Chapter Four Sales Force Automation

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Chapter FourSales Force Automation

• Presented by
• John Eddington
• Brooke Kendrick
• Laura Johnson
• Jenny Mayer

2
Where It All Began

• Customer Relationship Marketing grew from a
  focused application to an enterprise-wide
  initiative and the growth has everything to do
  with the very beginnings in sales force automation

3
SFA Now and Then

• SFA were originally meant to improve sales force
  productivity and encourage salespeople to
  document and communicate their field activities
• They are becoming increasingly focused on
  cultivating customer relationships and improving
  customer satisfaction

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Scenario One

• You are on your way to a meeting with one of
  your best customer. Jim is not only one of your
  best customers hes one of the companys best.
  His firm accounts for 2 percent of this years
  revenues. Soon, you hope it will be 3. You
  arrive early at the customers building, show
  your badge at the desk and take the elevator to
  Jims office. He is in a meeting with a member
  of his staff, but quickly dismisses them when he
  realizes you are there. He is always willing to
  listen to a sales pitch. However, he is not
  placing an order today, in fact he may never
  place another order again. His entire firm has
  been at a standstill for the past 48 hours
  because of your product. Your product is still
  on the fritz and Jim and his people have been on
  the phone to your customer support center for the
  past day and a half. Your face displays surprise.
  No one told me about it, Jim, you stammer as
  you strive to recall any voice-mail messages you
  might have prematurely erased. Jim stands up
  from behind his desk, a wordless acknowledgement
  that hes far too busy to hear about your
  communication breakdown. After all, hes got a
  big one all his own to worry about. You think
  about how to make up for the 2 percent in revenue
  you and your company are about to lose.

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Scenario Two

• Jim is still the customer being discussed. En
  route to your customers site, you turn on your
  PDA which begins to beep. Priority one alert!
  Customer Impacted! Flashed on the screen. You
  pull to the side of the road and read more,
  according to the message the customer you are
  about to see has experienced a major outage. A
  field service rep has been contacted and is now
  working on the problem. Instead of going
  upstairs when entering the building, you walk to
  the back and find the service rep repairing
  equipment. When you find out that hes working
  to repair the problem and will have it fixed in
  the next thirty minutes. You feel relieved and
  walk upstairs to meet with Jim. Upon entering
  his office, Jim smiles and says he knew it would
  be taken care of. Then he asks when the company
  can get an upgrade. The revenue contribution
  also increases to 4 percent during the
  conversation.

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About the Scenarios

• Scenario One
• Salespeople need better tools to help them manage
  their accounts, track opportunities, establish
  and monitor the sales pipeline, and organize
  their contact list.

• Scenario Two
• The scenario assumes that headquarters posses the
  necessary information and can communicate it
  quickly many did not and still can not.

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The Cradle of CRM

• Early 1990s a handful of software vendors
  realized that companies needed help
• Salespeople had various means of recording
  customer information and communication critical
  account news back to the home office

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The Problem

• When those employees with this information left,
  they simply took their little black books and
  forced the company to locate and re-collect
  customer data, from ground zero

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SFA Warm-up

• Salespeople took time to warm up to the idea of
  SFA
• It would make things easier but they would have
  to spend time learning and felt nervous about it

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Todays SFA

• Sales Process/Activity Management
• Sales and Territory Management
• Contact Management
• Lead Management
• Configuration Support
• Knowledge Management

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Sales Process

• Sales methodology
• Customized to the companys specific sales
  policies and procedures, known as sales process
  management
• Include a sequence of sales activities that can
  guide reps through each discrete step in the
  sales process
• Sales process tools are not sophisticated

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Activity Management

• Activity management
• Offer calendars to assist in planning of key
  customer events
• Automates both individual and organizational
  to-do list Team collaboration tools
• Provides valuable post facto analysis of a sales
  cycle which allows the team to examine the
  duration and procedures involved in critical
  tasks
• Sales process and activity management are only as
  good as their ability to be tailored to intervals
  sales methods

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Sales and Territory Management

• Sales managers oversee tens or hundreds of sales
  teams and cannot stay abreast of every active
  sales initiative
• Sales management tools can enable them to manage
  this large task
• Offering data and reporting options to provide
  on-demand access to sales activities
• Teams can be linked to headquarters specialists
• Sales managers can track territory assignments
  and monitor pipelines and leads for individual
  territories
• Limits on territories

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Contact Management

• Contact Management
• Subset of sales force automation that deals with
  organizing and managing data across and within a
  companys client and prospect organization
• Software can contain various modules for
  maintaining local client databases, displaying
  updated organization charts, and allowing
  salespeople to maintain notes on specific clients
  or prospects
• Can answer specific questions quickly
• Enable salespeople to communicate their schedules
  to the organization at large
• Real value of CM is in its capability to track
  where customers are and who they are in terms of
  their influence with sales management functions

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Lead Management

• Also known as opportunity management and
  pipeline management
• Aims to provide foolproof sales strategies so no
  sales task, document, or communication falls
  through the cracks
• Sales people follow a defined approach to turning
  opportunities into deals

• Tools
• can provide qualified leads through marketing
  campaigns or lead referrals
• can also track other prospect attributes
• These capabilities can result in answers to
  questions that previously demanded guesswork

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Configuration Support

• Tools
• Allow a salesperson to input client and prospect
  information into an easy-to-use tool
• CRM products have evolved to leverage this
  information by providing product-specific
  configuration support to companies who must build
  products for their customers
• Often use graphical sales process (Figure 4-2)
  Page 82
• Order stage is reached, the tool can calculate a
  product configuration and price quote
  automatically
• Can then provide forms that facilitate electronic
  communication of the information to other areas
  of the company

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Knowledge Management

• The more information the better
• Plethora of information
• To effectively use this information salespeople
  need easy access to it
• Intranets are a solution
• KM are systems that can locate and store this
  information and provide users with a single
  application.
• Geographical boundaries are now non-existent

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SFA and Mobile CRM

• From Client/Server to the Web
• Web has simplified information availability
• Intranet eliminates traditional support costs of
  managing communications
• Salespeople no longer need act as systems
  programmers, setting up their communications
  options, modem settings, and the like
• SFA goes Mobile
• CRM vendors intend to unburden it altogether
• Handheld devise technology is evolving fast
• (PDA) Personal digital assistants can support
  anytime/anywhere

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Field Force Automation

• Field Force Automation
• Field Service implies the service or repair of
  customer equipment on the customers premises
• Each communication can be performed using
  wireless technology
• Wireless technology ensures near real-time repair
  updates allowing CSRs and sales reps to interact
  with the same data in real time
• FFA is the fastest-growing area of CRM

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SFA Benefits CRM

• Sales force automation leads to better informed
  and more productive reps
• Increases likelihood of closing a sale
• Enhances customer relationships, not to mention
  the bottom line

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An SFA Checklist for Success

• An SFA Checklist for Success
• Sales force automation leads to better informed
  and more productive reps
• Increases likelihood of closing a sale
• Enhances customer relationships
• Seven SFA suggestions

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SFA Checklist for Success Cont

• Understand the infrastructure necessary to
  support wireless technologies
• Let SFA use affect sales compensation.
• Change hiring practices and job role descriptions
  to include use of CRM.

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Hewlett Packard

• Hewlett Packard
• Quality printers, high-end servers, and a crack
  management team.
• One of their main goals is to provide an
  industry-leading customer experience.
• Global Scale- customers range from the largest
  companies in the world to small mom-and-pop
  operations.

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What they did

• What they did
• Hps initial CRM effort focused on the
  organization that touches the customer most THE
  SALES FORCE.
• Its goal was to provide the companys global
  sales force with an automated and standard way to
  perform contact management and account planning.
• HP chose a CRM solution from business partner
  Oracle and has deployed the Oracle Sales online
  product to customer-facing employees in North
  America and other countries around the world.
• With Customer activity data in an Oracle
  customer master database, HP can provide a
  remote salesperson with the ability to track a
  customers activities across organizations.
• Overlys CRM team has made the ability to share
  information about customer touch points across
  organizations a key CRM success measure.

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What They Did cont

• What They Did cont
• Improvements
• Dynamic personalization for web visitors
• Automated lead routing from marketing to the
  internal sales staff and HP partners.
• Overly says Were in the solution business,
  were not just interested in solving todays
  problems. They was access to a range of Customer
  information.
• The goal is to enable customers to control their
  relationships with Hewlett Packard.

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Challenges

• Challenges
• Deploying CRM has its trials.
• Sales reps all over their world share the goal of
  being as productive as possible however, every
  sales person has a preferred way of getting the
  job done.
• Overly and his team have had to surmount habits
  and assumptions that are often not only
  organizationally entrenched but also cultural.
• Were no longer talking about every countrys
  having a unique personal productivity tool, but
  about an HP solution.

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Good Advise

• Good Advise
• Overly, CRM Program Director at HP advises others
  who might be deploying CRM on a similar global
  scale to be mindful of three success metrics
• Obtain sustained executive presence, meaning that
  executive leadership must be engaged throughout
  the CRM lifecycle.
• Always keep one eye on todays problem, and the
  other on tomorrows problem.
• Ensure change leadership, with emphasis on the
  word leader.

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The Golden Nugget

• The Golden Nugget
• You tell me how a person is measured, and Ill
  tell you how they behave.
• In keeping with this core cultural tenet, HP
  continues to establish and meet a series of CRM
  performance measures.
• Were putting measures in place to reinforce the
  behavior were looking for.
• Three measures
• Increased revenue
• Decreased costs
• Industry-leading total customer experience

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THE END

• Any Questions?