As highlighted in the initial blog of this series on sales efficiency, travel and administration tasks constitute a significant portion of non-revenue-generating activities. Similar to the previous discussion on administration and CRM, the objective is not to eliminate these activities. Yet, to evaluate which elements will be more efficient to free up more time for selling.
Despite the advancements in virtual tools, face-to-face meetings remain invaluable, often far surpassing the effectiveness of virtual interactions. Therefore, individuals involved in the sales process will frequently visits (potential) customers, making travel an unavoidable aspect of their role. This raises the question of whether travel should account for 13% of a salesperson’s available time. Especially while it is unclear if preparation and reimbursement processes are included in this figure.
The focus is not on whether to visit customers, but on how to use the time surrounding these visits wisely.
Travel can be broadly categorized into three types: 1) short, 2) mid, and 3) long-haul trips. The travel process itself consists of three main stages: 1) planning/approval, 2) travel, and 3) reimbursement. Unsurprisingly, the time and impact of these stages vary significantly based on the type of travel. Longer trips generally require more time across all three stages.
However, it is important not to focus solely on long-haul travel; time can also be optimized for shorter trips. It is worth noting that, for the purposes of this blog, activities such as preparing for meetings and writing customer visit reports are not included in travel-related time assessments.
1. Planning and Approval
Visiting a customer or attending an event involves significant preparation. Spontaneous decisions to go on such tours are rare. The first step is coordinating customer availability, along with ensuring the availability of all necessary participants. Meetings or events may sometimes be combined with other appointments, adding complexity to scheduling, especially for full regional tours. This is simply part of the process and should be expected.
When travel involves transportation beyond personal vehicles, the availability of suitable transportation becomes an essential consideration during the preparation phase. It can be frustrating and inefficient if all other arrangements are made but no viable way to reach the destination is available. Regardless of the approval or booking tool used, this preparation time is already time diverted from selling.
Once travel plans are finalized, official approval must be obtained. Assuming prior discussions have taken place, this step should be straightforward. It should not be a surprise to those responsible for granting approval. However, it still consumes their time as well. The approval process can range from a simple email to sophisticated platforms, with more complex systems often being less flexible. Ironically, this can result in the requester spending more time on the tool rather than less.
Unfortunately, the more sophisticated the travel planning tool, the more time it requires. While these tools may help control costs, they do not reduce the time spent.
One way to save valuable time is to streamline the travel approval process. Such it only needs to be requested once. This avoids the need to restart the process if flights, rental cars, train tickets, or hotels become unavailable. There booking tools often hold the lowest-priced options for only a limited time. While this may only be a minor inconvenience for a single train ticket, it can add hours of work when planning a multi-stop tour.
Most of these booking systems aim to ensure cost efficiency. While cost control is essential, if a requester spends hours organizing a trip, the cost of their time can outweigh any savings achieved.
A more straightforward process is often less time-consuming. In the last three assignments handled by JB Telecom & Data, bookings were made internally on behalf of the client. By setting cost boundaries upfront, time spent on planning was significantly reduced, and, surprisingly, costs were even lower.
2. Travel time
Anyone who has traveled, whether for short or long distances, knows that disruptions are inevitable. These may range from traffic jams causing significant delays to being stranded in a snowstorm or affected by a local strike. Such events can happen unexpectedly. The traveler should not be held accountable for these situations.
While resisting or fighting against these situations may temporarily relieve frustration, it is not productive. What truly helps is ensuring that the rebooking process runs smoothly. Even when outsourcing rebooking tasks, travelers often need to be actively involved.
One important lesson learned is not to rely solely on booking platforms. Joining a long queue or finding that support is not available 24/7 can be problematic. Some platforms may even require management approval for rebookings. Particularly if costs increase, which can be an issue if approval is delayed due to time zone differences.
The digitalization of transportation services has, in many cases, improved flexibility. Airlines and train operators may proactively propose new itineraries, although these can sometimes fall short of expectations. In some cases, booking a new ticket with a competitor may be quicker, leaving the company to recover the costs of the original booking later. This, however, is often easier said than done.
The most effective way to manage disruptions is to take control yourself. Therefore, travelers should not face challenges when reimbursing for any additional costs.
At a certain level of disruption, hotels and alternative transportation may be provided by the service provider. However, this may not always be reliable. To ensure rest and avoid excessive waiting at airports, train stations, or other locations, using a hotel booking app to secure the nearest available accommodation at a reasonable cost is a practical solution. Prolonged time spent on arranging these details can turn standard travel into an exhausting experience.
Taking personal control of such situations can be the fastest way to resolve them. However, this approach requires flexibility for travelers and should not lead to additional challenges when seeking reimbursement for any extra costs.
It is also important to note that hotels are often booked based solely on price. This can result in significant distances between the hotel, airport, and customer location. In such cases, any savings on hotel costs can be quickly offset by the additional taxi expenses incurred. Choosing accommodations that are more conveniently located can save not only on costs but also on unnecessary travel time.
3. Reimbursement
The key term associated with reimbursements is: ‘tools.’ Reimbursement processes can vary widely in their complexity. When all expenses are charged to a company credit card, submitting invoices and receipts digitally can be a straightforward process.
However, when no such tool is available and spreadsheets become the preferred method, the process can become quite cumbersome. Especially when dealing with multiple currencies. Not only is proof of the expense required, but documentation of currency conversion is often necessary as well.
This is not to say that the administrative task should be avoided; proper documentation is essential for accurate bookkeeping and to ensure that expenses comply with company policies and are deductible.
Reimbursement can be simplified by scanning receipts during the trip and submitting them once all have been collected.
Another challenge, though not entirely the company’s fault, is the significant variation in reimbursement regulations across different countries. In some regions, full reimbursements can be processed without issue, while in others, daily allowances must be deducted from the expenses incurred. Additionally, in certain countries, elements of a stay, such as breakfast, may be considered part of the employee’s taxable income. Whenever possible, a straightforward approach to reimbursing all expenses incurred is preferable.
Companies can support their employees by implementing a platform that allows travelers to scan and submit receipts while on the go. Completely with cost details and justifications. There is usually a spare moment during travel that can be used for this task. Making the process more efficient and less time-consuming.
Loyalty perks
While not entirely central to the discussion, there are potential cost savings when utilizing travelers’ loyalty perks. Frequent travelers often achieve loyalty status with airlines or hotel chains. This can provide benefits such as free checked baggage and access to airport lounges, reducing the high costs associated with dining at the airport.
This does not imply that booking with preferred loyalty program providers should be mandatory. Cost considerations remain important. However, a price difference of as little as $100 can often be offset by the value of these perks.