Chapter 6

Sales Management: Shaping Future Sales Leaders

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.6-1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

LeveragingInformation Technologies

Chapter 6

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.6-2

E-mail

Drives $8.8 billion in business-to-business sales

85% of salespeople use e-mail to communicate with existing customers

67% to prospect for new customers

60% to communicate with the home office

24% to check existing stock


Knowledge Management, Proposal Writing, and Pricing Software

Pricing Software Makes sure all components are accounted for,

resulting in a more accurate estimate of job’s cost Often industry-specific software is available

Proposal-writing Software

Library of successful proposals from which reps can select portions and create new proposals

One of the first KM apps created for salespeople

KnowledgeManagement

Knowledge-based information (e.g., product catalog) taken online

Knowledge base is the data in the system


Sales Force Automation (SFA) Systems

SFA automates salespeople’s contact management, scheduling, and reporting functions One of first types of information technology used by

salespeople Contact management is the use of customer

databases to keep track of customer information, calendaring to schedule customer activities such as sales calls, follow-up, and so forth

Contact Screen in Aplicor


Account Name & Contact Person’s Info

Background

Account Type and Address


Benefits of SFA

ImprovedCustomerInteraction

More information about each customer readily available

Retention of Customer Records

If rep takes records when moving to another company or throws them away, customer data is lost

Instant Access Helps managers evaluate and coach reps Improves firm’s sales forecasts

Tickler/Reminder Automatic reminders to complete certain tasks


Some Major SFA Applications

Day-to-day good management

Opportunity management

Campaign management

Data mine


Some Major SFA Features/Benefits

N


Challenges of SFA

Getting salespeople to adopt the system

How managers should use the system

Flexibility may be lost


Customer Relationship Management (CRM) Software

Encompasses the types of relationships you want to create with your customers Philosophy, strategy, way of life

Can result in more effective communication, integrating rep’s customer communications with other channels

CRM must integrate with other software systems, cannot just automate rep activities

CRM data must be visible to those who need it

S o u th A tlan tic O ce an S o u th P ac if ic O c ea n

N o rth P ac ific O c ea n

N o rth A tlan tic O ce an

In d ia n O c ean

A rc tic O ce an A rc tic O ce an A rc tic O ce an

N o rth P ac ific O c ea n

U n ited S ta te s o f A m e ric a

U .S .A .

C an a d a

M e x ic o

B raz il

U . S . A .

F re n c h P o ly n e s ia (F r.)

A rg e n tin a

U ru g u a y

P a ra g u a y

C h ile

B o liv ia

P e ru

E c u a d o r

C o lo m b ia

Ve n e z u e la F re n c h G u ia n a (F r.)

S u r in a m e G u y a n a

T h e B a h am a s

C u b a D o m in ican R e p u b lic

P a n a m a C o s ta R ic a

N ica ra g u a

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Ic e la n d

M a d a g a sc a r

S o u th A fr ic a L e so th o

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M o z a m b iq u e

Ta n z a n ia

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A n d a m a n Is la n d s (In d ia )

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K u ril Is la n d s

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N o v a y a Z e m ly a

F ra n z Jo se f L a n d S v a lb a rd (N o r.)

Ja n M a y en (N o r.) B a n k s Is lan d

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K u w a it C a n a ry Is la n d s (S p .)

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M a u rit iu s

S e y c h e lle s

6 0 °


Global Sales Management: Global Issues in Sales Technology

How do you manage one client with 500 locations worldwide? 500 customers each with 1 location?

SFA software allows lead distribution to reps around the world, and all reps can access data via portal “Users can assign leads to certain distributors or send out e-

mails with 1,000 names quickly and easily”

Communication via email declining sales productivity Training in effective written communications


Software as a Service (SaaS)/“Cloud”

“Hosted” applications: makers of the software also host the program and data on their own servers

Benefits:

Vendor is responsible for software management (updates, etc.)

1

Access data real-time from anywhere2


On-Premise Software

Software installed on buyer’s computers

Benefits:

Data are held in company computers – may be safer/more confidential

1

Company has more control over how software is customized and integrated into other software systems

2


Sales Tools and Uses of SFA/CRM by Job Role

CEO

Sales forecast

VP of Sales

Sales forecast

Identify/share best practices

Track performance — by salesperson, product, etc.

Capture win/loss data for strategic planning/pricing

Create or use models to understand segments

SalesManagement Sales forecast

Identify big impact opportunities

Identify coaching & training opportunities by examining win/loss ratios by rep & stage of sales process

Monitor activities by account or by rep relative to results

SalesRep

Access to customer data

Access to pricing formulas & product info for better proposals

Integrated access to other relevant info (shipping, billing, etc.)

Faster access to leads


What Can a CRM System Do?

Predictive Models

Enables managers to create predictive models using customer data

Access SameInformation

Critical feature of a hosted version of CRM is the ability for reps and managers in multiple locations to access the same customer information

Helps with opportunity management

SeamlessInteraction

Enables customers to interact with the selling organization via all channels in a seamless fashion

MarketingManagement

Rules-based way to determine which message to send to a buyer at what time

Track customers’ responses to various offers


An Example of Simple Rules-Based Campaign


CRM Applications

Segmentation: grouping customers

Customer lifetime value (CLV) analysis is a CRM tool that calculates the value of a customer over time

Predictive and “lifestyle model” information can be matched to CLV Create more effective sales

campaigns Design better products Price more strategically

Usage Pattern: The Customer Pyramid


Most ProfitableCustomers

Least ProfitableCustomers

What segment spends more with us over time, costs less to maintain, spreads positive word of mouth?

What segment costs us in time, effort and money yet does not provide the return we want? What segment is difficult to do business with?


Guided Sales Tool

Guided sales tools: repeatable processes that managers can help reps implement in order to move a prospect closer to a sale

Examples Gartner value proposition model Script that a call center rep can use verbatim Databases of proposals that can be used over and over Pop-up menus that suggest approaches salespeople

can take based on the types of accounts they are calling on


Self-Assessment Library

Go to http://www.prenhall.com/sal/ Access code came with your book

Click the following Assessments

II. Working with OthersC. Motivation Insights

3. How Good Am I at Playing Politics?


Encouraging Salespeople to Use Technology Effectively

Reluctance to use the system is often the biggest barrier to CRM implementation

Salespeople who have been successful without technology may not perceive the need for use

Tactics

Communicate personal benefits to reps1

Create reward systems for using the system3

Eliminate opportunities not to use the technology2


Implementing Technology

Training

Management Support

Technical Support

Communicating Benefits

Making the Transition

Discussion Question (#1)

A salesperson says, “This new software is like Big Brother. Now my company and manager watch every move I make! As long as I make my quota, why can’t they leave me alone?” As a sales manager, how would you counter an argument like this?



Sales Manager’s Workshop: Promedia Technology–Familiarizing Yourself with Aplicor

Review the chapter

Examine Aplicor’s features

Identify and describe how Aplicor provides the following

1. Knowledge management2. Opportunity management3. Campaign management

Write a short training script that you would use to show someone unfamiliar with Aplicor how to create an opportunity management report

Sales Management: Shaping Future Sales Leaders

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.6-25Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

LeveragingInformation Technologies

Chapter 6

Chapter 6

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Transcript of Chapter 6