Sales Force Technology and Automation
Introduction
The essence of keeping consumers by pleasing and attracting them has been around for as long as marketing has existed as a business activity. Marketing has been the core of business profit-making and it has applied various methods to reach the end of obtaining more sales. This has been the common objective throughout time however; it is good to be cognizant of the fact that marketing is a dynamic profession and body of knowledge that is ever transforming. The principles may remain the same, but what has changed is the application of technology in actively managing a business’s consumer base strategically in a manner that can enhance sales. Sales force technology and automation is being championed as value creator in the customer interactions which finally contributes to revenue increases.
The automation of sales force relies mainly on Information Technology (IT) advancements that automate and enhance interaction between the clients and the organization as well as enable in-house sharing of information within an organization. Sales force automation (SFA) makes use of software tools and computer enabled network connectivity to automate sales tasks as well as those in other departments that may be related to the sales department. Technological automation in SFA is enhanced in areas such as transaction processing, inventory monitoring and control as well as tracking consumer’s interactions with the firm on the business platform. Sharing of sales and customer information is also enhanced among different departments that may require client information in running their daily business tasks. Networking of IT facilities is perhaps the simplest and biggest applied method that offers easy accessibility and transfer of sales related information.
Departments that benefit from the sharing of such information may include the marketing department (defining market segments and developing a marketing plan), the accounts department (taking stock of revenue expected), the production or manufacturing department (planning the production schedule and levels), the purchases and supplies department (forecasting raw material orders based on inventory data) and the management (policy formulation and planning)-just to mention but a few (Agnihotri, 2010). A keen look at this relation and application of information from SFA implies that virtually every department is bound to benefit from the information carrying out its tasks. A part from these traditional and well known benefits research in to marketing, product development, consumer trends, forecasting and performance analysis are all emerging as the biggest and recent developing beneficiaries of the automation enabled by technology mainly in the IT industry.
According to Agnihotri (2010), the development of electronic commerce is increasing by the day, and it is not strange for people to shop for various products and services online, which may range from the sales of a car to the purchase of beauty products among many others. The are various online companies that enable online trading and effecting of payment such as eBay, Pay Pal, Amazon and many others. Many services and goods can now be sourced on the online market, and by virtue of its limitless capacity online trading becomes a very important marketing line of approach when contemplating increase sales and capturing new market niches. Sales force automation becomes very relevant and important with regard to online marketing, because it is the only way that any firm can capture the widely and increasingly developing trend of online marketing and eCommerce (Colombo, 1994). ECommerce is one among the major motivation, but not the only motivation for sales force automation.
Strategic customer bases management and information sharing are perhaps the second biggest areas of interest related to the field that makes SFA area of interest in the marketing force strategic management. Customer Asset Management (CAM) is also rising in popularity, and may soon take over from SFA as a term that defines the specific management of customer related information in enhancing marketing and other company performance factors (Khera Communications, 1999). CAM is defined as the central application of technology in collecting, analyzing, sharing and using customer information to enhance the results of the marketing process. It involves the integration and synchronization of customer service, intelligence and information gathering and sales and other supply chain activities of which frontline sales activities dominate.
The synergy, sharing and coordination created reduce the effect of each unit pulling in opposing direction, thus creating more efficiency and enhancing faster delivery. The CAM principles are based on knowledge that has been around since the development of marketing-“consumers are the most important and valuable asset in any firm’s operations.” This is because they define what they require as well as how they require it, and further go a head to buy the produced products. The development of electronic commerce to encompass various trading fields offering both services and goods as well as the centrality of the focus of marketing on consumers are the main factors that make sales force automation an important area of focus in the contemporary field of sales and marketing (Khera Communications, 1999).
Current trends with regard to sales automation in most marketing departments include the enhancement of information and intelligence gathering, critical and in-depth analysis of consumer trends and desires as portrayed by the gathered information, and a jump on to online platforms that offer online trading for exploiting eCommerce. Firms are each day trying to collect more and more information on their clients through online as well as point sales information in order to analyze the firms’ interactions with their customers. Information gathered at the point of sales (POS) in current trading is much more than just the quantity of units sold and their pricing.
Current POS systems are able to gather more information about clients such as their names, credit card numbers, contact information and other details that may be requested at the POS. From such information other types of secondary information can be generated such as those that portray demographic distribution of buyers, regularity of purchase, volume of purchase, type of products and units associated to various customers or demographic regions and preferences. This information is analytically reviewed to offer insight into the market structure and how various strategies such as market penetration, advertising and promotions can be done. The information is also used to show market niches that may have not been penetrated. This is discerned from demographic distributions that may carry information about localities and their purchase capacity as well as segments associated with purchases in relation to various considerations such as age.
Companies are also striving to synchronize their activities as a means of enhancing synergy through easier information sharing (Calvin, 2004). For example the POS records the levels of sales information which is relayed to the accounting department and thus allowing it compute sold units and the amounts paid out. The same information may be used by the inventory tracking sales department which determines how much inventory is sold out. Sales records from the past to the present may also be utilized by the production department to monitor sales and make forecasts on when to produce and how much to produce. Basically, all departments within an organization depend on real-time data generated through these means. The sharing and generation of such information relies on networks and more so, on the Internet which is used in relaying this information.
A market modeled on technology is the future’s basis of marketing and most firms are striving to enhance their technological development in order to be able to make online sales at POS systems that utilize payment modes that are not cash based. This enhances security because money is paid via the POS system by use of means such as credit and debit cards, and the funds are directly relayed to bank. Carter (1997), states that this also increases convenience for the customers in making payments. Online purchases enabled via electronic commerce are of particular interest to companies wanting to take their trade online. This trend is developing fast because of the convenience it offers in relation to traditional modes of trading and distributions chains. Through online trading clients are able to make purchases without physically visiting the places of sale and thereafter; deliveries can be made to their premises or homes by delivery companies or suppliers of the products.
Most companies are adopting this new trend and any companies that fail to do so may soon get locked out of the competition due to the competitive advantage that is conferred on firms that enhance their use of technology. Compared to the old ways of trading this may enhance cost savings by preventing happenings such as holding excessive inventory levels-if inventory is well monitored over time, the analysis can enable matching of production levels to sales volumes as well as to raw material purchase to avoid holding too much raw material. The shift towards technology enhanced selling may also reduce time taken to conclude transactions and cut on costs associated with traditional models of trading that require the client to travel or journey to some place of purchase in order to buy certain goods or products. However, in contrast these newer modes of sales operations and transactions pose even much greater risks compared to traditional modes of trading. This is of great concern especially; with the rise of cyber-crime and general computer crime (Reiny, Lawrence & Francis, 2006).
The sales departments nowadays can enhance the use of these developments to an extent that they do not have to be physically at the company in order to learn about the ongoing real-time transactions that a particular customer may be holding with the company. These and any other units in the field can access real-time information on the department of sales that can enable them make decisions about the ongoing activities. If well linked the sales department cannot afford to be blindsided to issues that affect the customer service in relation to the sales that they make, therefore; whilst out in the field they can be linked to communicate with their customers. Companies embracing CAM principles value and maximize consumer relationships. This recent focus and change of direction in relation to SFA may be seen in campaigns such interactive marketing, relationship marketing, mass customization, database marketing, “zero defections” and direct marketing-where the central focus has shifted to the consumers and most of the modes applied are of a technological nature (Calvin, 2004). These marketing efforts are all simplistic reflections of the adoptions taken from SFA and CAM both of which are technology and consumer focused.
The four basic areas covered by SFA
The main areas of focus in sales force automation include the automation of the online sales force and their activities, market information and intelligence gathering, online consumer service support and marketing management. Automation of the online sales force involves activities such as call reporting, telemarketing, contact management, lead tracking, order support and entry and customer contacting. Automation of these business processes enables the sales force to conveniently reach the clients and communicate with them when trying to make sales (Lukas, Agnihotri & Adam, 2008). Market information and intelligence gathering involves the collection of information on clients, market trends of preferences and purchases and gathering information on competitors in order to develop counter-strategies.
The marketing management process involves the analysis of performance, designing of market plans, forecasting of sales and managing of inventory and human resource. The management function makes use of results of information and data gathered from the automated functions for analysis, interpretation and decision-making. This supports the managerial functions of the sales and marketing department. Finally, the online customer service support phase of SFA deals with offering help desk services, account management, field applications and maintenance. The consumer support system makes the customer’s dealings with the company more convenient and these can be enhanced in areas such as making payments and placing orders via online means which do not require the client to visit the company’s premise to place an order to visit a bank to effect payment. Customers are enabled to support the development of solutions to their problems. These services can be globally provided and therefore allowing immediate access from any locality (Alan, Richard & Paul, 2007).
There are various solutions provided for business that help enhance SFA and the current trend of increased automation implies that firms should be moving towards the development of their automation. The process of automation may prove costly, but several firms have been able to harness greater savings through time as a result of automation. Therefore, implying that the initial costs involved in setting up an automated system may be high, but as time passes by benefits may be reaped that may eventually outweigh the initial costs because of the resultant cost cutting that occurs. The need to develop a sales force that is automated is becoming a necessary thing in the marketing world and people in the sales department need to employ more technological applications that can enhance the automation of most business activities and enhance fast and efficient running of day-to-day activities.
There is also a need to center the sales business round the customer. The client-centric approach of marketing should be the main focus of the current sales and marketing strategies and the current increase in this trend has seen a great number of companies improve their revenue and overall performance in terms of sales, and as such it is the best way that any sales force management team should focus on (Bidgoli, 2010). Competition is currently very stiff in all industries and as such all that a company needs to succeed is a slight competitive edge and this can be provided by automation offered through technological means. In order to remain competitive and relevant in the business industry there is a basic need to develop automation of the sales department because it not only boosts the activities of the sales department, but also those of other departments that depend on information, intelligence and data gathered by the company’s sales and marketing department.
Conclusive Summary
Business automation has been known as a reliable and value adding activity to any business. Many businesses have embraced automation in various sectors. However, the most known and applicable sector that has reaped the best benefits from automation is sales force automation (SFA). SFA has benefited from automation in various sectors that have led to better development of customer centered sales forces under automated support. Businesses buy widely used software tools to implement automation, and these are readily available in the market. On the other hand, its is possible to have a company develop or purchase a custom developed software for the purpose of automation depending on how its business processes are structured. These customized or non-customized solutions offer online customer support, intelligence gathering, transaction processing, information dissemination and management of sales.
Information gathered in these processes is shared across departments for further processing and analysis and utilization in making various decisions. The kind of sharing attained enhances coordination that makes work faster easier and efficient. The rise in the trend of automation has led to great cost saving and companies have been able to enjoy better and easier transactions and dealings after initiating automation projects. Even though the initial costs are prohibitive, in the long run firms are able to achieve better results and even a better competitive edge that off-sets the heavy initial costs involved. However, it is good to be cognizant of the fact that the deployment of automation technologies is not sufficient if the current market trends are not observed.
One such current trend that affects automation is the dynamic sharing of information especially, customer based information from the sales force. Making sure that information touching on all clients is available to all departments in a timely manner is the current center of focus in the customer-centered approach to sales and marketing management. Therefore, firms should be struggling to move technological automation that is built around the consumers, rather than technological automations that clients must try and fit into. Automating all systems and departments is not sufficient if this automation is not customer-centered and synchronously linked to create synergy (Balasubramanian, 2011).
References
Agnihotri, R. (2010),.Effective Sales Force Automation and Customer Relationship Management: A Focus on Selection and Implementation, Business Expert Press
Alan, J. Richard, A. and Paul, C. (2007),. Sales Force Automation Systems and Sales Force Productivity: Critical Issues and Research Agenda: Journal of Relationship Marketing, volume number 6, issue number 2 p. 67
Balasubramanian, S. R. (2011),. Use of technology for business, retrieved on 5th April, 2011 from http://itknowledgeexchange.techtarget.com/information-technology-management/tag/sales-force-automation/
Bidgoli, H. (2010),.The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management; John Wiley and Sons
Calvin, J. R. (2004),. Sales Management, 2nd edition: McGraw-Hill Professional
Carter, T. (1997),.Contemporary sales force management: Routledge publishers
Colombo, W. G. (1994),.Sales force automation: using the latest technology to make your sales force more competitive, McGraw-Hill Publishers
Khera Communications (1999),. Technology Enabled Marketing: CRM Sales Force Automation Systems, retrieved on 5th April, 2011 from http://www.morebusiness.com/running_your_business/marketing/d935705364.brc
Lukas, P. F. Agnihotri, R. and Adam, R. (2008),. The sales force technology performance chain: The role of adaptive selling and effort: Journal of Personal Selling & Sales Management, volume number 28, issue number 4, p 335-350
Reiny, I. Lawrence, A. and Francis, B. (2006),. Sales force automation: review, critique, and research agenda. Journal of Management Reviews, volume number 8, issue number 4, p 213-231
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