goods--the correspondent should have before him a history of the
efforts previously made to secure an order. He should know what letters
and other literature have been mailed just as the personal salesman
knows what arguments he has used. When form letters have been used it
is not necessary to have copies of the letters in each case, but they
should be identified by their numbers, or otherwise. Records of these
letters, by date and number, can be made on a card, so that the card
itself will give the correspondent a complete history of the case. The
correspondence--letters from the prospective customer and copies of
special letters to him--can then be filed in the regular way, and is
accessible at all times.
The oldest method of operating the card follow-up is to use the tickler
index in a card file. The follow-up is operated in exactly the same
manner as described for the correspondence file tickler, except that
the cards are filed ahead instead of the original correspondence.
[Illustration: Fig. 24. Card Used for Follow-up]
A typical follow-up card is shown in Fig. 24. At the head of the card
is the name and address of the prospective customer, followed by the
credit rating, the business, and the source from which the name was
obtained--whether from advertising, a special list, or from a traveling
salesman. The body of the card is ruled for a record of letters mailed,
form and special letters separated. When a letter is sent the No. and
date--if a form letter--is entered, and in the file column is noted the
number of days the card is to be filed ahead--as 10 days or 30 days.
If at the time specified, the next form letter in the series is to be
sent, provided no response has been received, the No. should be noted
on the next blank line in the No. column, so that the letter can be
sent by a clerk, without consulting the salesman.
When the cards come from the file, those on which no form letter
is indicated for the next follow-up should be referred to the
correspondent. If he considers a special letter advisable, he should
have all previous correspondence attached to the card, that he may know
just what has been done to land the customer.
=Cross-Indexing the Chronological File.= One of the disadvantages of
the tickler or chronological index, described above, for a follow-up
is the difficulty of locating a card, when the date under which it is
filed is unknown. A letter may be written on June 10, and the card
filed ahead to June 25; on June 16 a reply may be received which makes
it necessary to find the follow-up card, but to do this it is necessary
to look through all of the cards filed between June 16 and June 25.
If the card is not found, the chances are that on the 25th a regular
follow-up form letter, which will make the system appear ridiculous,
will be sent.
[Illustration: Fig. 25. Follow-up Card with Alphabetical Tab]
To so file the cards that any one can be found by name, without
interference with the automatic features of the follow-up system, is an
important consideration. This can be accomplished by the use of a card
like the one shown in Fig. 25. It will be noted that this card bears
a small tab or projection, on which is printed the letter _B_. These
tabs are cut 1/20 of the width of the card and are in twenty positions
across the card. This allows for twenty subdivisions of the alphabet,
the _A_ tab being in the first position, _B_ in the second, etc.
In filling in a card, one bearing the letter corresponding with the
first letter in the name of the correspondent is selected--a _B_ card
for Brown, an _S_ card for Smith. Now since _B_ is always printed on a
tab in the second position, and this tab is always the same distance
from the end of the card, when the cards are filed, all _B_ tabs will
be in a straight line from front to back of the drawer.
No matter under what date it is filed, if Brown's card is wanted it
will be found by looking through the row of _B_ tabs in the second
position from the left. Regardless of the number, all tabs printed
with the same letter are found in one row, making it possible to file
cards by date and cross-index by name.
[Illustration: Fig. 26. Follow-up Card with Movable Tab to Show Dates]
=Cross-Indexing the Alphabetical File=. An improvement over the
cross-index of the tickler, described above, is the method of
cross-indexing an alphabetical file in a manner to insure a follow-up
on a specified date. A card without tabs, as shown in Fig. 26, is used.
Across the top of the card is printed a series of numbers representing
the days of the month. This may include all of the numbers, from 1 to
31, or the month may be divided into five day periods.
In connection with this card a metal tab, which can be attached at
will, is used. One of these tabs is placed over the number which
represents the date on which it is to be followed up. The card is then
filed, indexed by name.
[Illustration: THE SALES DEPARTMENT IN THE NEW YORK OFFICES OF J.
WALTER THOMPSON COMPANY]
The numbers being printed in the same position on every card, all tabs
placed over the same number will be in a direct line in the file. The
cards to be removed for the follow-up on a certain date are those
bearing tabs over the number representing that date. On June 20, for
illustration, all cards with tabs over No. 20 are taken from the
file. When letters have been written, the tabs are moved to the next
follow-up date, and the cards returned to the file.
[Illustration: Fig. 27. Card for Combined Daily and Monthly Follow-up]
This method of cross-indexing with movable tabs permits of the filing
of the cards in any manner desired, with the knowledge that the
follow-up date will be surely indicated. The tab method is
also used for a combination of daily and monthly index. On the card
shown in Fig. 27, the names of the month are printed under the date.
For a follow-up in a later month a colored tab is used to represent the
monthly index, while a black tab represents the day of the month. To
illustrate, we will suppose that the card is placed in the file on Oct.
5 and the next follow-up date is Nov. 10; a black tab is placed over
No. 10, and a red tab over No. 2. The card will not be disturbed on
Oct. 10, as the red tab indicates that it is to be removed in a later
month, but on Nov. 1, the red tab is removed from the card, and the
black tab will bring it to notice on Nov. 10.
=Lists of Customers.= Every concern whether it secures business through
the mails, by means of personal salesmen, or both, should have a list
of its customers properly classified and arranged for easy reference.
This should be something more than a list of names and addresses;
certain essential facts about each customer--such as his business, the
name of the buyer, the credit rating, and amount of purchases--should
be recorded.
All of this information can be placed at the head of the ledger sheet,
but it never should be necessary for another department to consult the
records of the accounting department for information needed daily. The
information given by the customers' list is of most value to the sales
department and should be kept in that department.
[Illustration: Fig. 28. Monthly Record of Purchases of a Customer]
For customers' lists, cards are most largely used, and are most
satisfactory. Cards are readily classified, new names can be added at
will, and old names are removed without disturbing the balance of the
list or the general arrangement of the cards.
The follow-up card can be used as a customer's card, but should be
moved from the follow-up to a separate file; or a new card can be made
when a prospect becomes a customer.
On the back of the customer's card a form similar to Fig. 28 should be
printed. This is intended for a record of the purchases of the customer
and provides for a monthly record, covering a period of five years. The
amount of purchases is entered monthly from the ledger. In a business
in which the purchases of each customer are infrequent, each order
should be entered with the date, in place of the monthly summary.
_Classification of List._ The value of a list of customers is greatly
enhanced by a careful classification of the names. Lists of those
engaged in the different trades and professions can be bought, but
no list is so valuable as one made up of the names of those who have
answered your advertisements, or with whom you have done business.
[Illustration: Fig. 29. Card File for a Classified Customers' List]
Most houses sell goods to those in different trades or occupations. A
manufacturer may sell different lines, or the same line, to jobbers,
retailers, and consumers; a mail order concern may sell to farmers,
mechanics, and small retailers; a retailer may sell to men and women.
To sell each different line to a different class of people, requires
different arguments--a new line of selling talk must be used in each
case. While the personal salesman has an opportunity to size up his
prospect, and make his argument fit the individual, the letter salesman
must fit his argument to a _class_. To drive home the right argument,
he must be sure of the class to which his prospect belongs. He cannot
hope to form the personal acquaintance of his prospects, but must rely
on a proper classification.
The classes into which a list of customers and prospects should be
divided depends on the nature of the business and the class of goods
sold. It might be manufacturers in different lines, the different
professions, retailers in several lines, or all of these combined into
one list.
With a card list, any classification is easily provided. If the number
of classes is small--not exceeding seven or eight--the classes can be
indicated by the color of the card, a white card being used for one
class, blue for another, etc.
For a more extensive classification, cards with numbered tabs, as in
Fig. 29, are used. It will be noted that there are twelve of these
tabs, and that they are numbered from left to right. In the follow-up
systems, from which this illustration is taken, each number represents
a certain line of business.
Suppose that No. 1 represents manufacturers; if all manufacturers on
the list are to be circularized, only those names recorded on cards
with the No. 1 tab are addressed. Now if the business is one dealing in
specialties, it may be that the specialty to be sold will depend on the
position held by the prospect--a sales manager will be more interested
in a book on sales methods than in one on factory methods. To further
classify the list, colors are used.
In the system referred to, eight colors are used. Seven of these
represent occupations of prospective customers, while the eighth is
used for customers. A manager or executive officer is represented by
a blue card, a sales manager by a white card, etc. When a prospect
becomes a customer, the card is removed from the follow-up file, the
amount of the sale is entered on the back, and it is placed in another
file reserved for customers. At the same time a red card is placed
in the follow-up file for use in further circularizing. The tab on
the customer's card shows his business, but the occupation is not so
important since he is already acquainted with the house and its goods.
A more familiar tone can be adopted in letters to a customer, than to a
prospect.
A complete classification, such as provided in this system, is of
immense value to a letter salesman. Suppose he wishes to address all
executives--the blue card is used; if he wants to reach customers who
are manufacturers, red cards with No. 1 tabs are the ones used. He can
make his letter fit a particular class and be sure of the class.
=Classification of Sales.= There are certain lines of business in
which a second order for the same article is seldom received from any
customer. An example is the music business. The chances of selling a
customer a second piano are remote, but the fact that he has purchased
a piano is a sure indication that he will be interested in certain
classes of music. Book publishing is another example. A man who buys a
book on advertising, or commercial law, or auditing is quite likely to
be a buyer of other books on the same or kindred subjects.
[Illustration: Fig. 30. Card for a Classified Record of Purchases]
In a business conducted through the mail, a classified sales list that
shows at a glance what classes of goods have been sold to each customer
furnishes an excellent guide for further circularizing. On such records
it is not necessary to show the amounts of purchases--the class is the
important item.
Fig. 30 shows a card used for a record of this kind. The goods are
divided into four classes, indicated by the letters at the head of
the columns. When the first sale is made, the name and address are
entered on one of these cards, and the date indicated in the proper
column. A movable tab is placed on the upper edge of the card, over the
letter that indicates the class, and the card is filed. As subsequent
purchases are made the dates are entered, and if the purchase includes
another class of goods, another tab is placed on the card. In time, one
card may bear four tabs, indicating that the customer has bought goods
in all four classes.
When new goods are received, they can be brought to the notice of those
customers whose purchases indicate that they are most likely to be
interested, without disturbing the other cards.
=Indexing Customers' Cards.= The best manner of indexing customers'
and prospects' cards depends on the size of the list. A list of a few
hundred names is best indexed alphabetically. A large list should be
indexed geographically--according to location.
The geographical index consists of index cards printed with the names
of the states, and sets of indexes bearing the names of the cities
and towns in the different states. The state indexes are arranged
in alphabetical order, and back of these the town indexes are filed
alphabetically. The cards are filed back of the town indexes, these
also being arranged alphabetically. When the number of names in a city
is large, the cards are further subdivided by alphabetical indexes.
In states where the list is small, an alphabetical index can be
substituted for the town index, the letters representing towns; names
of customers in Alton would be filed back of the A index, those in
Springfield, back of the S index.
An advantage of the geographical index is that a definite territory can
be covered by the letter salesman, or the personal salesman can go over
the list and find out the condition of the trade in his own territory.
PERSONAL SALESMANSHIP DIVISION
Though the volume of business secured through the medium of the mails
is increasing at a rapid rate, the bulk of the business of the country
is done by personal salesmen.
Leaving out of the discussion the question of retail salesmanship, the
personal salesmanship plan--the employment of traveling salesmen--is
the least expensive method of selling goods at wholesale. To sell
certain low-priced specialties to consumers, the mail order plan is
sometimes best, for the reason that it is necessary to reach a large
number of _possible_ buyers to find a few _actual_ buyers. This can be
done at less expense by letters than by traveling salesmen.
More is being learned about how to use the mails to promote
business--how to make the follow-up system an assistant to the
salesmen. The manufacturer whose goods are sold to the trade, by
salesmen, is learning how to build up his own business by assisting
the dealer to sell his goods. He advertises to interest the consumer,
he follows up the consumer and the dealer, and in the end assists his
own salesman to sell more goods.
Much good literature has been written on the subject of salesmanship,
plenty of advice about being systematic in his work has been given
the traveling man, but very little has been written on the subject of
making sales records and reports of assistance to both the house and
the salesman. Some suggestions on this phase of the question are made
in this discussion.
=Routing Salesmen.= How to route his salesmen to the best advantage
is one of the important problems of the sales manager. He must first
decide how often the territory should be covered, then the extent of
the territory he will attempt to work, and the number of men required.
When this has been done, the territory of each man must be laid out,
and a route which will enable him to cover the territory with the
smallest mileage, must be selected. The territory should not be larger
than a man can cover in a specified time, but large enough to require
all of his time.
_Map and Tack System._ To know just where each man is at all times--to
be able to locate Smith or Brown instantly, every day--is very
necessary. Perhaps the best method of doing this is by the use of what
is known as the _map and tack system_.
State maps, printed in colors, are fastened in the bottoms of shallow
drawers, a drawer for each state. Sharp pointed tacks, with heads
covered with silk in a great variety of colors, are used for various
classifications, and colored silk cords are used to indicate routes and
territory boundaries.
To each salesman is assigned a specific color, by which he is always
known. Tacks with heads of the proper colors are placed in the map at
the towns on his territory. A cord is then strung from tack to tack
in the order in which he will cover the territory. When the salesman
leaves a town the cord is removed from that tack, coiled up, and placed
over the tack at the next town. The tack at the end of the cord always
shows the present location of the salesman. Fig. 31 illustrates a map
with cords--represented by the heavy lines--indicating salesmen's
routes.
[Illustration: Fig. 31. Map Showing Operation of Map and Tack System
Courtesy Browne-Morse Company]
Other tacks, with heads of a different color or coiled wire heads for
holding labels, are used to indicate special facts--as, competition
strong, customer ready to buy, claim to be adjusted, or collections to
be made. These are placed at the side of the salesman's tacks and are
a reminder to write to him, about the special matter, at that town. If
an inquiry is received or a good prospect developed, in some small town
not regularly visited by any salesman, a special tack is placed in the
map at that point. A cord of special color is then strung from this
tack to the nearest stopping point on any salesman's route. This is a
reminder to write the salesman instructing him to make a special trip
to this point outside of his regular territory.
[Illustration: Fig. 32. Traveler's Route Card]
_Route Cards._ It is not always advisable to attempt to lay out the
entire route of a salesman in advance, neither is it always possible
for him to make the towns in the time calculated. It is wise,
therefore, to require the salesman to keep the house constantly advised
about his stopping places. When the route is a long one, a route card,
as shown in Fig. 32, should be mailed to the house weekly. The card
should be 3×5 inches in size, to fit the standard size card drawer.
Route cards of all salesmen, whether there are five or fifty, can then
be kept in a card tray in the manager's desk.
=Reports of Calls.= The successful sales manager of the modern type
is learning to get more and more business from his territory; he is
not satisfied to show a large volume of business in a large territory,
unless he feels that he has secured all of the business possible from
every town. If Baker sells two dealers in Peoria, well and good; but
why did he fail to sell the other five dealers in the same line? And it
is not in a fault-finding spirit that he asks _why_; if he knew why,
perhaps he and the salesman could together work out a plan that would
solve the difficulty and secure from one to five new customers.
[Illustration: Fig. 33. Salesman's Report of Calls in Each Town]
The salesman knows better than anyone else why he has failed to sell
certain dealers; he is the man who becomes familiar with the actual
conditions in each town--what competitors' goods are most popular,
reasons for local business depression such as _crop failures_ or _labor
disturbances_, and any causes for dissatisfaction with the goods or
business methods of his own house. Possibly the sales manager is not
in a position to change conditions, but certainly, he cannot solve
the difficulties unless he knows what they are. The salesman should,
therefore, assume that there is at least a chance that he will receive
assistance by keeping the house posted on every detail that might
affect his trade.
The only way in which practical results can be secured is for the
salesman to make a report on every call made, in every town on his
route. A form of report card is shown in Fig. 33. This is intended for
a brief report of calls in one town. Space is provided for reports of
seven calls, but if there is a larger number of dealers, more than one
card is used. On the back of the card, a full line is allowed to each
dealer for remarks.
The salesman is instructed to mail one of these cards, in an envelope
specially provided for the purpose, from each town on his route. When
received, the sales manager examines them, makes his notations, and
files them according to salesmen's routes. When the salesman is next
in the house the sales manager goes over the cards with him, and they
discuss each case individually.
Forms of report cards differ, naturally, according to the business.
In some lines more specific information is needed in each case to
enable the sales manager to judge intelligently the chances for future
business. Fig. 34 represents a card used in one business for a specific
report on each call made. The form shown in Fig. 35 provides for a
brief report including suggestions regarding the date of the next call.
=Follow-up of Dealers and Salesmen.= In the modern advertising
campaigns of manufacturers in many lines, an effort is made to secure
inquiries from consumers, though the goods are sold through dealers
only. The inquiry is usually secured by a promise of a free sample, a
handsome catalog, or other piece of printed matter.
These inquiries should always be referred to the nearest dealer, and
in answering the inquiry, the name and address of the dealer should
be given. In addition to the inquiries received from advertising,
manufacturers in certain lines invite dealers to send them the names
of good prospects. One of the large paint manufacturers asks the
dealer to send two lists--one of people who are talking of painting
their buildings, one of people whose buildings need painting. The
manufacturer of a widely advertised washing machine asks for the names
of all possible buyers to whom the dealer has talked washing machines,
without making a sale.
The object of all this is to enable the manufacturer to assist the
dealer to sell more goods of his manufacture. Sometimes the margin of
profit to the manufacturer is such that he can afford to maintain an
extensive follow-up on the names, and even send one of his salesmen to
assist the dealer to close the sale.
[Illustration: Fig. 34. Specific Report on Individual Calls]
[Illustration: Fig. 35. Salesman's Report of Call and Follow-up]
The manufacturers of one of the popular pianos has secured excellent
results from the operation of such a system. In this system, the card
shown in Fig. 36 is used to follow-up both the inquirer and the dealer.
It will be noted that columns are provided for a record of the postage
on every letter or piece of printed matter mailed. The prospect
receives a letter once a month, while once in two months a letter is
written to the dealer asking for a report.
With the first letter to the prospect, a postal card acknowledgment
form is enclosed. On the postal, space is provided for names, which
the prospect is asked to fill in with names of friends who might be
interested in pianos. By this simple expedient, an original inquiry is
often added to with a half-dozen new names.
[Illustration: Fig. 36. Card Used for Follow-up of Dealer and Inquirer]
With the first letter to the prospect, there is also enclosed a formal
letter of introduction to the dealer. This letter, which is addressed
to the dealer, reads as follows: