Use Automated Customer Contact Cautiously
As I begin this article, I recognise I’m going to come across as a dinosaur.
The situation I am writing about began some months ago, when I asked some clients to send me ideas on how they would like to see AI used in their businesses. We are developing an AI module for RFMS, and I was interested in understanding clients' expectations for AI in their businesses.
One client circulated the question among their team of salespeople, and, looking at their suggestions, I recognised that, as an industry, we have a problem.
“If AI does everything our salespeople would like it to do, they will be out of a job.”
Reading through their feedback, I realised that if AI did everything these salespeople wanted, it would effectively automate them out of a job. If AI can help find the right product for the customer’s purposes, calculate the quantities, generate a quote, and then automatically follow up on that quote, what exactly would their role in the process be?
The Misconception of CRM Automation
Today I had a discussion with a retailer about CRM. CRM is a key business tool. CRM has always existed, but before computers came along, it happened manually, in diaries and on index cards; successful salespeople always found a way to manage their opportunities.
“Successful salespeople have always found ways to manage their opportunities.”
The specific function this retailer was looking for in a CRM solution was the ability to generate automated follow-up emails for leads. And this is where the dinosaur in me comes out.
Automated follow-up may work for low-value, high-volume e-commerce (Amazon reminding you you have an item in your checkout), but I don’t believe it has a place in a successful flooring retail business. Here's why:
High-Value Decisions Require Human Contact. Flooring is often one of the largest purchase a consumer makes after buying a home or a car. Customers want to interact with a human being who validates their choices and ensures they don't make a mistake. An automated email cannot provide that comfort.
“Flooring is often one of the largest purchase a consumer makes after buying a home or a car. They want to interact with a human being.”
Following up on Low-Volume Opportunities Is Manageable: Flooring sales are high-value but low-volume. A salesperson is never managing more monthly leads than they can handle via direct phone calls, email, or text. Frankly, if a salesperson isn't responsible for the follow-up, can they really be considered a salesperson?
The most effective follow-up is by phone or in person.
To be effective, our salespeople need to engage with our prospective customers, understand the obstacles to closing the sale, and act accordingly.
The Cost of Abdicating Customer Contact
The argument might be made that my salespeople are not good at follow-up, so automated emails are better than nothing. My response is that the cost of an inadequate follow-up process is the difference between a thriving retailer and a retailer struggling from month to month.
“The cost of an inadequate follow-up process is the difference between a thriving retailer and a retailer struggling from month to month.”
I have written at length about the importance of the follow-up process and what it should look like in a flooring business. AI should absolutely be used to remove administrative friction, but it should never shield us from human interaction. The front line of closing a sale must always be your people.
Chris Ogden is a consultant and Managing Director of RFMS Australasia (rfmsANZ.com), a supplier of IT solutions specific to the flooring industry. Chris has an extensive background across all aspects of the flooring industry and can be contacted at cogden@rfmsanz.com.