Latest news with #salesrepresentatives
Forbes
2 days ago
- Business
- Forbes
AI Makes Your Sales Team's Soft Skills More Valuable (not less)
Real-time data and customer insights support human connections rather than replacing them. getty The convergence of artificial intelligence and consumption-based pricing (CBP) is transforming sales relationships, but not in the way you might have expected. Rather than diminishing the role of sales representatives, these technologies are making human soft skills more crucial than ever. Pay-as-you-go models like CBP are becoming increasingly popular–not only in the software-as-a-service (SaaS) arena, but for manufacturing equipment, driver's insurance, and numerous other products and services. And CBP is all about usage data. Customers like it; it inherently feels fair to pay based on real use, versus older seat-based subscriptions. (Salespeople also like CBP, if (and only if) their compensation plan feels fair.) For service providers using CBP, AI is proving vital in analyzing all that data to: The benefits of AI automation and insights are too valuable to ignore. Given so much data to work with, generative AI (GenAI) and agentic AI can even automate some price negotiations and write contracts. As Suzanne Krpata, senior vice president of SAP customer experience, puts it, 'AI is no longer an option in sales.' So much for the sales team, right? Wrong. Instead of automating the entire process, AI is 'the linchpin that lets sellers move from pushing products to providing real solutions,' according to Krpata. 'And with that shift, soft skills become indispensable.' Turns out, buyers are people (who knew!). And people like other people. 'Customers want a human guide through the solutions, someone who can explain, connect, and reassure,' she says. Consider a SaaS renewal meeting: Previously, a rep would gather basic account information and demographics before attempting to position their offerings—a time-consuming and imprecise process. Today, that same rep can take advantage of AI-analyzed usage data to engage a cross-functional team including account management, product specialists, and finance to craft a highly customized acquisition or retention strategy. Instead of simply highlighting a subscription's existing value, reps can reconfigure offerings to coordinate perfectly with the customer's demonstrated needs—potentially including relevant, significant upsells. Time previously spent on calculations and administrative work can be devoted to more strategic discussions about the buyer's future goals, overcoming objections or pitfalls, fine-tuning processes and applications, and exploring more creative use cases. The customer feels understood, the rep secures a win, and the vendor gains deeper market insights with every customer added or renewed. Indeed, that higher level of thinking and flexibility is becoming table stakes. 'Customers expect a true joint investment in customer success. Sellers can use consumption data to act as trusted advisors, offering solutions that grow with the customer's needs,' says Krpata. While aligning with customer expectations, CBP introduces new challenges and requires revamping sales processes for consumption pricing[LD1] . As Ben Chambers, an independent sales compensation consultant specializing in CBP models explains, 'It may be choppier waters than subscription-based models, but it's a better path to revenue growth, especially in competitive environments where core competitors are also offering usage-based pricing arrangements.' 'Companies are getting pushed into the pool,' he says. 'If they don't start swimming, they won't be able to win against the competitor that designs and delivers a lower-friction sales cycle requiring far less money up front.' An effective customer success team using AI-driven analytics becomes crucial for maximizing CBP benefits. Krpata notes, 'AI enhances CBP models by simplifying data collection and recommending content that supports customer-tailored solutions, making the partnership more collaborative and value-driven.' Today's customers expect personalization, transparency, and efficiency. They want real-time insights and tailored experiences that clearly demonstrate value. They don't want disconnected customer service experiences or to feel burdened with configuring the right services themselves; they expect vendors to handle this seamlessly, which modern AI tools now make possible. Sales representatives must still build genuine connections, understand needs, and negotiate complex deals. 'Primarily, they should be using their skill sets to unlock demand and identify and win new business—things that take persuasion and selling skills,' says Chambers. So what counts as 'authentic' in sales? Genuine sales relationships center on: A quickly widening variety of AI-powered tools for sales training and support are available. These tools can enhance soft skills by helping sales representatives: However, Krpata emphasizes again that human connection remains irreplaceable. 'A trusted advisor relationship is built 100% on soft skills. How do I connect with you? How do I truly understand and listen to what you need? And then, how do I propose solutions that meet those needs? AI can't do those things, but it can empower them.' The most successful sales organizations will use AI as a strategic enabler of human connections—using real-time data to support genuine, transparent person-to-person relationships rather than attempting to replace them. A version of this story also appears on
The Independent
2 days ago
- Business
- The Independent
Avon sellers fuming over changes to pay structure
Avon is facing criticism from its UK sales representatives due to reduced commission rates, which some workers claim have decreased their income by over two-thirds. Changes to the pay structure include shifting targets and reduced incentives, leading some representatives to leave the company. Internal emails suggest the company downplayed the impact of the changes, with one message citing a 'two to three per cent' drop in earnings. Commissions in Avon's fashion and home category have been capped at 10 per cent, down from a previous maximum of 32 per cent, due to rising manufacturing and supply costs, according to the company. Some representatives report being denied payments, facing unexpected bills, and being asked to take on unpaid training roles. Avon says that it fairly and transparently rewards representatives based on sales volume.
The Independent
2 days ago
- Business
- The Independent
‘Another kick in the teeth': Avon sellers are walking away after huge commission cuts
Avon is facing growing anger from its legion of sellers after cutting commission rates in a move that some workers say has wiped out more than two-thirds of their income. Changes to pay structures, which affect thousands of representatives across the UK, have been introduced alongside shifting targets and reduced incentives – leaving many reps feeling misled, and prompting some to walk away from the company altogether. The cosmetics and homeware brand, known for its historic door-to-door model, has long relied on a network of representatives to sell products across the UK. But many of those reps now say they're being forced to leave, unable to make the numbers work. The Independent has seen internal company emails that appear to downplay the impact of the changes. One message claimed earnings in a particular category would fall by 'two to three per cent' – but in fact this referred to a drop of up to three percentage points, which in some cases equates to a real-terms loss of 33 per cent. For example, team leaders previously earned between 7.5 and 9 per cent commission from the sales of those in their team. That has now been cut to between 5 and 6.5 per cent. Coordinators saw similar reductions, with earnings in some cases dropping by as much as 40 per cent. Commissions slashed One of the most contentious changes relates to Avon's fashion and home category, which accounts for around 15 per cent of its UK sales. Commissions in this area have been capped at 10 per cent, down from a previous maximum of 32 per cent – a cut of more than two-thirds (68.75 per cent) for top-tier earners. The company said the change was due to 'continued rising manufacturing and supply costs'. Elsewhere, most sellers are estimated to earn between 20 and 25 per cent commission for product sales, with the starting rate at 10 per cent. But it's not just commission rates that have shifted. Sellers say the entire earnings structure is becoming harder to navigate, particularly under the company's multi-level marketing (MLM) model, which rewards both direct sales and team recruitment. More sellers, less money Under Avon's tiered system – from bronze to VIP – reps can move up the ranks based on performance and monthly sales. Some also earn a cut of sales from those they recruit, up to three levels down. There are further bonuses available for 'leaders', though these depend on hitting personal sales targets and maintaining a team of at least five active sellers. One estimate shared with this publication suggests that, under the new structure, a VIP-tier seller would need to recruit around 60 new reps just to match their income from the previous year. Several Avon workers, speaking on condition of anonymity, said they felt left in the dark about changes, with little clear communication from management and frequent shifts in expectations. Some said they had built teams and invested time training others, only to watch their earnings shrink. One added that sellers are now forced to choose between working significantly more to stand still — or walking away altogether. That loss, in turn, affects the income of those who recruited them, compounding the pressure across the network. Hidden costs and unpaid roles New starters must sell at least £100 worth of goods in their first quarter to qualify for commission. The Independent has heard reports of both new and returning workers being denied payments, sometimes without explanation. Meanwhile, some reps say they've been asked to take on roles as 'training ambassadors' – coaching new recruits, at times without realising the work is unpaid. Avon's public messaging also appears inconsistent. On its website, the company promises prospective reps: 'If you sell £400 a month you'll earn about £100.' But a disclaimer further down the page warns: 'It is illegal to promote or participate in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join… Do not be misled that high earnings are easily achieved.' The note adds that earnings are based on 2023 actuals and depend on 'criteria achievement'. On social media, dissatisfaction is spilling out. One Facebook group for reps is reportedly moderated by Avon, with sellers claiming that posts critical of the company are blocked. A separate, public group paints a starker picture, with posts ranging from deflated to furious. One seller described the latest cuts as 'another kick in the teeth', having already stepped down from a senior role. Another said their team had halved over the past year despite regular recruitment. Multiple posters cited shrinking pay, burnout and a decision to walk away altogether. Others detailed the cumulative impact of smaller changes. One source said that over just six months, Avon had removed rewards, raised brochure prices, increased minimum spend thresholds for free delivery, hiked the handling fee, changed the returns credit process, and cut commissions — all without adequate support. That seller has since left the business. Alongside earnings cuts, some sellers say they were hit with unexpected bills due to technical issues over the new year period. In at least one case, legal action is believed to be under way, with the seller claiming they had already paid for goods Avon was attempting to bill for. Avon, which was bought by Brazilian parent company Natura in 2019 for around £1.6bn, said: 'Avon has a proud 138-year history of providing flexible earning opportunities to all. 'We have recently changed our commission structure for Sales Leaders to better reward those who are proactively growing their independent Avon businesses. Representatives are paid commission on the volume of product sales and are rewarded fairly and transparently.'
