TMSA Blog

COVID’s Impact on Sales Travel in Transportation and Logistics

Written by TMSA Staff | Nov 19, 2020 5:00:00 AM

Shippers are limiting external visits and sales calls to their facilities to minimize any chance of COVID spread to their workforces – which layers additional challenges to building relationships with customers and prospects. Industry events have been cancelled, postponed, or have gone completely virtual – so there are significantly fewer opportunities to meet in-person with customers, prospects, colleagues and partners. And of course, transportation and logistics companies also are wanting to keep safe their own sales personnel as well. 

So What’s the Impact on Sales-Related Travel?

During TMSA’s Virtual Town Hall earlier this week, there was significant discussion around the impact COVID has had on sales success. As part of the Town Hall virtual event, TMSA had polled members and asked them about their currently travel policies as they relate to sales. Through the survey, 32 companies responded (59% are 3PLs, 25% are motor carriers, and the remaining respondents were consultants, ocean carriers, port authorities, railroads, and technology innovators).  

Most agreed that there are much more conservative travel policies by transportation and logistics companies due to limited face-to-face opportunities. Survey respondents indicated that in the initial months of COVID last spring (February – April), approximately 60% had completely banned sales-related travel. Now, 22% indicate there still is NO travel currently allowed, with another 53% allowing only “essential travel” in sales. 

During the TMSA Town Hall, many indicated that they perceive sales-related travel will return – but at a very slow rate. Through the survey, approximately 25%  indicated they expected more travel to be taking place in Q1 and nearly 50% indicated they expected more travel by Q2.

For full results from the TMSA survey, see the bar chart below. 

What’s the Alternative Sales Approach to Limited Travel?

Interestingly, COVID has significantly impacted the operations of companies in transportation and logistics as firms are looking at ways to protect their workforces, operations, and products/materials moving through their supply chain operations. But in fact, 56% of those completing the survey said that their overall sales results since COVID actually increased with another 10% stating that their sales remained about the same. Approximately 35% of respondents indicated that their sales results have been lower. Much of the impact COVID has had on sales in transportation and logistics as based upon the business mix that the company has. Logically, if the industries they service are more “essential” that have seen an increase in volumes (such as food, beverage, medical supplies, retail) their sales will be positively impacted and they may even be experiencing a banner year. Those companies that are serving luxury markets may not necessarily be performing as well in their sales areas.

results from the TMSA survey on how COVID has changed the sales approach of transportation and logistics companies, see the bar chart on the right.

Regardless, what’s the alternative sales approach companies are using if they can’t meet face-to-face with their customers and prospects? The vast majority suggested that they’ve significantly increased their inside sales activity (outbound calling) to generate new qualified leads. In fact, in the survey 89% said they’ve seen an increase in this area since COVID. Another 63% said they’re increasing their social selling via social media (predominantly using LinkedIn).

View the TMSA Town Hall “2021 Marketing & Sales Outlook” On-Demand 

If you were unable to participate in this virtual event, as a TMSA member you still have access to the session on-demand at no cost! The event covered such relevant topics as achieving sales goals and success in the middle of a pandemic as well as marketing planning and budgeting. Register and View Session