Transforming Customer Contact into Revenue Selling - Chain Management

Chapter Seven Transforming Customer Contact into Revenue: Selling-Chain Management Introduction First generation e-commerce sites failed to deliver on customer-interactive promise of Web Islands of disjointed information providing little or no buying Failed to gather more complete customer profile info beyond basic demographics and buying pattern data Main achievement till date: online delivery of targeted product and service content by using niche apps or by building customized apps on top of the static sites Resulting technological environments: complex, loosely integrated sales systems Difficult to maintain, customize and extend Online sales channel isolated from rest of enterprise Introduction To support real-time, one-to-one, or self-service sales, companies must decide which new business practices to implement Companies must also determine what new apps are needed to support the Sales Process The business challenge: Improving the link from marketing to sales Activity management Opportunity management Orders and contracts Campaign management Evolution of the Sales Process Basics of SeCM SeCM an app framework that helps sell better and more effectively across all channels establishes linkages between previously disconnected sales functions within a company and sales processes Can enable new revenue channels while simultaneously improving effectiveness of a company’s existing channels Basics of SeCM Corporation With Multiple Sales Channels Customer Distributor Self Service OEM Reseller Sales Force Selling Chain Defining SeCM Complete order life cycle Cross-Functional Processes Breaking Down Departmental Walls Inquiry/Prospect Customize Integrated Selling Chain Application { Order Sales Lead Configurator Contract Pricing Complete Integrated Solutions Partial Functional Solutions Customer Lifecycle Commit Order Entry Product Catalog Available to Promise Proposal & Quote Commission Multiple Sales Channels – Example from Siebel Systems Source: Siebel Systems Collaborative Selling Scenarios Delivered by SAP Source: SAP AG Defining SeCM Goals of Selling Chain Management business strategy Engage your prospects, and turn them into customers Make ordering process easy for the customer Add value for the customer Make it easy to order customized products Increase sales force effectiveness Coordinate team selling Business Forces Driving SeCM The rise of the self-service order The excessive cost of presales technical support The increasing cost of order errors The proliferation of channels The increasing complexity of products The rise of deregulation and M&As Technology Forces Driving SeCM The selling-chain application continuum Problems with existing SFA First Generation SFA tools allowed contact management and lead management Examples include ACT, Goldmine Limited process -- order taking and management -- functionality Limited sales effectiveness First Generation SFA - Lead Management 3rd Party(e.g., D&B) Web Sales Pipeline Lead Qualification Lead Gathering and Targeting Selling, Contracting Hot Cold B A C D Customer Status Process BusinessPartner Lead Opportunity Warm Sales Tele Analyze, learn, grow customer Qualified Lead Qualified Lead Sales Channels Source: SAP AG Universal Business Problem: Managing the Order Acquisition Process Order acquisition process more complex and difficult to manage Need for customized products and services New distribution channels Multiple pricing options Selling complex products requires dealing with two kinds of complexity Product complexity Needs complexity Universal Business Problem: Managing the Order Acquisition Process Order acquisition process needs assessment option selection order configuration order quote and proposal, complete with drawings, schematics, and performance metrics Understand Customer Needs Prepare Order Identify Potential Customer Validate Needs with Customer Develop Alternative Scenarios Translate into Production Terms Determine configuration, cost and price Determine terms, availability and delivery Present Bid/Proposal to Customer Evaluate and Revise Bid Elements of E-Sales Lead, Proposal & Quote Generation Commission & Contract Mgmt. Order Entry & Mgmt. Sales Configurator Pricing Prospect or Customer Fax Email Telephone VRU Web Enterprise Architecture Intermediary Travelocity Expedia Trip.com Delta.com Priceline.com Airlines Vacation Package Cruise-Lines Online Travel Management Community Travel Information Consolidators Travel Agencies Search Bots Hotels Car Rentals Online Auctions The Digitization of Selling in the Travel Industry Business Goal (1): Automate the Look-To-Book Process Business Goal (2): Achieve Selling Synchronization Air Car Hotel Cruise Vacations Tours 2.4 Trillion $$$ Travel Agent ---> Digital Selling Custom Foot: Transforming Shoe Sales with Technology Sobering, yet excellent, illustration that addressing tech issues alone does not guarantee SeCM’s implementation success Shoe industry’s greatest challenge Provide value to customer in the form of quality, selection, and convenience at right price Minimize inventory-holding costs Custom Foot aimed to solve these problems by implementing a SeCM solution 3-D scanner, kiosk, Trilogy sales configurator Customers could get custom shoes in 3 weeks Prices starting at less than $100 Custom Foot: Transforming Shoe Sales with Technology The hope was that the system would enable zero inventory or associated stocking costs Goal: eliminate 30-50% of warehousing and distribution costs associated with retailing Predicted as an overnight success by analysts and experts But the company went bankrupt Encountered several issues in reengineering core process and implementing the new business model conflict between shoe size and shoe-fit calculations some people like shoes to fit snugly, others prefer looser fit many people’s right and left feet are different sizes Problem with forecasting demand for various kinds of leather frequently missed the 3-week delivery guarantee Cisco and SeCM Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Marketplace Today Order Status Pricing Information Configuration Assistance Order all Products Targets Customer Profile Agent Custom Order Scheduling “Old Way” Information Center Internetworking Product Center Custom Fulfillment Relationship Management E-Business Strategies, Inc. www.ebstrategy.com contact@ebstrategy.com 678-339-1236 x201 Fax - 678-339-9793