Sales Technology: Making the Most of Your Investment

8/9/2019 Sales Technology: Making the Most of Your Investment

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Contents

Preface: Structure of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi

Chapter 1 Sales Technologies: Their Denition,

History, and Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chapter 2 The Sales Technology Implementation Process. . . . . . . 23

Chapter 3 Antecedents to Effective Implementation . . . . . . . . . . . 49

Chapter 4 Performance Implications of Sales Technology . . . . . . . 77

Chapter 5 Measuring the Impact of Sales Technologies. . . . . . . . . 97

Chapter 6 Implementation in Practice:

A Road Map to Success . . . . . . . . . . . . . . . . . . . . . . . 115

Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177


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PfAC

Structure o the Book

The past three decades have been characterized by a rapid growth in

the domain of information and communication technologies, which

are increasingly becoming less expensive and more easy to use. A direct

consequence of these evolutions is the breadth and capabilities of appli-

cations that these technologies are nding in the functioning of contem-

porary organizations. Given the fundamental importance of the sales

organization for the prosperity and growth of any business-to-business

organization, it is not surprising that the sales function has been largely

affected by the introduction of such technologies. In fact, contemporary

sales organizations are spending billions of dollars and euros on sales

technologies with the objective of learning more about their customers,streamlining sales processes, and enhancing sales force performance. A

variety of sales technologies exist, such as customer relationship manage-

ment (CRM) software and suites, mobile sales force automation (SFA)

applications, contact management software, SaaS (software-as-a-service),

and territory planning applications, to name just a few.

In spite of the amounts being invested in, and the attention being

paid to, sales technologies, however, few organizations can claim to be

enjoying performance improvements. Most are struggling to gain sales-

person buy-in and are failing to realize the intended return on invest-

ment.1 In addition, the introduction of such technological applications

may cause stress to the sales force and disturb customer relationships. As

such, it comes as no surprise that less than 40% of the rms implement-

ing such systems realize adoption rates above 90%,2 and that nearly 30%

of rms have users who spend very little time, if any at all, using technol-

ogy solutions.3

But why do so many rms around the world confront somany difculties during sales technology implementation, and how can

rms get the most out of their investments? Academics and practitioners

seem to agree that failure is rarely contingent on the technology itself;


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x PrEFACE

rather, it is contingent on the managerial process employed to implement

the technology.4

Against this background, this books primary objective is to provide

a comprehensive understanding of sales technology implementation,

and to aid organizations in effectively managing a complex and costly

sales technology initiative in order to get the most out of it. To achieve

its objective, the book draws not only on extant academic research but

also on relevant practitioner literature in order to effectively blend theory

with practice.

Naturally, this book targets the following four audiences:

1. Executives in adopting rms charged with the difcult task of imple-

menting sales technology

2. Executives in vendor rms aiming at enhancing effective implemen-

tation of their solutions within client rms

3. SFA/CRM consulting agencies

4. Students taking an advanced sales management course

The book begins by providing the reader with a detailed discussionof the various technologies that are being used by sales organizations

and by providing a brief historical overview of how sales technologies

have evolved (chapter 1). It then outlines a process of sales technology

implementation and distills the practitioner and academic literature to

delineate the factors that can lead to effective sales technology acceptance

and usage (chapters 2 and 3). Next, it discusses how sales technologies

can impact salesperson performance (chapter 4), and then presents a setof relevant key performance indicators, as well as a managerial method,

that executives can use to calculate the performance impacts of technol-

ogy investments (chapter 5). Finally, it provides executives with a set of

managerially relevant guidelines regarding how sales technology imple-

mentations should be managed in order to gain the most from such an

investment (chapter 6).


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Acknowledgments

I would like to thank Michael Ahearne and Adam Rapp (coeditors) for

kindly inviting me to write this book and for their feedback on a previous

draft.


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C 1

Sales echnologies

Thr Dft, Hstr, d Uss

Chapter Overview

The aim o this chapter is to introduce readers to the various notions

and concepts related to sales technologies. In particular, the chapter starts

with defning sales technology, sales orce automation (SFA), and cus-

tomer relationship management (CRM), and delineates the similarities

and dierences between these concepts. Likewise, it examines CRM rom

both a technological and a strategic perspective. This is done in order

to set out the boundaries o the topics examined in this book. Next, the

chapter proceeds by giving a historical presentation o how sales tech-

nologies have evolved, rom early applications to modern Internet-based

solutions. This is ollowed by an eort to set out the various types o

sales technologies, based on their usage by dierent constituencies and

the type o the selling context they are involved in. The chapter concludes

with a brie reerence to the world market o sales technologies.

Defining Sales echnology

Rapid changes occurring in the feld o inormation and communication

technologies are changing the way society, in general, and business orga-

nizations, in specifc, organize themselves. These changes have magni-

fed the availability o inormation in such a way that managers can have

immediate access to almost any piece o inormation needed in order to

make better decisions. As such, it is not surprising that several authors

have long been contemplating that the ability o accessing, managing,

and exploiting inormation represents an asset o critical importance or

the success o the modern frm1 and or the development o competitive


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2 SaleS TecHnology

advantage.2 The importance o inormation or contemporary organiza-

tions is largely driven by the intensifed competition in many markets

around the world, as well as by increases in customer demands or aster

and better service through the provision o customized solutions.

Generally speaking, technology can be defned as the process o man-

aging the uncertainty and risk surrounding the transactions necessary to

convert inputs into output.3 This rather broad defnition reers to any

technology (process or administrative technology) employed by organiza-

tions in order to manage business processes, such as supply chain, fnan-

cial management, and production. Given the ocus o this book, however,

two broad types o technologynamely, inormation systems (IS) andinormation technology (IT)are o special interest to us. Though no

clear distinction between the two types o technology is made in the

literature, IS usually reers to the sotware applications and databases,

whereas IT reers to a broad spectrum o devices, hardware, and media

used by organizations in order to link IS with employees and organiza-

tional processes.4

Though satisying diverse customer needs and demands should be a

frmwide priority, the sales unction o business-to-business organizations

plays a prominent role in this process. This is so because the sales unc-

tion is closer to customers than any other business unction, and thus can

signifcantly aect the process o providing services, goods, and solutions.

As such, many authors have expressed the sentiment that the use o inor-

mation and communication technologies can positively contribute to the

sales unctions eort o satisying customer needs.5 Given the critical role

o sales or developing intimate and proftable relationships with custom-ers, as well as its impact on net revenues, it is o little wonder that frms

have ound themselves rushing to invest in sales technologies. Indeed,

according to recent reports, the estimated worldwide investment or pur-

chasing CRM sotware is around $911 billion.6

Taking a broader view, sales technology can be defned as any inorma-

tion and communication technology employed by the sales organization

to conduct its essential activities.

7

However, despite their wide applica-tion in modern organizations, sales technologies can mean dierent

things to dierent constituents. The most commonly encountered conu-

sion regards the identifcation o sales technology with such concepts as

CRM and SFA. Thereore, the purpose o this section is to elaborate on


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SaleS TecHnologieS 3

the various terms, which are requently used interchangeably, and pres-

ent their dierences and similarities. To acilitate comparison among the

various terms, Table 1.1 lists a representative set o defnitions presented

in the literature that can be used to illustrate the dierent perspectives

adopted to study SFA, CRM, and sales technologies.

A careul observation o Table 1.1 reveals that no general agreement

exists regarding these terms. SFA, or instance, has been defned in a vari-

ety o ways. One common theme underlying all defnitions, however, is

Table 1.1. A Variety of Perspectives on the Domains of SFA, CRM,

and Sales Technologies

Sales force automation (SF)

SFA systems consist o centralized database systems that can be accessed through a modem

by remote laptop computers using special SFA sotware (which is oten company specifc).8

SFA involves converting manual sales activities to electronic processes through the use o

various combinations o hardware and sotware applications.9

Adding technology in the orm o cellular phones, axes, portable computers, databases, theInternet, and electronic data interchange (EDI) systems to the sales process.10

Sales orce automation (SFA) reers to the use o computer hardware, sotware, and

telecommunications devices by salespeople in their selling and/or administrative activities . . .

the SFA system integrates its various activities and applications to support one overriding

goal: enhancement o the collection, assimilation, analysis, and distribution o inormation to

improve productivity o the sales orce, while enhancing customer relationships.11

Technology or SFA involves a variety o hardware and sotware capabilities and can support

cost reduction or emphasize gains in customer relationship management.12

Laptop computer-based systems that connect via modem to a central server allowing orcommunication between all parties throughout the country.13

Sales orce automation (SFA) occurs when frms computerize routine tasks or adopt

technological tools to improve the efciency or precision o sales orce activities.14

Customer relationship management (CM)

[A] process that addresses all aspects o identiying customers, creating customer knowledge,

building customer relationships, and shaping their perceptions o the organization and its

products.15

We defne the CRM process at the customer-acing level as a systematic process to manage

customer relationship initiation, maintenance, and termination across all customer contactpoints to maximize the value o the relationship portolio.16

An ongoing process that involves the development and leveraging o market intelligence

or the purpose o building and maintaining a proft-maximizing portolio o customer

relationships.17


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4 SaleS TecHnology

that SFA comprises a multitude o dierent IT and IS, which aim to

increase sales orce efciency andproductivity by either (a) automating

some salespersons activities and thereby increasing ace-to-ace selling

time or (b) providing aster access to timely inormation.21 According to

SFA proponents, an increase in productivity is the outcome o reeing

salespeople rom administrative tasks, thus allowing them to spend more

time in the feld interacting with customers.22 Accordingly, the basiccharacteristic o SFA is that it is intended to support routine (or repeti-

tive) sales processes.23

Similar to the defnitional problems related to SFA, it is also very di-

fcult to come to an agreement as to what the conceptual boundaries o

CRM are. Indeed, defnitions vary widely across dierent stakeholder

groups (e.g., vendors, consultants, and adopting frms), with each group

giving its own defnition.

24

In addition, there is no consensus amongscholars on what should be an accepted conceptualization o CRM.25

Notwithstanding this difculty, in this book, we adopt Buttles26 CRM

conceptualization, which has been set orth in the sales literature by Tan-

ner and his colleagues.27 According to Buttles conceptualization, CRM

Table 1.1. A Variety of Perspectives on the Domains of SFA, CRM,

and Sales Technologies (cont.)

Customer relationship management (CM)

CRM is a strategic approach that is concerned with creating improved shareholder value

through the development o appropriate relationships with key customers and customer

segments. CRM unites the potential o relationship marketing strategies and IT to create

proftable, long-term relationships with customers and other key stakeholders. CRM

provides enhanced opportunities to use data and inormation to both understand customers

and cocreate value with them. This requires a cross-unctional integration o processes,

people, operations, and marketing capabilities that is enabled through inormation,

technology, and applications.18

CRM relates to strategy, the management o the dual creation o value, the intelligent

use o data and technology, the acquisition o customer knowledge and the diusion othis knowledge to the appropriate stakeholders, the development o appropriate (long-

term) relationships with specifc customers and/or customer groups, and the integration o

processes across the many areas o the frm and across the network o frms that collaborate

to generate customer value.19

Sales technology

Sales technology reers to ITs that can acilitate or enable the perormance o sales tasks.2


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comprises three dierent aspects: (a) strategic CRM, (b) analytical CRM,

and (c) operational CRM.

Strategic CRM reers to the managerial decision-making processes

involved with defning and building a customer-oriented business strat-

egy, business processes and culture, and requisite supporting technology

models.28 Analytical CRM reers to the frm-level processes involved in

analyzing customer and market-level inormation in order to provide the

intelligence and insights that guide the frms strategic marketing, CRM,

service, and go-to-market choices.29 Finally, operational CRM reers

to the specifcation o suitable and replicable business processes . . .

designed to implement the frms desired customer relationship model interms o customer access, customer interaction, sales and channel choices,

and customer learning at the one-on-one level.30

Based on this conceptualization, as well as the defnitions presented in

Table 1.1, three conclusions can be drawn. First, it is apparent that CRM

technologies constitute just one aspect o CRM, which reects a philoso-

phy, a strategy, or an organizational process.31 Though an important part

o CRM, CRM technology itsel is not identifed with the enterprise-

wide strategy and processes or managing customers at the strategic or

analytical levels but rather is a subcomponent o CRM at the operational

level.32 As such, CRM technology is employed to help organizations real-

ize intended CRM strategies and processes, which are designed at the

strategic level and which aim at eectively and efciently managing pro-

itable customer relationships.33

Second, in contrast to SFA technologies, which acilitate routine

activities, CRM technologies are targeted at helping salespeople developcustomer knowledge and sales strategies that will acilitate the proftable

management o customer relationships.34 In other words, SFA is more

operational and supports routine unctions o a salespersons job tasks,

whereas CRM technology is more strategic by nature and aids in the

development o selling and relationship strategies.35

Third, given the cross-unctional and multichannel nature o CRM,

CRM technology does not represent one thing. Rather, it encompassesa broad spectrum o technologies and applications that cover the entire

gamut o customer-acing (or ront-ofce) unctions o a frm: market-

ing, service, and sales.36 Echoing this sentiment, Srivastava, Shervani, and

Fahey37 argue that the development and execution o sales programs is


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6 SaleS TecHnology

only one subprocess in the overall CRM process o the organization. Put

another way, CRM technology concerns a broader, enterprise-wide per-

spective o IS-IT, employed to automate and support all customer-acing

aspects o a business.38 For instance, marketing-based CRM technologies

perorm unctions such as campaign, loyalty, segmentation, and list man-

agement; whereas service-based CRM technologies perorm unctions like

call-center, customer sel-service, and customer-care (help-desk) manage-

ment. Given the intent o this book, our ocus is on sales-based CRM tech-

nologies.39 Specifcally, sales-based CRM technologies reer to tools that are

specifcally designed to help the sales organization meet its objectives in

managing customer relationships.40On the basis o the preceding discussion, it is apparent that SFA and

sales-based CRM technology are dierent, but related, concepts. This view

is consistent with Hunter and Perreault,41 who drew a clear distinction

between SFA and CRM systems as two distinct subsets or categories o

sales technology. Hunter and Perreaults reasoning is that salespeople man-

age customer relationships by using a broader range o technology tools

(e.g., mobile phones and spreadsheet-analysis sotware) than those typically

alling within the realms o SFA or sales-based CRM technologies. Their

logic has been adopted and extended by Rapp and his colleagues,42 who

also distinguish between SFA and CRM technology-use eects. We align

with this line o research, and hence adopt the defnition put orward by

Hunter and Perreault,43 according to which sales technology encompasses

any inormation technology that can acilitate or enable the perormance

o sales tasks such as sales-based CRM technologies and SFA technologies.

istory and volution of Sales echnologies

Though using sales technologies may sound like a recent phenomenon, its

dawn can be traced back to the late 1970s and early 1980s. During these

early days o the revolution in ofce technology, frms have been using sev-

eral devices to acilitate, automate, and streamline their selling processes.

Thenceorward, however, sales technologies have evolved due to advances

in inormation and communication technologies. Figure 1.1 graphically

presents how sales technologies have evolved during the last 30 years, while

Table 1.2 provides a detailed overview o these technologies.


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The 1980s

The 1980s witnessed the advent o several revolutionary sales technolo-

gies. Perhaps the greatest revolution was the widespread availability o

personal computers (or microcomputers) in organizational settings.

Early proponents saw many advantages in using microcomputers orincreasing the productivity o the sales unction.44 One important type

o microcomputer that revolutionized the feld o sales during the early

1980s was the portable computer.45 Its introduction was the direct out-

come o manuacturers ability in developing personal devices that were

small enough to be carried by salespeople during traveling and sales calls,

though they typically required power rom an external source.46 Por-

table computers were used by salespeople as a traveling companion toconduct spreadsheet analysis, process word documents, prepare bids,

manage account inormation, manage contacts, develop sales reports,

and send and receive electronic mails through dial-up telephony applica-

tions.47 Some frms equipped their salespeople with pagers (or beepers)

Artificial intelligenceBulletin board systems

Electronic datainterchange

Expert systemsMapping software

PagerPortable computers

Sales force automation

SpreadsheetsTelemarketing

Video cassette recorderVoice mail

Word processors

Cell/mobile phones

Compact disk (CD)CRM systems

Data analyticsDigital versatile disc (DVD)

Electronic marketplacesGroup support systems (GSS)

Interactive video technology(IVT)

World Wide Web (Web 1.0)Electronic mail (e-mail)

Laptop computers

(notebooks)Videoconference

Global positioning system(GPS)

Mini laptops (notebooks)Personal digital assistant

(PDA)SmartphonesSocial CRMSocial media

Web 2.0

???

1980s 1990s 2000s Future

Figure 1.1. Evolution of sales technologies.

Note: Placing the various technologies in each chronological period was based on extant literature

rom the respective decade in which the technology experienced widespread adoption among sales

organizations, rather than on the time the technology was invented.


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8 SaleS TecHnology

and voice mail systems that increased the availability and connectivity

o their road warriors with customers and headquarters. Finally, a new

technologyat the timenamely, the bulletin board system (BBS),

spurred the connectivity o salespeople with the frm and increased

intracompany inormation exchange. The BBS is a system o computers

that allows users to connect with a frms databases in order to read news

and bulletins and exchange messages with each other.48

The introduction o computers and related technology changed not

only the way salespeople were working but also how sales executives

were managing their salespeople. For instance, the wide availability o

microcomputers during the 1980s helped sales managers to analyze a vast

amount o inormation in order to better assess sales potential, orecast

sales, set sales budgets and goals, and design account strategies through

the use o computerized applications such as spreadsheet analysis.49 Also,

the ample availability o videocassette recorders (VCRs) allowed sales

management to modernize sales training activities and make learning

more pleasant and eective or salespeople.

Other sales management applications involve the use o specializedmapping sotware that provides sales managers with an indispensable tool

or visualizing, designing, and aligning sales territories;50 the use o data-

base management systems or tracking sales leads and prospects;51 and the

use o computer-based programs or efciently allocating sales call time.52

An even more advanced orm o computer usage or conducting sales

management activities is what has been typically defned as an expert

system.53

An expert system can be used by sales managers to solve prob-lems and make optimal decisions by combining human experience with

sotware and analytical and computing capabilities. Given the complexity

o sales management decisions, there is a rich ground or applying expert

systems in sales such as in compensation or motivation decisions.54

To help salespeople increase their productivity, frms began to experi-

ment with artifcial-intelligence technologies.55 These technologies, com-

bined with standard account management sotware, allow salespeople

to generate account reports, organize their activities, manage accounts,

analyze customer behavior, and orecast territory sales. More advanced

intelligent systems can incorporate the knowledge o an expert into the

system and can oer advices or suggest alternative courses o action during


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a sales encounter. O course, artifcial intelligence has also been applied to

acilitating sales management activities such as sales orecasting.56

Another technology that was introduced during the 1980s is telemar-

keting, which reers to a system staed by trained specialists who uti-

lize telecommunications and inormation technologies or the purpose

o implementing marketing and sales programs in a cost eective way.57

Telemarketing has been employed or a variety o sales activities, rang-

ing rom lead qualifcation, to order processing, to handling marginal

accounts, and to providing customer service.58

Table 1.2. The Gamut of Sales Technologies

Salestechnologies Description

c/mb ph i r, r mb ph s mb

tmmuts dv tht ws usrs t

sd d rv v, txt, ud, d vd

dt.

cmpt dsk (cD) a pt dsk fr rrd d str dtdt tht b rprdud b sr cD

drv.

Dt ts sftwr Sp sftwr usd t z d md rw

dt t d ds mk.

Dt vrst ds (DVD) a tp f cD, but wth muh rr str

pt.

etr but brd sstm a sstm f mputrs tht ws usrs t

t wth mp dtbs rdr t

rd ws d buts d xh msss

wth h thr.59

etr dt trh (eDi) Th mvmt f busss dt tr

btw rzts struturd, mh-

rtrvb dt frmt tht prmts dt t b

trsfrrd wthut rk frm mputr

prrm t t mputr prrm

thr t.60

etr m (-m) i ts smpst frm, -m s tp f mh-

mdtd tr mmut f txtmsss.

etr mrktps a itrt-bsd ptfrm fr t

burs d srs d ftt ss

xhs.


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10 SaleS TecHnology

Table 1.2. The Gamut of Sales Technologies (cont.)


exprt sstms cmputr-bsd sftwr sstms tht

trt wth hum ds mkrs t sv

prbms.61

gb pst sstm (gPS) a stt-bsd vt sstm tht ws

usrs t dtrm prs rdts fr

th td th rths surf.

grup supprt sstm (gSS) a gSS usu xsts s rm d

ssts f rup f twrkd prs

mputrs (tp, but 20), smtms

wth r prjt sr t th frt f

th rm.62 Td, gSS tk p brsp.

itrtv vd th (iVT) a mbt f mputr, sr ds, d

vd ths tht w usr (..,

ssprs) t trt wth th th

thruh tuh sr.

lptp mputr Th xt rt f prtb mputrs,

whh r tru prtb mhs s th

wh ss th prtbs d r bttr

pwrd.63

Mpp sftwr cmputr ppt tht ws usrs t

vsuz, ds, d ss trrtrs.

M ptp (r tbk) a tr f ptp mputrs tht r vr

ht d sm mprd t stdrd ptp

mputrs, d tht w fr s wrss

ss t th itrt. currt, th tp

hv smr prss pbt th

ptps.

Pr (r bpr) a prs tr dv fr rv rsd shrt txt msss. ctmprr

dvs r b t hd shrt mss

srv (SMS) d -m msss.

Prs dt ssstt (PDa) a sm, ht, hdhd tr dv

tht ffrs usrs m pbts f

stdrd mputr s w s itrt ss r

tph pbts.

Prtb mputr Prs mputrs tht r dsd t b

rrd dsts d tht rqur sst tr utt. Th r sst

rpkd dsktp mhs wth smr

sr d rr hd; s d

ub r trsprtb mputrs.64


15/26


The increased emphasis on interorganizational cooperation between

trading partners in the same channel led to the development o the

Table 1.2. The Gamut of Sales Technologies (cont.)


Smrtph a tp f mb, mputr-k ph tht

ffrs usrs mr pbts d ppts

th stdrd mb ph.

S cRM Th xt rt f cRM sstms, whh

w usrs t vr th dvts f s

twrk d usr-rtd tt t

dut sst ss tvts.

S md nw frms f md tht r bsd usr

prtpt d usr-rtd tt, suh

s bs, s twrk sts, wks, pht

shr, vd shr, d v st.

Sprdsht a mputr ppt tht ws usrs t

ut d m dt trd t

tb wth rws d ums.65

Tmrkt a sstm stffd b trd spsts wh

utz tmmuts d frmt

ths fr th purps f mpmt

mrkt d ss prrms fftv

w.66

Vd sstt rrdr (VcR) a mt tp-rrdr dv fr rrd

d rprdu vds.

Vdfr a sstm f tmmut ths

tht w tw-w xh f vd d

ud dt btw tw r mr rmt

td usrs.

V m a mputrzd tph swr sstm

tht ws usrs t rrd, str, d rtrv

tph msss.

Wb 2.0 Th sd rt f th Wb tht ws

usrs t trt, trt, d twrk

wth h thr s w s rt thr w

tt.

Wrd prssr a mputr ppt tht ws usrs t

m (wrt, dt, d frmt) tr

dumts.

Wrd Wd Wb (Wb 1.0) a b twrk f mputrs, hprtxt

dumts, d thr md.


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12 SaleS TecHnology

electronic data interchange (EDI). EDI reers to a cooperative interor-

ganizational system comprising a set o telecommunication devices and

computer applications that allow frms to electronically exchange inor-

mation in a coded and structured ormat.67 As such, EDI is not a sales

technology used by individuals but rather reers to a technology utilized

at the level o the frm. EDI has been adopted by many frms operating in

such diverse industries as consumer packaged goods, chemicals, banking,

automotives, and textiles.

The 1990s

Advances in computer science and applications during early 1990s made

computers smaller, lighter, and energy independent. These portable

computers were called laptop (or notebook) computers and were batter

powered. As such, laptop computers orever changed the way salespeople

were working since these machines gave salespeople the needed auton-

omy to use the laptop literally anywhere and at anytime. Advances in

data recording and storage that appeared during the decade (i.e., CDs

and DVDs) boosted the capabilities o laptop computers either or deliv-

ering multimedia sales presentations or or easier and quicker storage and

retrieval o inormation.

The 1990s brought the evolution o the Internet as a new and power-

ul tool that changed the way frms conducted business orever. Electronic

mail (e-mail) and the World Wide Web (or Web 1.0) are two o the most

prominent Internet tools that had an immense impact on how selling is

done.68 The applications o Internet tools in sales are numerous, such asconducting sales training and meetings, and acilitating selling, payment,

and order processing activities. In addition, in many industries, buyers

and sellers started experimenting with electronic (or online) marketplaces

that acilitate business exchanges and selling transactions.69

Because o the large amount o time salespeople spend traveling to call

on customers, they experience a great loss o productive time. They also

have to keep in constant touch with the frm headquarters, their super-visor, and their customers. It comes with little surprise, then, that sales

organizations were eager to equip their sales orces with cell or mobile

phone technology. The mobile phone was entered into sales organiza-

tions during late 1980s and early 1990s,70 but it was not until late 1990s


17/26


that the technology experienced a real acceleration in its adoption rate

among sales organizations. Another telecommunication technology that

was rapidly adopted during the 1990s is videoconerencing, which has

been employed to conduct sales meetings and training and to acilitate

team-based sales presentations to a group o buyers.

Old SFA technology was replaced by modern CRM systems during

the 1990s. The evolution o mobile telephony, Internet services, and

computer technology helped CRM systems become a powerul tool or

feld salespeople. These systems allowed salespeople to directly access

product inormation, identiy sales leads, and retrieve the latest customer

inormation by using a wireless e-CRM application. Spawned by theoverwhelming amount o inormation made available through CRM sys-

tems, many organizations started using data analytics sotware or mining

terabytes o inormation and or improving decision-making processes.

The advent o microcomputers and video technologies during the

1990s led to many applications in sales management activities, including

sales training. Essentially, microcomputers are used to acilitate the sales

training process rom initial salesperson assessment to knowledge devel-

opment evaluation.71 One such application involves the use o interactive

video technology (IVT) in sales training.72 IVT represents a combination

o computer, laser disc, and video technologies that allows a user (i.e., a

salesperson) to interact with the technology through a touch screen. The

technology can be used to conduct role-plays and simulate sales calls. A

second, somewhat simpler, application o technology in sales training is

the sel-paced video-enhanced training.73 This type o training consists

o videocassettes and written material delivered to salespeople, who thensel-study the material in their spare timeno trainer is involved in the

process o learning. Upon completion o the training session, the sales-

person can call a toll-ree number and take an exam.

Other applications o technology in sales management involve the

utilization o Group Support Systems (GSS), which comprises a network

o personal computerseither in the same physical space or in cyber-

spacethat is used to acilitate meetings, build consensus, stimulatebrainstorming, and provide eedback in an environment that promotes

candor and openness.74


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14 SaleS TecHnology

The 2000s and Beyond

The dawn o the 21st century brought with it many new sales technolo-

gies in which frms have been investing in order to optimize their salesprocesses. One such evolution is the launch o mini laptops (or netbooks),

which are very light and small compared to standard laptop computers

and which allow or easy wireless access to the Internet. We have to note,

however, that recent technological advances have blurred the traditional

lines that used to distinguish telecommunication, telephony, and com-

puter devices. As such, smartphones (i.e., a type o mobile, computer-

like phone), mini laptops, and personal digital assistants are converging,

with one device oering all o these capabilities (i.e., wireless Internet

access, multimedia applications, word processors, spreadsheet analysis,

and mobile phone services).

The nature and ormat o the Internet has evolved into Web 2.0, which

reers to the second-generation o Web and which allows users to interact,

interconnect, and network with each other as well as to generate their

own content. Web 2.0 oers many new capabilities to sales organizations

compared with its predecessor. One particularly relevant capability is the

availability o social media. The term social media reers to new orms

o media that are based on user participation and user-generated content,

such as blogs, social networking sites, wikis, photo sharing, video sharing,

live casting, and so orth. These media are changing the way salespeo-

ple work and, accordingly, how older CRM systems unction. Specif-

cally, contemporary CRM systems, which are increasingly being reerred

to as social CRM, leverage the power o social networking and user-generated content to optimize the sales process. Given that customers

are increasingly connected to each other through proessional social net-

working sites and microblogging, frms need to engage in a continuing

dialogue with these communities o customers. By so doing, salespeople

may have more opportunities or expanding their own network o con-

tacts, fnding better sales leads, and increasing their productivity. Many

modern sales-based CRM systems are now oering advanced modules to

users, thereby promising to increase their eectiveness.

How will sales technologies evolve, and what will they look like in the

near uture? Though predicting the uture o sales technologies is beyond

the ocus o this book, there are some trends that have already begun to


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emerge and will very likely impact sales technologies. One such trend is

the advent o Web 3.0, which is conjectured to make the use o the Inter-

net more personalized, interactive, and dynamic than its present orm

(Web 2.0). The content and structure o data will also be aected by this

change, with more emphasis being placed on intelligent search engines

that will analyze the semantic meaning o inormation. These advanced

technologies will most likely have an immense impact on sales technolo-

gies, placing salespeople as central hubs in a huge network o leads and

prospects, and on enhancing the capability o searching an ocean o rel-

evant market inormation.

ypes and Uses of Sales echnologies

At this point, one may ask whether sales technologies are used dierently

across frms or whether frms use dierent sales technologies. Though

there are certain commonalities among frms, there is a considerable

degree o variation in the usage o sales technologies across dierent sell-

ing contexts. In this book, we distinguish between two general classes o

selling contexts, namely, the business-to-business (B2B) and the business-

to-consumer (B2C) context. The two selling contexts dier with respect

to how they defne a customer. Specifcally, B2B frms target their sell-

ing eorts to other frms, organizations, and institutional customers who

are not end users o the products they are selling; rather, these customers

either use the product to produce their own goods and services, incor-

porate it into their own products, or simply resell it to others. In con-

trast, B2C frms sell directly to end user and consumer markets who buyto satisy their own personal needs. Apparently, thereore, salespeople in

each selling context are perorming dierent sales activities. Though our

ocus in this book is on B2B selling contexts, or completeness, we will

also make a separate reerence to sales technologies utilized by B2C sales

organizations.

Sales Technologies in the Business-to-Business Selling Context

As shown in Figure 1.2, sales technologies utilized by B2B frms can

be distinguished into three groups, based on the type o activities they

are supporting.75 In particular, the three groups o technologies reer to


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16 SaleS TecHnology

sales technologies used or supporting (a) company-customer interace

activities, (b) sales management activities, and (c) sales orce activities.

The useulness o this classifcation lies in the act that each o the three

groups represents a dierent level in the sales hierarchy, namely, the orga-

nizational level, the sales management level, and the salesperson level,

respectively. Table 1.3 lists some o the most prominent activities sup-

ported by each group o sales technologies. The list o activities is based

on prior studies published in the literature, which provide detailed analy-

ses regarding the various activities that are perormed through the use o

sales technologies.76 We next discuss the technologies and their uses or

each group.

Ss Ths fr Supprt cmp-custmr itrf

atvts

The frst group o sales technologies reers to technologies used at

the company-customer interace level, which involves interorganiza-

tional relationships between business partners in a marketing channel

rather than relationships between individuals (e.g., a customer and a

...Sa

lesFo

rceActivi

ties

...SalesM

anagementA

ctivities

...Company-Customer Interface Activities

Sales Technology

for Supporting...

Figure 1.2. Types of sales technologies.


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salesperson). These technologies aim at automating the transactions o

customers with their suppliers through the utilization o inormation and

communication technologies. Thus, these technologies are not utilized

by individual salespeople when conducting their job tasks but rather

Table 1.3. Examples of Activities Supported by Sales Technologies

Company-customerinterface activities

Sales managementactivities

Sales force activities

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22/26

18 SaleS TecHnology

constitute interorganizational technologies that are employed at the orga-

nizational level. We next elaborate on two prominent examples o sales

technologies at the company-customer interace.

One example o sales technology used at the company-customer

interace is EDI. As previously mentioned, EDI is an electronic platorm

connecting buyers and sellers that uses a standardized application or

exchanging inormation, processing orders, and issuing invoices.77

A second key technology alling into this category is the continuous

replenishment program (CRP), which is an extension o EDI. The CRP

possesses the ollowing characteristics:78 (a) buyers provide suppliers real-

time inormation regarding their inventory levels and point-o-sales data,(b) the supplier is held responsible or replenishing buyers inventories

when these all lower than a predetermined level, and (c) products are

sold to retailers at an everyday low price. The CRP provides suppliers

with the opportunity to provide better service by reducing customers

inventories and stockouts.

Both EDI and CRP are extensively applied across a wide range o

industries, such as the consumer packaged goods (CPG) industry, where

retailers are closely cooperating with CPG manuacturers.

Ss Ths fr Supprt Ss Mmt atvts

The second group o sales technologies is employed by sales manag-

ers across the sales hierarchy (e.g., feld sales supervisors, district sales

managers, chie sales executives, etc.) or eectively managing the sales

orce. These sales technologies help sales management perorm essentialmanagerial activitiessuch as setting sales budgets and goals, design-

ing sales compensation packages, orecasting sales, and designing sales

territoriesin a more eective and efcient manner.79 Specifcally, sales

managers utilize CRM technology to organize salespeople, evaluate

alternative sales strategies, analyze account perormance along the sales

cycle, monitor the sales pipeline, and allocate sales resources in the most

efcient manner. Moreover, CRM systems aid sales managers in track-ing and monitoring sales orce activities and results by providing a set o

diagnostic metrics, thereby acilitating the process o perormance evalu-

ation. Finally, sales managers may use specialized mapping sotware, such

as Geographic Inormation Systems (GIS), to design sales territories.80


23/26


In addition, they may use computerized programs to evaluate and select

potential candidates and Internet-based multimedia sotware to train

salespeople. Finally, they may use videoconerencing technologies to

communicate with a team o buyers.81

We have to note, however, that the uses o sales technology across

sales management levels may not be homogeneous; in act, usage may

considerably vary due to the dierent activities perormed at each

managerial level. As a general rule, the use o technology at the level

o the feld sales supervisor involves the perormance o more tactical

activities, whereas it gets more strategic as one moves to the upper ech-

elons o sales management, such as the district, regional, divisional, andexecutive levels o management. For instance, rontline managers who

are responsible or supervising feld salespeople may use the technol-

ogy mainly to monitor and evaluate individual salesperson perormance

and to communicate with their salespeople. Sales managers at higher

levels may use technology or designing sales territories and or select-

ing new recruits, whereas chie sales executives may use sales technology

to provide strategic direction, to assess the proftability o market seg-

ments, and to orecast business-unit sales.

Ss Ths fr Supprt Ss Fr atvts

The third group o sales technologies reers to technologies used or

supporting sales orce activities. These technologies are utilized by indi-

vidual salespeople and have created a new working reality by allowing

salespeople to conduct many o their activities rom a virtual ofce.Recently, organizations have been equipping salespeople with a myriad

o wireless technologies that allow them to instantly transmit voice,

text, audio, and video data, thereby increasing their work perormance,

even rom remote locations or while driving. We now discuss some

examples o sales orce technologies.

Nowadays, salespeople are using mobile phones and smartphones to

organize their schedules and to be in constant touch with their custom-ers and supervisors. In addition, they are using presentation sotware and

multimedia devices to deliver sales presentations, netbooks to upload and

download inormation about leads and accounts, e-mail to communicate

with their peers and customers, and Web browsers to collect customer


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20 SaleS TecHnology

and competitive intelligence. They are also utilizing contact management

sotware, inventory management systems, sales orecasting sotware, data

analytics sotware, and global positioning systems.82

Sales technologies are employed by salespeople with a two-old goal.

On the one hand, technologies allow salespeople to conduct their activ-

ities more quickly and economically, thereby increasing their efciency.

On the other hand, technologies allow salespeople to know more about

their customers and, consequently, to more eectively manage cus-

tomer relationships.

Sales Technologies in the Business-to-Consumer Selling

Context

While the primary thrust o this book ocuses on sales technologies

employed by B2B frms, as previoulsy mentioned, a reerence is made

here to sales technologies used by frms operating in the B2C domain.

This is important since B2C selling reects an important area o business

activity and, subsequently, academic research. The discussion presented

in this section draws primarily rom the work o Ahearne and Rapp,83

who have recently advanced a technology continuum to elaborate on the

importance o the interaction between the customer and the salesperson,

as well as the role o technology in this relationship. As the authors aptly

note, while antecedents to technology acceptance in a B2C setting resem-

ble those in a B2B setting, the salesperson-consumer interaction deserves

special reerence. This is so because in B2C settings, the technology that

salespeople utilize is more visible to consumers, or the technology inu-ences the interaction o consumers with the company and salespeople.

Consumers may use selling technologies in several ways. They can

search or products, seek inormation, review products, interact with other

consumers, manage their order process, and seek assistance and customer

support. Ahearne and Rapps technology continuum, reerred to as the

Salesperson-Customer Interace (SCI) Technology Continuum, includes

fve types o technologies. The frst category is salesperson-specifctechnologies. These technologies are built solely or the use o the sales-

person, and the customer has no interaction with these technologies.

Such technologies are used or conducting activities prior to and ater

a sales call. The second category is salesperson-centric technologies,


25/26


which reers to technologies employed by the salesperson in order to

acilitate the sales transaction. These types o technologies may be vis-

ible to the customer. The third technology type is salesperson-customer

shared technologies, which are technologies that both the customer and

the salesperson are actively engaged with throughout a sales interaction.

The ourth type is labeled as customer-centric technologies, which

reers to technologies used by the customer to request and fnd inorma-

tion or to order a product. These technologies may or may not involve

the salesperson. Finally, the fth type o selling technologies is described

as customer-specifc technologies, which are geared entirely toward the

customer. The salesperson is not needed in this case, and customers usethe technology through all stages o the sales process.

he Sales echnology Market

The world sales technology market is highly competitive, with some esti-

mating that there are more than 600 vendors.84 These vendors oer a

wide range o SFA and sales-based CRM solutionssuch as sotware-as-

a-service applications and enterprise-wide CRM suitesto their custom-

ers. Though providing a ull description o the entire industry is beyond

the intent o this book, we provide a brie overview o the market. Spe-

cifcally, according to a Gartner, Inc., study, 85 fve o the worlds biggest

vendorsin terms o their market shareinclude such frms as SAP AG;

Oracle; Salesorce.com, Inc.; Microsot Corporation; and Amdocs. O

course, there are many other vendors that oer a multitude o sales tech-

nologies and applications, like Aplicor, Inc.; CDC Sotware; Cegedim;CRM ASP, Inc.; FrontRange Solutions USA, Inc.; Landslide Technolo-

gies, Inc.; Maximizer Sotware, Inc.; NetSuite, Inc.; RightNow Technol-

ogies, Inc.; Salesboom.com, Inc.; SalesNexus LLC; SalesPush Limited;

SugarCRM, Inc.; and ZOHO Corp.86

Summary

As we saw in this chapter, the term sales technology is a rather broad

term that encompasses such notions as SFA technologies and sales-based

CRM systems. Sales technologies can be used dierently depending on

the nature o the job, the selling context, and the level in a frms sales


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22 SaleS TecHnology

hierarchy where they are employed. Importantly, sales technologies have

been hailed as an array o continually evolving technological tools that

can transorm the unctioning o the sales organization. Consequently,

sales technology vendors are oering a large number o dierent solu-

tions to companies aiming at leveraging their selling capabilities.

Documents

Sales Technology: Making the Most of Your Investment