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Microsoft CRM 3.0 Sales - 8521A_07

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					Chapter 7: Sales Administration

CHAPTER 7: SALES ADMINISTRATION
Objectives
Actively participating during this lesson helps you: • • • • Understand how to use sales processes and workflow rules Add information regarding Competitors Manage sales literature items and attach documents to records Maintain the product catalog including price and discount lists

Overview
This lesson covers the administrative concepts of Microsoft® CRM at a high level. These tasks, including automated sales and workflow processes and the product catalog, are used during the implementation of the product and periodically for maintenance.

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Automated Sales and Workflow Processes
Use Microsoft CRM to automate internal business processes by creating workflows to perform routine tasks that involve daily business operations. These processes can be designed to ensure that the right information gets to the right people at the right time, and help users keep track of the steps to take to complete their work. Use workflow rules to define, automate, and enforce specific business rules, policies, and procedures.

Using Workflow Processes
A workflow process is a group of interrelated action steps and the rules that drive the transition between these steps. When a workflow process is created, the event that triggers the workflow process is defined. Each step in the process is a set of actions that are created within Microsoft CRM, for example, the creation of an activity, assignment of a lead, or sending of an e-mail message. Business workflow processes apply across the organization and are created by someone with sufficient privileges, such as the system administrator or business owner. For example, your system administrator can create a workflow process to handle the assignment and follow-up for leads, accounts, or opportunities, and another process to initiate and finalize contracts.

FIGURE 7-1: WORKFLOW PROCESS

Using Sales Processes
Opportunities have special workflow processes called sales processes. A sales process consists of a sequential list of steps, or rules, called stages, through which each opportunity must progress.

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A successful sales person develops a process they use while selling. If they sell more than one type of product, or serve more than one type of customer, they may be using multiple sales processes. A defined sales process has a number of advantages: • • • Provides the organization a common vocabulary to discuss potential sales Reduces forecast review time and pipeline confusion Is designed to help control the process of selling to maximize sales

Once the critical steps to closing sales are established, the sales process helps confirm that each step is understood and completed. These crucial steps are known as sales stages. A collection of sales stages is a sales process. Each sales stage has related activities and actions. Microsoft CRM provides the following advantages: • • • Automated tasks such as creating activities, performing actions, or changing the percentage for the close probability, can be created Users involved in the sales process can be notified of actions and events Documents needed for quotes and final agreements can be provided

The more controlled the sales process is, the more frequently closed sales occur. Using sales processes can result not only in more sales, but also maintains consistency in the sales process thereby, maintaining a certain level of quality in the sales interactions that can lead to more efficient and more profitable sales.
BEST PRACTICE: Establishing or reviewing an organization's sales processes should be done during the implementation needs-analysis phase. Proper planning and testing of the sales processes should be executed before an organization goes live with a Microsoft CRM implementation.

FIGURE 7-2: SIMPLE SALES PROCESS

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FIGURE 7−3: COMPLEX SALES PROCESS

Workflow Manager
Use the Microsoft CRM Workflow Manager tool to create, modify, and activate the following: workflow rules, workflow rule templates, sales processes and sales process templates based on the Opportunity object. The Workflow Manager in Microsoft CRM is used to create the rules behind the sales processes. This includes the following: • • Creating the individual sales stages for each process Creating the actions associated with each stage

The following are key points when creating a sales process for an Opportunity in the Workflow Manager: • • • Sales processes can be configured where each stage must be completed, and any related activities or actions completed. Sales processes can be configured where the sales process and stages are guidelines for their sales force. Actions can be marked as required to be completed, or allow the sales stage and actions to be skipped entirely, for each individual sales stage. When the sales process is applied to an Opportunity, the actions for each sales stage will be associated with the Opportunity.

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Procedure: Apply a Rule or Sales Process to an Opportunity
1. If you want to apply a rule to an activity record, in the Navigation Pane, click Workplace and then under My Work, click Activities. For any other record, in the Navigation Pane, click the area you want, such as Sales, Marketing, or Service. Note that all areas might not be available to you. 2. In the Navigation Pane, click the record type you want. 3. From the displayed list, open the record to which you want to apply a rule. 4. On the Actions menu, click Apply Rule. 5. In the Apply Rule form, select the rule you want to apply, and then click OK.
NOTE: If you move an opportunity forward in the process (for example, from step 1 to step 3) without completing the criteria for step 1, the process will remain automated and pick up where it left off. If an opportunity is moved backward in the process (for example, from step 3 to step 2), Microsoft CRM will not know if the original stage was completed or canceled. The sales process will no longer be automated, and you have to manually advance the opportunity from one stage to the next.

Sales Process Scenario
NOTE: This sales process does not exist in the demonstration data. It was created as an example of a simple sales process to aid in explanation of the sales process and workflow functions.

A company uses a number of different Sales processes depending on different factors. One factor is the amount of Revenue. If an opportunity is for more than $50000 the Sales person is expected to use a simple sales process to associate the tasks they perform with a probability of success. This is a simple Sales process that includes the following stages. • • • • • Investigate − In this stage the Salesperson evaluates whether this opportunity represents a good investment of their time. Evaluate − In this stage the Sales person confirms that their company will be able to deliver the products for the opportunity. Negotiate − This stage represents the negotiation process. Close − This stage represents closing the deal. Won − This stage represents closing the opportunity.

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When the sales process is applied, information is populated in the Sales Process tab of the opportunity. When this sales process is applied to an opportunity, activities are created to Research the Account and Evaluate Competitors. When all of the activities associated with a stage are marked complete, the activities associated with the next stage in the process are created. For example: Check Inventory and Check Open Opportunities. An explanation of the stages and activities in this sales process are described in detail in the table: Stage: Investigate Task Description Task Description Exit Criteria close probability = 10 Research Account Verify that the Account is legitimate Evaluate Competitors Determine which competitors might be involved Task: Research Account Complete Task: Evaluate Competitors Complete Stage: Evaluate Task Description Task Description Exit Criteria close probability = 20 Check Inventory Confirm we have enough inventory to fill an order Check Open Opportunities Check if any other Opportunities could require the same inventory Task: Check Inventory Complete Task: Check Open Opportunities Complete Stage: Negotiate Task Description Task Description Exit Criteria close probability = 10 Submit Quote Submit a Quote for the order Follow up Call Follow-up on the quote. Ask for the order. Task: Submit Quote Complete Phone Call: Follow-up Call Complete

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Stage: Close Task Description Task Description Exit Criteria

close probability = 90 Signed Documents Get the documents signed Update Microsoft CRM Update the Opportunity record Task: Signed Documents Complete Task: Update Microsoft CRM Complete

Stage: Won Action

close probability = 100 Change State to Won

FIGURE 7−4: BASIC SALES PROCESS

Managing Competitors
The Microsoft CRM competitor information management feature enables your organization to compile information about each of your competitors. This information provides your sales staff with a powerful tool they can use to compete effectively, close on more sales opportunities, and strengthen customer relationships. Using competitor information management, you can compile a repository of information—product literature, pricing structures, and product reviews−for each of your competitors. You can include information about competitive strengths and weaknesses, provide a sales strategy, add information about how they threaten the success of your organization , and other salient information that your sales staff needs when they are attempting to win business opportunities. If you add products or sales literature (The documents that are created with specific information about products and/or services and given to customers to help increase sales.)to a competitor record, your sales staff will be able to access the competitor data from within the Product or Sales Literature forms.

Tracking Your Competition
You can also create and maintain information about your competitors' strengths and weaknesses, and the opportunities you are both working on. Your sales force can use this information to better understand who they are working against on a deal. If you create a relationship between a competitor and an opportunity (, you can access information on both from either form.

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Tracking Opportunities Won and Lost
The competitor information management feature in Microsoft CRM also helps you associate opportunities to competitors so you can assess opportunities lost to or won against each competitor.
BEST PRACTICE: It is a good idea to have a competitor called No Decision. When an opportunity is closed because it was lost, a competitor is required. If the customer changes their mind about placing the order, a competitor would not be involved.

Procedure: Associate from the Opportunity Form
It is a good idea to track your competitors together with the products and sales literature they carry that matches your own inventory. You can also associate specific opportunities that you have in the sales pipeline when you know the competitor is actively pursuing the same sale. You can associate an opportunity with a competitor and the competitor is automatically added to the Opportunity form 1. In the Navigation Pane, click Sales, and then click Opportunities. 2. In the list of opportunities, open the opportunity. 3. In the Opportunity form, click Competitors. 4. On the Actions toolbar, click Add Existing Competitor. 5. In the Look Up Records dialog box, in the Look for box, type a few letters of the competitor's name and click Find. From the Available records list, double-click the competitor you want to add to the Selected records list, and then click OK. 6. Click Save.

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Demonstration: Competitive Information
In this demonstration, we add competitive information to an opportunity and view the information that is recorded about competitors.

Scenario
During a follow-up telephone call with Racing Bike Outlet regarding an opportunity (44 High end road bikes), a Sales Representative learns that the customer is also looking at products sold by another company, Certified Bicycle Supply. This information is added to the Competitor area of the opportunity. The Sales Representative then views the information about the competitor so that the Sales Representative can properly prepare a sales presentation by knowing some information about the competition for this sale.

Goal Description
The goal of this demonstration is to: • • Associate a competitor with an opportunity View the information for the competitor

FIGURE 7−5: COMPETITOR FORM

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Steps
Follow these steps to enter competitive information: 1. Select Opportunities. 2. Open the opportunity for Racing Bike Outlet (44 High end road bikes). 3. Click Competitors. 4. On the Actions toolbar, click Add Existing Competitor. 5. In the Look Up Records dialog box, in the Look for box, type a few letters of the competitor's name Certified Bicycle Supply and click Find. From the Available records list, click the competitor to add it to the Selected records list, and then click OK. 6. Click Save. 7. Double-click the record in the Competitor list to view the details for the company.

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Managing Sales Literature
The Microsoft CRM Sales Literature system is a central repository for company sales information. It provides your sales force with access to sales literature, product catalogs, and discount and pricing structures. This section provides an explanation about price lists and discount lists. Sales literature is categorized by subject. Therefore, before you can add any literature or documents, your administrator must first set up the structure in the Subject area found within the Settings area.

FIGURE 7−6: SALES LITERATURE

Procedure: Add or Edit Sales Literature
The Sales Literature area provides a way for you to add, remove, and manage the documents associated with your products and services. 1. In the Navigation Pane, click Sales, and then click Sales Literature. 2. On the Actions toolbar, click New. 3. In the Title box, type a title for the sales literature. This field is required. 4. In the Subject box, click Lookup to search for the subject you want. This field is required.

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5. In the Subject Lookup dialog box, select the subject you want, and then click OK. 6. In the Employee Contact box, click Lookup. In the Look Up Records dialog box, select an employee to associate with the sales literature, and then click OK. The person you select is typically the person responsible for the creation or maintenance of the sales literature. 7. In the Type list, select the sales literature type that most closely matches the description of your sales literature. 8. In the Expiration Date box, select or enter a date. For example, if the sales literature is associated with a sale, then the date the sale ends would be the expiration date. You must enter the date in the format your organization has set for dates. For example, 01/01/2006 or 31.12.2005. If you omit leading zeros in a date, Microsoft CRM will add them automatically. For example, when you type 1/1/06, Microsoft CRM will display it as 01/01/2006, if that is the date format of your organization. 9. Click Save or Save and Close.

Procedure: Add or Remove Documents
Similar to how you attach a file to any record, you can attach documents to your sales literature. However, when you add a document, you must enter a title. You can also specify the author and add keywords, which you or someone else can use later to locate the document. 1. In the Navigation Pane, click Sales, and then click Sales Literature. 2. In the list of sales literature, open the sales literature you want to add a document to. 3. Under Details, click Documents. 4. On the Actions toolbar, click New Document. 5. Enter a title (required field), author name, keywords, and an abstract for your document. 6. If you want to attach a file to the document, type its name in the File Name box or click Browse to locate the file, and then click Attach. Attaching a file might take a few minutes, depending on the size of the file. 7. Click Save or Save and Close.

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Creating a Product Catalog
The Microsoft CRM product catalog is the central location for storing product information. The product catalog is a collection of information about your organization's products and services. The items in the product catalog are created or managed through the Settings area of Microsoft CRM. Additionally, you can view the product catalog either online, when you are connected to your corporate network, or offline when you are at a customer's site by using the Microsoft CRM client for Outlook. Before you can add products or services to your product catalog, you must create the applicable discount lists, unit groups, and price lists for your products. To create the product catalog, set up each product catalog area in the following order: 1. Set up discount lists: Discounts are modifications to the base prices of products and services. One common approach to increasing short term sales or rewarding valuable customers is to offer price reductions that are based on purchase volume or frequency. In Microsoft CRM, you create and maintain a discount list to publish and distribute the discounts you want to offer. 2. Set up unit groups: A unit group defines the base units of measure that a product or service will be sold. Common base units are gallons, liters, hours, days, kilograms, or pounds. 3. Set up price lists: The price list includes the prices that can be charged for each unit group of a product. You can create more than one price list for your product catalog. For example, you may have separate price lists for retail and wholesale sales, or for government and nonprofit customers.

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4. Set up products: The product is the item you are selling. It could be either a physical inventory item or a service. Creating your products is the final task in creating a product catalog.

FIGURE 7−7: PRODUCT CATALOG COMPONENTS

Scenario
A company has products available for volume purchase to maximize revenue and move products faster. They offer discounts based on quantity purchased. There are different price lists depending on the type of customer (such as retail or wholesale) and a discount structure depending on quantity purchased.

Discount Lists
In Microsoft CRM, discounts allow you to offer a product or service at different sales prices, depending upon the quantity purchased. You can create discount lists of different types (based on amounts or percentages) and specify different discount amounts and percentages for various quantity ranges. In this way, someone purchasing 50 units would be charged a different price than if they purchased 500 units of the same item, as an incentive to buy more. Price list items are a combination of price list, product, and product unit. You can configure pricing options within Microsoft CRM to control how prices are calculated. You can configure the pricing method, discount list, rounding policy, rounding option, and rounding amount from a price list item.

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NOTE: When you deactivate a price list, make sure that it is removed from the Default Price List fields of products. Deactivated price lists will not be included when you look up a price list for a new opportunity, quote, order, or invoice. Pre-existing records that reference the deactivated price list will continue to use the price list until the transactions are completed or closed.

Procedure: Create or Edit a Discount List
You can modify an existing discount list by following step 1 to navigate to the Settings area. Then, open the discount list you want to edit. 1. In the Navigation Pane, click Settings. 2. Under Settings, click Settings. Then, in the Settings area click Product Catalog, and then click Discount Lists. 3. On the Actions toolbar, click New. 4. In the Create Discount List dialog box, enter the following information: – – Name: Enter a name that provides a good description of the kind of discount this list will include. Type: Select Percentage to calculate the discount as a percentage of the price of the item. Select Amount to calculate the discount as a fixed amount.

5. Click OK. The Discount List form opens. 6. Click Save and Close, to save and close the discount list without adding discounts. Or, under Details click Discounts, and then click New Discount, to create a discount for this discount list. 7. In the Discount form, enter the following information: – Begin Quantity: Enter the least amount that must be ordered to receive the discount. This must be a number between .00001 and 1,000,000,000. End Quantity: Enter the largest amount that can be ordered to receive the discount. This must be a number between .00001 and 1,000,000,000. Percentage: Enter the percentage of the discount. This must be a number between .00001 and 99,999.00000.

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Procedure: Create or Edit a Discount
A discount list includes one or more discounts. You can modify an existing discount by following step 1 to navigate to the Settings area. Then, open the discount you want to edit. 1. In the Navigation Pane, click Settings. 2. Under Settings, click Settings. Then, in the Settings area click Product Catalog, and then click Discount Lists. 3. In the Discount Lists list, open the discount list that you want. 4. Under Details click Discounts, and then on the Actions toolbar, click New Discount. 5. In the Discount form, enter the following information: – Begin Quantity: Enter the least amount that must be ordered to receive the discount. This must be a number between .00001 and 1,000,000,000. End Quantity: Enter the largest amount that can be ordered to receive the discount. This must be a number between .00001 and 1,000,000,000. Percentage: Enter the percentage of the discount. This must be a number between .00001 and 99,999.00000.

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6. Click Save or Save and Close. 7. Repeat steps 4 through 6 to add more discounts to the discount list. 8. Click Save or Save and Close.

Using Discount Lists as Incentives
A discount list lets you offer your products or services at different prices, depending on the quantity purchased. You create discount lists so that you can offer customers an incentive to buy more of your product. For example, if the average order from your customers is for 5 units of your product, you could create an incentive for your customers to order more than five items by giving them a discount when they order 6 or more units of your product. The amount of the discount can be based on a percentage or a set amount.

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It is best to think of a discount list as a discount schedule. With this method, you can set several ranges of discounts that are based on the quantity that must be purchased. For example, consider the following discount schedule that offers increasing percentage discounts for three different quantity ranges: Beginning Quantity 6 11 21 Ending Quantity 10 20 30 (or more) Percentage (%) Discount 5.00 10.00 15.00

With this discount schedule, you can provide three different levels of discounts based on the quantity purchased. As the customer purchases more products, the discount increases up to a maximum of 15 percent.

Procedure: Send a Promotional Product
You can use a discount list to create a volume discount that allows a product to be sent out at no charge for promotional purposes or as a sample. 1. Create a discount list with a volume discount of 100 percent. 2. Open the product you want to send and add a price list item using the discount list you created in step 1. 3. Open the quote and add the promotional product. 4. On the Quote form, check the product line item you added in step 3 to verify that the Price Per Unit column displays the normal product price and the Extended Amount column displays a zero amount.
NOTE: The status information provided on the Status bar in a quote form tells you where the quote is in its lifecycle, for example, Draft or Won. This information is derived from the State value in the database and cannot be customized. The status reason provided in the Status Reason column in the list view gives an explanation for why the quote has a particular status. This information is set by the user and these options can be customized.

Unit Groups
A unit group contains a collection of the units of measure that your product is packaged in. To set up a unit group, you must determine a primary unit. The primary unit is the lowest common unit of measure for the unit group. Typical primary units are gallons, liters, hours, days, kilograms, pounds, or each.

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When you are setting up your product catalog, you must specify the primary unit, which is typically the most common denominator in which your inventory is measured, such as by the single item, pair, or hour. Next you must decide the different increments that the inventory measured in the primary unit will be sold, such as by the individual item, a dozen, or a case, or by the hour, week, or project. Each of these types of measurement is referred to as a unit. Each unit is defined in terms of any other unit in the unit group. The unit group is comprised of units that are related to each other. After a primary unit is determined for a unit group, you can set up larger quantities that can be packaged. Unit groups define how the different base units relate to one another. For example, consider the following unit group for a company that sells apple juice. The apple juice is packaged and sold as a single bottle, a case (24), and a pallet (10 cases). With this packaging structure, you might have a unit group similar to the following: Unit Each Case Pallet Base Unit Each (primary unit) Each Case Quantity 1 24 10

In this example, a pallet is represented as ten cases, but is tracked in Microsoft CRM as 240 bottles.

FIGURE 7−8: UNIT GROUPS

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Procedure: Create a Unit Group
When you create a unit group you must specify a primary unit. The primary unit is the lowest unit of measurement for the unit group. 1. In the Navigation Pane, click Settings. 2. Under Settings, click Settings. Then, in the Settings area click Product Catalog, and then click Unit Groups. 3. On the Actions toolbar, click New. 4. In the Create Unit Group dialog box, you must enter the following information: – – Name: Enter a descriptive name for the unit group. Primary Unit: Enter the primary unit for the unit group.

5. Click OK. The Unit Group form opens. 6. Click Save and Close, to save and close the unit group without adding units. Or, under Details click Units, and then click New Unit to create a unit for this unit group. 7. In the Unit form, you must enter the following information: – – – Name: Enter a descriptive name for the unit. Quantity: Enter the quantity that will comprise this unit. For example, if this unit is for a dozen, then enter 12. Base Unit: Enter the base unit for the group. You can use Lookup to search for and select a base unit. The base unit will establish the lowest unit of measurement for this unit group. For example, if this unit is for one dozen, and the quantity for this unit is equal to 12, you must select a base unit that has a quantity of 1.

8. Click Save or Save and Close.
NOTE: You cannot delete the primary unit for a unit group.

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Procedure: Add or Edit a Unit in a Unit Group
A unit group includes one or more units. To add one or more units to a unit group, open the unit group and then create the units that you want. You can modify an existing unit or unit group by following step 1 to navigate to the Settings area. Then, open the unit group you want to edit. 1. In the Navigation Pane, click Settings. 2. Under Settings, click Settings. Then, in the Settings area click Product Catalog, and then click Unit Groups. 3. In the Unit Groups list, open the unit group where you want to add one or more units of measurement. 4. Under Details click Units, and then on the Actions toolbar, click New Unit. 5. In the Unit form, you must enter the following information: – – – Name: Enter a descriptive name for the unit. Quantity: Enter the quantity that will comprise this unit. For example, if this unit is for a dozen, then enter 12. Base Unit: Enter the base unit for the group. You can use Lookup to search for a and select a base unit. The base unit will establish the lowest unit of measurement for this unit group. For example, if this unit is for one dozen, and the quantity for this unit is equal to 12, you must select a base unit that has a quantity of 1.

6. To save changes and close, click Save and Close. 7. Repeat steps 4 through 6 to add or edit additional units. 8. Click Save or Save and Close.

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Price Lists
Price lists are a component of the product catalog. Price lists contain one or more individual product prices that have been categorized into a list to allow for maintenance and accessibility. The price list ( A group of the specific prices that can be charged for each unit in the unit group of a product. Price lists are used to determine the pricing in a quote for a customer. A default price list can be added to a product. ) includes the prices that are charged for each unit group of a product. You can create multiple price lists in Microsoft CRM. For example, it is common for a business to maintain separate price structures for different sales channels, such as retail and wholesale, or different customers, such as government or nonprofit. In Microsoft CRM, price list items are a combination of price list, product, and unit group. The price list and discount list combined determine the final pricing for products on quotes, orders, and invoices. You can configure pricing options within Microsoft CRM to control how prices are calculated. You can configure the pricing method, such as pricing based on a percentage of the product's list price. You can also set how prices are rounded. The rounding policy gives you control over whether prices are rounded up, down, or to the nearest amount of the currency amount that you specify.

FIGURE 7−9: PRICE LISTS

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FIGURE 7−10: PRICE LIST ITEMS

Procedure: Add a Price List
You can modify an existing price list by following steps 1 and 2 to navigate to the Settings area. Then, open the price list you want to edit. 1. In the Navigation Pane, click Settings. 2. Under Settings, click Settings. Then, in the Settings area click Product Catalog, and then click Price Lists. 3. On the Actions toolbar, click New. 4. In the Price List form, enter the following information: – – Name: You must enter a name with a length of 100 characters or less. The information should be meaningful and unique. Start Date: Enter the beginning date for which this price list is valid. You must enter the date in the format your organization has set for dates. For example, 01/01/2006 or 31.12.2005. If you omit leading zeros in a date, Microsoft CRM will add them automatically. For example, when you type 1/1/06, Microsoft CRM will display it as 01/01/2006, if that is the date format of your organization.

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– End Date: Enter the end date for which this price list will no longer be valid.

5. Click Save or Save and Close.
NOTE: When you add price list items, create a price list item for each unit in which the product is available. For example, if the product is available as a single item (each), in a dozen, and in a gross, create three list items. This enables you to order the product in any quantity you want using the same price list.

Products
The product is the item you are selling. It can be either a physical inventory item or a service. You can add products in the Settings area of the Microsoft CRM product catalog. Products provide a flexible means to record, track, and publish your products or services. A product can be created as a single unit, or you can create a kit that includes a group of products. Additionally, if a replacement product for a particular product is available, you can add that product as a substitute product. In Microsoft CRM, a product contains the following components and options: • Information: The Information tab on the Products form contains critical information about the product such as unit group, unit, default price list, and list price. Substitutes: You can add substitute products on the Substitutes tab in the Products form. Then, when you create a quote, order, or invoice, you can use the product catalog to find and substitute a similar product if the existing product has become inactive. Price List Items: You can add one or more price list items to an existing product. When you set up a price list item with a pricing policy that is set to Currency Amount, you must select a fixed dollar amount. Additionally, when you use a currency amount pricing policy, the Rounding area is unavailable. This is because the pricing policy must be based on a percentage, such as percent of list, to have a rounding policy. When you set up a pricing policy that is based on a percentage, you can set a price rounding policy, or select None to have no price rounding policy associated with the price list item. Kit Products: Products can be bundled together to form a kit. Kits can help simplify the sales and ordering process. For example, if your company sells digital cameras and batteries, you might bundle those two products together to form a kit. To form a kit, you must first convert the product to a kit product, and then you can add each product that you want to the kit.

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• Reclassify: When you reclassify a product, you change the subject that the product is related to.

Procedure: Create a Product
In addition to creating and maintaining products, you can use the Products area to set up services, fees, and charges. Each product contains the units and the price list by which the product will be sold. Note that, before you set the default price list, you must complete all the required fields and then save the product. You can edit an existing product by following steps 1 and 2 to navigate to the Settings area. Then, open the product you want to edit. 1. In the Navigation Pane, click Settings. 2. Under Settings, click Settings. Then, in the Settings area click Product Catalog, and then click Products. 3. On the Actions toolbar, click New. 4. On the General tab, enter information or observe any noted restrictions or requirements as needed: – ID: You must enter an ID for the product. The ID can be numbers, letters, or characters and must be less than 100 characters in length. Name: You must enter a name with a length of 100 characters or less. The information should be meaningful and unique. Subject: You can select a subject if you want to associate this product with a subject. Subjects let you categorize your products and can be used to filter reports. You can select a record from a filtered list in the Form Assistant pane, or you can click Lookup to search for other records. Unit Group: You must select the unit group that contains the units by which this item is sold. You can select a record from a filtered list in the Form Assistant pane, or you can click Lookup to search for other records. Default Unit: You must select a default unit. The default unit is the most common unit that the product is sold in. You can select a record from a filtered list in the Form Assistant pane, or you can click Lookup to search for other records. Product Type: Select one of the following product types: o Sales Inventory: This option is the default product type. Select sales inventory if this item is for a product. o Miscellaneous Charges: Select this option to set up a miscellaneous charge, such as restocking, that can be added to quotes, orders, and invoices.

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o o Services: Select services if this item is for a service. Flat Fees: Select this option to set up a flat fee, such as handling or shipping, that can be added to quotes, orders, and invoices.

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Quantity On Hand: This box represents the quantity of items available. You must enter a number between 0 and 1,000,000,000. URL: You can enter a Web address in this box to provide information about the product or service. Microsoft CRM users can click the URL link to open the Web page for additional information about the product or service. Default Price List: If this is a new product, this field is read only. Before you can select a default price list, you must complete all the required fields, and then save the record. Although the default price list is not required, after you save the product record, it is a good idea to set a default price list for each product. Then, if a customer record does not contain a price list, Microsoft CRM can use the default price list for generating quotes, orders, and invoices. Decimals Supported: In this field you must enter a whole number between 1 and 4. If the product cannot be divided into fractional quantities, enter 0. List Price ($): This is a dollar amount that is based on the list or sales price. Quote, order, and invoice prices are generated from this information. Standard Cost ($): This is a dollar amount that is based on the typical cost of the item. Quote, order, and invoice prices are generated from this information. Current Cost ($): This is a dollar amount that is based on the current or temporary cost of the item. Quote, order, and invoice prices are generated from this information.

5. On the Description tab, you can enter product-specific information in the following boxes: – – – – Vendor Vendor Part Number Stock Weight Stock Volume

6. Click Save or Save and Close.

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Summary
This lesson discussed how sales processes and workflow can be used to ensure a consistent sales process and maximize sales. Tracking of competitors is important and the information is used to indicate the reason a sale is lost. The lesson also reviewed the administrative tasks in the Sales module.

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Test Your Knowledge
1. What might cause a company to use multiple automated sales processes? Select all that apply. a. Multiple sales territories b. More than one type of product c. Multiple price levels d. Serving more than one type of customer 2. What is the primary advantage of a defined sales process? a. Provides the organization a common vocabulary to discuss potential sales b. Reduces meeting times and confusion c. Helps control the process of selling to maximize sales d. Provides performance indicators for the sales force 3. What do sales stages provide? Select all that apply. a. Real time data to formulate a sales strategy b. Information to formulate a strategy for meeting expectations c. Information to manage your Lead qualification d. Information to manage the business in your pipeline 4. What is the benefit of tracking competitors? Select all that apply. a. Track the negative features of a competitive product b. Compete effectively c. Strengthen customer relationships d. Close more opportunities 5. Which entities are competitors associated with? a. Opportunities b. Products c. Contacts d. Price lists

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6. What are the types of documents stored as Sales Literature? Select all that apply. a. Sales Brochures b. Product Catalogs c. Price Lists d. Knowledge Base articles 7. What are some of the elements comprise the product catalog? Select all that apply. a. Discount List b. Price List c. User List d. Product List

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Lab 7.1: Manage Competitive Information
In this demonstration, we add competitive information to an opportunity and view the information that is recorded about competitors. As you perform the instructions use the information in the Scenario and Goal Description to complete the lab. See the Introduction to Training lesson for information about the two levels of lab instruction and the lab solution in Appendix A.

Scenario
During a follow-up telephone call with Margie's Travel regarding an opportunity (Interested in Mountain Bikes, 45 of the new model), a Sales Representative learns that the customer is also looking at products sold by another company, Unified Sports Company. The Sales Representative uses Microsoft CRM to find out more information about Unified Sports Company and associate the opportunity with this competitor.

Goal Description
The goal of this demonstration is to use the competitor form to associate a competitor with an opportunity.

Challenge Yourself!
Use the information in the Scenario and Goal Description to complete the lab.

Need a Little Help?
Use the information in the Scenario and Goal Description to complete the lab. Follow these steps to enter competitive information: 1. In the Navigation Pane, select Competitors and open Unified Sports Company. 2. In the Competitor form, click Opportunities. 3. To add the opportunity, refer to Procedure: Associate from the Opportunity Form on page 178. 4. Click Save.

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Quick Interaction: Lessons Learned
Take a moment and write down three Key Points you have learned from this chapter: 1.

2.

3.

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Description: Microsoft CRM 3.0 Sales - 8521A