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Sales Incentive Scheme Current Situation

By Louise Carpenter,2014-04-28 12:54
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Sales Incentive Scheme Current Situation

中国移动(香港)有限公司 人力资源系统改进项目

    Sales Incentive Scheme Current Situation

1. Sales Organization

Currently speaking, the sales organization is a three-tier org:

? Provincial Level: major responsible for defining the regulations of marketing and sales, and

    responsible for overall management of the whole province sales and marketing

    ? City Level: responsible for fulfil the sales task and carry out marketing activities

    ? County Level: responsible for maintain the retail shop sales

Detail information regarding the sales org please refer to the attachment-sales org.

For Hebei & Shandong

    CMBJCMHKHeadquarterMarketing Dept.Marketing Dept.Level

    Marketing Dept.ProvincialBig CustomerChannelMarketingManagementManagementLevel

    Marketing Dept.

    DistributionBig CustomerCustomerMarketing &ManagementService CenterService centerBilling centerCenterCityLevelRetailBig CustomerBillingMarketing18601258Shop(Self-Sales Rep.ManagerCenterRep.owned)CountyLevelBig CustomerCustomerRetail ShopServiceServiceFor Beijing

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中国移动(香港)有限公司 人力资源系统改进项目

    CMBJCMHK

    HeadquarterMarketing Dept.Marketing Dept.Level

    Vice GM responsible forSales & MarketingProvincialCustomerSuburbsMarketing Dept.Sales CenterLevelService CenterOperation Center

    GMVGM

    BusinessMobileAccountBillingA/RGeneralRetailBig CustomerChannelProcessPhone& BillingNetworSettlemAdminShopManagementManagementManagementRepairCenterkent

    AdminProcess DefineMobileProvide ServiceBilling systemDevelopBilling systemAR4 big, 3OfficeStatisticsphonePromotionmaintenancedistributionrelated networksettlesmallPromotionrepaircustomerBilling reportchannelmanagementmentSIM CardrelationshipProvide guidanceSalesmanagementto the channelValue-FilingaddedserviceSales

2. Sales Force

    ? Retail Shop

    Retail shop is the typical traditional sales force within China Mobile under the monopoly situation.

    Here the retail shop refers to the shop operated and owned by China mobile itself. There are a lot

    of people in retail shop, while the new customer number and the revenue brought by retail shop is

    relatively low, and the actual role of retail shop seems like a face-toface customer service center.

? Distribution channel

    China mobile has explored the distribution channel using different kind of cooperation means, in

    different province the means are slightly different, take Hebei Mobile for example :

- Cooperation Retail shop: which is the highest level among the distribution channels. - Qualification: it requires the agent should have good reputation, good credibility, etc.

    - Cooperation: China mobile does not invest money but provide service guidance. the agent can

    get the most favorable price through this cooperation means, and the agent can sell almost the

    same product and services as the retail shop owned by CM itself. When the agent accomplish

    sales to one new customer, it can get a certain amount of commission, once it sell some

    value-added services (i.e. GPRS, WAP,etc).

    - Of course the agent can not sale any product or services of the other competitors.

    - Specializing Retail shop: which is almost the same as the above, the only difference is that

    there are less requirement for the agent, and less service authorized, and also less favorable

    pricing and commission.

    - Franchising shop: this is the lowest level cooperation method, which even allows the agent to

    sell other competitors product, and it can only sell SIM card to the customer.

Because of the market difference, different province are facing different situation in exploring the

    distribution channel. For Hebei and Shandong, they are facing more burden in exploring the

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中国移动(香港)有限公司 人力资源系统改进项目

    channels, since china Unicom is also grabbing the channels, while for Beijing mobile, the market is quite good for china mobile, the agents all wish to cooperate with China mobile, thus they are facing less burden under the current situation. Anyway, it is agreed that the channel is becoming more and more important in the future competition.

? Big customer management :

    China mobile has one special department or function to deal with the sales and customer service for big customer and high-value customer. Currently, the major responsibility of the big customer manager is to maintain the good customer relationship with the big customer, and promote the value-added service to the big customer, thus to keep the customer base, and also increase the revenue. Since the competition between CM and China Unicom regarding grabbing the big customer is becoming more and more serious, China mobile focus more on the CRM and developing new big customer. Thus the big customer manager is no longer responsible only for big customer maintenance, but also responsible for developing new big customer.

3. Sales People

    ? Retail Shop Sales rep

    Currently for most of the province, there are overstaffing problems in retail shop, since they are not actually sales staff, and can not bring the number of customer increasing actively, while this part of staff occupied big percentage of the staffing.

? Channel manager

    - Marketing rep

    - Sales rep

    For the channel manager, the marketing rep is only responsible for providing guidance to the channel, while the sales rep is responsible for exploring the sales agent and channels. Anyway, currently they are all more focusing on the general affairs of developing the new channels instead of developing new agents actively.

? Big customer management

    - Big customer manager

    Big customer manager is the most important sales role in china mobile currently, but there are little encouragement and incentive for this part of sales people, they are responsible for fulfilling the sales target, but the compensation structure is almost the same as the other employee.

4. Current Sales measures

    ? Customer number

    ? Revenue

    For sales department and the sales people, the performance measures is the customer number and the revenue. Actually they can manage the customer number measure by themselves, the revenue measure is allocated and managed by Finance department.

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中国移动(香港)有限公司 人力资源系统改进项目

5. Current Major concern

? Organization set up

    There is no clear role definition between Marketing and sales, thus there are no clear business

    process between sales and marketing, which is not good for the business operation ? Staffing not balance

    Among the three sales force, the retail shop is actually not sales, they are just taking the role of

    order taking and providing customer service, but they are entitle of sales, and there are about

    60%-70% people in the retail shop. While on the other hand, the big customer manager is quite

    important role, and there are only about 10% staffing in this department, thus the sales staffing

    is not allocated scientifically, and the role of retail shop should be redefined. ? Performance measures is not linked to compensation

    It is suggested to link the sales PM to compensation tightly to give the sales people enough

    incentive

    ? Sales is not given enough respect

    Because of the traditional concept, the sales is not paid much attention, thus the sales people

    qualification is not high, the sales compensation is not attractive, which is not good for building

    strong sales team.

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