Pros and Cons of Sales Force Automation Essay Example
Pros and Cons of Sales Force Automation Essay Example

Pros and Cons of Sales Force Automation Essay Example

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  • Pages: 6 (1476 words)
  • Published: March 16, 2017
  • Type: Research Paper
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Abstract

This article evaluates the various uses, advantages, and disadvantages of Sales Force Automation in enhancing customer satisfaction. The consensus is that integrating Sales Force Automation with comprehensive enterprise data amplifies its efficacy. It not only enhances the efficiency of Sales and Marketing divisions but also fosters improved coordination throughout all organizational functions.

Full commitment from top management is necessary in implementing customer satisfaction in a company. It is widely recognized that satisfying customers is crucial for the success of a business. This entails comprehending their needs and delivering products or services that meet their expectations regarding time, price, and quality. The difficulty lies in cultivating this understanding and guaranteeing that the sales force and marketing personnel comprehend its vital significance to the overall performance of the company. Anderson and Oliver (1987) were trailblazers in investigating contr

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ol approaches for the sales force.

A few tests were conducted by Challagala et al (1996), Cravens et al (1993), and Oliver and Anderson (1994 & 1995) to evaluate the performance of the sales force control system. Recently, this system has developed into Sales Force Automation (SFA). Fortunately, Information Technology provides a range of solutions to assist businesses in addressing this issue. Numerous Sales Force Automation Systems, which are information system-based, are utilized in marketing.

These automated solutions integrate marketing management functions and customer relationship management systems to collect information about individual customers. This includes their purchase history, brand preferences, price range, seasonal purchasing patterns, schedules, product preferences, and more. This data can be used to identify patterns and make predictions, such as forecasting the likelihood of a sale at a specific time or when a suitable product becomes available.

It also include

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interactive features that can prompt customers to engage in a conversation and provide direct leads to sales or marketing teams for further transactions. The key to enhancing efficiencies and maximizing installed capacities lies in upgrading technology, which is the most important but also the weakest resource. To overcome this challenge, it is essential to implement an integrated ERP solution.

This will result in a seamless flow of data from point to point and allow instant access to information. It will empower the marketing department and sales force to make decisions based on facts.

Integration of Information

The availability of solutions has prompted many companies to customize a solution that meets their specific needs and train their sales force accordingly for optimal results. In this scenario, the ideal solution should incorporate marketing features, delivery options, customer information, and preferences in order of priority, as well as production schedules. Achieving this would require integrating multiple departments to create a truly effective and practical solution.

To ensure effective implementation of a Sales Force Automation (SFA) program, it is crucial for companies to establish a systematic approach to their operations. This approach guarantees the provision of reliable and valuable information to both marketing and sales teams, empowering them to make informed decisions. By relying on factual data instead of assumptions, sales efforts become more impactful. Moreover, customer satisfaction can be achieved by delivering value based on factors such as price, delivery, and quality. The perception of reliability plays a significant role in maintaining customer relationships. To effectively manage these aspects, it is advisable for companies to adopt an Enterprise Solution that integrates all activities into a cohesive

and centralized system. Such a system should facilitate information gathering and dissemination through various reports that are easily accessible and regularly updated with accurate data.

The implementation of a Sales Force Automation (SFA) system will enable sales personnel to provide accurate information to customers, enhancing trust and loyalty to the company. This system will offer sales staff an accurate overview of product availability, including price and quality parameters, which can be communicated to customers using the ERP solution. In addition, the SFA system will provide a list of prospective customers for different products, both past and future. This will save sales staff time by eliminating the need to gather information and allow them to focus on enticing customers. The SFA system will also increase the sales staff's knowledge and confidence, enabling them to handle customer inquiries and grievances with authority and based on factual information rather than incorrect assumptions.

The current Sales Force Automation (SFA) systems offer various features, including sales tracking systems that involve making cold phone calls to a list of potential customers. These features are integrated within the SFA, allowing the sales person to easily access them along with relevant product information. Additionally, modern SFAs also incorporate online product billing which enables customers to place orders online through a Business-to-Consumer (B2C) website. This system allows customers to select alternative features and make their choice accordingly. This interactive design has proven to increase sales, as seen in the automobile industry where customers can customize their preferred features online and complete a sale much quicker compared to traditional in-person transactions.

Empowerment is the name of this and the objective to actively engage the customer in making spot

decisions. An SFA would module will feature information on the fly with sales figures, sales promotion information, product information, product features, product quality and delivery features. It will also contain all relevant customer information including past history, performances and likely trends. Integration of data is the essential starting point of a successful SFA.

Advantages of SFA

SFA will be useful to several people in the organisation. The sales persons or the marketing managers will benefit most from SFA.

The Enterprise solution gathers and displays Integrated information, making it readily available to authorised users on their desktop displays. Users no longer need to wait or call for information, as they can instantly access the required data. Additionally, the system automatically updates the data as transactions are concluded. If analysis is needed, the system can be configured in advance to provide helpful insights for sales personnel. This saves time and allows sales staff to focus on contacting prospective and existing customers, as well as updating them on product information and availability. Addressing petty grievances is an important part of Customer Management, as they can escalate into major crises if left unattended.

In the absence of relevant data, there is often a communication gap that leads to a negative perception of salespeople when they fail to respond or provide incorrect answers to customer inquiries. By having instant access to data, customers can be attended to quickly and their issues can be addressed promptly, which increases their confidence in the company and its products. Coordinating activities such as sales, finance, and delivery enables faster transactions and problem-solving, ultimately improving customer satisfaction. This is achieved through the integration of the entire software system and

granting appropriate access rights to users who can seek assistance from relevant departments. By analyzing the data, customer profiling can be conducted based on performance and profitability, allowing the company to prioritize the needs of individual customers.

Finally, the Sales Force Automation (SFA) system tracks orders to keep salespeople informed about transaction status. This knowledge aids in making informed decisions and serving customers and departments better. In addition, the SFA helps the Marketing department by anticipating market trends for products and facilitating market segmentation based on customer demographics, ethnicity, behavior, or education level. These classifications enable more effective product promotions and communication methods.

Marketing aims to identify potential customers and determine the target audience for campaigns. Utilizing data from SFA systems can facilitate this process, providing insights into customer behavior and product popularity for market research. Through SFA, businesses gain a better understanding of competitors' products and can assess the strengths and weaknesses of their own products.

Knowledge is a powerful tool that can empower marketing professionals to understand the opportunities and threats surrounding their products. By utilizing SFA (Sales Force Automation) and studying the market, they can even contribute to the development of new and improved products. Additionally, analyzing customer behavior through SFA assists in creating effective market strategies and gaining a competitive advantage against other products.

Drawbacks of SFA

Implementing SFA presents a significant challenge as it requires meticulous recording of every transaction to fully maximize its benefits. While there are no inherent disadvantages to using SFA, proper implementation is crucial for its success.

It is essential to strictly comply with record entry for training purposes. Failure to regularly and promptly enter records will result in system failure. Despite

the growing prevalence of sales force automation systems in the marketplace, managers may face difficulties in implementing them.

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Conclusion

SFA is an essential tool that can increase the standards of the sales force and enhance their efficiency and productivity. SFA is also a necessary step in attaining customer satisfaction. Though implementing SFA can be challenging, it is feasible with thoroughness, careful planning, and commitment from top management. To improve profits, it is advised that companies prioritize SFA with sincerity.

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