Structuring Sales Teams
Read Time: 4-minutes
This week, I’m taking a different approach to help you consider how best to structure your sales teams in the chemical industry. I’ll be sharing what I think are the key types of structures, their pros and cons, and a look at which ones might work best in our industry.
In the chemical industry, buyers are looking for reliable, informed sales support. The way a company organises its sales team plays a crucial role in delivering this. With the right structure, sales teams work more efficiently and serve clients better.
A clear structure can improve communication, eliminate role confusion, and ultimately make the buying process smoother. If a company’s sales team feels aligned with your needs, that can build trust. Something every buyer values, of course. As a sales leader, I find the way we organise our teams directly impacts the quality of service we provide, so finding the right structure is essential. I’ve had firsthand experience of being in sales teams with 0 structure, and I can tell you it’s no conducive to success. Especially when we are dealing with the diverse and complex needs of raw materials and ingredients.
Often, a team that worked well on a smaller scale becomes disorganised or inefficient when expanded, leading to internal conflict or crossed communication lines with clients. This is when most companies struggle because they either try to stick to what worked when the team was smaller, they apply a model which doesn’t work, or they try and implement a hybrid model which doesn’t work.
Takeaways:
Ways to structure teams
Strengths and weaknesses of each
Best choices for the chemical industry
Practical tips to implement
"Structure is not about control; it’s about empowerment."
– Simon Sinek
Ways To Structure Teams
I’ve chosen three ways which I think could be successfully implemented in the chemical industry, each with benefits and challenges.
Geographic: team members are assigned specific territories. This works well when teams need to focus on local expertise and build relationships in specific territories. When we say geographical, it could be as far out or as close in as necessary. Continent vs city for example.
Industry Vertical: in this model, team members specialise in different industries, like personal care or pharmaceuticals. It’s a good choice for technical fields, as it allows representatives to understand industry-specific needs and challenges.
Account Stratification: divides clients into categories (e.g. A, B, C) based on buying potential, value, or strategic importance. Higher-tier clients receive more resources and personalised support, while lower tiers receive appropriate but less intensive service.
Strengths and Weaknesses
Each structure comes with its own set of benefits and potential drawbacks, making some models better suited to specific scenarios:
Geographical
Pros: builds local expertise and responsiveness, making it ideal for regions with unique regulatory or distribution needs.
Cons: limits flexibility, as team members are tied to certain areas, which can be restrictive if client needs extend beyond these borders.
Industry Vertical
Pros: helps sales reps becomes experts in specific sectors, which can build trust with clients who vale industry-specific knowledge.
Cons: may require regular adjustments, as demand and client needs vary greatly between industries, which can strain resources.
Account Stratification
Pros: allows high-value clients to receive dedicated, personalised service, helping build loyalty and maximise revenue potential from these accounts.
Cons: may leave lower-tier clients feeling undervalued if not managed carefully, so it’s essential to balance attention across all segments.
Best Choices for the Chemical Industry
I will look at this from two viewpoints, the view of a distributor and a manufacturer. Each model has its strengths and limitations, making certain structures more effective depending on the company’s focus and scale.
For distribution companies: stratification (A, B, C) may not be the best fit. With long product lists that often cover a broad range of industries, there’s simply too much variation and spread in customer needs for this model to work efficiently. Managing a wide variety of products across numerous sectors demands a flexible structure that can adapt to clients with vastly different requirements.
A better fit is either a geographic or industry vertical structure in my opinion, depending on the regions and sectors the distributor operates in. Geographic enables teams to develop a deep understanding of regional compliance and client expectations, however it doesn’t allow for as much industry-specific expertise, and can be messy when clients extend across regions.
Industry vertical allows the team to specialise in sector knowledge, gaining a much better understanding of a clients specific requirements and challenges, However, resource allocation may become a challenge. Some sectors may experience higher demand than others, which may fluctuate too. It can become resource-intensive and, if not managed well, leave some sectors underserved.
For Chemical Manufacturers: this really depends a lot on the size of the product list, the complexity of the chemistry, and the number of applications for the product(s).
If the product list is short, and products have only a few specific applications, a geographic model can be effective. It allows the sales team to gain in-depth regional knowledge and respond to the unique demands of each location, especially when compliance varies significantly by region.
As a manufacturer’s product list grows or serves a broader range of industries, an industry vertical approach becomes more effective. Industry verticals allow sales reps to become specialists, tailoring their approach to the specific needs, language, and regulations of each sector, such as pharmaceuticals or agrochemicals.
This specialisation is particularly valuable in a technical field like chemicals, where understanding a sector’s unique demands can significantly enhance client relationships and satisfaction.
Overall, the ideal structure for each company will depend on the size and complexity of its product range and the diversity of its client base. While each model has its benefits, selecting the right one ensures a more efficient, focused team that can meet clients’ needs effectively, even in a complex industry like chemicals.
It’s important to stress the point though that although each structure has benefits, none are perfect. You gain something with each but lose something elsewhere. Ultimately, the best structure depends on your companies’ unique circumstances.
Practical Tips for Implementation
If you are considering a new structure for your team, consider the following:
Evaluate Client Needs: meet them where they are. Are they concentrated in specific industries or regions, or do their needs vary significantly with increased value?
Define Responsibilities Clearly: to avoid role conflicts and ensure smooth service, document each team members responsibilities clearly. This is especially crucial in chemicals, where role clarity can prevent costly missteps.
Maintain Some Flexibility: even with a set structure, keep flexibility in mind. Market conditions and client needs shift, especially in a dynamic industry like chemicals, so an adaptable team can respond more effectively to change.
Review Regularly: what’s working, what isn’t working. Can the structure be adjusted to solve issues or improve on them?
Finally, if in doubt, pick one, and never mix them. A structure, even if not perfect, is better than no structure.
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So, there you have it.
I’ve worked in teams with 0 structure, with vague structure, and helped implement new structures. If you aren’t sure, just work backwards from your customers needs, the industries you cover, the work which needs to be done, and pick one.
If it works, great. If not, then work towards another one.
It’s also important to note, that manufacturers can implement this with their distribution partners too.
Distributor A covers region 1, distributor B covers region 2. Or A covers industry 1, whilst B covers industry 2…
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Thanks for reading, and see you next week.
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