With the international moving industry facing ever higher pressure on margins, Affiliates need good salespeople to build strong relationships with customers. However, over the past three decades, a great deal has changed about what – and how – we are selling. Andrew Bennett looks at the challenges facing moving companies and seeks out advice for those who want to upgrade their game
The harder you work, the luckier you get’ was the oft-quoted sales mantra, but – for people in the sales industry today – it’s not just about putting in the hours.
Since the 1990s, the market into which most companies are selling their services has completely transformed. Factors include the increased influence of RMCs on the corporate market and the use of technology, which means moving companies have reduced interactions with some end clients. Meanwhile, clients are more price sensitive than ever and volumes of household goods continue to slide.
Traditional sales approaches often no longer work. Wiebe van Bockel, Chief Commercial Officer at Voerman in the Netherlands, is a veteran of sales and believes the industry is overly ‘hardwired’ towards operations. This can deter talented salespeople from joining – at a time when moving companies really should be embracing new and creative approaches to reaching customers.
‘When I started, corporate sales were really a big thing,’ recalls Van Bockel. ‘In the 1990s and 2000s, we had a lot of good corporate salespeople who were well- trained, highly educated, and well positioned in this industry. We had direct contact with corporate clients… and the margins were there to support sales activities.
‘The 90s were “old school”, so most sales were traditional. When I look back, clients were interested in seeing you if you came up with solutions for them.’
But then, he says: ‘All of these things disappeared. It’s a big statement, but I don’t think any large corporate client is interested in our service on its own any more. They say: “OK, you do moving, that’s great”…it’s a given. In the past 20 years, RMCs have come in and they took a lot of that space and, as a result, a lot of moving companies let their investment in sales go.’
Rob Gilbert, CEO of Oman Beverly Smyth in the Republic of Ireland, says the industry’s sales approach to customers has changed little for generations. However, he adds: ‘Things have morphed into something almost unrecognisable to the contemporary salesperson. Beyond a conversation, competence is not just an expression of confidence based on longevity in the marketplace, it’s a visual portrayal of an experience with vivid imagery dispatched from a desktop marketeer to our potential client’s phone.
‘Now, because everything has changed – and seemingly all of a sudden – I do hope my view on this isn’t just because I am more mature; at least with the methodology of client acquisition, we are being thrust into steep learning curves – much steeper than our predecessors.’
At the FIDI office, Secretary General Jesse van Sas has a background in moving industry sales and was general manager of Santa Fe Relocation Services in Belgium before joining FIDI. He believes too many Affiliates may still be focused too often on transactional sales.
‘I truly believe FIDI Affiliates, as a whole, have great sales staff; they are very dedicated, professional, and very passionate, but they are not necessarily specialists in corporate selling.
‘Corporate customers are far more sophisticated today… they were becoming this way 10 years ago, but are even more so now. Back then, you would sell to the HR or mobility person, who had direct contact with the expat and had an emotional connection with the mover and the assignee.
Adapting quickly
Simon Hood, Executive Director at John Mason International in the UK, cites other reasons why the sales environment has changed so much. ‘Our customer base has diversified, with more private individuals and younger families looking to move abroad for various reasons,’ says Hood.
‘The industry often struggles to resonate with these new demographics, particularly as they are tech-savvy and expect seamless digital interactions.
‘We know that many FIDI Affiliates struggle with technology – this was obvious when FAIM audits had to go back to physical audits after COVID-19, as some Affiliates were not digitalised. They need to adapt quickly to meet these expectations or risk becoming obsolete.’
Van Bockel says: ‘There are just a handful of international moving companies globally that can sell to global clients and global contracts… Back in the day, there were dozens of companies doing that. Now, no more than 10 or so are selling global solutions to large global clients.’
He would like to see a renewed investment in sales and marketing, focused in the right way. ‘The investment in sales and marketing across the industry is going down rather than up. Attracting young people who want to take that next step in sales is also a challenge… In our company we have a handful of people who are open to opportunities, are hungry and learning.’
Great for cash flow
Private consumers are, for many Affiliates, an increasingly important sector of the market. Compared with corporate customers, who are usually harder to access, moving companies can deal with them directly. Hood, from John Mason, says: ‘Private customers are incredibly influential these days. They form a significant portion of our customer base, and their upfront payments are great for cash flow. ‘They’re not particularly hard to reach, but Affiliates need to ensure they are marketing effectively to them.’
Private customers are key, he adds, because their reviews and recommendations generate high-quality sales leads. ‘Engaging with them through personalised marketing strategies and maintaining an active online presence is essential,’ he says.
Van Bockel says this a market where a more traditional ‘transactional’ sales approach can work. ‘There are benefits to these types of sales; it is money up front, it is a one-time transaction …Consumers are a little more focused on customer service than price, although they are still price sensitive,’ he says. ‘There is still the ability to sell services to a consumer, whereas approaching a corporate client is becoming more and more difficult – there is a big drive on cost only.’
FIDI’s Van Sas believes private customers need a local and transactional approach, in contrast to most corporate customers.
‘Private customers are often actually corporate customers, as they have received that lump sum for their moves… so, very often, they are actually corporate assignees.’
Skills at a premium
‘The channels to get to the customer are more subtle than ever before,’ adds Gilbert. ‘Marketing is a bigger part of the budget; the deployment of humans in the sales budget is becoming less, but the skills are even more demanding, even at a premium.’
With procurement departments at corporations usually calling the shots, and RMCs often controlling access to larger corporate accounts, smart and effective thinking is needed.
Van Sas believes moving companies may benefit from seeking external sales training, especially in terms of dealing with corporate clients and their procurement teams.
‘These guys are exceptionally well organised and will make life difficult… they accept your business through a methodology of getting you down to the lowest possible price… that is their focus,’ he says.
‘If you are not trained to counter that, you will lose out. You will either not book the business, or book it on very different terms from those you were suspecting or at rates that are not sustainable.’
Stakes are higher
Van Bockel believes there may be an opportunity for movers to renew a relationship with bigger clients, as long as they can offer effective modern solutions that fit the client’s agenda.
‘To be in the game, the stakes are higher. You need to be on top of technology, on top of the game on sustainability… you need to prove what are you doing… clients are looking at your EcoVadis certificate and asking about your long-term strategy in terms of sustainability, and asking: “How are you going to help us in the long term?”
‘But they want us to help them with their problems. They focus more on the compliance side… on the cost side, that is the other big thing – how can you help to drive costs out of the programme?’
Despite a very tough environment for moving companies to sell into, there are still opportunities for smart salespeople to make an impact, with the right approach.
Oman Beverly Smyth’s Gilbert gives this closing thought: ‘Communicating and talking engagingly is becoming a premium skill. Particularly when bots [web robots] are being allowed leeway to take over.
‘Bots doing the selling is like having a bicycle without any handlebars: sure, we can learn to balance, but how do we know where we are going? Where is the passion for the business? ‘The customer then becomes secondary to these bot companies, as it is the process that is more important, and engagement slips on the list of priorities.’
Sales tips from the professionals
Maarten van Zutphen, CANI Management & Consultancy, says:
‘Set clear goals throughout sales and operation to ensure full focus. For sales, a smart combination of the number of moves booked, competitive margins in line with the company’s cost structures, and gross revenue should be important drivers.
‘Connect these goals well with the operational side of the company, as everyone should feel good about the quality delivery of the services being sold. Company leaders should anticipate the situations that will arise.
‘Telling a sales representative to simply slow down on booking should be avoided.’
‘For corporates, build and nourish relationships and ensure that you can continue to show your company’s added value. Be smart in using LinkedIn, understand the dynamics at the corporate (mapping out the decision-makers) and ensure you become a “must contact” source for their moves to be tendered.
‘When selling to private customers, ensure a good mix of lead generation, preferably through your own webpages. Never lose momentum. The moment a private customer contacts you, call immediately and use the skills learned to convert the lead into a booking.’
Simon Hood, John Mason International, says:
‘Listen more than you talk – understanding your customer’s needs and concerns is the first step in building trust.
‘Be transparent – clear pricing and honest communication about what to expect go a long way.
‘Leverage digital tools – use CRM systems to keep track of customer interactions and preferences.
‘Show empathy – moving is stressful. Showing that you understand and are there to make it easier builds loyalty.’
Jesse van Sas, FIDI Secretary General, says:
‘While moving staff can do courses in sales, you may also like to do a course in procurement. What you learn will help your sales approach towards corporate customers.
‘Our industry tends to make the best salespeople sales managers. This rarely works, and often backfires, as the best salespeople are not always the best people managers.
‘Also, have a sales methodology, be consistent in your approach, seek training, and understand procurement.’
Rob Gilbert, Oman Beverly Smyth, says:
‘Get people who can pick up the phone, are not afraid to talk, to sell – over the phone, via email or social media engagement – a quality margin-driven service. Engagement is everything. ‘If you can get “closers”, if you have people with an “always be closing” attitude, then your company is set apart from the herd.
Create a desire for the client to want to be a referral, then you’ve struck gold. ‘If you need practice at being a better salesperson, talk to teenagers. If they talk back, you’re winning!’
Wiebe van Bockel, Voerman, says:
‘For smaller companies, choose your market and segment and make a difference by creating a culture of sales. This means being open- minded to customers – “the answer is yes”. ‘Don’t try to copy and paste what others are doing; try to be unique. While it’s good to look at your peers, look at salespeople and what they do in other service industries.’
