This document discusses sales force automation and control. It defines sales force automation as a business management tool that automates the entire sales cycle from lead generation to close. The chapter describes the benefits of sales force automation like reduced costs and increased profitability. It also outlines the objectives and types of CRM and SFA applications like lead management, contact management, and sales territory management. Mobile sales force automation and its functionality are also covered. The chapter concludes that successful sales force automation depends on systematically implementing the sales process.

1. Sales and Distribution
Management, 2e
Dr Tapan K. Panda, Great Lakes Institute of Management, Chennai
Dr Sunil Sahadev, University of Sheffield, UK
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

2. Chapter 5
Sales Force Automation
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

3. Structure of the Chapter
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Introduction
Sales Force Automation
Benefits of CRM and SFA
Objectives of CRM and SFA Applications
Types of Sales Force Automation
Mobile Sales Force Automation
Understanding EDI
Functionality of SFA
Field Force Automation
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

4. Introduction
• There is a rapid change in scope and scale of
business asking for networking among players
in marketing organizations.
• Mass marketing and broad marketing are n
longer practice
• Role of Information technology in sales and
marketing is on a rise
• There is a need to update information at real
time by the field sales force
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

5. Sales Force Automation
• It is a business management tool that records
every sales opportunity that comes into the
business from the first phone call to the
closure of the business which should provide
the organization with a single comprehensive
solution that automates and streamlines all
sales cycle in any business
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

6. Sales Force Automation Cont.
• Guiding Principles of Customer Focus
Approach
– Build customer experience
– Develop customer insight
– Build customer relationship management
programmes
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

7. Benefits of SFA and CRM
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Cost of customer acquisition comes down
Profitability is enhanced
Direct relationship is built with field force
Greater accountability of field force
Real time management of marketing information
system
• Helps in developing customer focused marketing
programs
• Develops greater interaction and personalization
with customers
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

8. Objectives of CRM and SFA Applications
• To increase revenue
• To enhance per customer profitability
• To increase in ROMI (return of marketing
investments)
• To enhance winning sales approach
• To increase sales executive productivity
• To increase information flow for prudent decision
making
• To promote sales executive retention and reduce
field force turnover
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

9. Types of Sales Force Automation
• Lead Management
– In this system, sales manager can find out who the
prospect is and how many of them can be converted
into leads
– It answers the following questions
• How long is the average sales cycle?
• How does the company sales cycle compare with
customers?
• How does the order book from one place look like?
• What percentage of leads is converted to sales?
• What is the lead time for a lead to be converted to an order?
• How many sales call leads to an order makes in atypical
market?
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

10. Types of Sales Force Automation-Cont.
• Contact Management
– It helps in organizing and managing customer data
across the enterprise and within a company’s client
and prospect organization.
– It answers the following questions
• Which set of customers was part of the recent promotional
program?
• Who are the customers who have received the collaterals?
• What is the client’s address and telephone numbers? Who
are the responsible personnel for the sales?
• In which office is the client’s finance department?
• Who is the purchasing agent for the client firm?
• When is the next call? When it should be?
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

11. Types of Sales Force Automation-Cont.
• Sales Territory Management
– It helps in identifying sales territories, linking people with
territories and quotas allocated to them. It helps in
identifying who is working where and what targets are
given to them
– It answers questions like
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Who is working where/
What is the average size of the territory?
What profile the territory has?
What quota is allocated to each territory?
What norms are used for allocating quota?
How does the sales pipeline look?
Who are linked to tele-sales executives from the field force
How sales people can be linked with industry experts?
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

12. Types of Sales Force Automation-Cont.
• Knowledge Management
– It helps in converting tacit knowledge available with sales
people into explicit knowledge inside the organization and
make it available for other users
– The list of information that can be made available include
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Sales Presentation slides
Company profile and phone list
Contract documents
Corporate policy handbook
Business Proposal templates
Sales expense report forms
Regulatory standards and recent compliance reports
Past sales and revenue Reports
New articles and press releases
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

13. Types of Sales Force Automation-Cont.
• Product Specific Configuration Support
– Sales Module
– Services Management Module
– Advanced Configuration Module
– Order Capture Module
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

14. Types of Sales Force Automation-Cont.
• Mobile Sales Force Automation Module
– This is a sales force automation module made
available on mobile phones. This helps in
disseminating information at ease and real time to
the field force. It involves a process of making all
information available to field force from a
remotely located web server running a mobile
application based software application and
functioning same way like a palm top or laptop.
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

15. Understanding Electronic Data
Interchange
• There is a difference between electronic mail and
electronic data inter-change.
• EDI sends structured messages in a standard format
• EDI sends this message inside the organization
• It is also from one application to other e.g. from
contact management application to knowledge
management application
• It sends business documents and in standardized
formats
• It can provide a complete and reliable audit trial of all
messages transmitted through a network of sales
managers and sales auditors.
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

16. Functionality of SFA
• Interface with the campaign management
software
• Conversations with Customers
• Helps in enhancing sales management
functionality
• Helps in account management
• Integrates sales management function with
contact management system
• It also helps in territory management and quota
allocation.
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

17. Field Force Automation
• This is a hybrid model as it includes the service
components. It includes field service and is also a
part of sales force automation as it leverages the
mobile work force management technology
adopted by the sales organization.
• It is possible to integrate already existing sales
force automation software with customer service
component and this integration provides an
integrated view of the customer and his
requirement across the value chain.
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control

18. Conclusion
• The success and perfect implementation of sales
force automation depends on how systematically
sales organization has taken their sales process
• This helps in developing an efficient and well
lubricated system where real time decisions are
used for making sales decisions.
• SFA takes sales management process one step
ahead due to implementation of information
technology in sales and marketing.
Copyright © 2011 Oxford University Press
Chapter 13: Sales Force Control