Sales Force Management System (SFMS)

In the field of sales the class of systems, conditionally called SFA (Sales Force Automation System) or SFM (Sales Force Management System) is engaged in automation of routine transactions. In world practice the SFA system is usually delivered as a component of CRM.

Sales Force Automation

Sales Force Automation  is the automation system of sales. It performs automatic registration of all stages of sales of the company. SFA includes the system of tracking of contacts with clients, the system of identification of potential clients. Process of forecasting of sales, order management, acquaintance with products and so on belong to its functions. Read article of SFA

Management system for LK Trade sales

Graphic mapping table of data of the typical Sales Force system

Possibilities of SFMS for sales managers

SFMS provides information on all clients in the form of tables, charts, diagrams. The manager should not spend time for their drawing up. During the work with Sales Force Management System the manager possesses the complete information about orders that gives it the chance timely to react to change of a situation, to make necessary recommendations the subordinate, to check a product inventory and to adjust the system of discounts. SFMS carries out automatic information analysis using difficult statistical techniques and represents results in a user-friendly form. Using this system the sales manager can make the marketing researches displaying a demographic situation, behavioural features of clients, data on priority products and products of low demand, a trend on sales. Besides, SFMS is useful in carrying out market researches. Dynamics of development of the industry, the competition, emergence of new products and advertizing campaigns at competitors is traced. SFMS allows to carry out scanning of macro environment. The sales manager can identify the clients making the greatest profit of the company and "problem" customers. Very conveniently for the fact that by means of Sales Force Management System coordination of activity of different divisions of the company is performed: productions, marketing and financial departments. SFMS gives the chance to trace performance of the company. For this purpose the following indicators which are calculated in a system matter:

• income from one sales agent;
• income from the specific territory;
• margin on a segment of clients;
• margin on the specific client;
• quantity of calls in day;
• time spent for one contact;
• income from one call;
• cost of one call;
• ratio of orders to quantity of calls;
• income in a type of percent from sale of quotas;
• the number of new clients for a certain period;
• the number of the lost clients for a certain period;
• percent of returned goods;
• the number of complaints from clients;
• number of expired accounts.

Possibilities of SFMS for marketing managers

SFMS promotes understanding economic structure of the industry, determination of the main segments of the market, determination of target market. With its help it is possible to identify the best clients. A system helps to define competitiveness of the organization on the basis of knowledge of competitors and products provided by them. SFMS is widely used at new product development and also marketing strategies for each product, by means of the change in price, the range, the system of distribution and encouragement. Process of creation of the latest mechanisms of scanning of the environment, identification of opportunities and risks is not less important. Using SFMS managers estimate weak and strengths of the company. With Sales Force Management System it is easy to coordinate actions of the company with the structures which are engaged in advertizing, promotion of products, public relations. SFMS provides a feedback with clients, and it contributes to the development of the company in general.

Strategic advantages

When using SFMS:

• Labor productivity due to expense reduction, increase in income and expansion of sales market increases;
• Working time of employees is more rationally and effectively used;
• The company has an opportunity to respond more quickly to requests of clients, thereby they have a good opinion on the company and desire to further cooperation appears;
• Offers of the company not only correspond to wishes of clients, but also exceed their expectations.

Shortcomings

Sales Force Management System at first sight can seem difficult in use as it requires costs of time for data entry, permanent service, updating and upgrade of information. SFMS to some extent turns personal process of purchase of goods into public. Besides, this system is expensive and is difficult integrated with other information systems.

See Also

• CRM
• Sales Force Automation - Automation system of sales
• Sales Performance Management - Performance management of sales
• Sales Force Management - Sales management
• Sales & Operation Planning is Sales planning and operating activities
• CPQ (Configure, Price and Quote) of software for optimization of sales

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