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
© e-Business Strategies, Inc.
-2-
www.ebstrategy.com
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
© e-Business Strategies, Inc.
-3-
www.ebstrategy.com
Evolution of the Sales Process
© e-Business Strategies, Inc.
-4-
www.ebstrategy.com
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
© e-Business Strategies, Inc.
-5-
www.ebstrategy.com
Basics of SeCM
Selling Chain
Distributor
Corporation
With
Multiple
Sales
Channels
OEM
Reseller
Customer
Sales Force
Self Service
© e-Business Strategies, Inc.
-6-
www.ebstrategy.com
Defining SeCM
Complete order life cycle
Customer
Lifecycle
Partial
Functional
Solutions
Inquiry/
Prospect
{
Complete
Integrated
Solutions
Customize
Commit
Sales Lead Configurator
Contract
Pricing
Order
Entry
Available to
Promise
Proposal
& Quote
Commission
Product
Catalog
Integrated Selling Chain Application
Cross-Functional Processes
Breaking Down Departmental Walls
© e-Business Strategies, Inc.
-7-
www.ebstrategy.com
Multiple Sales Channels – Example from
Siebel Systems
Siebel .COM Applications
Siebel Call Center
Siebel Sales
Siebel Field Service
Back Office
Applications
Siebel
Marketing
Siebel eChannel
Source: Siebel Systems
© e-Business Strategies, Inc.
-8-
www.ebstrategy.com
Collaborative Selling Scenarios Delivered by
SAP
Customers
(Consumers/
Business Partner)
Manufacturer/
Supplier
Internet
Sales
B2B Mall
B2R Network
Distributor/
Reseller
Source: SAP AG
© e-Business Strategies, Inc.
-9-
www.ebstrategy.com
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
© e-Business Strategies, Inc.
- 10 -
www.ebstrategy.com
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
© e-Business Strategies, Inc.
- 11 -
www.ebstrategy.com
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
© e-Business Strategies, Inc.
- 12 -
www.ebstrategy.com
First Generation SFA - Lead Management
3rd Party
(e.g., D&B)
Sales
Web
Status
Tele
Sales Channels
Process
Business
Partner
Lead Gathering
and Targeting
Cold
Lead
Qualified Lead
Opportunity
Warm
Hot
D
C
B
A
Customer
Analyze,
learn, grow
customer
Lead Qualification
Qualified Lead
Sales Pipeline
Selling,
Contracting
Source: SAP AG
© e-Business Strategies, Inc.
- 13 -
www.ebstrategy.com
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
© e-Business Strategies, Inc.
- 14 -
www.ebstrategy.com
Universal Business Problem:
Managing the Order Acquisition Process
Order acquisition process
–
–
–
–
Identify Potential Customer
needs assessment
option selection
order configuration
order quote and
proposal, complete with
drawings, schematics,
and performance metrics
Understand Customer Needs
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
Prepare Order
© e-Business Strategies, Inc.
- 15 -
www.ebstrategy.com
Elements of E-Sales
Lead, Proposal &
Quote Generation
Pricing
Commission
& Contract
Mgmt.
Sales
Configurator
Order Entry
& Mgmt.
© e-Business Strategies, Inc.
- 16 -
www.ebstrategy.com
The Digitization of Selling in the Travel
Industry
Airlines
• Buy Air
• Car
• Hotel
Hotels
Intermediary
Travelocity
Expedia
Trip.com
Delta.com
Priceline.com
Car Rentals
Vacation
Package
Online Travel
Management
Community
Search Bots
Travel
Information
Business Goal (1): Automate
the Look-To-Book Process
Business Goal (2): Achieve
Selling Synchronization
2.4 Trillion $$$
Travel Agent ---> Digital Selling
© e-Business Strategies, Inc.
Cruise-Lines
Travel
Agencies
Consolidators
Online
Auctions
Air
Car
Hotel
Cruise
Vacations
Tours
www.ebstrategy.com
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
© e-Business Strategies, Inc.
- 18 -
www.ebstrategy.com
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
© e-Business Strategies, Inc.
- 19 -
www.ebstrategy.com
Cisco and SeCM
Marketplace Today
• Order Status
• Pricing Information
• Configuration Assistance
• Order all Products
Relationship
Management
Custom
Fulfillment
Internetworking
Product Center
Information
Center
“Old Way”
Targets
• Customer Profile Agent
• Custom Order Scheduling
Phase 0
© e-Business Strategies, Inc.
Phase 1
Phase 2
- 20 -
Phase 3
Phase 4
www.ebstrategy.com
E-Business
Strategies, Inc.
www.ebstrategy.com
[email protected]
678-339-1236 x201
Fax - 678-339-9793