The cable industry is undergoing major changes as a result of growth and technology. The two most important challenges Cable MSOs face are how to manage their business more efficiently and the integration of technological advancements into product offerings. The two challenges are very much tied together as traditionally, Cable MSOs, have strucutured their business operations according to the products offered creating virtual silos for operations. The silo management leads to a duplication of effort for marketing as well as fighting for valuable corporate resources.
To better understand these challenges, a series of posts will be published on our Cable CPE Management blog taking a deeper look at some the keys for Cable MSOs to navigate the times. The first post is a an Introduction to the Cable MSO Industry covering the top MSO players and an overview of industry challenges.
It is the middle of summer, the heat is on and Direct Sales Managers (DSM) are trying to figure out how to light a fire under their DSRs. The summertime blues if left unchecked can reek havoc on sales goals. One method of reeling in DSR activity is to increase their activity using a Cable CRM designed specifically for the industry.
Potential Summer Sales Goals
Increase cross-selling and up-selling
The summer is an ideal time to revisit subscribers to up-sell and cross-sell services. One reason, includes children who are watching more TV or playing on the internet. Parents may be in need of extra content such as movies or online game access for their Wii or PS3 systems. DSRs may also find that the number of subscribers needing Wi-Fi access has increased due to the number of new handheld devices such as iPod Touch. I can personally attest to the joy of a teen that can play PS3 online and text his friends on his iPod Touch at the same time.
Build customer loyalty
Revisiting subscribers is more than a chance to do some additional product selling as it is a good opportunity to discover issues, concerns and build customer loyalty. A visit to a subscriber may uncover issues with equipment such as a remote that takes an unreasonable amount of time to change a channel, a need for additional rooms to be wired or a weak signal due to too many splitters being used. They may sound like small issues but the frustration of a subscriber can open the door to competitors if they are not addressed.
How a Cable CRM can Help Achieve Sales Goals
SFA keeps the DSR in the field
The Sales Force Automation (SFA) features of a cable CRM solution are integrated with the use of handheld mobile devices. By placing state-of-art handheld technology in the hands of a DSR, Sales managers can eliminate much of the need for a DSR to waste time returning to the office to complete paperwork. This is because the handheld contains everything from the days route schedule to the ability to submit sales information online. Simply put, a CRM designed for the cable industry makes the office mobile and far more efficient. Tracking measures allow the DSM to make sure the days activities are is being accomplished.
SFA has a faster sales cycle
The advantages do not end by keeping the DSR in the field. The use of SFA handheld devices decreases the sales cycle substantially. By having customer information, the latest promotions and the ability to perform online credit checks all available on the handheld, sales approval times are reduced. This also makes the subscriber happier as there is limited waiting before their children can access their favorite games and applications.
SFA can capture the opportunity sale
Keeping the DSR in the field can help uncover the opportunity sale. These are sales or sales leads discovered by sight or proximity. For example, while visiting current subscribers at an apartment complex, the DSR notices several moving trucks. This is a signal someone is moving in or out. For someone moving in the opportunity is to stop by, say hello and tell them about how fast they can have service. For someone leaving, the opportunity is to find out where and see if service is available at the new location.
A similar summertime opportunity to make sales occurs at locations surrounding Colleges and Universities. Students begin returning in late July and early August. DSMs and DSRs can make use of the CRM route features to select high impact areas for seasonal opportunities.
Tell us how your sales team beats the summertime blues. If you liked this article you may also enjoy reading:
The USA-Ghana match in the 2010 World Cup on Saturday was the third most watched soccer game in US history. Despite the heartbreaking 2-1 loss, Cable operators should recognize the opportunity presented by a record number of people streaming the World Cup to handheld devices and personal computers. This trend is most certainly going to continue for the remainder of the World Cup as well as for other sports. The opportunity for MSOs is to use their cable CRM to create routes for DSRs to sell and cross-sell the multiple cable platforms of data, cable and cell so subscribers do not miss any game action.
One of the reasons for the increased use of cell phones and PCs during the 2010 World Cup is because the games are scheduled everyday of the week and with the huge time differential (South Africa) many people are unable to watch TV from their homes or sports taverns during weekdays. This makes the choices for listening or viewing limited to recording games or streaming. A CRM specifically designed for the cable industry can help increase sales because:
- Demographic lists can be purchased targeting fans supporting tournament teams. These list can then be used to generate routes for maximum effectiveness.
- The sales cycle approval time is greatly reduced. The availability of online credit checks, customer and promotional information using handheld devices slashes the approval times and allows the subscriber to watch, listen or record games faster. Sales are made faster and subscribers are happier.
- DSRs can offer subscribers multiple platforms for watching games. For example, watch weekend games at home with HD cable, recording games if subscribers are unavailable during games and cellular service for streaming gamecasts.
- Many tournaments have multiple games scheduled at the same time but on different channels and some sports fans will want to have the capability to watch all the scheduled games at one time via multiple TVs or combination of TV and computer.
- DSRs will be able to visit more potential subscribers in the same amount of time by replacing a paper based sales systems with an automated solution. This occurs because DSRs can retrieve route information and submit sales online thereby reducing the number of visit to the office and keeping them in the field longer.
Whether it be the 2010 World Cup or the next NCAA basketball tourney, Cable MSOs have much to gain by transforming an archaic sales process into a streamlined and directed sales organization using Sales Force Automation(SFA). MSOs only need to be careful to limit their own DSR streaming capabilities so that DSRs are working instead of watching the games themselves on their cell phones.
Tell us how you take advantage of major sporting events to increase sales. If you liked this article you may also enjoy reading:
Recently, I was watching a humorous video that showed a Direct Sales Representative (DSR) making a pitch to a customer for new services. The funny part of course was when the same companies tech walked out the door after he had finished installing the same new product. The video, made before cable CRM software like started gaining traction, highlighted why it is important to be able to make sure DSRs, technicians and the home office are on the same page.
Although the concept of showing a customer having purchased for a new product before the DSR knocks on the door is great for building demand perceptions, it can also be a signal that the left hand doesn't know what the right hand is doing. Wouldn't it be nice if the DSR knew that the customer had already called and was being installed? While we are on that subject wouldn't it be better if the DSRcould have a daily updated street sheet, the latest promotional special information and of course have all this information right at his fingertips accessible on a mobile handheld device?
But wait, that's not all. Implementing a CRM specifically designed for the cable industry will also enable DSRs to perform online credit checks as well as eliminate the paperwork and office calls required to make a sale using the old paper street sheet and clipboard method. This means faster sales, more sales calls and more sales. We wish we could throw in a pair of handy steak knives with the deal but that is another commercial.
So instead of steak knives, a cable CRMsolution also can also come with the ability to perform tap audits as well by having the lost or reduced service subscriber information also on the handheld with real-time information. Now the DSRs can make sales calls and perform tap audits in the same neighborhood increasing the opportunity for new sales, cross selling, up-selling and reducing cable churn all in a days work.
Tell us how you manage your DSRs to speed up the sales cycle as well as other tools you use for sales force automation.
If you liked this article you may also like
Raise your hand if you are confused about which is better tool to manage the sales force for cable operators - a) Customer Relationship Management (CRM) system, b) Sales Force Automation (SFA) tool or c) a cell phone. If you answered c because you do not understand the jargon or explanations software companies or so called experts use to market themselves you are not alone. If you answered c for any other reason then sit down and pay attention. Having reviewed this subject for a long time, the following is a far simpler explanation based on upon the cable operators need.
CRM: Are Mobile Computers Better than Cell Phones for SFA?
Using cell phones to stay in contact with your direct sales representatives (DSRs) won't improve productivity, generate additional sales, run real time credit checks, print a sales receipt, connect with the ICOMS, CSG and AMDOCS billing systems, optimize sales routes or impress any subscriber. Cell phones can only hold so much subscriber contact information regardless of how much you paid for it or how many cookie cutter applications it can run.
If you are managing your DSRs in this manner you are at a competitive disadvantage because the next MSO has state of the art mobile handheld devices that connect directly with the office doing all the things mentioned above plus they reduce the sales cycle time because approvals are near-real time. Just as importantly, the subscriber does not have to wait for a work order to be scheduled making them happier.
Comparing a CRM to a SFA
Both SFA and CRM are software packages are designed to enhance the sales process as well as reduce cable churn and the terms are sometimes used interchangeably because a CRM umbrella includes SFA. However, SFA is based upon a pure sales perspective as compared to the sales and marketing premise of a CRM system. Let us start with a easy overview of each.
SFA in the cable industry has one primary purpose which is to increase sales. Simply put, faster sales cycles = more visits to more potential subscribers = more clients. It is 100 percent driven by a we need more clients perspective which is all about increasing cable sales. Good SFA software is designed to function as end-users will use it. This means that it may be highly customized for a specific industry or company. In contrast, generic off the shelf software packages or those that can not interface with the three major billing systems will not significantly decrease the sales cycle time.
On the other hand, a CRM is a generalized tool. designed to pull together sales, client retention techniques and marketing together to squeeze the most revenue out of the client base. This is easiest to understand if you view a CRM a group of modules versus a SFA tool that has a greater degree of specialization. A CRM can perform some of the functions of an SFA and there is overlap between the type of data collected and used but the SFA portion of a CRM is not nearly as specialized as a stand alone SFA.
The purpose of an SFA is to make more sales, get more visits and get more customers. It is a customizable sales tool. For the cable industry this specialized tool speeds up the sales cycle by reducing the amount of time waiting for data to be taken back and forth from the subscriber to the office and vice-versa. For example: Online credit checkscan be performed with mobile handheld devices eliminating the waiting for approval time as well as the lost time following back up with the customer. The handheld devices also have access to the latest promotional pricing and subscriber history for better objection handling. All of these features plus many more are designed for one purpose - make more sales!
Define Your Cable Sales Objectives First
The point of this post is that in order to make a decision about purchasing a CRM or SFA tool, you must define what is important to your organization. Both types of systems can increase sales and reduce churn. A full blown CRM is more expensive to purchase and requires a true marketing understanding in order to utilize the wealth of information that can be collected. A CRM can be a very powerful tool if set up and used correctly. In contrast, SFA is less expensive but more narrowly focused on increasing sales through greater sales efficiencies.
Hopefully, this explanation of the difference between CRM and SFA has clarified some common misconceptions. SFA is a subset of CRM but it is most effective when tailored specifically for cable operators as a stand alone tool. Share with us your perspective or experiences.
If you liked this article you may also like:
As the battle for market share rages between cable, telecommunications and satellite providers, cable operators may soon find themselves with a classic business marketing opportunity. This will occur because product offerings that currently include video, data and phone will be supplemented by WiMax giving cable companies a quad-play of services. The addition of WiMax will allow cable companies to offer wireless broadband access at locations other than the normal local home access point.
"Mobile WiMax promises to offer data speeds faster than current 3G wireless networks and over much longer distances than comparably fast Wi-Fi technology, which today is used mostly indoors to provide wireless broadband hot spots"
Source: Marguerite Reardon Staff Writer, CNET News
The Marketing Advantage
Introducing potential subscribers to new services is most effective when the product can be demonstrated. Cable operators utilizing CRM tools such as Sales Force Automation (SFA) or Tap Audit (TA) will find themselves in a position to demonstrate the reliability, quality and speed of utilizing WiMax on sales calls. DSRs can literally demonstrate how WiMax works using their mobile handheld devices, directly to consumers, which is far more effective than an advertising slick.
The Operations Advantage
Integrating WiMax into the sales operation routine will help ascertain the primary objective of SFA which is to increase cable sales by reducing the sales cycle time. This is accomplished by providing near real-time information on promotions, credit checks and service offerings using handheld mobile devices. This has several benefits for Cable Sales Managers which include
- Faster sales cycles leading to more customers being called upon in a given time period
- Faster analysis of sales reports and activity as data is transmitted and reports are generated at the push of a button.
- More time available to spend training new DSRs which will help lower turnover.
The Cost of Connectivity
As with almost any technology, cable operators using handheld devices must normally pay for the SFA software, the handheld devices and the cost of wireless connectivity. By taking advantage of the WiMax infrastructure, cable operations can eliminate the cost of wireless connectivity to outside vendors. Current estimates are somewhere between $75 to $100 per month per DSR to provide wireless access for handheld devices. This amount is normally twice the cost of software and support making the elimination of this expense highly desirable in what is increasingly becoming a more competitive market.
Technology Improvements May Increase Service Area
At the moment cable services are generally limited to areas where the cable infrastructure has been developed (where there is cable). As CPE is developed, these boxes may be able to receive the WiMax signals for signal conversion. When this occurs, cable operators will be able to expand their geographical service map and allow them to compete with satellite as well as other wireless alternatives in new markets.
Tell us how you see WiMax changing the market for cable operators.
If you lied this article you may also like
In order for a Door-To-Door CRM to be a truly effective tool, mobile handheld devices must be incorporated. This is because DSRs, DSMs and customers have a need for real time promotional information, credit approvals as well as reports. Secondly, Handheld devices improve the image of DSRs by making them appear more professional and technology savvy. However, when buying handheld devices facilities management should not be lead astray by the lure of a cheap or less expensive brand. Durability, reliability, user friendliness, and the technology platform are significant factors in determining the Total Cost of Ownership (TCO).
How TCO Influences Buying Handheld Devices
- Durability. Durability covers the likelihood that an item will break (see video) as a result of motion, too many moving parts, temperature extreme and quality of design for the task at hand. Each time an item breaks there are costs associated to replace as well as downtime. Purchasing managers should look at external casings as well as design.
- Reliability. Reliability issues include battery life, software stability, how often is technical support needed and at what costs. Examples include the amount of downtime due to battery recharging, bugs in the software and technical support issues.
- Ease of Use/training. The key to increased adoption rates is the ease that DSRs and DSMs can learn functionality. Given the high turnover of DSRs it is important that the handheld devices remain consistent so training for new DSRs can be performed by DSMs.
- Technology platform. The two major components to evaluating the technology platform are mobility and stability. Mobility means that the desired efficiencies are being achieved in particularly ease of transport/mobility. Stability refers to making sure the operating platform is in series and not going to be obsolete with replacement. Laptops undergo many model and operating system changes. This may result in cable operators having to manage equipment running multiple platforms with various degrees of functionality.
Cable CRM MC75 versus Laptop Computers
Some cable operators have been looking at laptop computers as a replacement for handheld devices based upon price. In this example, we have compared the Mintek recommended MC75 with laptop computers to get a better idea of how TCO should influence purchasing decisions.
Example - Cable CRM MC75 versus Laptop. Primary goal is to facilitate the sales process with accurate up to date client and sales information as well as speed up the sales cycle.
|
Price Range |
Durability |
Reliability |
Ease of Use |
Technology Platform - mobility |
Technology Platform - stability |
| MC75 |
$1500 - $3000 |
great |
great |
good - touch screens |
unlimited, can also be used as cell and scanner |
stable -windows 5 |
| Laptop Computers |
$ 500 - $5000 |
very easily damaged |
low battery life |
fair |
substantially heavier, data transfer only |
weak - constantly changing |
The TCO for some products can be 3-10 times the original price making it very important to ask the right questions during the planning stage. Therefore understanding how the devices will be used over the course of their useful lifecycle is crucial. Mobile DSRs need handheld devices that match their for functionality and mobility. Commercial products such as the Motorola line are designed to be very durable but also to work with specific application software. Laptops on the other hand, are designed for generic uses. Lastly, laptops are far more likely have to be replaced as either a result of failure or changing series. Mintek strongly recommends the MC75 for all cable CRM and sales force automation. Tell us your experiences with mobile handheld devices.
If you liked this article you may also enjoy:
This article is about all the good things that will happen when you buy cheap off the shelf Customer Relationship Management (CRM) software instead of shopping for the best value. With cable revenues shrinking, the boss has instructed you to save the company money by streamlining the sales process and at the same time increasing the closing rate of Direct Sales Representatives (DSRs). A quick internet search shows a couple of free limited-user programs and a few generic applications.
After a quick analysis, you decide price is a more important criteria then value, purchase the software and take it to your IT person to install. This is when all the good things start to happen and will include:
- Your IT person installs the software and it works without flaw. No one is surprised because generic programs are designed to run on almost any computer. You can feel the excitement starting to build.
- It turns out that billing data from ICOMS, CSG and AMDOCS imports directly into the system. Who would have thought this was possible?
- Sales routes are generated for each level of service (video, data, phone, WiMax) - the routes are even optimized for sales type and speed.
- DSRs can run credit checks at or prior to a customer sale, online using handheld mobile technology. You are thinking "WOW, this is really cool, how did they know this was a major bottleneck?".
- Sales speed has increased because you can make a sale, print a receipt and schedule a work order all from the handheld device. This is sweet, the plan is starting to come together.
- Tap Audits are now easier than ever before and customer conversion skyrockets.
- Software, printer and handheld devices vendors have all been consolidated into one vendor.
- The big boss no longer ask you about sales performance, customer satisfaction and employee turnover as everyone is happy, trained and satisfied.
- You get a big bonus check for dramatically improving the speed, amount, and quality of sales. Can you smell that Hawaiian breeze yet?
Does this sound too good to be true? You bet it does. The reality is nothing good is going to happen with a cheap off-the-shelf software package or generic CRM system. The value of a cable CRM is directly related to its ability to help find, attract and sell cable customers. The greater the efficiency and value the more likely cable companies can nurture, retain current clients and recover churn. Never select a CRM without knowing the additional costs necessary to customize the application. A cheap system will cost you more in the long run and you will end up in the dog house. Choose a system designed and maintained by industry experts.
Customer Relationship Management (CRM) software is all about finding better ways to manage the interaction between your company and prospective/existing/lost clients. The ultimate goal is to increase operating margins through sales efficiency, ancillary selling (up and cross selling), reducing churn and persuading lost clients to return.
Because CRM applies to virtually any industry the probability of having off-the-shelf software to meet your all your needs is slim-to-none. This is particularly true in the cable industry where specialization has turned out to be a good thing. Specialization and experience in the industry has resulted in software that is architecturally sound, scalable, easily customized, as well as user friendly. Most importantly, Best of Breed CRM software can integrate Sales Force Automation (SFA) , Tap Audits and Customer Survey modules.
Tips for Choosing a Best of Breed cable CRM software
When cable operators are choosing a CRM There are three very important factors to consider. These factors include, understanding what you need, choosing a CRM with the right features and making sure you have a quality vendor. The following checklist will help guide you.
- Determining your needs by analyzing your workflow
- Identify your pain, where are the bottlenecks and other points of inefficiency?
- Know what your churn rate is and why a CRM will effect.
- Know your DSR turnover rate and identify why this occurring.
- How will the situation differ in 3-5 years, specifically the competitive environment and what growth you expect.
- Listen to your managers as their feedback is critical to achieve buy-in.
- Does the CRM you are considering purchasing
- Run on a Windows Platform?
- Designed specifically for the cable industry? If not there may be a need for wasteful customization.
- Integrate with barcode scanners?
- Allow for offline reporting?
- Directly import customer data from ICOMS, CSG, or AMDOCS including back balance inquiries and cable packages/campaigns?
- Classify customer levels of service for Video, Phone, Data and WiMax?
- Perform route generation using any field and level of service in order to optimize route type sales or optimized for speed (route information only)?
- Use Quick Sales Disposition (clicks versus typing) in other words clicking off responses on display versus typing them in?
- Update customer information directly from handheld device?
- Run credit checks at or prior to a sale?
- Include handheld devices that can record a sale, print a receipt and schedule a work order?
- Provide one-stop shop/repair for mobile device, software and printer so you can avoid multiple vendors?
- Have proven results in the Cable industry?
- Provide access to any CPE on the account?
- Provide seamless integration with Tap Audit and Customer Survey modules thus allowing auditors to convert unauthorized users on the spot or surveyors to immediately up-sell? and Customer Survey Modules thus allowing for auditors to make sales out of disconnects?
- Does the Vendor you are considering purchasing the software from:
- Have a verifiable history in cable, with references, showing sales and audit productivity increases within 30 days of deployment?
- Have a stable profitable history?
- Have a technical support staff with low turnover and high cable industry knowledge in order to maximize productive time?
- Have experienced project managers who the know the cable industry and ensure the system is set up correctly the first time?
- Have qualified trainers to ensure maximum adoption rates?
Choosing the right CRM for your cable company is crucial to improving sales efficiencies, lowering turnover and decreasing churn. To be a high industry performer, think through you CRM decision carefully.