Introduction
Over two decades ago, information technology was not well advanced as it is today. Companies employed salespersons who were responsible for customer care services in a given geographical representation. The salespersons as they were referred to had to work in the local offices acting as correspondents to the viable buyers. On other occasions, the salespersons were mandated to travel long distances to look for clients.
In order to meet the demands of large clientele, companies were forced to hire more salespersons with different knowledge on different products. However, advances in technology have necessitated the design of software that makes work easier for the sales team. The technological revolution has made marketing easier and quicker as sales are nowadays made through the use of the sales force automation.
Sales force automation has become common in many companies for its ease and many advantages are associated with it. The sales force automation (SFA) is programmed software that is able to automate different business tasks. Most of the companies acquire customized sales force automation that meets the company’s specifications and needs. It is sometimes referred to as the sales automation software or the customer relations management. This has definitely changed the productivity in the workplace because of its strategic advantage.
Sales force automation is the process of automating the various sales activities of a company. A detailed sales force automation system offers various applications and features, such as calendars, ‘to-do’ lists, product configurations, contact management, and information sharing.
A sales force automation system records the various phases of a sales process automatically. It also consist of a contact management system that follows the different contact that the sales force has made to a specific customer, the purpose of such a contact, as well as the necessary follow up. As a result, chances of irritating customers are minimized because no sales efforts can be replicated.
The lead tracking system of a sales force automation system includes the phone lists of potential customers, order management, product knowledge, and sales forecasting features. There are also developed SFA systems with sophisticated features that enable customers to customize their products to meet their desirable qualities, via online product building systems. SFA enables users to quickly retrieve and enter data.
In addition, the system allows business owners to streamline their sales workflow quickly. On the other hand, a company that has implemented a SFA system may be faced with a number of problems, such as the additional cost of purchasing and maintaining the necessary computer networks and the SFA software.
By use of laptops and internet communications and sales transactions can be easily carried out. The research paper endeavors to examine the advantages and disadvantages of sales force automation. Also, the paper endeavors to explore whether it is worthwhile for companies to invest in the system.
Advantages of sales force automation
If at all companies wish to successfully accomplish their sales and marketing functions today, it is important that they embrace technology. The effective and strategic implementation of technology offers a lot of potential benefits to companies. The Internet has proved to be a formidable platform for launching SFA.
SFA consist of user-friendly features that enable customers to use to easily tailor product to fulfill their requirements via online product building systems. This is a trend that has increasingly gained popularity in the IT sector whereby customers are able to tailor different features. For instance, Dell computers provide consumers with alternative accessories and features.
The adoption of SFA has enabled the company to enhance its sales operations through increased efficiency, thereby minimizing operating costs. This is because cost is reduced and each employee’s individual revenue is increased.
SFA systems augment sales instructions. For this reason, it can be adopted by a company to facilitate handier and faster sales training. A company may also use SFA systems as a tool to inform the products sales personnel about various sales methods and products. Consequently, this automatically reduces the time spent in organizing and conducting long seminars and coaching sessions.
The automation also spares sales representatives the agony of having to manually fill out written orders. As such, this is a feasible method that saves the effort, time and resources of a company.
The method is also likely to inverse the success and efficiency of the sales force because they are now better able to dedicate most of their time and energy on sales generation. It helps in keeping the information and data of customers making it easy for the salesperson.
The SFA systems also enables one to better associate and communicate with customers because it allows you to arrange and organizes consumer information and details. This way, one is able to generate more efficient leads effortlessly. The systems also allow one to examine potential leads in line with consumer information and business products. Also, you are more likely to pursue the most profitable leads.
Using the SFA systems, sales managers are better able to access stock positions, order books, as well as other activity reports. Consequently, the sales manager is able to manage various sales process activities more effectively. Customer satisfaction is ensured since no time is wasted in explaining the commodities to customers.
The SFA systems also enable the sales manager to automatically evaluate different forms of information. Such would include new competitors, new products, and market trends. In addition, the sales manager can also effectively categorize the most profitable or problematic customers.
Using more complex and innovative sales force automation model, it is easier for a sales manager to monitor the productivity level of his/her sales force. SAF systems allow marketing managers to utilize the 4 Ps (price, product, distribution and promotion) in designing the most suitable marketing strategies.
To the management, the SAF systems results in increased revenue, increased market share, and the overall sales force productivity also increases. The sales and marketing staff continue to churn out valuable information with increased frequency and this increases the agility and alertness of the management.
Besides, it is also easier for management to project cash flows, revenues, and sales pipelines. Lastly in enables the management to identify bad and goods salespersons as all information is kept and availed to the management.
Disadvantages of Sales Force Automation
There are also a number of disadvantages associated with the application of the sales force automation systems at the workplace. Sales force automation can lead to inadequate communication between departments. This occurs when the system is not well integrated and interconnected with the rest of the departments in the same company.
This may lead to instances whereby the management contacts same customers unknowingly over the same period of the time. With the emergence of technology, many companies are forced and tempted to automate all their systems using the sales force automation. However, the more the number of the sales forces automation the more complex they become.
This makes it hard to operate especially when there is inadequate technologically able human resource. This may become a drawback because they required experienced people who are well trained in operating them.
So as to ensure that they are well operated, the management may decide to hire fresh human resource that could be well versed with the operations. Hiring and training new employees is a cost that the company may experience.
SFA which is an excellent approach in the management of sales and the company-customer relations has some drawbacks. Although it makes work easier through automation, its implementation may proof to be difficult because of the initial cost required. Installation of the software and the machines frames works used to support it may be costly during the inception stages.
The computer networks, internet connections, and cost of training staff is a disadvantage to a company had not been using the technology. Some of the SFA software are complex, expensive, and comprehensive and may deter small sized businesses from adopting the technology. This can be articulated to the budget constraints that may be high for the medium sized companies.
Sales force automation systems are driven by continuous data and information. This means that a company has to engage in technological updating of the system. Information and data updating, upgrading of the systems and occasional maintenance is required to ensure that data and information flows freely and is made available to the organisation.
Sometimes an organisation may be faced with inadequate data on the clients. This may be due to slow input of data because of the challenges employees may face from the new technology. This may represent the company with less information that it ever had in the traditional way.
Updating the systems and the use of sales force automation can make part of the employees unhappy. Normally, the SFA requires input of information and data into the system for the ease application. This makes the employees to identify customers with ease, be able to sell the products and services, as well as enjoying themselves as it save time and energy.
However, the need for employees to input data and information into the system can make them unease because input of data in the systems is an extra workload that the employee may not be used to. This may reduce the morale of the employee as well as making them unhappy. The system has the capability of rendering people jobless as their part of the job is taken by machines.
For example, if a company had 100 sales persons the number can be reduced to 10 with one individual at a different geographical representation. This means that 80 people may be displaced by the machines, because no more field agents may be required as communication can be done through the internet
Sales force automations leads to the dehumanization of the workforce as sales persons are replaced by computers and other related machines. Initially, the essence of using the sales force automation was to automate specific tasks and decisions existing in the customer and sales departments.
However, this has not been the case because the program has taken the whole department and made it automated. Although its inception has seen many companies enjoy a lot of benefits, it has led to dehumanization. Sales and marketing revolves around the interaction between the sales people and the clients.
However, this has been placed by the sales force automation software that does all the work that was initially performed by the sales persons.
Not forgetting the efficiency, effectiveness and profits that are associated by the use of the SFA, some of the reliable clients and part of the employees may be offended by removal of the interaction that existed between them. This may result to resentment that leads to client base reduction as well as strikes and stoppages from some of the employees.
In conclusion, the advancement of technology has made it possible to maintain the relationship between sales and customer relations. The inception of sales force automation, a program that automates all the business activities, many organisations have been able to enjoy the benefits associated with the new technology. SFA encourages efficiency, effectiveness, and profitably in the company.
Customers are well served and communication and follow ups can be done well through the use of internet. It makes it possible for management to make research on some of the products based on the data and information available to them. Agility and alertness of the management team is improved as everything is automated. The system has the capability of ensuring competitive advantage as cost effective.
This increases productivity that boosts the total returns. SFA encourages multitasking as different tasks can be carried at a go. However, there are numerous drawbacks associated with the SFA. Adoption of the technology requires startup capital that can be an impediment to medium sized companies.
SFA is known to replace human being in the workplace making it dehumanized. After replacing the employees, jobs are lost although efficiency and effectiveness are realised. SFA requires constant data and information update which may be cumbersome and new to the employee. This may require employing new staff members or training of the already existing ones.
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