Creating the Perfect Storm Part II: What should this stuff be doing, anyways?

In our first part of the series, we outlined the three basic relationships affected by the introduction of new technology to a sales force, and went over some of the potential benefits and drawbacks. While there is much to gain from the introduction of new technology, we also discovered that new technology was not without its drawbacks. The question remained: how can technology augment current sales practices without causing harm?

According to research by Dr. Michael Ahearne of the University of Indiana and Dr. Adam Rapp of the University of Connecticut, the greatest risk stems from the potential of disintermediation. Disintermediation is the process of the salesperson being removed from the customer’s purchase decision. Sometimes this is also referred to as a channel conflict.

To outline what technologies may create such a process, technologies were split into five categories, placed on a continuum.

Technologies range on a continuum of salesperson oriented to customer oriented, and separated by the level of exclusivity between the two. In the middle are the salesman-customer shared technologies, which include communications technologies as outlined in the paper.

Salesperson exclusive and centric technologies allow for the increased effectiveness and efficiency of the salesperson. As we mentioned in the previous article, a well informed salesperson is an effective one, and the automatic tracking of data saves time, making him more effective. Salesman-customer shared technologies are an area of mutual benefit, allowing for increased customization on the part of the customer and the potential of up-selling for the salesman.

The potential for disintermediation comes into play with customer centric and exclusive technologies. Allowing customers to search for information on their own may allow them to make a purchase decision without the help of a salesperson. Depending on the size of a company, this may be a good thing, as a limited sales staff can save time by not having to deal with many inquiries. However, the potential for adding information to sway a purchase decision is lost when information is accessed without the salesperson’s knowledge, as it is in a customer exclusive technology

But what about products that defy these categories? Through tracking, it is possible that customer-exclusive technologies can become salesperson-oriented technologies. Interfaces that can provide the customer with information can be used just as easily by salespeople to track user activity. In some instances, this can generate a huge amount of information about the customer that can be used by the salesperson to make a more targeted approach. With the rise of tracking technology, the customer-exclusive technology may become a thing of the past.

How does one filter through the volume of customer information? Find out next week and remember to add us to your RSS!


Source: Ahearne, Michael; Rapp, Adam. Journal of Personal Selling & Sales Management, Spring2010, Vol. 30 Issue 2, p111-120, 10

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