent, eat less meat, and exercise more." What is this? This is process management. You can only be physically healthy and get promoted if you do a good job of process management.
I see a lot of business process management is actually not much, many executives are there all day meeting, in fact, the value of the organization is not so great. What is really valuable managers? It's that I'm going to derive, what are the things that I do well that I can achieve 10 billion, and then I'm going to do those things.
2012 annual meeting I told my colleagues in the United States Mission, 2012 to do one thing, "crazy visit, crazy single". Later, after a few years, the company said that the word "crazy" is still very accurate.
(B) borrowing fake to repair the real
What is the best management? We think about the management of what we encounter problems? You do not say that you feel bad, say may be difficult for you all, management many times all day is to face this problem.
How is good management? The first time I saw this is when I was a kid, and I was a kid, and I was a kid. We grew up to manage us the most is the parents, although it is also a problem, but rarely out of the father-son relationship, mother-daughter relationship. Why? Because you know that parents are for your own good.
I think the staff is also, you think of this simple point, you are for his good. What you should be like, like parents, there may be contradictions, there may be conflicts, there may be a lot of unhappiness, but he can get growth in you, he can get fair treatment, he not only earns money today, he also earns a lifetime of money.
They insisted that our management is too strict, we are too demanding, I said this is right, there is no doubt that we must be the highest requirements of the whole industry, because I set the time is very clear, I set is the highest standard.
But what I can promise you is that we talk about three people to do five people's work, take four people's money, more than the industry average, to give you enough income with professional dignity. After three years, others are willing to double the salary several times, rise a few levels to dig you, this is my commitment, you have to be willing to we will play together.
I think borrowing fake repair is really what? Employees in the end is our assets or what? What kind of attitude we use to manage him. Our managers in the end with the task in the consumption of employees, or with the task in the development of employees? There is a difference. What is the difference? The difference lies in the heart of how to think, the difference lies in the long-term persistence of how to do.
You like parents, elders to children to see employees, I think your management will be better.