The Advantages and Disadvantages of a Sales Force Management System?

Answer 1

Sales force management systems are systems used in sales, marketing and management. These information systems help to automate many tasks and functions relating to sales, thereby streamlining many phases of the sales operation. Most sales force management systems are often a smaller part of a larger system such as a Customer Relationship Management System (CRM). Sales management systems help to manage sales leads received from customer referrals, paid phone lists, or cold calls. Overall, these systems track contact and ordering information by customer. The system provides a record of every stage in the customer's life cycle from initial contact to sale or removal.

Sales force management systems often create a competitive advantage for sales personnel and companies that utilize such systems. Sales staff becomes more productive since they are able to utilize their time more efficiently. The task of reaching out to each customer is simplified with the software automation that these systems provide. Sales managers have more readily available information about the performance of their sales staff, which makes it easier to correct problems sooner or reward peak sales performers. These types of systems often have analysis applications which help sales personnel develop a better understanding of their target market, target customer and competition. Market research of core customers is easier with readily available database of information. It's also easier to reach out to and service current customers with the automated system, resulting in increased customer loyalty and repeat sales. Advantages gained from using a sales management system help companies to increase market share and increase sales revenue as well as decrease costs.

Disadvantages of sales management systems include complaints from the sales staff. Sales personnel report that some sales management systems are difficult to work with. There is often a lot of typing and inputting of information that takes them away from selling. Customer accounts in the system require frequent attention, maintenance and updating. Some say that the process dehumanizes the sales process. Another disadvantage of these systems is that they can be costly. Further, incorporating the sales force management into other company management systems may be cumbersome and time consuming.

Sales force management systems have come a long way and are still developing bells and whistles and enhancement features. Many newer applications of sales force management systems provide the ability to obtain insight into product knowledge, territory optimization, sales forecast, pricing and e-commerce.