Leveraging Information Technologies: Sales Management: Shaping Future Sales Leaders

Sales Management: Shaping Future Sales Leaders
Leveraging
Information
Technologies
Chapter 6
6-1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Learning Objectives
 Explain how common technologies used today
have altered sales forces and the way they are
managed
 Explain what sales force automation technology is
and what it’s used for
 Explain what a customer relationship management
system is and the challenges related to
implementing one
 Describe what sales managers can do to
encourage their employees to adopt and effectively
utilize technology
6-2
Commonly Used Technology
 Cell phone
 GPS (Global
Positioning
Systems)
 Laptop computer
 PDA (personal
digital assistant)
 E-mail
6-3
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
6-4
Knowledge Management, Proposal
Writing, and Pricing Software
 Knowledge-based information (e.g., product

Knowledge catalog) taken online
Management  Knowledge base is the data in the system
 Library of successful proposals from which reps can

Proposal-writing select portions and create new proposals
Software  One of the first KM apps created for salespeople
 Makes sure all components are accounted for,

Pricing Software resulting in a more accurate estimate of job’s cost
 Often industry-specific software is available
6-5
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
6-6
6-7
Contact Screen in Aplicor
Account Type and Address
Account Name &

Contact Person’s Info
Background
6-8
Benefits of SFA
 Helps managers evaluate and coach reps

Instant Access  Improves firm’s sales forecasts
Retention  If rep takes records when moving to another

of Customer company or throws them away, customer data is
Records lost
Improved  More information about each customer readily

Customer available
Interaction
Ticklers  Automatic reminders to complete certain tasks
6-9
Challenges of SFA
 Getting salespeople to use the system
 How managers should use the system
 Flexibility may be lost
6-10
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
6-11
Global Sales Management:
Global Issues in Sales Technology
 How do you manage one client with 500 locations E lle s m e r e I s la n d S e v e r n a y a Z e m ly a
A r c tic O c e a n A rc tic O c e a n F ra n z Jo se f L a n d
A r Nc etwi cS i b Oe r i a cn Ies l aa n nd s
G re e n la n d (D e n .) S v a lb a r d ( N o r.)
B a n k s Islan d J a n M a y e n ( N o r.) N o v a y a Z e m ly a W r a n g e l Is la n d
V ic to ria I s la n d B a ff in I s la n d
worldwide? U .S .A .
C anada
Ic e la n d
F a r o e Is . (D e n .) N o rw a y
U n ite d K in g d o m
D en.
S w eden
F in la n d
E s to n ia
L a tv ia
L ith u a n ia
R u s s ia 60°
A le u tia n I s la n d s (U S A )
 500 customers each with 1 location?

Ir e la n d N e th . B e la r u s
G e r m a n y P o la n d
B e l. U k ra in e
Is la n d o f N e w fo u n d la n d C zech. K u ril Isla n d s
A u s . H uS nl og v. a k . M o ld o v a K a z a k h s ta n
F ra n c e S w itz . S lo v . M o n g o lia
C r o . Y u g Ro .o m a n i a
B o s. U z b e k is ta n
N o rth A tla n tic O c e a n Ita ly M ac.
B u lg a ria G e o rg ia
K y rg y z s ta n
U n ite d S ta te s o f A m e ric a P o rtu g a l
S p a in A lb a n ia
G re e c e T urk ey
A r m e n ia A z e rb a ija n
T u rk m e n is ta n T a jik is ta n
N . K orea
S . K o re a Japan
 SFA software allows lead distribution to reps around

N o rth P a c ific O c e a n C y p . L e b . S y ria N o rth P a c ific O c e a n
M o ro c c o
T u n is ia
Isra e l Ira q Ira n
A fg h a n is ta n
C h in a
C a n a r y I s la n d s ( S p .) Jo rda n
K u w a it P a k is ta n N epal
A lg e r ia L ib y a B hu.
T he B aham as E gypt
W e s te r n S a h a r a ( M o r.) Q a ta r
the world, and all reps can access data via portal
M e x ic o C uba B ang. T a iw a n
H a w a iia n Is la n d s D o m in ic a n R e p u b lic Saudi A rUa . bA i .a E . In d ia M y a n m a r (B u rm a )
O m an L aos
U . S.A . Jam .
M a u rita n ia M a li
B e liz e H a iti P u e rto R ic o (U S )
N ig e r E ritr e a
H o n d u ra s
D o m in ic a Senegal S udan Yem en T h a ila n d P h ilip p in e s
G u a te m a la
T h e G a m b ia B u rk in a F a so
C had V ie tn a m
E l S a lv a d o r N ic a ra g u a B a rb a d o s
G u in e a -B is s a u G u in e a B e n in D jib o u ti A n d a m a n I s l a n d s ( I n d iCa a) m b o d i a
T rin id a d a n d T o b ag o M a rs h a ll Is la n d s
 “Users can assign leads to certain distributors or send out e-

C o s ta R ic a C ô te D ’ Iv o ire N ig e ria S ri L an k a F e d e ra te d S ta te s o f M ic ro n e s ia
V e n e z u e la G uyana S ie rra L e o n e E th io p ia
Panam a S u r in a m e C .A . R . B ru nei G u a m (U S A )
M a ld iv e s
F r e n c h G u ia n a ( F r.) L ib e r ia C a m e ro o n
G hana Togo S o m a lia M a la y s ia
C o lo m b ia E q . G u in e a U ganda
S in g a p o re
G abon R w anda K enya K irib a ti
mails with 1,000 names quickly and easily”

G a la p a g o s I s la n d s ( E c u a d o r) E cuador S a o T o m e & P r in c ip e In d o n e s ia
Z a ire B u ru n d i P a p u a N e w G u in e a
S o lo m o n Is la n d s
Congo T a n z a n ia S e y c h e lle s
M a la w i
P e ru
B ra z il A n g o la
Z a m b ia M o z a m b iq u e
B o liv ia M adagascar
Z im b a b w e F iji
 Communication via email declining sales

F r e n c h P o ly n e s ia ( F r.) N a m ib ia
N e w C a led o n ia
B o ts w a n a
P a ra g u a y M a u r itiu s In d ia n O c e a n
S w a z ila n d
A u s tra lia
S o u t h A f r i Lc ae s o t h o
productivity S o u th P a c if ic O c e a n C h ile A rg e n tin a

U ru g u a y
S o u th A tla n tic O c e a n
F a lk la n d I s la n d s ( Is la s M a lv in a s ) ( a d m . b y U K , c la im e d b y A rg e n tin a )
T a s m a n ia
N e w Z e a la n d
 Training in effective written communications S o u th G e o rg ia (a d m . b y U K , c la im e d b y A rg e n tin a )

Île s C ro z e t ( F ra n c e )
Sources: Anonymous, “Flexibility and Mobility Increase

A n ta rc tic a
CRM Adoption Rate,” Manufacturing
Business Technology (December 2006) 24, p. 16; and Chris Smithers, “Improving Communication to
Boost Sales at BT,” Strategic Communication Management (January 2006), 18–22.
6-12
Software as a Service (SaaS)
 “Hosted” applications: makers of the software
host the program and data on their own servers
 Benefits
1
Vendor is responsible for software
2
Access data real-time from anywhere
6-13
On-Premise Software
 Software installed on buyer’s computers
 Benefits
1
Data are held in company computers –
may be safer
2
Company has more control over how
software is customized and integrated
into other software systems
6-14
Sales Tools and Uses of SFA/CRM
by Job Role
Sales Sales
CEO VP of Sales
Management Rep
 Sales forecast  Sales forecast  Sales forecast  Access to
customer data
 Identify/share  Identify big
best practices impact  Access to pricing
opportunities formulas &
 Track product info for
performance —  Identify coaching better proposals
by salesperson, & training
product, etc. opportunities by  Integrated access
examining to other relevant
 Capture win/loss win/loss ratios by info (shipping,
data for strategic rep & stage of billing, etc.)
planning/pricing sales process
 Faster access to
 Create or use  Monitor activities leads
models to by account or by
understand rep relative to
segments results
6-15
What Can a CRM System Do?
Seamless  Enables customers to interact with the selling

Interaction organization via all channels in a seamless fashion
 Critical feature of a hosted version of CRM is the

Access Same ability for reps and managers in multiple locations to
Information access the same customer information
 Helps with opportunity management
Predictive  Enables managers to create predictive models

Models using customer data
 Rules-based way to determine which message to send

Campaign to a buyer at what time
Management  Track customers’ responses to various offers
6-16
An Example of Simple
Rules-Based Campaign
6-17
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
6-18
Usage Pattern: The Customer Pyramid
Most Profitable What segment spends
Customers more with us over time,
costs less to maintain,
spreads positive word of
mouth?
Least Profitable
Customers
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?
Source: Zeithaml, Rust, Lemon (2001), California Mgt Review, 43, p. 125.
6-19
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
 Edward Jones bond call list
 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
6-20
CRM Data:
Where Does It Come From?
6-21
Challenges of Implementing
CRM and SFA Systems
 Who “owns” the relationship with the customer
 Sales technology makes reps more productive, but it
also makes them feel like their jobs are less secure
 Customer data strategy: What data are needed,
how will it be used? Where is the data? Who
needs access to it?
 How much information should be available, to
whom, and for what use?
6-22
Self-Assessment Library
 Go to http://www.prenhall.com/sal/
 Access code came with your book
 Click the following
 Assessments
II. Working with Others
C. Motivation Insights
3. How Good Am I at Playing Politics?
6-23
Encouraging Salespeople to Use
Technology Effectively
 Reluctance to use the system is biggest barrier
to CRM implementation
 Salespeople who have been successful without
technology may not see the need
 Tactics
1
Communicate benefits to reps
2
Eliminate opportunities not to use the technology
3
Create reward/punishment systems for using the system
6-24
Implementing Technology
Training
Management Support
Technical Support
Communicating Benefits
Making the Transition
6-25
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?
6-26
Discussion Question (#4)
 One student argued that he didn’t want
companies to know what he ate for breakfast,
what television shows he watched, magazines he
read, or Web sites he visited. Another student
said she wanted companies to know that
information if it meant she got better products
and services as a result. What information about
you is okay for salespeople to put in their
database? What information would you like to
keep private? As a sales manager how do you
manage this private–public balance?
6-27
Role Play: Blackburg Technologies
 Solutions Division: hardware, software,
maintenance
 Services Division: consulting, training
 Marketing Department: manages exposure at
trade shows, special events, and technology
shows
 New CRM system allows customers and
Blackburg access to info
6-28
Role Play (continued): Assignment
 Break into groups of 3
 VP of Marketing
 VP of Sales for Solutions
 VP of Sales for Services
 Have a meeting to determine who owns the
account
6-29
Role Play (continued): Assignment
 Before the meeting, determine
 Why your division should be in charge of a particular
account, including:
 What communication is provided to an account
 Who should access and track the overall sales performance of
an account
 Who should develop strategies for it
 Should current accounts vs. prospective clients

be assigned differently?
 When conflicts in strategies or pricing decisions
occur, how should they be resolved?
6-30
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 management
2. Opportunity management
3. Campaign management
 Write a short training script that you would use to
show someone unfamiliar with Aplicor how to
create an opportunity management report
6-31
Caselet 6.1: Frisco Solutions
 Frisco implemented sales software
 Sales haven’t increased, have declined in some
regions
 Regions with higher sales use the software more
 Sales managers were not given additional training,
many don’t use system or use it incorrectly
 Reps follow managers’ lead
 No $$ for additional training, would take more than
training now
6-32
Caselet 6.1 (continued):
Questions
 Should Frisco create penalties for not using the
new program or rewards for using it?
 How can Frisco make sure managers get
trained?
6-33
Caselet 6.2: Zeron Corporation
 Sells supplies to horse trainers and feed stores
 Reps gathered e-mail addresses for ~30% of
200,000 accounts
 60,000 addresses, probably 45,000 are feed stores
 Feed stores can order via Web site
 Additional 60,000 e-mail addresses; Zeron knows
whether these belong to trainers or feed stores
6-34
Caselet 6.2 (continued):
What Would You Do?
 VP of sales wants to create campaign strategy
encouraging smaller customers to always order
via Web site
 Big vs. small customers can’t be determined by
looking just at purchases of Zeron products
 Potentially large account can look small if customer only
buys a few products from Zeron
 If you were a sales manager for Zeron, how
would you go about developing a rules-based
campaign for the 120,000 e-mail addresses
Zeron has?
6-35
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Sales Management: Shaping Future Sales Leaders

 Knowledge-based information (e.g., product

 Library of successful proposals from which reps can

 Makes sure all components are accounted for,

Account Type and Address

Account Name &

 Helps managers evaluate and coach reps

Retention  If rep takes records when moving to another

Improved  More information about each customer readily

Ticklers  Automatic reminders to complete certain tasks

 500 customers each with 1 location?

 SFA software allows lead distribution to reps around

 “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 S o u th P a c if ic O c e a n C h ile A rg e n tin a

 Training in effective written communications S o u th G e o rg ia (a d m . b y U K , c la im e d b y A rg e n tin a )

Sources: Anonymous, “Flexibility and Mobility Increase

Seamless  Enables customers to interact with the selling

 Critical feature of a hosted version of CRM is the

Predictive  Enables managers to create predictive models

 Rules-based way to determine which message to send

Making the Transition

 Should current accounts vs. prospective clients

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