Tips and Tactics
Improving Sales Performance: Align Sales Process and Sales Force Automation
By: Mike Mozenter, co-founder, BizLogx LLC
During conversations with clients and prospects we often discuss the possible use of a sales process and related management tools to help improve sales performance. As part of this conversation, we found ourselves in a discussion relating to sales force automation (SFA) systems. In many cases the prospect is currently in the process of attempting to select an SFA system, and a committee is already in place to develop a list of needs and required capabilities to use in the evaluation process.
In some cases we are asked if we help clients select an SFA system. We explain that our primary business is helping companies improve sales performance through a combination of sales process, skills training, and management systems. It is important to note that we strongly recommend the use of an SFA system immediately following training to reinforce newly acquired skills and to facilitate the sales management process. We explain that our clients frequently hire us to help them choose a system even though we are not technologists. At this point we briefly explain some of the issues we confront as part of this process.
Before discussing some of the common considerations and pitfalls, we first like to identify some of the primary reasons a company wishes to implement an SFA system. A few of the more common reasons we hear are:
| 1. | Improve sales performance (i.e. generate more revenue/productivity per sales person and sales manager). |
| 2. | Improve forecasting accuracy. |
| 3. | Improve the auditability and repeatability of sales results. |
| 4. | Identify and disseminate best practices (i.e. those tactics or strategies that seem to work best). |
| 5. | Provide the information required to focus scarce sales resources on the highest value opportunities. |
| 6. | Avoid dropping the ball while executing a complex, high-value sale. |
Certainly, an SFA system can be a meaningful component of a company’s efforts to accomplish the listed goals. Unfortunately, we have seen little evidence that an SFA system can generate the desired value unless implemented in context of a well-understood and well-executed sales process. Specifically, we frequently confront the following issues:
| 1. | Establishing SFA system needs and requirements is next-to-impossible in the absence of a well understood sales process. The lack of agreement on the definitions of process steps and the requirements for attaining sales milestones undermines the quality of the data entered into the system. The common result is “junk in, junk out.” |
| 2. | Even if a company can define its sales process, the lack of disciplined and consistent adherence to that process by sales personnel and managers undermines the quality of the data, and the value of the output. |
| 3. | The selection of an SFA system frequently focuses disproportionately on functions, features, and technology rather than business objectives. The SFA system vendors, like other vendors of software and management systems, have included hundreds, even thousands of features into their products. Each vendor publishes a list of features. Although many are smart enough not to emphasize the point, many believe that the vendor with the longest list wins. “If only I can focus the prospect on a feature my competitor doesn’t have, then I’ll win the sale.” Unfortunately for the prospect, this causes the purchaser to focus on features and technology rather than usability and business results. By defining the sales process, and then identifying short term and long term business objectives, the company can avoid this pitfall. |
| 4. | In selecting and implementing an SFA system, companies frequently find themselves including steps, processes, workflow, and reports for the wrong reasons. Because of the function and feature focus, the companies implement functions because they can, not because the functions are primary drivers of business value. The rationale for each additional function sounds reasonable during the planning and implementation phase. Unfortunately, when completed, the system is cumbersome to learn and use and contains many capabilities that sales persons and managers almost never use. As a result, adoption rates are low and value, at least from the perspective of daily users, is highly questionable. |
Because we work with companies to implement SFA only in connection with the adoption of a sales methodology and upon completion of sales training, we have much more modest goals for the system. Initially, we use the system to accomplish five goals:
| 1. | Reinforce the process and skills taught during training; |
| 2. | Provide sales personnel and managers with access to sales tools and strategies; |
| 3. | Provide sales personnel and managers with an efficient mechanism to exchange information and tools that are producing desired results; |
| 4. | Provide sales managers with the information they need to focus their limited time and attention on high value opportunities; and |
| 5. | Provide sales managers with the information they need to focus their limited time and attention on the coaching and guidance necessary to help ensure the success of their people. |
We don’t mean to understate the potential benefits of a well-implemented SFA system, or oversimplify the complexity of the decision. Rather, we take a practical, step-by-step approach to generating the benefits. We first work on system usage and data quality in context of a commonly understood and well-executed sales process. The data input requested from sales persons should be limited to data that they would normally track in context of a complex sale. When faced with the typical challenge from sales personnel – “I won’t have time to sell because I’ll be entering data into the system all day.” – we prefer to respond – “We are not requiring you to track any data that you aren’t or shouldn’t be tracking today as part of a professional sales effort.” Only after establishing this foundation of usage and data quality, and then gaining experience with the system and process, do we entertain requests to add functionality. At all times, we try to focus our attention and that of our clients on using the system to generate measurable business results.
Published
by Bizlogx,
LLC.
Copyright © 2006
