Sales force management systems

Sales force management systems are information systems used in marketing and management that help automate some sales and sales force management functions. They are frequently combined with a marketing information system, in which case they are often called Customer Relationship Management (CRM) systems.Sales Force Automation Systems (SFA), typically a part of a company’s customer relationship management system, is a system that automatically records all the stages in a sales process. SFA includes a contact management system which tracks all contact that has been made with a given customer, the purpose of the contact, and any follow up that might be required. This ensures that sales efforts won’t be duplicated eliminating the risk of irritating customers. SFA also includes a sales lead tracking system, which lists potential customers through paid phone lists, or customers of related products. Other elements of a SFA system can include, sales forecasting, order management and product knowledge. More developed SFA systems have features where customers can actually model the product to meet their required needs through online product building systems. This is becoming more and more popular in the automobile industry, where patrons can customize various features such as color and interior features such as leather vs. upholstered seats.An integral part of any SFA system is company wide integration among different departments. If SFA systems aren’t adopted and properly integrated to all departments, there might be a lack of communication which could result in different departments contacting the same customer for the same purpose. In order to mitigate this risk, SFA must be fully integrated in all departments that deal with customer service management.content

1 Advantages to sales people
2 Advantages to the sales manager
3 Advantages to the marketing manager
4 Strategic advantages
5 Disadvantages
6 Encouraging use

Advantages to sales people

Proponents claim that sales force automation systems can improve the productivity of sales personnel. Here are some examples:Rather than write-out sales orders, reports, activity reports, and/or call sheets, sales people can fill-in prepared e-forms. This saves time.Rather than printing out reports and taking them to the sales manager, sales people can use the company intranet to transmit the information. This saves time.Rather than waiting for paper based product inventory data, sales prospect lists, and sales support information, they will have access to the information when they need it. This could be useful in the field when answering prospects’ questions and objections.The additional tools could help improve sales staff morale if they reduce the amount of record keeping and/or increase the rate of closing. This could contribute to a virtuous spiral of beneficial and cumulative effects.These sales force systems can be used as an effective and efficient training device. They provide sales staff with product information and sales technique training without them having to waste time at seminars.Better communication and co-operation between sales personnel facilitates successful team selling.More and better qualified sales leads could be automatically generated by the software.This technology increases the sales person’s ratio of selling time to non-selling time. Non-selling time includes activities like report writing, travel time, internal meetings, training, and seminars.

Advantages to the sales manager

Sales force automation systems can also affect sales management. Here are some examples:The sales manager, rather than gathering all the call sheets from various sales people and tabulating the results, will have the results automatically presented in easy to understand tables, charts, or graphs. This saves time for the manager.Activity reports, information requests, orders booked, and other sales information will be sent to the sales manager more frequently, allowing him/her to respond more directly with advice, product in-stock verifications, and price discount authorizations. This gives management more hands-on control of the sales process if they wish to use it.The sales manager can configure the system so as to automatically analyze the information using sophisticated statistical techniques, and present the results in a user-friendly way. This gives the sales manager information that is more useful in : Providing current and useful sales support materials to their sales staffProviding marketing research data: demographic, psychographic, behavioural, product acceptance, product problems, detecting trendsProviding market research data: industry dynamics, new competitors, new products from competitors, new promotional campaigns from competitors, macro-environmental scanning, detecting trendsCo-ordinate with other parts of the firm, particularly marketing, production, and financeIdentifying your most profitable customers, and your problem customersTracking the productivity of their sales force by combining a number of performance measures such as: revenue per sales person, revenue per territory, margin by customer segment, margin by customer, number of calls per day, time spent per contact, revenue per call, cost per call, entertainment cost per call, ratio of orders to calls, revenue as a percentage of sales quota, number of new customers per period, number of lost customers per period, cost of customer acquisition as a percentage of expected lifetime value of customer, percentage of goods returned, number of customer complaints, and number of overdue accounts. More complex models like the PAIRS model (by Parasuraman and Day) and the Call Plan model (by Lodish) can also be used.

Advantages to the marketing manager

It is also claimed to be useful for the marketing manager. It gives the marketing manager information that is useful in :Understanding the economic structure of your industryIdentifying segments within your marketIdentifying your target marketIdentifying your best customers in placeDoing marketing research to develop profiles (demographic, psychographic, and behavioral) of your core customersUnderstanding your competitors and their productsDeveloping new productsEstablishing environmental scanning mechanisms to detect opportunities and threatsUnderstanding your company's strengths and weaknessesAuditing your customers' experience of your brand in fullDeveloping marketing strategies for each of your products using the marketing mix variables of price, product, distribution, and promotionCoordinating the sales function with other parts of the promotional mix (such as advertising, sales promotion, public relations, and publicity)Creating a sustainable competitive advantageUnderstanding where you want your brands to be in the future, and providing an empirical basis for writing marketing plans on a regular basis to help you get thereProviding input into feedback systems to help you monitor and adjust the process

Strategic advantages

Sales force automation systems can also create competitive advantage. Here are some examples:As mentioned above, productivity will increase. Sales staff will use their time more efficiently and more effectively. The sales manager will also become more efficient and more effective.(see above) This increased productivity can create a competitive advantage in three ways: it can reduce costs, it can increase sales revenue, and it can increase market share.Field sales staff will send their information more frequently. Typically information will be sent to management after every sales call (rather than once a week). This provides management with current information, information that they will be able to use while it is still valuable. Management response time will be greatly reduced. The company will become more alert and more agile.These systems could increase customer satisfaction if they are used with wisdom. If the information obtained and analyzed with the system is used to create a product that matches or exceeds customer expectations, and the sales staff use the system to service customers more expertly and diligently, then customers should be satisfied with the company. This will provide a competitive advantage because customer satisfaction leads to increased customer loyalty, reduced customer acquisition costs, reduced price elasticity of demand, and increased profit margins.

Disadvantages

Detractors claim that sales force management systems are:difficult to work withrequire additional work inputting datadehumanize a process that should be personalrequire continuous maintenance, information updating, and system upgradingcostlydifficult to integrate with other management information systems

Encouraging use

For all the reasons stated above many organisations have found it difficult to persuade sales people to enter data into the system. For this reason many have questioned the value of the investment. Recent developments have embedded sales process systems that give something back to the seller within the CRM screens. Because these systems help the sales person plan and structure their selling in the most effective way they give a reason to use the CRM.

Affiliate marketing

Affiliate marketing is a VERY successful strategy for many online businesses — but if you don’t put in the effort to ensure your affiliates feel motivated to promote your products, you might just be wasting your time!
So how do you motivate them?
Well, it’s actually pretty simple! Give them the tools and information they need to share you with their visitors and subscribers, and then make sure they know you appreciate their time and effort.
Unfortunately, many folks who start affiliate programs think their job ends when they sign up a group of marketers… when really, they’re just getting started! It doesn’t take a lot of effort to provide your affiliates with great resources, but if you skip this “prep step”, you’ll find that no one will be too excited to spread the word.
So if you’ve got an affiliate program, or you’re thinking about starting one — OR you’re looking to assess how good an affiliate program is BEFORE you join it — here’s a quick list of the Top Seven Things Your Affiliates WISH You’d Give Them…
· Fair commissions: We put it first because it’s SO important — if you’re not giving your affiliates a significant portion of the business they refer to you, it’s simply not worth their while to promote you to their list and their visitors. After all — the credibility of their recommendation is on the line! We recommend you offer 20% to 50% commission on every sale. It might seem like a lot, but you wouldn’t have had that sale otherwise… OR any of the revenue you’ll generate when that customer buys again, straight from you!
· Salescopy: What’s so special about your product? Why can’t your customer do without it? You have the answers to these questions — so make sure your affiliates do, too! Give them plenty of benefit-rich copy to get your message across effectively to guarantee better conversions — which will make both you AND your affiliate happy!
· Graphics and photos: What good is it to have your product promoted on another website if the ad or image doesn’t do it justice? Provide quality images and graphics for your affiliates so they can put YOUR best foot forward! That includes any banner or sidebar ads you provide, or photos for reviews. The best way to provide both copy AND graphics is to set up an Affiliate Resource Center on your website where affiliates can sign in to get everything they need.
· Special deals or offers: Do your customers rush to take advantage of special offers and sales? Well, so will your affiliates! If you’re offering discounts or deals of any kind, make sure to let them know so they can use that angle to promote your products. Make sure to think up a few special deals for JUST your affiliates to offer, too!
· Product updates: If you change any of your products in any way, let your affiliates know right away. It could create serious hassles for them if they’re misrepresenting what you offer (in terms of product features, pricing, etc.)
· Timely payments: The BEST way to make your affiliates feel loved? Pay them commissions on time! Many people who run affiliate programs find this to be the biggest argument for using an affiliate management program or system — the payments are automatic and reliable. But f you can’t remember to pay people… don’t expect them to remember to talk about your product!
· Timely response: The second best way to make your affiliates feel loved is to provide great customer service. If they’re having trouble with some element of your program, make sure to follow up right away and get things sorted out. Not only will you ensure that your affiliates stay active, but you’ll also avoid the potential flip side of great affiliate marketing — a bad public review of your program!
We’d love to hear about your experiences with affiliate programs, and any tips or suggestions you’ve got on running a great affiliate program.
Give us a shout in the comments!