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Chapter 05 - CRM, Sales Technologies, and Sales Analytics
Contemporary Selling, 5e
Chapter 5
Chapter 5 Outline: CRM, Sales Technologies, and Sales Analytics
Value-Added Information in Chapter 5
• Global Connection – “Price or Power in Salesperson Computers?”
• Mini-Case 5 – “Who ‘Owns’ CRM”
• Exhibits
o Exhibit 5.1 – “Marketing Evolution with Characteristics and Technology
Attributes”
o Exhibit 5.2 – “CRM Process Cycle”
I. What is Customer Relationship Management (CRM)?
A. From Mass Marketing to One-to-One Marketing
1. Customer Retention
B. CRM Process Cycle
1. Knowledge Discovery
2. Market Planning
C. Toward a Relationship-Based Enterprise
1. Customers
2. The Relationship
3. Managerial Decision Making
II. The Technology of Selling
B. Sales Technology in the Informational Decade
1. Communication Tools
2. Presentation Tools
3. Mapping Software
C. Gaining Technology Acceptance by Salespeople
III. Sales Analytics: Connecting CRM to Strategic Selling and Sales Force Management
A. Customer and Market Insights: Get to Know your Customers and Market Better
1. Insights for Customer Segmentation
B. Get to Know Your Sales Force Better
1. Promote Accountability for the Sales Force
C. Impediments to Maintaining CRM System Data and Sales Analytics Efficacy
1. Impediment 1: Salespeople Don’t “Buy In”
2. Impediment 2: Salespeople Don’t “Feed the Machine”
IV. Summary
V. Key Terms
Discussion Questions
1. One of the great debates in CRM is who should have ownership of the process. In
many firms, IT people seem to be the guardians of CRM’s secrets. This is because, as
we have learned, a key facet of CRM is its information management capabilities. Who
do you think should have ownership of CRM in a firm? Is it really necessary that
CRM have an owner? What does ownership of the process imply in terms of actions
and behaviors? What is the role of upper management in all this?
Student answers will vary, but the following is an example of an answer that represents the CRM
guidelines and principles set forth by the text:
This shared responsibility of CRM extends to upper-level management, but in a more specific
and special way. Upper-level management not only set forth the guidelines that shape CRM, but
they also have a heavy hand in influencing corporate culture. Thus, it is important that upper-
2. How does CRM offer advantages to salespeople in terms of information
management? What are some of the problems you could predict for salespeople in
firms that do not use CRM?
Student answers will vary. The following example is an answer a student might come up with,
given the guidelines about CRM set forth by the text:
information that allow the salesperson to identify future customers, sell merchandise to new
customers, and to gain valuable opinions that may result in a way to change or reshape the
product to better suit customer needs.
Salespeople in firms that don’t use CRM are at a distinct advantage to those that do. Without
CRM, it is difficult for the salesperson to gather data on customer needs and to gather data on
potential future customers. This results in a lack of sales versus a company that has CRM.
Furthermore, salespeople that have no access to CRM will not know how to improve the
3. Why would a salesperson be reluctant to adopt CRM? What can management do to
help gain salesperson adoption and usage?
A salesperson may be reluctant to adopt CRM for several reasons. These include the following:
• A fear of being unable to learn how to utilize CRM
• A disbelief in CRM principles and their ability to work
To help salespeople overcome the aforementioned issues, management can do the following:
• Hold sales classes that incorporate CRM into the sales process, so that salespeople will
feel more at ease using CRM and viewing it as a part of sales
4. Is it possible for a firm to be successful without a market orientation? Can you come
up with examples of firms that are not very market-oriented but still are leaders in
their competitive marketplace?
It is quite possible for a firm to be successful without a market orientation. Many firms exist.
5. Consider any three of the newer types of sales technology presented in the chapter.
For each, provide as many specific applications as you can think of that could
enhance the buyer–seller relationship and the salesperson’s performance.
Student answers will vary, but listed below are the new technologies included in the chapter and
some applications for each that enhance the buyer–seller experience:
• Communication tools: allow the seller to reach more buyers scattered across the
entire world. Furthermore, communication tools allow the seller to better
• Presentation tools: allow the seller to better communicate what their product or
company is about to the buyer. Presentation tools enhance the visual appeal of a
• Mapping software: allows salespeople to route themselves more efficiently to find
their sales locations. Also allows for the mapping of sales regions in order to
locate areas in which sales may be scarce, and to figure out why.
• Recruiting sites: allow salespeople to find potential coworkers and to give
recommendations to their superiors about people’s resumes they may spot.
Recruiting sites allow companies access to tons of resumes, resulting in a wide
variety of potential employees with myriad skills that relate to sales.
6. Why do some salespeople not immediately embrace the use of the newest
technologies? What are some ways in which a salesperson who is reluctant to adopt
new technologies might be influenced to do so?
There are several reasons why a salesperson may be reluctant to adopt new technology. They
may feel as though they are inept at using it; they may also feel that it is impossible to learn.
These issues can be overcome by having management take the reins and holding seminars that
allow employees to be trained on and learn about the technology. Also, salespeople that believe
the technology is beneficial can sometimes be management’s greatest champions; they can
7. Are there actually situations in which the use of one or more of the older sales
technologies might be superior to something new? When and why would older
approaches perhaps be a better choice in this day and age?
Student answers will vary, as this question is opinion based. An example of a strong answer to
An old sales technology I find useful are thank-you notes versus thank-you emails. Sometimes, a
potential buyer may be reluctant to meet with a potential seller, and throughout the course of the
8. Give some examples of how CRM-enabled sales analytics can provide valuable
insights at each of these stages of the customer journey: prospect (lead), initial
customer contact, engagement with the customer, and maintaining a long-term
customer relationship.
• Prospect (lead): Data on prospects allows for prioritization of contacts by
salespeople.
• Initial customer contact: Preapproach strategies are informed by data, allowing for
higher effectiveness in initial sales call.
Global Connection – Price or Power in Salesperson Computers?
This Global Connection highlights the importance of being market oriented and following
customer needs and wants, even when it interferes with company vision and desires. Apple finds
itself in a particular interesting dilemma as the business market moves forward toward the trend
of netbooks. Apple, not wanting to sacrifice its brand image and products with high price points,
Answers to Questions
1. Go online to a retailer that sells portable computers and review their current line and
prices for the various brands of netbooks. Considering the entire bundle of functionality
you get for the money, do you agree they are a good choice for salespeople? Why or why
not? Are there any features missing that you believe are essential and, if so, what are
they?
Student answers will vary, as there are numerous answers and opinions that go along with this
question. The following is a complete answer that looks something like what a student might
computers. They are a good choice for salespeople considering the low cost. A feature that Acer
2. If you were issued one of the low-priced netbooks as your official company computer,
would you be satisfied? Do you agree that the extra elegance and style of the iPad would
be worth your firm’s investment instead? Why or why not?
Student answers will vary, as students may have different ideas of what bundles of products will
satisfy them. Most students will probably feel that they would prefer something high-tech, like
an iPad, versus an ordinary netbook. The instructor can utilize this question to enter into the
3. Do you agree with Apple’s strategy of staying out of the low-priced netbook market? Why
or why not?
Student answers will vary; some will agree with Apple’s decision, and others will not. The
I agree with Apple’s decision because going into the B2B space will require them to lower their
product prices. This will devalue the brand. Furthermore, so much competition is already in the
Ethical Dilemma – Teaching Notes
Teaching Notes
This dilemma is meant to highlight the difference between a company that integrates and values
CRM in their corporate culture versus a company that simply installs CRM technology in the
hopes that employees can glean benefits from it. This dilemma argues that throwing an employee
technology could potentially result in an issue of customer security; CRM technology is meant,
in part, to collect data on customers in order to enhance sales in the future. Without proper
training or guidelines on how to use the technology, employees could both accidentally or
purposely engage in activities that will access sensitive customer information, potentially putting
the customer at risk.
benefits, such as increased revenue and PR. Management that does not invest in their employees’
use of CRM is cheating their company and their employees out of opportunities that could boost
overall corporate productivity and rewards.
Answers to Questions
1. What aspects of the CRM process cycle are most relevant to salespeople, and where is
the most potential to cross over ethical lines with customers?
Student answers will vary. In terms of ethics, an argument can be made for each aspect. The
aspects of the CRM process cycle include knowledge and discovery, market planning, customer
interaction, and analysis and refinement. This Ethical Dilemma seeks to highlight the ethical
issues regarding knowledge and discovery and data analysis and refinement. These two stages
2. From a customer’s perspective, what would be the greatest concerns from a
privacy/security perspective about involvement in a sales firm’s CRM system?
Customers must feel completely assured that their personal data is safe if they are to include
themselves in a firm’s CRM database. Thus, customers need to know how a firm trains their
employees in regard to sensitive data, how the data is monitored to ensure theft isn’t occurring,
3. Inside the sales organization, what are the most important steps a sales manager can
take to ensure that salespeople never misuse or abuse a customer’s relationship and trust
through aspects of CRM?
First and foremost, it is important to set into place a strict policy regarding employee misuse of
customer information. If no such policy is put into place, there will be nothing in writing to
hinder employees from acting in unethical ways. Furthermore, it is crucial that the company has
misuse of CRM data when it occurs.
Mini-Case 5 – Who “Owns” CRM
This case highlights the necessity of a CRM system; however, merely installing one isn’t
enough. Knowing how and when to implement a CRM system is the only way the system can
succeed. Though Alice spent money and time researching the system, and knew it would be
implement the CRM system in order to prove to management that the whole company will
benefit from it and that it was a worthwhile investment in the first place.
Answers to Questions
1. You are Alice Klein. What critical information do you think would be most helpful for the
sales force to be able to access about the relationship between New World and its
customers?
Student answers will vary, and several answers are correct in the case of this question. The
following is an example of a full and complete answer to the above question:
Furthermore, knowing which product a company sells the most of, and investigating why that
might be, can aid salespeople in putting their best products in front, and making a case as to how
2. What device would you use to deliver this information from the CRM system to the
salesperson (smartphone, laptop, tablet, or something else), and why would you choose
that device?
Student answers will vary, as there are numerous types of technology that can be used. The
following is an example of a full and complete answer in accordance with the question being
asked:
I would choose a laptop to deliver CRM information, for several different reasons. The first
reason is that the laptop seems to be a commonplace technology that is often intuitive to users,
3. What kinds of issues do you think might come up for New World as it implements the
CRM system with the sales force, for example, possible salesperson resistance to
collecting information for the CRM system?
Student answers will vary, but several issues for New World’s implementation may occur within
the sales force. Some examples of such are as follows:
• Disbelief that the CRM system is necessary and can work to increase sales
