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Why can sales be managed only via an ERP (Enterprise Resources Planning) system?
Why can sales be managed only via an ERP (Enterprise Resources Planning) system?

discover | Wednesday - 24 / 01 / 2024 - 7:16 pm

That sounds like a dangerous claim!  Businesses have always been able to manage their sales through simple traditional systems, starting with pen and paper , and ending with SMS programs (no, not Short Message Service)! The two systems are similar only in abbreviation).

So, what pushed us to say the above?

Today, your customers’ requirements are more difficult (I am sure you understand what we mean). The path your customer takes is not quite as linear as it used to be.  A single, unified marketing method no longer works, and we now have what is called (Customer Persona).

 In order not to bother you with too many details, allow us to summarize the matter as follows:

Only an ERP system will help you in the process of defining your customer personas because it contains plenty of information that you can use to determine your customers’ requirements.

Data from an ERP system provides specific figures on:

  • – The buying cycle of your customers.
  • – The amount of money they spent.
  • – Repeated purchases.
  • – Number of complaints/inquiries related to a particular product/service.
  • – And many more.
  • If stores and warehouses management system protects you from customer anger, the ERP system can ensure the satisfaction of all your customers through improving your ability to monitor their behavior.

Others live up to their customers’ expectations, but you exceed these expectations!

Your sales management team’s ability in communicating effectively within your ERP system is crucial because data helps determine not only current, but future customer requirements.

As a possible scenario, one of the machines in your client’s factory breaks down, so you ask your client: Why don’t you take care of your assets, man?!

wait a moment here!… that was a joke.

In fact, you will discuss with him the benefits he will gain if purchasing a new machine instead of incurring maintenance costs for the broken one. Of course, your speech will be supported by numbers and statistics.

In your opinion, what will happen when your client feels that you value him as an individual, especially after you have proven you are able to meet and exceed his expectations?  The answer is: your client will undoubtedly become a loyal customer of your brand (on the other hand, you may lose all of this if your marketing and sales department lacks the data built into your ERP system).

Business environment is considerably complicated today and sales departments that do not have an efficient, sales-specific ERP module can easily miss opportunities and lose sales due to lack of situational awareness in the market;  They are simply doing the wrong things, at the wrong time, and too frequently!

“You must love the report Sir.”

The previous statement is from the movie “The Pasha student”  Have you watched it?  Now, what if we applied it to your product/service? Before you design an effective strategy to increase your market share, you need to know your products closely (and it’s okay to fall in love with them!).

ERP systems allow you to have the access to the data from all areas of your business so you can get to know your product better:

  • – How long does a SKU remain on your store shelves?
  • – When is the peak of sales of each product?
  • – Does your product have issues of bringing back/complaints regarding the item?
  • – What is the best price your product achieved?
  • – Have you noticed sales of other products associated with sales of one product you have?
  • – Which products you sell better than others?

You will be amazed by the precious information contained in a well-used ERP system (not only in its ability to guide future marketing strategy, but also in analyzing the effectiveness of previous marketing campaigns).

The product forms only half of the value equation (and pricing completes the second half of the equation). Your value proposition won’t be right for your target customers if the price isn’t right (even if your product is excellent).

There is a lot of talk about pricing policies and price flexibility, but if you want to shorten the path, you will not find anything better than an enterprise resource planning (ERP) system in analyzing the success of price promotion campaigns.

Why are we talking about it here?

Simply because it poses a dilemma for most sales management teams: Did the campaign increase sales volume and attract additional customers, or did its impact just allowed your existing customers to buy at a lower price (this may reduces your profit margin)?

Does your customer really know what he want?

The answer: Not always, so you have to tell him yourself. Enterprise Resource Planning (ERP) systems provide powerful information about your customers. If you know:

  • – When does your customer buy.
  • – At what price he buys.
  • – Number of annual purchases.
  • – Where to buy.
  • – And what is included in his “shopping basket” when he buys?

If you know the above, then you know everything about him!  With this plenty of information, you will be able to develop customized marketing strategies.  We’re talking about promoting deep discounts at your customer’s peak times (not just in seasons), and suggesting additional products to complement the regular orders of customers. Plus, knowing the right time to make a sales call (coinciding with your order cycle). In addition to offering a “very special discount” during periods when you notice a decrease in the quantity/rate of your customer’s order. This is the best embodiment of the saying: He who has information at his disposal, has absolute power, isn’t it?

Sales management means customer relationship management (CRM). Unfortunately!  The previous a fact is constantly ignored.

Most sales teams know that the relationship with customers does not end with their purchase of the product, but rather begins after the purchase. Factors like; having information about customers, their purchases, and any interactions they have had with the company, all the mentioned factors enable your employees to provide accurate and efficient service, and what is most important here is knowing the “personality” of customers.  This includes: Sales rates and historical sales levels that sales agents can use to track and identify areas of growth or those of concern.

The relationship among colleagues!

If we trace the historical relationship between marketing teams and sales teams, we will discover that it is more dangerous than the Dahis-Ghabra war (which is considered the most painful horrific war in the history of the Arabs).

Let’s say your marketing team has just launched a social media marketing campaign. How will you know if it’s working out?

The sales team will try to tell you that you wasted your money, and in the absence of an ERP system, it can be difficult to deny this claim!

On the brighter side, the right ERP system can help you compare probable customers to overall sales, so you know the true cost of each customer.

You can also download detailed performance reports to help you determine:

  • – High value prospects.
  • – Fast-selling products (those whose costs are low and their profits are high).
  • – Effectiveness of marketing strategies.
  • – Target audience campaign response.

When ERP and marketing work together, you can quickly access all the data you need. This way, you can fully optimize your campaigns to attract key buyers, gain new customers and grow your brand. As a result, the benefits of ERP represent a significant return on investment.

Why did we focus on sales management in today’s blog?

We are all well aware that an ERP system delivers a range of values to business owners. Here, the sales department is in a unique position to reap the benefits of the system (this department comes at the front of business environment). This is primarily due to the sensitivity of the department’s position as the first line of defense for the reputation of the company.  The better the sales department performs in the field, the better the entire organization will perform on the bottom line over time.

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