Advantage and disadvantage of Sales Force Automation
Before in the 1980s, salespersons worked in ‘local offices’ which were responsible for catering customers within a specific geographical region. The salesperson was the professional correspondent who met with key buyers within his jurisdiction and is the knowledgeable product expert who often traveled to meet with clients. However, as a salesperson is often only capable of being well versed with one product, multiple salesperson who are specialized in different products from the selling organization had to be deployed to meet various customer needs and demands which constitutes the sales force (Webster 1980, cited in Sharma 2007).
As computer hardware and software improvements gradually follow over the years, small and larger firms started to recognized that some amount of sales function can be made more efficient with sales force automation (Engle & Barnes 2000).
Sales force automation is the digitalizing of analogue sales through information technology (Rivers & Dart 1999). It is also used as a tool to implement a new marketing strategy known as customer relationship management (CRM) (Speier & Venkatesh 2002). However, sales force automation has brought its own advantages and disadvantages to the business at the same time.
Sales force automation has smoothen the interaction between the firm and customers with a smaller sales force. The customers can quickly access the product’s information through the firm’s website (Larpsiri & Speece 2004). When there is an enquiry about the product, the customers need not approach the salesperson in person, or even when they have enquiries about different products, they need not approach different salesperson. They just have to log on to the website and browse through for different product information at the same time. This has in turn reduced the number of salespersons. For example, a customer can visit Hewlett Packard’s website to check on different types of products such as desktops and printers from the website, they can compare the prices of different models. With the website, Hewlett Packard does not need to hire different salespeople for the different types of products to explain the advantages of the products to the customers one by one (Johnson & Bharadwaj 2005).
This form of sales force automation can improve customer service by providing more than just information about their products. Information can be provided specifically to answer the customer’s query (Sharma 2007). If customers have any doubts on a particular product, they can check on the frequently asked questions (FAQs).
Lowe’s is a home improvement warehouse that was founded in 1946 as a single store and since has grown to become the second largest in the world. As technology has evolved, Lowe’s has made many advances incorporating new systems and devices to stay competitive. The purpose of this paper is to evaluate the information technology management systems used at Lowe’s. It will look at Porter’s Five Force Model, supply chain management; data base management system, five agent-based technologies, e-commerce and system development lifecycle. Furthermore, it will look at business continuity planning, emerging trends and security vulnerabilities relates to the organization to remain competitive.
Sales and delivery personnel have a unique system and they work well together. Large sales force of over 10,000 individuals.
Carr eliminates the possibility of advantages due to proprietary software using the example of American Hospital Supply’s ASAP ordering tool. He highlights how specialized software can turn from a boon to bane, when more generic and updated solutions come into the picture. Many companies such as Dell and Wal-Mart have used the opportune time frame of the IT boom to set up their brand name and goodwill. That window seems to have closed now, because the possibility of a competitive advantage using IT is minimal, if not zilch.
Ridgeline Mountain Outfitters has been in business since the late 1980’s and currently operates a combination of brick and mortar retail stores, catalogs, and online sales. Over the lifespan of the company, RMO has implemented a complex set of information systems applications to support operations and management. Unfortunately, due to growth and technology antiquation, these systems are no longer keeping up with customer expectations and there is a gap between the existing capabilities in RMO systems that support sales and customer interactions. Supply chain management (SCM) and customer support systems (CSS) are the two system areas that need to be enriched. SCM is the highest priority and will need to be developed first to ensure that the
This model provides direct contact to its customers, which allows it to tailor support offering to fit the demands of each customer in a quick, and timely manner.
Ramp up sales efficiency by training sales professionals to spot their customers buying styles and offer customised sales pitches.
Next, a salesperson must be able to minimize the negative impact of change in a selling process. In some selling situations, the customer may be asked to consider change of some sort. Some may not be open to this. Whenever possible, a salesperson should always try and help the customer view change in a positive and realistic way (Manning, Ahearne, Reece, 2012).
Another goal is to act like an automated sales force, tracking the customer’s account history for repeated sales then come up with suggestions. Lastly, the heavy use of technology will keep the customer up to date on things such as inventory and tracking information. Technology will also manage growth and demand, especially with seasonal products, like Christmas. By doing so, firms are able to get a transparent forecast of projected sales for certain items.
There were nearly 11x more B2B organizations using marketing automation in 2014 than in 2011. – SiriusDecisions
In conclusion to this research, marketing automation effectively assist the marketing departments in understand the customers’ need and wants and develop a strategy based on the data analyzed. By using the information presented in the marketing automation software, many companies have a smoother process of understanding their target market and developing strategies.
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
Beyond the dynamic content is the core of marketing automation. This doesn't just contain small pieces of information tailored for your customers but is also analyzed based on the customer's behavior. Like when your prospect has visited you at least 4 times a week - the software sends an email to that prospect to help pursue the customer's decision. This marketing automation has been a reality for years, but is only limited to a few businesses who can pay the price.
Mechanization: This process necessarily reduces the required manpower and required necessary skills to perform a particular task. However a specialized training is required for a person to operate the subject automatic equipment.
Key Resources of this industry include the automation equipment such as the point of sales system that manages the ordering system from customer to kitchen (Chua, 2015). Self-ordering kiosk are made available to some outlets to reduce queuing and waiting time.
O’Reilly Auto Parts utilizes replenishment software to achieve this goal. The economic downturn, resulted in negative effects for Cisco Systems and Black & Decker. However, at O’Reilly’s, the economic downturn provided an increase in business. Obviously, when the economy is in a nosedive consumers and businesses will severely limit what they choose to purchase. Therefore, instead of spending money on technology or home improvement supplies, consumers purchased auto parts to repair their old vehicles. Consequently, O’Reilly’s goal was to increase customer support and replenish inventory on a nightly basis. However, to accomplish this, the company uses software from Manhattan Associates Inc to collect data every half-hour, and, send updates every night to its distribution centers. Thus, the company could immediately fulfill request, while freeing up over $50 million by reducing its inventory levels (O 'Brien, & Marakas,