What is sales DX? Explanation of the necessity, how to proceed with introduction, and successful cases

However, even if the sales organization tries to promote DX, there are many cases where it is not clear how to specifically work on it. You also need to find out what your company needs from among the various tools available.

In this article, we will explain in detail how to proceed with sales DX, how to select tools, and success stories.

Table of contents

Promotion of DX is one of the important means to improve sales performance. However, without a clear understanding of the differences from digitization, it may not reach its full potential. Before proceeding with the introduction within the company, let’s first understand the definition of DX.

What is DX

DX (Digital Transformation) is the concept of creating new products, services, and business models by making full use of digital technology and data in order to respond to changes in the business environment and customer needs. Rather than partially incorporating digital technology into business processes, the aim is to renovate operations, organizations, and corporate culture itself, and establish a competitive advantage .

The concept of DX is generally used when making management decisions, but it can also be used in sales departments. In the sales department, by utilizing digital tools and digital channels, we can rebuild the sales process and sales system in line with changes in the world, leading to the formulation and implementation of appropriate sales strategies.

Difference from digitization

Because DX tries to make the most of digital technology and data, it is not uncommon to confuse it with digitization. However, the purpose of implementing DX and digitization are very different.

Digitization is the substitution of digital tools for part of the business process, such as replacing paper documents that have been used in the past with digital data. The main purpose is to improve operational efficiency and reduce costs.

On the other hand , DX is implemented to renew the organization and establish and strengthen the company’s competitive advantage . We utilize appropriate digital technology and data as a means to transform business processes to achieve our goals.

The reason why sales organizations need DX is that they need to improve productivity with limited human resources .

With the declining birthrate, aging population, and declining labor force population becoming more serious, and the lack of human resources in various industries, it is becoming difficult to maintain competitiveness through conventional sales processes and measures. Therefore, it is necessary to make full use of digital technology and data to improve the performance of individual sales representatives.

In addition, in these days when information gathering on the Web and SNS is becoming mainstream, prospects and customers do not necessarily want face-to-face sales activities. In order to secure a competitive advantage in such a rapidly changing society, it is necessary to have a system that can respond immediately to market changes using digital tools .

According to HubSpot’s ” Survey of Attitudes and Actual Conditions on Sales in Japan 2023 ” released in February 2023, about 40% of the respondents answered that “either visit type or non-visit type” is the preferred sales style considered by buyers . It is By converting the sales organization to DX, if we can create a system that allows us to use visit-type and non-visit-type sales as needed, we will be able to achieve sales in the form that the buyer wants.

In order to secure a competitive advantage in sales activities with DX, it is necessary to approach prospects and customers from multiple perspectives, such as improving customer experience and improving operations. Here, we will explain in detail the three approaches to sales DX.

1. “Improve customer experience” to add value

The first is how to improve the customer experience (CX) and create new value for customers. The use of cutting-edge technology can fundamentally change the customer’s experience and experience, thereby securing and strengthening a competitive advantage in sales activities .

For example, in conventional sales activities, touchpoints with prospective customers were limited to door-to-door sales and exhibitions, and there were few opportunities for prospective customers to check the specifications and functions of their products. If you introduce online business negotiation tools and web service tools, prospective customers who are interested in your company’s products will be able to easily search for information on the Internet.

To improve the customer experience, it is important to accurately capture changes in customer behavior and emotions (customer journey) at each touchpoint . We make full use of CRM (customer management system) and SFA (sales support system) to read customer needs and determine the appropriate approach based on the organized customer journey.

2. Increase value by “streamlining operations”

By implementing sales DX, you can streamline your operations and increase the value of your products and services.

Specifically, AI and robotics can be used to achieve automation and labor saving. If your competitive advantage seems to be undermined by the high prices of your products and services, you will be able to reduce labor costs through operational efficiency, which will lower the prices of the products and services themselves.

Also, if the contents of proposals made during business negotiations are being reused and become obsolete, one way to improve operational efficiency is to secure time for sales preparations. Thoroughly researching prospective customer information in advance and preparing an interview sheet based on their needs will improve the quality of the proposal and can be expected to improve the closing rate.

3. “Improve decision-making accuracy” to increase value

Improving the accuracy of decision-making related to sales strategies is one approach to sales DX. In particular, if decisions have traditionally been made based on experience and intuition, big data, which represents huge groups of data, will be effective. By analyzing the huge amount of data accumulated in the company from all angles, it is possible to prevent decision-making from becoming dependent on the individual.

For example, if the product specifications do not match the current customer needs, we will be able to accurately grasp the needs based on the customer trends in sales data and propose the optimal plan. In addition, by quantifying the sales negotiation rate and order acceptance rate in the sales process, it becomes possible to clarify the location of the problem, and to respond quickly and change direction.

What kind of companies have actually introduced sales DX? Here, we will introduce the success stories of two companies so that you can imagine specific measures for sales DX.

1. Conventional sales methods no longer work | Panasonic Industry Co., Ltd.

Panasonic Industry Co., Ltd. is promoting DX on a company-wide scale to enable quick decision-making under the slogan of “real-time knowledge management.” Among them, the sales department is working on particularly bold reforms.

The company, which is in charge of the device area in the Panasonic Group, has a huge number of products with more than 200,000 part numbers. In the past, sales activities were carried out in an analog fashion, with sales representatives frequently visiting customers.

Therefore, we introduced CRM in order to build a data platform that can utilize customer information that was scattered by each business division across departments . After implementing CRM, we aggregate customer information from digital touchpoints such as business negotiations using video conferencing tools, online exhibitions, and webinars, and take appropriate approaches according to attributes.

With the introduction of CRM, we have finally realized a system that enables close communication with more customers .

2. Developing the system environment at the timing of strengthening the sales system｜Money Forward Co., Ltd.

Money Forward Co., Ltd. operates “Money Forward Cloud Store”, which sells various cloud tools such as Google Workspace and Microsoft 365. As the number of products handled increased due to business expansion, we used to manage customers and sales using Google Spreadsheets.

So we decided to integrate customer information from Google Sheets into our CRM. Another point is the introduction of a business support system in addition to CRM. This is because, by linking the CRM with the business support system , we could expect data utilization according to business needs, such as building a flow from business negotiations to sales data creation.

As a result of promoting sales DX, it became possible to check the achievement rate indicators from the dashboard for each department such as marketing and inside sales, and the awareness of each person in charge of the numbers improved. In particular, we have achieved 3.5 times growth compared to last year by strengthening the collaboration between inside sales and field sales .

The procedure for promoting sales DX is as follows.

1. Visualize the state of your current sales organization
2. set up a project team
3. Defining what we should aim for through sales DX
4. Thinking about tools that can bridge the gap between the current situation and the ideal state
5. Proceed with introduction of tools and system construction
6. Effect verification and PDCA cycle

When trying to introduce DX, there is a tendency to proceed immediately from the selection and verification of digital tools. However, the essence of DX is not to introduce convenient tools, but to improve the performance of the sales organization. Please be careful to clarify the purpose and use and carefully select only the tools you really need .

Here, we will explain the above six steps in order.

1. Visualize the current state of the sales organization

First, let’s visualize the current state of the sales organization and sales process. This is to clarify the issues in sales activities and to select the appropriate digital tools to solve them.

As for the visualization method, the collected information can be summarized on paper, but it is preferable to manage it as data so that information can be shared more smoothly . You can also create it in Excel or Google Sheets without any problems. First of all, by identifying the work and arranging each task according to the procedure, the overall workflow will be completed.

The above method of visualizing the sales process and objectively grasping the current situation is also effective when conducting sales analysis. If you want to know more about how to analyze your business, check out this article.

2. Build a project team

Sales DX requires a fundamental change in the system of the sales organization itself, so it is essential to launch a project team that will play a leading role. In addition to the person in charge who will be the key person in promoting sales DX, let’s select team members.

There are three types of patterns for organizing a project team:

Business unit driven

It is an organizational structure led by the department that introduces DX. In the case of the sales department, the sales manager and sales representatives in charge of the department participate in the project. While trying to convert to DX that incorporates the perspective of the field , when there are many members with little knowledge of IT and systems, there is a possibility that only proposals with low feasibility will end up.

IT department extension type

Under the leadership of the information system department, this is an organizational structure composed mainly of members with high IT skills. While there is an advantage of being able to introduce cutting-edge technology smoothly , there is a possibility that proposals that are not suitable for the site will be made and sales representatives will voice their dissatisfaction. One way to do this is to involve sales representatives who are familiar with the field to some extent.

specialized tissue type

This is a method of organizing an organization by summoning outside IT vendors and consultants in addition to key persons in the sales department and information system department. Innovative ideas and measures may be created by members with various knowledge . However, it is difficult to maintain a sense of unity as a team, and the drawback is the expense of inviting experts from outside.

3. Define what we should aim for through sales DX

Next, let’s define the goals and ideals you want to achieve by introducing sales DX. For example, the mission devised when formulating a sales plan can be helpful, such as “We aim to be the most preferred sales team by thoroughly solving problems to lead the client’s business to success.”

It is also important to work backwards from the above goals and set specific goals . When setting goals, by quantitatively clarifying deadlines and target values, such as “Increase the number of new customer creations by 30% after one year”, the difference between goals and results can be objectively identified after the start of operation. you will be able to comprehend.

4. Think of tools that can fill the gap between the current situation and the desired state

After you have clarified what you should aim for, compare it with the current situation and select digital tools that can complement the difference. It is also necessary to pick up multiple options and prioritize them .

For example, in the case where the current sales team is not able to make appropriate proposals that lead to problem solving for the goal of “leading the client’s business to success”, CRM to clarify the actual needs and latent needs of the customer , Knowledge management tools that can share sales know-how are useful.

When selecting tools, it is a good idea to prioritize tools that are essential to achieving your goals and tools that cannot be replaced with Excel or Google Spreadsheets. Large-scale introduction may be difficult depending on the size of the company, so it is important to start from a reasonable range .

5. Promote the introduction of tools and system construction

Once the necessary digital tools are decided, we will proceed with the installation work and system construction. It would be a good idea to proceed with the best method for the sales department, such as renovating hardware and infrastructure, or reusing existing systems, with the help of the information system department as necessary.

It should be noted here that smooth cooperation from other departments may not be obtained. In order to facilitate inter-departmental collaboration, it is necessary to clarify the vision for sales DX, and in addition to disseminating it through careful explanations, it is also necessary to understand the work content and busyness of the cooperating departments. prize.

If you want to know more about interdepartmental collaboration, please refer to this article.

6. Perform effect verification and turn the PDCA cycle

When implementing sales DX, we must not forget the effectiveness verification and PDCA. The steps up to this point are just procedures before starting operation. By verifying the actual effect, you can check the success or failure of the project. By turning the PDCA cycle based on the data from the effectiveness verification, you will be able to improve the sales DX project.

In this phase, we first extract indicators such as the number of leads, the number of business negotiations, and the order rate, and find the bottlenecks among them. Among the bottlenecks, if you narrow down only the controllable indicators, you will easily find the indicators with high improvement effect. After that, decide the type and amount of resources to allocate to the areas that need improvement, and repeat the PDCA cycle.

In sales DX, it is common to introduce the following digital tools.

[Sales support (SFA)]

A system that can manage the progress of sales activities and automate routine tasks

[Sales enablement]

Tools to improve the performance of sales activities, such as expanding sales content and developing training plans

[Customer management (CRM)]

System for recording and centrally managing customer attributes and behavior history

[Customer Experience]

Tools to help improve the customer experience, such as customer success tools and customer experience management (CXM) systems

[Customer communication]

Tools to facilitate communication with prospects and customers, such as online business negotiation tools and business chat tools

[Customer Support]

Tools aimed at streamlining and automating response to inquiries

[Data analysis and visualization (BI)]

Tools for visualizing accumulated data and supporting decision-making and problem-solving

[Coaching]

A tool to support coaching by sales managers, such as analysis of recorded negotiations and reporting on sales activities.

Among the above, SFA and CRM are particularly effective in sales organizations .

At HubSpot, we deploy SFA/CRM software called “Sales Hub”. The main functions installed in Sales Hub include pipeline management that allows you to visualize the status of business negotiations in each phase, meeting settings that allow you to adjust the schedule on the Google calendar, and sales automation that leads to automation of routine tasks.

By using SFA and CRM separately or in conjunction with each other, you will be able to centrally manage customer information and the progress of sales activities, making it possible to execute more efficient action plans .

In addition, according to the above-mentioned ” Survey of Attitudes and Facts about Sales in Japan 2023 ,” only 36.1% of companies have introduced CRM for the digitalization of sales organizations, which has not increased significantly since the previous survey. In addition, 31.0% of respondents answered that their company’s customer management method is “not clear or unknown,” suggesting that there are many workplaces where customer data is not properly managed within the organization.

Implementing tools such as CRM and SFA is not the goal. However, it is an important tool for promoting DX in the sales organization, so we recommend that you actively consider using it.

In order to avoid failures in the operation of sales DX, it is important to understand the points to note when introducing and operating. Before doing so, keep two caveats in mind:

1. Have members of your company have the perspective of “Is the tool mastered?”

When introducing digital tools into the sales organization, understand the IT literacy of each member. This is because if there are many members with low IT literacy, it can be assumed that they will not be able to use the tools properly. As a result, it can be significantly less cost-effective and require extra man-hours.

When choosing a digital tool, it is important not only to refer to the price, functions, and track record, but also to check whether it is compatible with the current organizational strength . If the tool offers a free trial, it would be a good idea for a salesperson to check the functionality and operability of the tool in advance.

2. Success or failure depends on the driving force of the key person who knows the site

It is no exaggeration to say that the success or failure of sales DX depends on the driving force of the key person.

For example, migrating customer information from Excel to CRM requires a tremendous amount of time and effort, so perseverance and a strong will to persevere through the work to the end are essential. Also, in order to introduce tools smoothly, it is necessary to have procedures such as accurately communicating the mission of DX to the vendor and instilling new initiatives within the organization, which requires a strong sense of responsibility .

By appointing a person with these skills as a project leader, the success rate of sales DX will be further increased.

The business environment will continue to change in the future. In particular, as the amount of information and data accumulated within an organization grows, the importance of sales DX is expected to grow.

The important thing here is not to lose sight of the essence of DX. It is necessary to set up a project team with a clear purpose and vision, and select digital tools that will lead to securing a competitive advantage, so as not to end up with mere digitization. Let’s promote effective sales DX by referring to the procedures introduced in this article.