The following column, which appears each issue, looks at new and emerging trends in direct marketing. Alternating columnists are Barbara Canning Brown, a leading figure in the Canadian direct marketing industry, and David Foley, a specialist in database marketing programs.

‘Willy was a salesman. And for a salesman, there is no rock bottom to the life. He don’t put a bolt to a nut, he don’t tell you the law or give you medicine. He’s a man way out there in the blue, riding on a smile and a shoeshine. And when they start not smiling back – that’s an earthquake. And then you get yourself a couple of spots on your hat, and you’re finished. Nobody dast blame this man. A salesman is got to dream, boy. It comes with the territory.’

Death of a Salesman,

Requiem, 1949

Poor Willy Loman. He had it pretty rough. But, if Willy was around today, he might be finding the salesperson’s lot in life even tougher.

Not only have the customers stopped smiling, they’ve become downright demanding.

That’s not all.

The company has turned a baleful eye into the sales corner and discovered a juicy cost centre. The voices of doom boom, ‘Cost-to-sales ratios are too high. Personal selling is inefficient. Cut sales expense, cut sales heads, cut, cut, cut.’

Why all the noise? Well, most companies with a salesforce on the ground have taken a look around and realized a number of things:

1) The cost of constantly acquiring customers is just too expensive and the return on investment takes too long. On top of the cost, acquisition campaigns are resulting in diminishing returns.

2) Greater dollar accountability is being demanded from every functional business area.

3) It’s time to get off the product-pushing bandwagon, stop all the idle chatter about being customer-driven and start walking the walk of customer management.

It all boils down to the bottom line in the end. But, today, the simple old ‘increase revenue and reduce costs’ formula doesn’t work as magically as it once did.

It’s a little more complicated now.

The companies, and, consequently, the sales forces of today are now under constant and/or growing pressure to reduce their costs of sales, deliver more repeat business, increase customer loyalty, segment their market and understand customers by developing a profile based, not on fuzzy, aggregate or demographic information, but on actual transactional sales, product purchase information and buying behavior – who buys how much of what, when and how often.

The overriding concern is integration – integration of sales and marketing, of systems and feedback processes, integration and co-ordination of customer communications, dealer relations, and, last but not least, integration of internal information so everyone’s singing from the same songsheet at last.

Now, the real challenge is to make it all happen. Where most companies jump in and start is with salesforce automation. Conjures up visions of Charlie Chaplin’s Metropolis, if we’re not careful, doesn’t it?

And what’s behind it? An integrated information database.

But even where companies have booted up their systems to the point where every sales vehicle is a rolling computerized communications centre, many have failed to consider one thing. Good old Willy Loman.

And, guess what? He (or she) is where the rubber really hits the road for the success (or failure) of noble objectives such as:

1) Building a lifetime relationship of repeat business with customers.

2) Maintaining comprehensive, up-to-date, relevant customer and prospect information.

3) Identifying best potential, most responsive customers and prospects.

Why is it not working? Because Willy holds the key to the castle, a.k.a. the customer.

Giving up ownership of customer information to a central repository simply threatens his basic survival. Big Brother is seen to be watching closer than ever and demanding accountability for every call, every lunch, every minute.

Next thing Willy knows, he’s out of a job. But, it’s not all bad news. Some companies are making effective use of the potential behind sales automation and customer databases, such as:

1) Making telemarketing a division of sales. Sharing commissions, forming teams between sales and telemarketing to qualify leads, manage smaller and marginal accounts, define qualified leads and design the feedback and analysis loops.

2) Instead of cold calling, using the sales prospect database to deliver a personalized (to the prospect and from the salesperson) direct mail message as an initial door-opener, and finally

3) Tying the salesforce’s customer information responsibilities directly to their compensation package. Now, there’s something to dream about, Willy.

Barbara Canning Brown, a 20-year veteran of the direct marketing industry, heads a consultant firm specializing in database and catalogue marketing.