WHAT IS SALES DIGITAL TRANSFORMATION? THOROUGH EXPLANATION OF THE DIFFERENCE FROM DIGITALIZATION, NECESSITY, AND IMPLEMENTATION PROCESS.

WHAT IS SALES DIGITAL TRANSFORMATION?

SALES DIGITAL TRANSFORMATIONREFERS TO THE INTEGRATION OF DATA, DIGITAL TECHNOLOGIES AND CHANNELS INTO SALES ACTIVITIES. THE GOAL OF THIS APPROACH IS TO OPTIMIZE CUSTOMER PURCHASING BEHAVIOR AND SALES PROCESSES TO ACHIEVE MORE EFFICIENT SALES ACTIVITIES. IN RECENT YEARS, COMPANIES HAVE BEEN RAPIDLY DIGITAL TRANSFORMATIONCONVERTING TO ANALOG, AND THE WAVE IS SPREADING TO VARIOUS DEPARTMENTS, SUCH AS ACCOUNTING, HUMAN RESOURCES, AND ADMINISTRATION. HOWEVER, IN SOME SALES DEPARTMENTS, ANALOG SALES ACTIVITIES STILL PERSIST. AS A MEANS TO ADDRESS THESE ISSUES, SALES DEPARTMENTS ARE ALSO MOVING TO DIGITAL TRANSFORMATION.

DIFFERENCE BETWEEN SALES DIGITAL TRANSFORMATIONAND DIGITIZATION

Sales digital transformationand digitization have different objectives to begin with. The purpose of digitization is to improve the efficiency of business processes by replacing existing systems and manual work with digital tools. For example, a paper daily report that used to be entered manually can be entered into Excel and managed on a computer. On the other hand, digital transformationaims not only to implement digitization but also to maximize the characteristics and benefits of digital tools. This will enable us to transform our business model and provide new value.

After Corona, all kinds of changes are coming to the sales profession

In pre-corona sales activities, we visited customers and suppliers to build relationships of trust through face-to-face meetings. However, with the corona disaster, there was a tendency to refrain from visiting in order to reduce the risk of infection. This has accelerated the shift of sales activities online. These changes have also affected differentiation against competitors and internal communication.

After all, "face-to-face customer touchpoint" is the point.

In the Corona Disaster, the need for in-person sales visits was temporarily questioned. During this period, the introduction of videoconferencing and other online business meetings made it clear that in-person sales activities were unnecessary.
However, many executives at AfterCorona recognize that increasing in-person customer touchpointis a key differentiator between them and their competitors. Today, the key to differentiation from competitors is to focus on in-person customer touchpoint, but also to combine online visits with IT tools. ‍

Needs can now be predicted from data.

IN THE PAST, SUPERIOR SALES SKILLS WERE THE SKILLS TO UNDERSTAND THE CUSTOMER'S SITUATION AND PROPOSE THE BEST PRODUCT AT THE RIGHT TIME TO SOLVE THE PROBLEM. HOWEVER, SUCH SKILLS HAVE NOW BECOME A COMMON CAPABILITY. IN RECENT YEARS, ADVANCES IN IT TOOLS HAVE MADE IT EASIER TO PREDICT NEEDS FROM DATA. AS A RESULT, THE SKILL TO PROPOSE THE RIGHT PRODUCT AT THE RIGHT TIME IS NO LONGER SOMETHING SPECIAL.

Internal meetings are now online.

Post-corona changes in the sales force affected not only customer visits, but also communication among employees in the office. During the Corona disaster, online conferencing and chat tools were widely used to prevent the spread of the new coronavirus. Even today in the after-coronas, these tools are still commonly used and online communication is still the norm.

WHY DIGITAL TRANSFORMATIONIS NECESSARY IN YOUR SALES ORGANIZATION

THE NEED FOR DIGITAL TRANSFORMATION ( DIGITAL TRANSFORMATION) IN SALES ORGANIZATIONS STEMS FROM TWO MAIN REASONS.

1. "Online sales" is becoming a prerequisite for

The shift to online sales is not limited to videoconference meetings, but extends to all sales activities. Salespeople use customer and negotiation data in a variety of processes, from making appointments to negotiations and regular communication after receiving orders. By bringing sales online, data can be easily accumulated and analyzed to clarify customer needs, speed up negotiations, and enhance communication.

2. To improve productivity as part of a change in work style

The " Workplace Reform " proposed by the Ministry of Health, Labor and Welfare is one of the means to address the declining workforce and diversifying needs of the working population. This reform promotes a society in which flexible and diverse work styles are possible, and in which people can look forward to a better future. Reform of work styles is also required in the sales workforce, and improving productivity and operational efficiency is an essential part of this reform. Therefore, sales digital transformationization has become an urgent issue.

SPECIFIC EXAMPLES OF SALES DIGITAL TRANSFORMATION

PROMOTING SALES DIGITAL TRANSFORMATIONCAN BE AN EFFECTIVE TRANSFORMATION IN SALES PROCESSES SUCH AS LEAD NURTURING AND CUSTOMER ANALYSIS. THE FOLLOWING DESCRIBES SPECIFIC EXAMPLES OF SALES DIGITAL TRANSFORMATION.

Lead Acquisition

BY DIGITAL TRANSFORMATIONCONVERTING LEAD ACQUISITION, IT BECOMES EASIER TO CLARIFY CUSTOMER NEEDS AND ISSUES. THIS ALLOWS YOU TO ACQUIRE TARGETED PROSPECTS MORE EFFICIENTLY THAN TRADITIONAL METHODS SUCH AS DOOR-TO-DOOR SALES AND TELEMARKETING. IN ADDITION, TRAVEL TIME AND COSTS CAN BE REDUCED BY HOLDING ONLINE MEETINGS AND WEBINARS, AND MORE EFFICIENT LEAD ACQUISITION CAN BE EXPECTED.

Lead Development

IN LEAD NURTURING, IT IS EASIER TO INCREASE PURCHASE INTENT AND BUILD TRUST WITHOUT FACE-TO-FACE CONVERSATIONS. MARKETING AUTOMATION (MA) TOOLS CAN BE USED TO ACCURATELY UNDERSTAND CUSTOMER INTERESTS AND ISSUES, AND PROMOTE INCREASED SERVICE USE AND RETENTION RATES.

Customer Analysis

YOU CAN ALSO IMPLEMENT DIGITAL TRANSFORMATIONFOR CUSTOMER ANALYSIS. FOR EXAMPLE, A SALES SUPPORT SYSTEM (SFA) CAN BE USED TO CENTRALLY MANAGE A WIDE RANGE OF INFORMATION, INCLUDING CUSTOMER AND COMPANY INFORMATION, CONTRACTS SIGNED, CASE PROGRESS, NEGOTIATION HISTORY, AND INQUIRY HISTORY. THIS ALLOWS FOR SMOOTH ACCESS TO NECESSARY INFORMATION, AND CAN BE EXPECTED TO IMPROVE THE EFFICIENCY OF SALES ACTIVITIES.

BENEFITS OF SALES DIGITAL TRANSFORMATION

There are numerous benefits to implementing Sales digital transformation, including increased productivity and the elimination of gerrymandering. Below we detail four of the key benefits. ‍

1. Improved productivity through increased operational efficiency

THE FIRST BENEFIT OF SALES DIGITAL TRANSFORMATIONIS INCREASED PRODUCTIVITY THROUGH OPERATIONAL EFFICIENCY. DIGITIZING, MANAGING, AND ANALYZING HISTORICAL SALES DATA CAN HELP BUILD EFFECTIVE STRATEGIES FOR SALES ACTIVITIES. CLARIFICATION OF INFORMATION ON ORDERS RECEIVED AND LOST ORDERS LEADS TO A REDUCTION IN SALES EFFORT FOR CUSTOMERS WITH LOW PROSPECTS. THIS ALLOWS YOU TO FOCUS YOUR APPROACH ON CUSTOMERS WITH HIGH POTENTIAL FOR RESULTS, THEREBY IMPROVING EFFICIENCY AND PRODUCTIVITY.

2. Elimination of gerrymandering

Sales digital transformationcan also be expected to eliminate the tendency for sales activities to be conducted by a single person. In the past, sales departments have faced issues such as the fact that only the person in charge has the information on customers and projects, and that sales knowhow and skills are not shared. digital transformationThe new system will make it easier to centrally manage customer and project information and know-how. If each employee can utilize the shared information, the entire sales organization can expect to improve its sales capabilities.
Related article>> Causes of sales gerrymandering and 7 solutions

3. Visualization of customer needs

THE DIGITAL TRANSFORMATIONIZATION OF SALES ACTIVITIES ENABLES THE COLLECTION AND ANALYSIS OF A WIDE VARIETY OF DATA, INCLUDING NOT ONLY CUSTOMER AND COMPANY INFORMATION, BUT ALSO PURCHASING INFORMATION, INQUIRY HISTORY, AND COMPLAINTS. THIS MAKES IT EASIER TO UNDERSTAND CUSTOMER NEEDS AND ISSUES, AND TO PREDICT FUTURE ISSUES BY ANALYZING PURCHASING TRENDS AND CLAIMS DATA. THIS MAKES IT POSSIBLE TO FORMULATE INFORMED STRATEGIES.

4. Increased management efficiency

The increase in online negotiations has made it easier to participate in business meetings. This makes it easier for management to grasp the status of business meetings and provide appropriate guidance to sales members. In addition, by converting conversations with customers into data, all parties involved can look back on the meeting and understand issues, problems, and positive aspects, facilitating the development of strategies for the next step.
Related Articles>> What is Sales Management? Six Ways to Strengthen Your Team

SALES DIGITAL TRANSFORMATIONINTRODUCTION FLOW

IT IS IMPORTANT TO UNDERSTAND THE BASIC FLOW OF PROMOTING SALES DIGITAL TRANSFORMATION. THIS SECTION DESCRIBES THE PROCESS OF IMPLEMENTING SALES DIGITAL TRANSFORMATION.

1. SALES DIGITAL TRANSFORMATIONESTABLISHMENT OF PROMOTION TEAM

SALES DIGITAL TRANSFORMATIONBEGINS WITH THE FORMATION OF A PROMOTION TEAM. RECRUIT MEMBERS FROM RELEVANT DEPARTMENTS, SUCH AS SALES AND MARKETING, TO BUILD A TEAM THAT IS NOT BIASED TOWARD ANY PARTICULAR POINT OF VIEW. NOTE THAT BUILDING MEMBERS FROM SPECIFIC DEPARTMENTS MAY RESULT IN A NARROW PERSPECTIVE. THE CORE TEAM MEMBERS SHOULD BE PEOPLE WITH KNOWLEDGE OF THE SALES FIELD. PEOPLE WHO HAVE EXPERIENCE IN PLANNING AND PROMOTING PROJECTS AND WHO ALSO HAVE INSIGHT INTO THE FIELD ARE SUITABLE.

2. Inventory of sales operations

ONCE YOU HAVE BUILT YOUR TEAM, TAKE INVENTORY OF YOUR OPERATIONS. TAKING INVENTORY OF OPERATIONS MEANS IDENTIFYING AND ORGANIZING CURRENT OPERATIONS. THIS WILL HELP YOU UNDERSTAND WHETHER YOUR SALES OPERATIONS ARE EFFICIENT AND WHETHER THERE ARE ANY UNNECESSARY TASKS. SALES DIGITAL TRANSFORMATIONCANNOT BE ACHIEVED SIMPLY BY INTRODUCING IT SYSTEMS AND TOOLS. IT IS ALSO IMPORTANT TO REVIEW AND MODIFY THE CONTENT OF THE BUSINESS OPERATIONS AFTER TAKING INVENTORY.

3. Identification of issues

NEXT, IDENTIFY WHAT PROBLEMS/ISSUES YOUR COMPANY HAS. ONCE YOU HAVE IDENTIFIED THE ISSUES, PRIORITIZE EACH ONE. IT IS DIFFICULT TO ADDRESS ALL ISSUES AT ONCE, SO PRIORITIZE THEM. ONCE THE PRIORITIES ARE DETERMINED, CONSIDER WHETHER THERE ARE ANY POINTS THAT CAN BE RESOLVED USING DIGITAL TRANSFORMATION.

4. Image of the final form you want to achieve

NEXT, DEFINE WHAT YOU WANT TO ACHIEVE THROUGH SALES DIGITAL TRANSFORMATION. THEN, DEVELOP A PLAN TO REACH THE GOAL TO REALIZE THE IDEAL. WHEN FORMULATING A PLAN, IT IS BEST TO CONSIDER ISSUES WITH THE HIGHEST PRIORITY FIRST. FOR EXAMPLE, IF THE PRIORITY IS "LOW NUMBER OF ORDERS," CONSIDER THE REASONS WHY ORDERS ARE NOT BEING RECEIVED, HOW TO INCREASE THE NUMBER OF ORDERS, AND WHETHER THE DIGITAL TRANSFORMATIONCONVERSION WILL BE EFFECTIVE.

5. Introduction of tools

Sales digital transformationOnce you have a plan in place, implement the right tools for it. digital transformationThere are a variety of tools available for sales force transformation, so select the appropriate one depending on the issue and purpose. For example, if your challenge is to acquire and nurture leads, you should implement an MA tool; if your objective is to collect and manage data, you should implement a sales force automation (SFA) system, etc. It is important to match your company's situation.
Related Articles>>Sales digital transformationWhat are tools? Explanation of functions, how to choose, and recommended tools

6. Effectiveness verification

Once the tool is implemented, be sure to verify its effectiveness in increasing productivity and improving business processes. Conduct effectiveness verification on a regular basis. By conducting periodic verification, you will know what effects the tool has had and whether there are areas that need to be improved. Repeated effectiveness verification and process modification or revision will lead to new insights and more effective sales activities.

CAUSES OF FAILURE IN SALES DIGITAL TRANSFORMATION

THERE ARE FOUR MAIN REASONS WHY SALES DIGITAL TRANSFORMATIONFAIL. LET'S TAKE A CLOSER LOOK AT EACH OF THEM.

LACK OF UNDERSTANDING OF SALES DIGITAL TRANSFORMATION

THERE ARE TIMES WHEN SALES DIGITAL TRANSFORMATIONREMAIN LIMITED TO THE IMPLEMENTATION OF TOOLS AND IT FOR BUSINESS OPERATIONS, AND ESSENTIAL CHANGES ARE NOT MADE. THIS IS DUE TO A LACK OF UNDERSTANDING OF THE TRUE MEANING AND PURPOSE OF SALES DIGITAL TRANSFORMATION. IN THIS CASE, ONE WAY TO DEEPEN UNDERSTANDING IS TO ESTABLISH A SALES DIGITAL TRANSFORMATIONPROMOTION TEAM WITHIN THE ORGANIZATION.

Sales tools have been implemented.

DIGITAL TRANSFORMATIONIN THE SALES PROCESS, SYSTEMS AND TOOLS ARE IMPLEMENTED. HOWEVER, THE PURPOSE OF SALES DIGITAL TRANSFORMATIONIS TO IMPROVE BUSINESS PROCESSES, INCREASE OPERATIONAL EFFICIENCY, ENHANCE CUSTOMER EXPERIENCE, AND CREATE NEW VALUE. BE CAREFUL NOT TO STRAY FROM THE ORIGINAL PURPOSE AND SIMPLY INTRODUCE TOOLS. WHEN SELECTING A TOOL, IT IS DESIRABLE TO WORK WITH A COMPANY THAT PROVIDES EXTENSIVE CUSTOMER SUPPORT EVEN AFTER THE TOOL HAS BEEN IMPLEMENTED AND THAT ACCOMPANIES YOU IN THE GOALS YOU WANT TO ACHIEVE THROUGH SALES DIGITAL TRANSFORMATION.

Not changing the sales process

WITHOUT CHANGES IN THE SALES PROCESS, THERE MAY BE A GAP BETWEEN DIGITIZED AND NON-DIGITIZED AREAS. FOR EXAMPLE, "THE NECESSARY DATA IS NOT AVAILABLE FOR UTILIZATION AND ANALYSIS," AND "TEAMWORK AND COMMUNICATION DO NOT WORK WELL. FOR SALES DIGITAL TRANSFORMATIONTO BE SUCCESSFUL, IT IS IMPORTANT TO ALSO CHANGE THE SALES PROCESS AND CREATE AN ENVIRONMENT WHERE TOOLS AND SYSTEMS CAN BE UTILIZED.

Lack of training for sales representatives

NO MATTER HOW MUCH THE PROMOTION MEMBERS TRY TO PROMOTE DIGITAL TRANSFORMATION, IT WILL BE MEANINGLESS IF THE BEHAVIOR IN THE FIELD DOES NOT CHANGE. WE OFTEN SEE CASES WHERE SALES DIGITAL TRANSFORMATIONARE PROMOTED AS AN ORGANIZATION, BUT FAIL BECAUSE THE FRONTLINE STAFF CANNOT COPE WITH DIGITALIZATION. IN PROMOTING SALES DIGITAL TRANSFORMATION, IT IS IMPORTANT TO ALSO PROVIDE TRAINING FOR SALES REPRESENTATIVES. IN THIS CASE, IT WOULD BE A GOOD IDEA TO ACTIVELY EXCHANGE OPINIONS WITH FIELD REPRESENTATIVES AND HOLD TRAINING SESSIONS FOR DIGITAL TRANSFORMATIONCONVERSION.

TIPS FOR A SUCCESSFUL SALES DIGITAL TRANSFORMATION

THE KEY TO A SUCCESSFUL SALES DIGITAL TRANSFORMATIONIS TO CLARIFY OBJECTIVES, IMPLEMENT TOOLS, AND RESTRUCTURE THE SALES PROCESS. HERE WE DISCUSS THREE TIPS.

1. CLARIFY THE PURPOSE OF SALES DIGITAL TRANSFORMATION

IF YOU PROMOTE DIGITAL TRANSFORMATIONCONVERSION WITHOUT CLARIFYING THE PURPOSE OF YOUR SALES DIGITAL TRANSFORMATION, IT WILL BE DIFFICULT TO DEAL WITH UNPLANNED ISSUES. IT IS IMPORTANT TO BE CLEAR ABOUT WHAT YOUR COMPANY'S OBJECTIVE IS IN CONVERTING TO DIGITAL TRANSFORMATION. FIRST, CLARIFY WHAT IS LACKING IN YOUR COMPANY'S SALES AND WHAT THE ISSUES ARE. BY SETTING OBJECTIVES BASED ON THE ISSUES, IT WILL BE EASIER TO SELECT THE TOOLS AND SYSTEMS NECESSARY FOR YOUR COMPANY.

2. Implement tools that fit the sales process

Once you have identified your objectives, select tools that will help you achieve them. There are a variety of tools that can realize sales digital transformation. Each tool has different functions and features, so choose the tool that best suits your company's objectives. The introduction of tools and systems is costly. Consider whether a tool that can be implemented within a pre-determined budget has the functions your company needs and whether it is cost-effective. It is also a good idea to consider the skills of the people who will actually use the tools onsite.
Related article>[ 2024 Edition] 16 recommended sales tools｜Thorough explanation of how to choose and advantages of implementation.

3. Restructuring of sales process

IT IS MEANINGLESS TO INTRODUCE TOOLS AND SYSTEMS IF THEY CANNOT BE UTILIZED IN ACTUAL BUSINESS OPERATIONS. SALES DIGITAL TRANSFORMATIONREQUIRES THE RESTRUCTURING OF THE SALES PROCESS BASED ON THE UTILIZATION OF TOOLS. AFTER RECONSTRUCTING THE SALES PROCESS, IT IS DESIRABLE TO IMPLEMENT PERIODIC EFFECTIVENESS MEASUREMENTS. THE PDCA CYCLE IS USED TO MEASURE EFFECTIVENESS AND MAKE IMPROVEMENTS IF ANY ISSUES ARE FOUND. THE INTRODUCTION OF THE TOOL ITSELF IS NOT THE OBJECTIVE. THE CYCLE IS TO CREATE AN ENVIRONMENT IN WHICH THE TOOL CAN BE UTILIZED, AND TO IMPROVE ANY ISSUES THAT ARISE.

FREQUENTLY ASKED QUESTIONS ABOUT SALES DIGITAL TRANSFORMATION

HERE ARE SOME FREQUENTLY ASKED QUESTIONS ABOUT SALES DIGITAL TRANSFORMATION.

Q. WHAT DOES " DIGITAL TRANSFORMATION" STAND FOR?

digital transformationis an abbreviation for "digital transformation.
According to the " Digital Governance Code 2.0 (formerly digital transformationPromotion Guidelines) " published by the Ministry of Economy, Trade and Industry, "Digital Transformation" is defined as "the transformation of products, services, and business models based on the needs of customers and society, as well as the transformation of operations themselves, organizations, processes, and corporate culture and climate, in order for companies to respond to rapid changes in the business environment, utilizing data and digital technologies, It is defined as "the establishment of competitive advantage by transforming the organization, processes, corporate culture and climate, as well as the business itself.

Q. WHAT IS THE POINT OF MAKING DIGITAL TRANSFORMATION?

IMPLEMENTING TOOLS AND UTILIZING DATA IS ONLY A MEANS TO AN END. DIGITAL TRANSFORMATIONTHE GOAL IS TO IMPROVE THE ENTIRE ORGANIZATION'S PROCESSES, TRANSFORM THE ORGANIZATION, AND CREATE NEW VALUE THROUGH THE USE OF THE TOOLS AND DATA. THE KEY POINTS OF SALES DIGITAL TRANSFORMATIONCONVERSION ARE THE CREATION OF AN ENVIRONMENT TO REALIZE YOUR COMPANY'S OBJECTIVES AND THE UNDERSTANDING OF YOUR SALESPEOPLE ABOUT SALES DIGITAL TRANSFORMATION.

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summary

For this initiative in sales digital transformationto be successful, it is imperative that salespeople understand these digital transformations and drive process change.
In promoting sales digital transformation, you may be thinking, "I don't know where to start." If you have any questions about sales digital transformationpromotion, such as "I don't know what kind of sales tool is best suited for my company's issues," please feel free to contact us, a provider of "UPWARD," a sales digital transformationtool that maximizes the value of CRM and SFA.