Case Study:
Xerox: Building Customer Relationships through Personal Selling
“I’m like the quarterback of the team. I manage 250 accounts, and anything from billing issues, to service issues, to selling the products. I’m really the face to the customer,” says Alison Capossela, a Washington, DC–based Xerox sales representative. As the primary company contact for Xerox customers, Alison is responsible for developing and maintaining customer relationships. To accomplish this she uses a sophisticated selling process that requires many activities from making presentations, to attending training sessions, to managing a team of Xerox personnel, to monitoring competitors’ activities. The face-to-face interactions with customers, however, are the most rewarding for Capossela. “It’s an amazing feeling; the more they challenge me the more I fight back. It’s fun!” she explains.
THE COMPANY
Xerox Corporation’s mission is to “help people find better ways to do great work by constantly leading in document technologies, products, and services that improve customers’ work processes and business results.” To accomplish this mission Xerox employs 130,000 people in 160 countries. Xerox is the world’s leading document management enterprise and a Fortune 500 company. Xerox offers a wide range of products and services. These include printers, copiers and fax machines, multifunction and network devices, high-speed color presses, digital imaging and archiving products and services, and supplies such as toner, paper, and ink. The entire company is guided by customer-focused and employee-centered core values (e.g., “We succeed through satisfied customers”) and a passion for innovation, speed, and adaptability.
THE SELLING PROCESS AT XEROX
In 2001, Xerox began a shift to a consultative selling model that focused on helping customers solve their business problems rather than just placing more equipment in their office. The shift meant that sales reps needed to be less product-oriented and more relationship- and value-oriented. Xerox wanted to be a provider of total solutions. Today, Xerox has more than 8,000 sales professionals throughout the world who spend a large amount of their day developing customer relationships. Capossela explains: “Fifty percent of my day is spent with my customers, 25 percent is following up with phone calls or e-mails, and another 25 percent involves preparing proposals.” The approach has helped Xerox attract new customers and keep existing customers. The sales process at Xerox typically follows the six stages of the personal selling process identified in Xerox identifies potential clients through responses to advertising, referrals, and telephone calls; (2) the salesforce prepares for a presentation by familiarizing themselves with the potential client and its document needs; (3) a Xerox sales representative approaches the prospect and suggests a meeting and presentation; (4) as the presentation begins, the salesperson summarizes relevant information about potential solutions Xerox can offer, states what he or she hopes to get out of the meeting, explains how the products and services work, and reinforces the benefits of working with Xerox; (5) the salesperson engages in an action close (gets a signed document or a firm confirmation of the sale); and then (6) continues to meet and communicate with the client to provide assistance and monitor the effectiveness of the installed solution. Xerox sales representatives also use the selling process to maintain relationships with existing customers. In today’s competitive environment it is not unusual to have customers who have been approached by competitors or who are required to obtain more than one bid before renewing a contract. Xerox has teams of people who collect and analyze information about competitors and their products. The information is sent out to sales reps or offered to them through workshops and seminars. The most difficult competitors are the ones that have also invested in customer relationships. The selling process allows Xerox to continually react and respond to new information and take advantage of opportunities in the marketplace.
THE SALES MANAGEMENT PROCESS AT XEROX
The Xerox salesforce is divided into four geographic organizations: North America, which includes the United States and Canada; Europe, which includes 17 countries; Global Accounts, which manages large accounts that operate in multiple locations; and Developing Markets, which includes all other geographic territories that may require Xerox products and services. Within each geographic area, the majority of Xerox products and services are typically sold through its direct salesforce. Xerox also utilizes a variety of other channels, including value-added resellers, independent agents, dealers, systems integrators, telephone, and Internet sales channels. Motivation and compensation are important aspects of any salesforce. At Xerox there is a passion for winning that provides a key incentive for sales reps. Compensation also plays an important role. In addition, Xerox has a recognition program called the President’s Club where the top performers are awarded a five-day trip to one of the top resorts in the world. The program has been a huge success and has now been offered for more than 30 years. Perhaps the most well-known component of Xerox’s sales management process is its sales representative recruitment and training program. “For recruitment, Xerox looks for seasoned businesspeople who can talk to customers,” says Kevin Warren, president of United States customer operations at Xerox. “Our value proposition is that we take care of document management to help run your business,” Warren explains. “So we look for consultative and business-savvy salespeople.” On the training front, Xerox developed the “Create and Win” program to help sales reps learn the consultative selling approach. The components of the program consist of interactive training sessions and distance-learning webinars. Every new sales representative at Xerox receives eight weeks of training development in the field and at the Xerox Corporate University in Virginia. “The training program is phenomenal!” according to Capossela. The training and its focus on the customer is part of the Xerox culture outside of the sales organization also.
Every senior executive at Xerox is responsible for working with at least one customer. They also spend a full day every month responding to incoming customer calls and inquiries.
WHAT IS IN THE FUTURE FOR THE XEROX SALESFORCE?
The recent growth and success at Xerox is creating many opportunities for the company and its sales representatives. For example, Xerox is accelerating the development of its top salespeople. Mentors are used to provide advice for day-to-day issues and long-term career planning. In addition, globalization has become such an important initiative at Xerox that experienced and successful sales representatives are quickly given opportunities to manage large global accounts. Xerox is also moving toward an approach that empowers sales representatives to make decisions about how to handle accounts. The large number of Xerox customers means there are a variety of different corporate styles, and the sales reps are increasingly the best qualified to manage the relationship. This approach is just one more example of Xerox’s commitment to customers and creating customer value.
Q1. How does Xerox create customer value through its personal selling process?
Q2. How does Alison Capossela provide solutions for Xerox customers?
Q3. Why is the Xerox training program so important to the company’s success?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.