WHAT IS THE DIFFERENCE BETWEEN CRM AND SFA? THOROUGH EXPLANATION OF THE DIFFERENCES IN FUNCTIONS AND ROLES, AND HOW TO CHOOSE!

WHAT IS CRM?

CRM is an abbreviation of Customer Relationship Management, which means "customer relationship management" or "customer relationship management. It refers to a system for building and maintaining good relationships with customers over the long term. It is a management tool centered on the customer that centrally manages customers on a database, and leads to results such as the development of potential customers and repeat purchases from existing customers, thereby expanding the company's business performance.

A typical CRM implements the following features:
・ Function to manage business negotiations and account information related to customers that continues to increase day by day
・ Function to accumulate qualitative data such as purchasing needs and preferences as customer attributes
・ Individual relationship management that visualizes the relationship with the target customer created by sales in phases (degrees)
- History management, including responses to each customer's purchases
- Function to visualize purchases, frequency, results, unit price, and cumulative amount for each customer
・ Function to predict the next purchase prospect and expansion room based on transaction results
・ In-house SNS/alert function to share the history and sharing of customer inquiries and in-house responses
・Accumulation and management function of e-mail delivery history and telephone history to customers

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WHAT IS SFA?

SFA is an abbreviation for Sales Force Automation, which means "sales automation" or "a tool to support sales activities. It is also sometimes referred to as a sales support system. It is a management tool to centrally manage your company's sales activities and facilitate sales actions and activities such as daily business negotiations, sales forecasts, and reviewing the allocation of time spent on sales.

A typical SFA is equipped with the following functions.
・ Forecast and actual management function that allows you to compare budget (forecast and actual) and actual results
・ Visualize the contact between your company's sales and customers by location information and frequencycustomer touchpointManagement
・Daily report registration function linked to customer information
・Quantitatively provide progress information for each projectlogProject management function that can be done
・ In-house SNS linkage / to-do management function that enables real-time sharing of sales activities
- Analytical functions to maximize the efficiency of sales resources
* In addition, the function of creating quotations, invoices, and contracts is also the main function of SFA.

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DIFFERENCE BETWEEN CRM AND SFA

THE DIFFERENCES BETWEEN CRM AND SFA WILL BE EXPLAINED FROM THE PERSPECTIVE OF FUNCTIONS AND ROLES.

Difference by function

CRM AND SFA ARE BOTH CUSTOMER INFORMATION MANAGEMENT SYSTEMS. HOWEVER, EACH OF THEM HAS A DIFFERENT TARGET. CRM PROVIDES MANAGEMENT FUNCTIONS SUCH AS CUSTOMER MANAGEMENT AND CUSTOMER SUPPORT, SALES MANAGEMENT, AND SALES FORECAST ANALYSIS. THEREFORE, THE USE OF CRM IS NOT LIMITED TO SALES EMPLOYEES, BUT EXTENDS TO INSIDE SALES DEPARTMENTS, CUSTOMER SUCCESS (CUSTOMER SERVICE) DEPARTMENTS, AND MARKETING DEPARTMENTS. ON THE OTHER HAND, SFA IS EQUIPPED WITH FUNCTIONS SUCH AS SALES PROGRESS MANAGEMENT, DEAL MANAGEMENT OF BUSINESS NEGOTIATIONS, FORECAST AND ACTUAL MANAGEMENT, AND QUOTATION CREATION, AND IS MAINLY USED TO SUPPORT SALES ACTIVITIES.

Differences by Role

CRM AND SFA PLAY DIFFERENT ROLES IN SALES ACTIVITIES: CRM IS A CUSTOMER-FOCUSED TOOL THAT IS RESPONSIBLE FOR ESTABLISHING RELATIONSHIPS WITH CUSTOMERS. ONE OF ITS MAIN ROLES IS TO MANAGE AND ANALYZE CUSTOMER DATA. SFA, ON THE OTHER HAND, IS A TOOL FROM THE SALESPERSON'S PERSPECTIVE AND IS RESPONSIBLE FOR MANAGING CUSTOMER INFORMATION. ONE OF ITS MAIN ROLES IS TO MANAGE VARIOUS TYPES OF INFORMATION AND IMPROVE THE EFFICIENCY OF SALES ACTIVITIES.

COMMONALITIES OF CRM AND SFA

WHILE THE ABOVE HAS EXPLAINED THE DIFFERENCES BETWEEN CRM AND SFA, THERE ARE ALSO SIMILARITIES BETWEEN EACH. WHAT SFA AND CRM HAVE IN COMMON IS "THE ABILITY TO MANAGE DATA CENTRALLY" AND "THE ABILITY TO UTILIZE THAT DATA FREELY. THIS DATA UTILIZATION LEADS TO THE FOLLOWING EFFECTS.

1: It can be used to suggest improved communication in the organization
2: Leads to operational efficiency and productivity maximization
3: You can strengthen your team with reproducibility
4: Sharing data improves the motivation of departments that use it

AS MENTIONED ABOVE, THE GOAL OF CRM AND SFA IS TO UTILIZE CENTRALIZED DATA TO IMPROVE OPERATIONAL EFFICIENCY AND BEYOND THAT, TO CONTRIBUTE TO SALES. IN THIS SENSE, THE OBJECTIVES AND FUTURE VISION OF CRM AND SFA ARE IN LINE WITH EACH OTHER.

ADVANTAGES OF IMPLEMENTING CRM AND SFA

THE ADVANTAGE OF CRM IS THE VISUALIZATION OF CUSTOMER DATA. THIS MAKES IT EASIER TO MANAGE CUSTOMER DATA, SUCH AS CUSTOMER ATTRIBUTES AND BEHAVIOR PATTERNS, AND TO UTILIZE THIS DATA IN SALES STRATEGIES AND MARKETING ACTIVITIES. IN ADDITION, IT IS POSSIBLE TO VISUALIZE THE STATUS OF BUSINESS OPERATIONS AND SUPPORT MORE EFFICIENT SALES ACTIVITIES.

On the other hand, the advantage of implementing SFA is the centralization of sales activity data. As data is accumulated in SFA, it becomes possible to "standardize sales activities" and scientifically grasp the "winning patterns" of the company's sales activities. As data is accumulated in SFA, it becomes possible to "standardize sales activities" and scientifically grasp the "winning patterns" of the company's sales activities.
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CRM OR SFA?

CRM IS A GREAT WAY TO MANAGE CUSTOMER INFORMATION, ALLOWING YOU TO SHARE CUSTOMER INFORMATION THROUGHOUT YOUR COMPANY AND BUILD CONSISTENT SALES AND MARKETING STRATEGIES. IN ADDITION, BY USING CRM TO IMPROVE CUSTOMER SATISFACTION AND SERVICE LEVELS, YOU CAN EXPECT TO ACQUIRE NEW CUSTOMERS AND INCREASE THE REPEAT RATE OF EXISTING CUSTOMERS.

On the other hand, if you want to focus on preventing personalization of sales activities, SFA is recommended. In order to prevent the dependency of work, it is important to eliminate the information gap in sales activities within the department. By introducing SFA, it is possible to visualize sales activities and clarify areas for improvement. All information such as the progress of business negotiations and budget management can be centrally managed, making it easier for the entire sales department to collaborate and proceed with the work.
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Integration tools are also an option if you have trouble

If you're unsure whether to choose between CRM and SFA, implementing an integrated tool is one option. In recent years, tools that combine both CRM and SFA functions have appeared. If you take advantage of the tools that are rich in both functions, you can expect a high degree of effectiveness. For example, "UPWARD", which has a function that utilizes highly accurate location information, can be seamlessly linked with various CRMs such as Salesforce and Microsoft Dynamics 365, and sales efficiency can be further enhanced by combining both functions.
Click here for "UPWARD" service introduction materials

THERE ARE MANY PRODUCTS THAT CAN BE USED TO INTEGRATE CRM AND SFA, BUT THE DISCUSSION SHOULD NOT BE ABOUT WHETHER CRM OR SFA IS ULTIMATELY BETTER, BUT RATHER A CLEAR OBJECTIVE AND A THOROUGH DISCUSSION OF WHAT KIND OF IMPROVEMENT YOU WANT TO ACHIEVE. THEN, BY CONSIDERING WHICH TOOL IS BEST SUITED FOR YOUR COMPANY TO SOLVE THE PROBLEM, YOU WILL NATURALLY BE ABLE TO DETERMINE THE ROLE OF THE TOOL AFTER ITS INTRODUCTION AND WHAT YOU WANT TO USE IT FOR.

HOW TO CHOOSE A CRM/SFA TOOL

THERE ARE A VARIETY OF CRM AND SFA TOOLS AVAILABLE. THIS SECTION EXPLAINS HOW TO SELECT A TOOL.

Availability of data linkage

WHEN CHOOSING A CRM/SFA TOOL, MAKE SURE THAT IT IS CAPABLE OF DATA INTEGRATION. WE RECOMMEND THAT YOU CHOOSE A CRM/SFA TOOL THAT CAN BE LINKED WITH THE TOOLS ALREADY IN USE AT YOUR COMPANY. IF YOU CHOOSE A TOOL THAT CANNOT BE LINKED, YOU WILL HAVE TO ENTER THE SAME INFORMATION TWICE OR CROSS-CHECK IT, WHICH WILL INCREASE YOUR WORKLOAD. IF YOU HAVE A SYSTEM THAT YOU PLAN TO INTRODUCE IN THE FUTURE, CHECK WHETHER OR NOT IT CAN BE LINKED WITH THAT SYSTEM.

Cost to install and maintain

Cost of implementation and maintenance is an important factor in choosing a tool. Choose a tool that fits your budget. If a tool is over your budget, it is not realistic to implement it, no matter how high the functionality. In recent years, more and more subscription-based products have become available, rather than buy-and-let products. While the initial cost may be lower than a buy-out product, if the monthly fee is too high, it will be difficult to sustain.

Level of support

DON'T FORGET TO CHECK HOW WELL THE SUPPORT IS PROVIDED. IN ORDER TO SOLVE ISSUES, CRM/SFA TOOLS NEED TO TAKE ROOT IN THE COMPANY AND BE FULLY EFFECTIVE. IF THE TOOL HAS GOOD SUPPORT, YOU CAN EXPECT TO RECEIVE ASSISTANCE IN ESTABLISHING AND UTILIZING THE TOOL AFTER ITS INTRODUCTION. CHECK IN ADVANCE WHETHER THE COMPANY OFFERS FULL CUSTOMER SUPPORT AND WHETHER IT PROVIDES GENEROUS SUPPORT FROM IMPLEMENTATION TO OPERATION.

Free Trial Availability

TAKE ADVANTAGE OF FREE TRIALS BEFORE IMPLEMENTING CRM AND SFA. SOME CRM AND SFA TOOLS OFFER FREE TRIALS. TAKE ADVANTAGE OF THE FREE TRIAL TO HAVE YOUR FIELD STAFF CHECK THE OPERABILITY, COMPARE MULTIPLE TOOLS, AND SO ON.

Easy to type

EVEN IF CRM AND SFA ARE IMPLEMENTED, IF THE USE OF THE TOOLS DOES NOT TAKE ROOT WITHIN THE COMPANY, BEHAVIORAL CHANGES SUCH AS MAXIMIZING SALES AND ELIMINATING SALES GERRYMANDERING WILL NOT BE REALIZED. LOGIN OUR SURVEY CONDUCTED IN SEPTEMBER 2022, THE FOLLOWING REASONS WERE CITED AS REASONS WHY EMPLOYEES DO NOT LOGCONDUCT SALES ACTIVITIES.

BASED ON THE RESULTS OF THIS SURVEY, IT IS POSSIBLE TO DETERMINE THELOGWE FOUND THAT THERE ARE MANY OPINIONS IN THE FIELD THAT THE REASON FOR NOT DOING THIS IS "IT TAKES A LOT OF TIME AND EFFORT TO ENTER DATA" AND "I DON'T FEEL THE NEED FOR DATA ENTRY". IF DATA IS NOT ENTERED, CUSTOMER INFORMATION WILL NOT BE ACCUMULATED AND THE FUNCTIONS OF CRM AND SFA WILL NOT BE FULLY DEMONSTRATED.

It's also important to note that data entry is not an end in itself, it's a process. Even if data entry is completed, if customer data is not used to improve on-site behavior, it will not lead to maximizing sales and profits. When selecting a tool, it is also important to consider whether it is easy for the person in charge to use it in the field to enter so that data can be accumulated and the entire organization can reform before and after.

The following article provides a summary of information on the latest sales tools, including CRM and SFA.
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POINTS TO KEEP IN MIND WHEN IMPLEMENTING CRM AND SFA

EVEN IF YOU INTRODUCE CRM/SFA, IF YOU IGNORE THE VOICES OF THE FIELD OR PUSH FORWARD WITHOUT SETTING GOALS, YOU WILL NOT GET THE DESIRED EFFECT. HERE ARE SOME POINTS TO KEEP IN MIND WHEN INTRODUCING THE SYSTEM.

Not for the purpose of introduction.

REGARDLESS OF WHETHER IT IS CRM OR SFA, BE CAREFUL THAT IMPLEMENTATION DOES NOT BECOME THE GOAL. IMPLEMENTING A TOOL IS ONLY A MEANS TO AN END, TO SOLVE PROBLEMS AND ACHIEVE BUSINESS GOALS, AND WITHOUT A CONCRETE GOAL FOR THE IMPLEMENTATION OF CRM/SFA, THE COST-EFFECTIVENESS MAY BE LOW, OR THE WORKLOAD MAY INCREASE.

Consider on-site usability

CRM AND SFA SHOULD BE IMPLEMENTED BASED ON THE EASE OF USE IN THE FIELD ONE OF THE REASONS WHY CRM AND SFA DO NOT TAKE ROOT IS THAT THE TOOLS ARE NOT EASY TO USE. IT IS IMPORTANT TO GATHER FEEDBACK FROM THE FIELD AND CONFIRM THEIR NEEDS BEFORE IMPLEMENTATION. EVEN IF THE FUNCTIONS PROVIDED SEEM ATTRACTIVE, IF THE ACTUAL USABILITY OF THE TOOL IS POOR, THE TOOL WILL NOT TAKE ROOT IN THE FIELD.

Success stories of companies that have actually used CRM/SFA

HERE ARE SOME SUCCESSFUL EXAMPLES OF HOW ACTUALLY INTRODUCING CRM AND SFA TO STREAMLINE PROJECT MANAGEMENT HAS IMPROVED SALES, INCREASED THE NUMBER OF SALES PER DAY, AND GREATLY IMPROVED THE SPEED OF OPERATIONS.

Daihatsu Motor Co.

Daihatsu Motor Co., Ltd. introduced "UPWARD" to improve the sales force of new salespeople who propose their company's nursing care vehicles. However, the introduction of "UPWARD" enabled us to visualize the market, and we realized a sales organization with high reproducibility.
In addition, the ability to share information on sales destinations with team members in real time has led to increased motivation for the entire team. Furthermore, by sharing the know-how of activities with team members, individual sales capabilities improved, and sales performance increased by 5.5 times in just one year after the introduction of UPWARD.
‍( UPWARD Case Study: Daihatsu Motor Co.)

Asahi Field Marketing Corporation Success Stories

UPWARD" is also being used in the rounder department, which is responsible for displaying the company's products and creating sales floors at supermarkets and other stores.
Prior to the introduction of UPWARD, the company faced two issues: "smooth coordination between headquarters and rounders" and "efficient visitation. As a result of introducing "UPWARD," it became possible to create efficient visitation routes. Furthermore, instructions from headquarters can now be color-coded and marked on a map, enabling timely and clear instructions to be issued.
As a result, the company has been able to create attractive sales floors in accordance with the instructions of the head office. In addition, the sales force has been strengthened by the fact that the head office is now able to grasp the status of each store via "UPWARD" and give instructions to staff and answer their questions.
(UPWARD introduction case study: Asahi Field Marketing, Ltd.)

We have prepared materials that summarize the success stories and features of companies that have implemented SFA. (29 pages)
Download "UPWARD Customer Case Study" now

You can check our case studies from the link below.
List of case studies of "UPWARD"

summary

CRM AND SFA ARE BOTH CUSTOMER INFORMATION MANAGEMENT SYSTEMS, BUT WHILE CRM PROVIDES MANAGEMENT-RELATED FUNCTIONS, SFA IS RESPONSIBLE FOR MANAGING CUSTOMER INFORMATION TO SUPPORT SALES ACTIVITIES. CHOOSE CRM IF YOU PLACE EMPHASIS ON CUSTOMER MANAGEMENT, AND CHOOSE SFA IF YOU WANT TO ELIMINATE THE INFORMATION GAP IN SALES ACTIVITIES AND PREVENT THE USE OF INDIVIDUAL SALESPEOPLE. REMEMBERING THAT THE INTRODUCTION OF A TOOL IS NOT AN OBJECTIVE BUT A MEANS TO AN END, SELECT A TOOL THAT FITS YOUR COMPANY'S NEEDS BY CAREFULLY CONSIDERING THE APPROPRIATE INTRODUCTION CONSULTING AND AFTER-SALES FOLLOW-UP SERVICES.