Sales Force Automation Systems and Sales Force Productivity

Abstract

Salespeople are in a unique position of being in very close proximity to customers and thus have the ability to create and maintain long-term relationships with them. Sales force automation systems (SFA) have the ability to help or hinder this relationship building process. This article looks at SFA and its impact on sales force productivity. Much of the current research in the area of SFA seems to focus on efficiency issues within the firm, with particular attention being paid to technology implementation and reasons for high SFA failure rates. The authors review past literature and identify potential areas for future research by creating and presenting a research agenda. Many of the future research areas lie in the realm of effectiveness of SFA rather than the efficiency side of SFA. Although efficiency is still of great importance to SFA researchers and practitioners, the customer or relationship focus of SFA effectiveness is also needed.     

A Three-Country Study of Unethical Sales Behaviors

A major challenge in global sales research is helping managers understand sales ethics across countries. Addressing this challenge, our research investigates whether a few demographic variables and psychographic variables reduce unethical sales behaviors (USBs) in Canada, Mexico, and the USA. Further, using literatures associated with business ethics, national culture, and customer orientation advocacy, we hypothesize why sales managers should expect similarities and differences in USBs between countries. We tested hypotheses using a sales contest scenario and six USBs, examining survey responses from 948 business-to-business salespeople of a multinational company??s sales force in Canada, Mexico, and the USA. The results reveal that several psychographic variables (such as commitment, relationship to sales manager, and achievement need) affect salespeople??s tendency to engage in USBs differently in each country. In addition, business ethics, individualism, and customer orientation advocacy associated with each country can be used to anticipate similarities and differences in USBs between countries. This research offers important theoretical contributions and implications for more effectively managing sales forces and reducing USBs across countries.     

Customer showrooming behavior,customer orientation,and emotional labor: Sales control as a moderator

Despite the popularity of customer showrooming behavior (CSB), few studies have investigated how this phenomenon affects salespeople's sales behavior. To answer this research call, we explored the effect of CSB on customer orientation (CO), as they are associated with emotional labor (EL) and perceived sales control as a moderator. We gathered data from 397 salespeople in South Korean department stores. Our study showed that CSB affected deep acting negatively by reducing CO. Perceived outcome-based sales control enhances CSB's negative impact on CO. Nevertheless, perceived behavior-based sales control does not moderate the relationship between CSB and CO. Our results indicate that supervising salespeople using outcome-based control only worsens the effect of CSB on salespeople who combat CSB.     

Sales management: Learning and innovation in Japan

Abstract

The purpose of this study was to examine ways to promote learning, based on four empirical studies of salespeople and sales departments in Japan. First, analyses of survey data of 192 real estate salespeople indicated that customer- and goal achievement-oriented sales beliefs enhanced experiential learning at work. Second, analyses of data of 193 sales departments indicated that customer orientation in sales departments promotes innovation by facilitating task conflict and preventing process conflict. Third, analyses of survey research of 199 sales departments indicated that behavior-based and knowledge-based management control systems are effective at promoting learning and innovation. Finally, a case study of Nippon Boehringer Ingelheim (NBI) revealed several ways to facilitate learning using a behavior-based sales management control system. Theoretical implications for sales management systems were examined.     

What the eye does not see,the mind cannot reject: Can call center location explain differences in customer evaluations?

Moving call centers offshore may be an effective way to increase service productivity by lowering costs, yet recent research suggests that customers associate offshore call centers with lower service quality. This study clarifies customer evaluations of call centers with a field study that examines how customer perceptions of a foreign accent, call center location, and the agent's customer orientation relate to nonmonetary performance outcomes. Multivariate analysis of data collected from more than 800 customers using call centers located in three countries suggests that neither accent detection nor call center location relates to customer satisfaction, trust, or word-of-mouth communication; only perceived customer orientation has an effect on these outcomes. These findings suggest offshore call center locations are not necessarily associated with lower performance outcomes and that service firms should place a higher priority on ensuring call center agents have a strong customer orientation, rather than on avoiding the use of call centers abroad.     

Integration of Multiple Sales Channels with Web-Based Technology–A Case of the Pharmaceutical Industry

ABSTRACT

Channel-centric selling approach is considered a competitive advantage when web-based technologies, such as the Internet, call centers, and database marketing, have emerged. A basic starting point is building corporate Internet Presence Sites (IPSs). The study attempts to answer the fundamental question of how effective IPSs are in reaching target customers and how they are integrated in multi-channel strategies for customer contact. In order to attain homogeneity in sampling, only the pharmaceutical industry was selected. The research entailed both content analysis of IPSs and a focus group study of physicians and pharmacists, conventionally the major target customers for pharmaceutical companies. Results showed that large companies incorporate significantly more attributes related to public relations, building of user group and communities, and services to business partners; but the interviewees did not report any usage of the IPSs. To increase return on companies' hefty investment, the researchers suggested a framework for companies to integrate web-based strategies with multiple sales channel design.     

Impact of Technology-Based Self-Service on Employees, Customers, and Sales in the Korean Services Market

For service providers, efficient production and delivery is becoming increasingly important. If customers can play the role of partial employees when participating in the service production and delivery, service providers can reduce the workload and achieve higher productivity. This study’s purpose is to investigate the impact of technology-based self-service (TBSS) which is designed for improvement of operational efficiency of service organizations on employees, customers, and sales, especially focused on South Korea’s service market. In-depth interviews with managers of large service providers and a questionnaire survey of employees were used as the research method. Our findings indicate that technology-based self-service positively influences employee satisfaction, but it provides disadvantages in sales, and in customer satisfaction when the services fail. Moreover, some interesting results were identified. We present the details of the statistical results and the implications found from the study.     

Driving Trucks and Driving Sales? The Impact of Delivery Personnel on Customer Purchase Behavior

This study investigates how and under what conditions delivery persons, specifically truck drivers of a supplier firm, affect customers’ purchase behavior in industrial customer–supplier relationships. Drawing on service quality and customer contact literature, we test a proposed theoretical model that suggests a positive direct effect of personal contact quality (provided by a delivery person) on sales as well as three situational constraints that determine the occurrence and strength of the direct effect.     

Customer Relationship Management (CRM)'s Impact on B to B Sales Professionals' Collaboration and Sales Performance

Purpose: Sales literature has traditionally considered technology adoption from acceptance and diffusion perspectives. This article examines the impact of customer relationship management (CRM) technology on business-to-business (B2B) sales professionals' ability to collaborate with internal stakeholders and also assesses the relationship between CRM utilization and sales performance. The study moves from assuming that CRM utilization positively impacts salesperson effectiveness and performance to assessing this outcome from the perspective of the salesperson.

Methodology: A survey that was comprised of four scales was sent to 115 B2B sales professionals and usable surveys were received from 70 respondents. The data were analyzed using partial least squares regression to test the hypothesized paths. Partial least squares regression has been shown to work for small sample sizes.

Findings: There is empirical evidence that CRM adoption and utilization positively impacts sales performance, sales effectiveness, and collaboration. As a partial mediator, collaboration positively influenced CRM utilization's effect on sales performance. However, collaboration did not positively influence sales process effectiveness. Explanations of the findings are offered.

Managerial Implications: Sales managers can use CRM technology to make their sales team more effective and efficient. Second, increased collaboration across the firm positively mediates sales performance. Lastly, to increase collaboration, sales managers should stress that CRM leads to higher performance for both the sales team and the entire firm.     

The Effect of Single and Dual Sales Targets on Sales Call Selection: Quota versus Quota and Bonus Plan

Ross (1991) demonstrated that a salesperson's quota acts as a reference point (target or goal) and influences sales call selection. Ross, however, focused only on the effect of a single reference point. The use of multiple goals is quite common in the sales environment, for example in the quota plus bonus compensation structure and in the use of incentive plans. Our study compares and contrasts call selection when a single goal (quota) is given versus when dual targets are assigned (a quota plus bonus level). Consistent with our hypotheses, we find that call selection patterns are influenced by the number of targets assigned to the salesperson.     

A personal construct analysis of adaptive selling and sales experience

Customer orientation is a key to successful marketing strategies. In personal selling, customer orientation has been shown to be related to the quality of the customer-salesperson relationship (Saxe & Weitz, 1978). Adaptive selling (Weitz, Sujan, & Sujan, 1986) is a theoretical perspective that suggests sales performance is related to salespeople's ability to shift their customer orientation, by adapting their behavior to different customers in different situations. This article presents personal construct theory (Kelly, 1955) as a framework for understanding how sales personnel perceive and adapt to customers. An interview technique known as laddering (Gutman, 1982; Hinkle, 1965) is used to elicit these constructs from sales personnel. Results of the interviews are compared across levels of sales experience. Consistent with the Sujan, Sujan, and Bettman (1988) findings relating sales effectiveness and breadth of knowledge structures, we find that the number of years of sales experience is related to the breadth of constructs obtained from the laddering interviews. © 1995 John Wiley & Sons, Inc.     

Do Mystery Shoppers Really Predict Customer Satisfaction and Sales Performance?

Mystery shopping (MS) is a widely used tool to monitor the quality of service and personal selling. In consultative retail settings, assessments of mystery shoppers are supposed to capture the most relevant aspects of salespeople’s service and sales behavior. Given the important conclusions drawn by managers from MS results, the standard assumption seems to be that assessments of mystery shoppers are strongly related to customer satisfaction and sales performance. However, surprisingly scant empirical evidence supports this assumption. We test the relationship between MS assessments and customer evaluations and sales performance with large-scale data from three service retail chains. Surprisingly, we do not find a substantial correlation. The results show that mystery shoppers are not good proxies for real customers. While MS assessments are not related to sales, our findings confirm the established correlation between customer satisfaction measurements and sales results.     

Sales Training in a Dynamic Market

Abstract

The Singaporean hotel industry is examined, with particular emphasis on me differences between global and local sales force training. Empirical evidence indicates that there is a wide divergence between global and local practices. It appears that global firms perceive that sales training leads to greater sales force performance and view sales training as being part of their strategic marketing plan. Global firms also employ a more formal training curriculum, focus on “soft” competencies, and have an established training culture. Conversely, local firms rely upon “on-the-job training (OJT)” and appear not to understand that sales training programs can be a source of competitive advantage. Managerial implications and suggestions for future research are presented.     

Tradeoffs in Supplier Attribute Ratings in Supplier Selection across Strategic versus Non-Strategic Purchases

ABSTRACT

Purpose: This research identifies a customer perspective that is often ignored, neglected, or undervalued in B-to-B sales – the nature of the product itself. The pivot point is whether the product/service desired is strategic (critical to the company’s mission) or non-strategic (not critical to the company’s mission).

Methodology/Approach: A conjoint analysis was conducted for both types of purchases (strategic and non-strategic), assessing the tradeoffs and espoused preferences of four key attributes involving both the supplier and the product across three performance levels – (1) stability of the supplier, (2) reliability, (3) competitive pricing and (4) product quality.

Findings: The results indicate that B-to-B customers do make tradeoffs between suppliers based on stability, reliability, pricing and product quality. The direction of the tradeoffs depends on whether the purchase is a strategic or non-strategic acquisition. The results suggest that suppliers would benefit from understanding the relationship of their products and services to the B-to-B customer’s mission when the supplier is deciding how to improve performance.

Research implications: Too often there is a disconnect between B-to-B salespeople and their customers resulting in suppliers failing to reach performance goals. The research focuses on the importance of B-to-B salespeople uncovering whether or not the customer considers the nature of the product being considered as strategic or non-strategic to their business. The research helps to explain some of the mixed findings in the supplier selection literature.

Practical implications: The research points to the fact that customers analyze and make decisions differently depending on the type of product. Additionally, the research highlights the importance to customers of understanding the potential legal and financial risk of suppliers. This is important in that traditionally suppliers tend to focus on product features and benefits in their selling efforts. These results indicate that they should spend significant time discussing factors that illustrate legal and financial risk reduction to the customer of dealing with their companies.

Originality/Value/Contribution: The study offers a new look at an age-old problem of enhancing sales performance through a new lens by considering the nature of the product (strategic versus non-strategic) through the perspective of the customer. The findings help to explain the mixed results of previous research. To date, the nature of the product and tradeoffs of attributes that customers are willing to make depending on that product classification have not been the focus, though the results suggest that understanding customer decision-making through this lens may enhance supplier success.     

An Exploratory Analysis of the Impact of Salesperson Customer-Orientation on Sales Force Productivity

Abstract

Consumer sovereignty is a concept that is well-established in the marketing literature. It is widely assumed the customer satisfaction is a crucial variable in determining the long-run prosperity of a business. Since the sales force often has the most contact with the customer, it seems logical that their efforts toward satisfying the client would be imperative. The selling orientation-customer orientation (SOCO) scale developed by Saxe and Weitz (1982) was used to determine the customer-orientation of 180 real estate sales personnel. The results of the research indicate that real estate sales representatives can practice customer-oriented selling without fear of losing sales due to their being too “soft” in their selling methods. In addition, the results indicate that companies wishing to enhance their sales personnel's level of customer-orientation may do so through professionally designed sales training programs.     

The role of salespeople in industrial servitization: How to manage diminishing profit returns from salespeople’s increasing industrial service shares

Business-to-business companies often differentiate themselves from competitors by complementing goods with services. While extant literature on servitization points to substantial benefits for companies and underscores the importance of the sales force for successful servitization, it has rarely empirically investigated the negative effects of and barriers to effective selling of servitized offerings at the salesperson level. Drawing on transaction cost theory, we propose that with rising service shares, the specificity of offers and transaction costs grow, partially offsetting the financial benefits. We derive four salesperson factors that moderate the effect of salespeople’s industrial service share on salespeople’s profit. These factors pertain to the extent to which salespeople individualize offers and effectively manage offers’ specificity (adaptiveness, customer valuation skills, experience). We test our conceptualization with data from 220 salespeople and company records. The results are robust to endogeneity and show that service share has a diminishing positive effect on salesperson profit. While salespersons’ offer individualization enforces this harmful effect, salesperson adaptiveness and customer valuation skills show beneficial moderating effects. This study provides valuable insights for researchers and managers into the role of the sales force in servitization and into salesperson factors conducive to realizing the full profit potential of servitized offerings.     

Comparison of Field Sales Management Activities in Australian and American Sales Organizations

Designing marketing strategies for competing in global markets requires knowledge about the inter-country differences that affect strategy development. The issue is particularly relevant in the management of field salesforces. A comparative study of 99 Australian and 107 American business-to-business salesforces examines the differences in field sales management activities between the two countries. Controlling for market, competitive, and organizational effectiveness variations, several significant differences were found between the Australian and American sales organizations. The differences focus on management style and closeness of supervision. The findings also indicate certain similiarities between the salesforces from the two countries.     

Customer perceived value,satisfaction, and loyalty: the role of willingness to share information

This study proposes and tests an integrative model to examine the relationships among customers’ willingness to share information, satisfaction, perceived value, and loyalty in a retailing context. This study extends research on customers’ willingness to share information from trust and privacy concerns toward key outcome measures such as perceived value, customer satisfaction, and loyalty, and is thus among the first to model customers’ willingness to share information with companies in robust theoretical retailing frameworks. The proposed relationships were tested using data from two retailing contexts – groceries (N = 429) and do-it-yourself (DIY) (N = 895). Findings from the two samples suggest that both perceived value and satisfaction are significant determinants of customers’ willingness to share information with a company. Although some differences emerge in the two studies, structural modeling largely supports the hypothesized framework and positions customers’ willingness to share information as an important antecedent of their loyalty intentions and behavior. This study provides practitioners with preliminary insight into the relationship between willingness to share information and perceived value, customer satisfaction, and customer loyalty. This study advances retailing research, as it is one of the few empirical studies investigating the role of customers’ willingness to share information in driving loyalty and its relationship with perceived value and satisfaction in a retailing context.     

All pain,no gain? Why adopting sales force automation tools is insufficient for performance improvement

The dawning of the 21^st century brought a wave of research into the phenomenon of sales force automation (SFA)—technology tools aimed at enabling sales organizations to better practice customer relationship management. While the academic literature has offered great insight into how an organization can increase the likelihood that its sales force will adopt a new technology system, a great majority of research stops there. This is unfortunate in that companies mistakenly infer that use of an SFA system is the major hurdle and that simply motivating SFA use will be the key to unlocking improved performance. However, this is often not the case; many organizations are able to get their sales force to use an SFA system but do not see improvements in performance. As such, after briefly providing an overview of the factors affecting SFA use, this research provides insight into why use alone may not contribute to long-term improvements in a firm's sales performance. Key empirical findings and theoretical arguments from the extant literature are considered and a list of best practices is offered here to help managers bridge the gap between SFA use and improved sales effectiveness and efficiency.