| The Evolving Role of Inside Sales and Customer | | | | know about your products and services.However, |
| Service PersonnelWhat role does Inside Sales | | | | make no mistake about it, your success will depend on |
| Customer Service (IS/CS) play in today's sales | | | | changing management's existing mindset regarding the |
| process? How does the company leverage the | | | | support necessary to allow for this type of proactive |
| existing relationships between IS/CS and the | | | | selling. IS/CS cannot effect change on their own as it |
| customer? The answer to this question plays a key | | | | must be driven and supported by management. |
| role for upper quartile performers. Upper quartile | | | | Appropriate staffing is a key component to handling |
| performers understand the important role played by | | | | inbound calls at a level of adequacy to allow for time |
| the inside sales person, customer service and counter | | | | to employ proactive selling techniques. Having |
| personnel. "A Player" field sales reps are not | | | | competent, aggressive and talented people is also an |
| threatened by the fact that the majority of inbound | | | | essential ingredient.As mentioned earlier, metrics are |
| calls are handled by IS/CS personnel because the | | | | also a necessary ingredient because you can't |
| majority of these calls represent a sales opportunity | | | | manage it if you can't measure it. Adequate |
| for the company. Customers who call in do so for the | | | | measurement systems will help identify individual |
| main purpose of fulfilling a need, which often leads to | | | | performance and productivity in order to recognize |
| the placement of an order. Customers are very | | | | contributions toward success and offer appropriate |
| dependent upon inside sales personnel for information, | | | | financial reward. You must evaluate what exists within |
| suggestions about products, substitution products, | | | | the IS/CS department and how they function, not only |
| application help and expertise, new product information, | | | | in the normal course of business, but especially during |
| new services, delivery information and promotional | | | | peak times of inbound call frequency. Management |
| opportunities for cost savings.Inside sales and | | | | must determine if the mindset in IS/CS has gravitated |
| customer service personnel have more customer | | | | to getting off the phone as quickly as possible. (Some |
| contact than anyone else in the organization. IS/CS | | | | uninformed distributors actually have inbound call |
| people take more than 80% of all orders placed. This | | | | quotas.) A study is needed to determine if time is |
| means that the IS/CS are in a better position to | | | | available to allow for selling on inbound calls based on |
| influence buying behavior than the field sales person. | | | | staffing levels and other demands. A technology audit |
| Progressive managers truly understand what that | | | | may be necessary to determine what kind of support |
| means in regard to market share growth. They know | | | | is built into the existing system in regard to selling |
| that the consistent use of suggestive selling techniques, | | | | prompts for associate parts and other product line |
| up selling and promotions can have a dramatic impact | | | | suggestions. E-mail for a list of six key measurements |
| on average order size and increase share of spend in | | | | that support proactive selling.Conquering the Counter |
| each account. IS/CS personnel traditionally build | | | | ConundrumCounter sales personnel face many of the |
| relationship equity, and many customers would give up | | | | same issues that IS/CS people face. In fact, the |
| their contact with field sales before giving up their | | | | counter sales life becomes one of juggling several balls |
| relationship with inside sales and customer service | | | | in the air at the same time and becoming skilled at |
| personnel. This is the frontline in the battle for success. | | | | multi-tasking. Dealing with "will call," customers at the |
| Customers have not only come to expect it, they | | | | counter, inbound phone calls and whining salesmen |
| demand it. It can become a competitive edge, the | | | | creates quite a challenge for the professional counter |
| differentiator for your business compared to the | | | | person. More importantly, this counter conundrum puts |
| competition. It's about the commitment the company | | | | customer retention and value at risk.Again, there is no |
| has made to customer demands for world-class | | | | magic formula to conquer this conundrum and answer |
| service.Equal and Critical to the Success FormulaThis | | | | the tough questions. These questions include:- How do |
| demand for world-class service makes IS/CS just as | | | | you effectively staff the counter?- How should |
| important, if not more important, than the outside sales | | | | incoming calls be handled?- Should a prioritization policy |
| force in driving growth and creating success. Many | | | | be developed?- Should the will call counter be |
| companies, however, do not fully understand the critical | | | | separate?- Should inbound calls from sales people be |
| role IS/CS plays in the success formula for increased | | | | handled by someone else?The sales evolution on the |
| sales, market share growth and profitability. The | | | | customer side of the equation has changed customer |
| reason for this lack of understanding is primarily due to | | | | awareness, which has led to different service output |
| the lack of adequate measurement systems to | | | | demands (SODS). These demands now focus on |
| determine the full scope of work and specific roles of | | | | immediate response, cost savings opportunities and an |
| the IS/CS service group. This lack of adequate | | | | expectation that distributor knowledge and support of |
| measurement systems leaves department managers | | | | their business initiatives go beyond the traditional |
| in the dark when trying to determine departmental | | | | business model. Counter distractions such as donuts, |
| activity, direct contributions to success and individual | | | | coffee or popcorn are just not enough to overcome |
| productivity. These metrics are necessary to properly | | | | sub-par service standards at peak times. Nothing short |
| design productivity tactics and compensation plans, | | | | of service excellence is acceptable today to retain |
| making sure to consider the group's contribution to the | | | | customers and create competitive advantage.Creating |
| success of the organization as well as their short and | | | | appropriate solutions to conquer the counter |
| long term impacts on customer relationships.Many | | | | conundrum must be based on branch operational |
| companies have not upgraded phone systems to | | | | metrics. The starting point is to evaluate this branch |
| determine the number of inbound calls taken daily by | | | | data. Increasing counter staff may seem like the |
| sales people, in addition to measuring call abandonment, | | | | obvious solution, but it may do nothing more than |
| average time per call, transfers, voice mail and other | | | | increase costs without solving the problem. Through |
| metrics important to creating an effective IS/CS | | | | the analysis of these metrics, you must diagnose the |
| support strategy. However, even at those firms that | | | | real disease and treat it, not the symptoms. Branch |
| lack these essential metrics, demands are often | | | | data analysis must include determining the pattern of |
| placed on IS/CS to utilize suggestive selling and up | | | | peak times during the day and week for counter sales, |
| selling techniques on inbound calls. Additionally, many | | | | incoming calls, will call and other specific counter |
| companies assign outbound call responsibility to IS/CS | | | | responsibilities. Sales transactions and line item order |
| and some even create quotas for these calls.On an | | | | entry information by counter sales people are relevant |
| additional note regarding phone systems, some | | | | to the diagnosis. Faxes, e-mails, sales and profit trends, |
| executives were sold on the idea that voice mail could | | | | inactive and active account trends, average call time, |
| improve IS/CS productivity and address the issue of | | | | call on hold time, call abandonment and the voice mail |
| peak time inbound call burden. Failure to consider the | | | | connection are all part of the situational analysis.This |
| customers' perspective can be a critical mistake. Voice | | | | analytical diagnosis should help you determine peak |
| mail cannot enter orders or answer questions. In other | | | | activity patterns and sales growth trends by segment, |
| words, customers' needs are not handled efficiently at | | | | such as will call, phone orders and walk-in trade. |
| their convenience. It does, however, give the customer | | | | Staffing levels and scheduling may then be matched |
| some options. Those options include: waiting for the | | | | more appropriately according to these patterns. This |
| return call, faxing the order or request, or calling a | | | | analysis should also help you determine overtime |
| competitor who is better organized and more efficient. | | | | needs, whether new account development is |
| Voice mail cuts the customer off and inhibits building | | | | successful and what your track record is on customer |
| relationship equity. It just can't provide analysis and | | | | retention. Keeping track of transaction errors and |
| solutions to even the tiniest problem.Let's Get RealThe | | | | when they occur will also help in conquering the |
| reality that exists in most companies today is that IS | | | | counter conundrum. Don't lose focus on those specific |
| CS personnel are extremely busy just handling inbound | | | | patterns that have the biggest impact on direct |
| calls. Some IS/CS personnel may handle up to 100 | | | | customer service. These include: the average wait |
| calls per day and the related task that each call may | | | | time at the counter during peak periods, average |
| entail. With the volume of traffic exceeding reasonable | | | | on-hold time for call-in customers and the percentage |
| expectations regarding their ability to build on | | | | of call abandonment. Very specifically, what are the |
| relationship equity, most IS/CS personnel are motivated | | | | sales trends telling you?Lastly, don't rely on metrics |
| to end each call as quickly as possible to get off the | | | | alone. Talk to your counter pros. You may find out that |
| phone and take the next call in the queue. The time | | | | a large percentage of their time is utilized on activities |
| they spend with each call is more than just taking | | | | that don't directly impact customer service and |
| orders. These calls may include requests for literature, | | | | increased sales, such as those activities directed by |
| quotes, expediting, logging and entering claims and | | | | field sales requesting prices, availability, order status, |
| complaints, checking inventory, and even fielding calls | | | | expediting or other requests that take up time.Once |
| from outside sales personnel. And on top of the | | | | your analytical diagnosis is complete, you should have |
| demands that these calls place upon these people, we | | | | a clearer picture of the issues that hinder the ability of |
| expect them to take the time to create and maintain | | | | your counter pros to maintain world-class service and |
| relationship equity with the customer, apply suggestive | | | | continuous sales growth. This should lead to a well |
| selling techniques, up sell and create a pleasant | | | | thought out strategic initiative to address the critical |
| experience for the customer. And dinosaurs still roam | | | | constraints. Possible solutions may include the |
| the streets of New York. | | | | following:- Call forwarding to other branches or other |
| Some IS/CS personnel are better than most at using | | | | personnel during peak periods- An inbound prioritization |
| different selling techniques and creating customer | | | | schedule- A separate procedure for handling will call, |
| relationship equity. It requires specific skills that depend | | | | fax and e-mail orders and field sales requests- |
| upon product knowledge, probing communication skills, | | | | Separating the will call from counter sales- Training, |
| effective listening, and training in both suggestive selling | | | | which can always have an impact on critical |
| techniques and offering the customer options. | | | | constraints- Improved technology solutions to support |
| However, even the best IS/CS people will stop these | | | | field sales and other customer demandsCustomers |
| practices when the inbound burden becomes too | | | | must always come first. This must become a culture, |
| great because they can't take the time to leverage | | | | not just a slogan. World-class service must become a |
| their relationship equity by talking with the customer, | | | | core competency if you are going to create |
| exploring options and identifying needs and interests. | | | | competitive advantage and differentiate yourself from |
| They go into an expeditious call turnover mode just to | | | | the competition. Evaluate cross-functional activities, |
| keep up with the inbound traffic.If We Are Lost, How | | | | reporting relationships and tear down any potential silos |
| Can We Be Found?There is no magic answer if you | | | | you uncover. The goal is to leverage the IS/CS sales |
| don't have the process and measurements in place to | | | | opportunity and to provide the field sales force with |
| develop an IS/CS initiative that is in alignment with your | | | | the kind of sales support essential for overall company |
| company strategy. That does not mean you give up. | | | | growth.Conquering these conundrums is possible, but it |
| There are alternatives if you are willing to put forth an | | | | takes hard work, analytical diagnosis and a |
| effort and make an investment. Start slow and | | | | commitment by executive management to address |
| minimize your exposure by creating a pilot project. | | | | critical constraints and create the systems and |
| Select one or two of your best IS/CS people to test a | | | | processes that make world-class service one of the |
| systematic approach to increase productivity. Hire a | | | | company's core competencies.Note: Some information |
| replacement for your IS/CS people that are in the pilot | | | | and research for this article was provided by Peg |
| project. This is your investment. This creates adequate | | | | Fisher & Associates. Peg Fisher has since retired but |
| staff to handle all inbound traffic. They will handle the | | | | she was one of the early pioneers in the field, paving |
| entire overflow to allow the pilot personnel to utilize | | | | the way on innovations in inside sales.Dr. Eric "Rick" |
| their skill sets to increase sales with suggestive selling | | | | Johnson () is the founder of CEO Strategist LLC. an |
| techniques and even proactive outbound follow-up | | | | experienced based firm specializing in Distribution. CEO |
| calls. That means that the pilot personnel must receive | | | | Strategist LLC. works in an advisory capacity with |
| extensive training that includes the items listed below. | | | | distributor executives in board representation, |
| Management must also understand that call length will | | | | executive coaching, team coaching and education and |
| increase dramatically.- Up selling techniques- | | | | training to make the changes necessary to create or |
| Suggestive selling techniques- Outcall training- Product | | | | maintain competitive advantage. You can contact |
| training- Communication and questioning skills- Needs | | | | them by calling 352-750-0868, or visit received an |
| satisfaction selling that includes:1. Features and benefits | | | | MBA from Keller Graduate School in Chicago, Illinois |
| training2. Value propositioning and value added selling3. | | | | and a Bachelor's degree in Operations Management |
| Promotional selling4. New product and new source | | | | from Capital University, Columbus Ohio. Rick recently |
| introductory selling5. Service and warranty sellingThe | | | | completed his dissertation on Strategic Leadership and |
| results of your pilot project may be surprising. You | | | | received his Ph.D. He's also a published book author |
| may conclude that IS/CS can generate opportunistic | | | | with four titles to his credit: "The Toolkit for Improved |
| sales that will increase your share of customer spend. | | | | Business Performance in Wholesale Distribution," the |
| Growth and increased market share may also | | | | NWFA & NAFCD "Roadmap", Lone Wolf-Lead |
| improve based on the contribution made by IS/CS. | | | | Wolf-The Evolution of Sales" and a fiction novel about |
| Customers respond well to recommendations and | | | | teenagers called "Shattered Innocence." Rick is an |
| suggestions. Given the time needed, IS/CS can provide | | | | accomplished speaker and member of NSA. |
| the kind of information that many customers need to | | | | |