CRM Software - Strategic Advantages

CRM software we are talking here. As a part of our talk we are talking on SFA. We talked advantage of SFA to Marketing Manager and Sales Manager. Today we are going to talk about Strategic Advantages of Sales Force Automation.


Strategic advantages
Sales force automation systems can also create competitive advantage. Here are some examples:

• As mentioned above, productivity will increase. Sales staff will use their time more efficiently and more effectively. The sales manager will also become more efficient and more effective.(see above) This increased productivity can create a competitive advantage in three ways: it can reduce costs, it can increase sales revenue, and it can increase market share.
• Field sales staff will send their information more frequently. Typically information will be sent to management after every sales call (rather than once a week). This provides management with current information, information that they will be able to use while it is still valuable. Management response time will be greatly reduced. The company will become more alert and more agile.
• These systems could increase customer satisfaction if they are used with wisdom. If the information obtained and analyzed with the system is used to create a product that matches or exceeds customer expectations, and the sales staff use the system to service customers more expertly and diligently, then customers should be satisfied with the company. This will provide a competitive advantage because customer satisfaction leads to increased customer loyalty, reduced customer acquisition costs, reduced price elasticity of demand, and increased profit margins.

ref: Insurance SFA and Insurance CRM, wikipedia

SFA - Sales Manager Advantages

Sales Force Automation we are talking here and Advantages to different people/department attach with it. In our last post we talk about Advantages to Sales People and Advantages to the Sales Manager.

Today we continue our talk on Advantages to the Sales manager. Advantages to the

sales manager. Sales force automation systems can also affect sales management. Here are some examples;

The sales manager can configure the system so as to automatically analyze the information using sophisticated statistical techniques, and present the results in a user-friendly way. This gives the sales manager information that is more useful in :

• Providing current and useful sales support materials to their sales staff
  
  
• Providing marketing research data: demographic, psychographic, behavioural, product acceptance, product problems, detecting trends
  
  
• Providing market research data: industry dynamics, new competitors, new products from competitors, new promotional campaigns from competitors, macro-environmental scanning, detecting trends
  
  
• Co-ordinate with other parts of the firm, particularly marketing, production, and finance
  
  
• Identifying your most profitable customers, and your problem customers
  
  
• Tracking the productivity of their sales force by combining a number of performance measures such as: revenue per sales person, revenue per territory, margin by customer segment, margin by customer, number of calls per day, time spent per contact, revenue per call, cost per call, entertainment cost per call, ratio of orders to calls, revenue as a percentage of sales quota, number of new customers per period, number of lost customers per period, cost of customer acquisition as a percentage of expected lifetime value of customer, percentage of goods returned, number of customer complaints, and number of overdue accounts.

ref: sfa & Sales Management Software, wikipedia