A Business Approach To RFID

I could argue that most of the time when a new sales person enters into the RFID world, he/she encounters a world that is very different from other sales disciplines. So, what is the difference? after all, sales for most fields has a methodology well defined which includes a value proposition, ROI tools, relationship building, pricing strategy, market mix, etc. However, sales on RFID on my opinion, has several dimensions that separates it from other disciplines. The aspect that separates sales on RFID from other disciplines is the wireless dimension and the physical science behind every RFID application. Given these added dimensions, to have success on sales for RFID technology it is necessary to have the right approach. Below, I share some of my experience and give some pointers that perhaps are good practice for salespeople in RFID technology.

1. Understand the process flow: Most customers explore RFID technology because they have heard of the potential benefits or they have a problem that truly fits the RFID application. A good practice is to layout all the operational flow of the customer prior to looking at the RFID solution. Some examples are:
1. Work flow directly related to the process every customer is unique and it is important to have excellent understanding prior to propose any improvements to the current process
2. Asset flow and characteristics: Most RFID applications will involve the tracking and identification of assets. Having an understanding of the type of assets is half the battle
3. Environment, time, and space: RFID is a wireless technology prone to interference from other devices in the vicinity, metals, and liquids. The sales person has to understand how RFID will perform in this environment. Failure to consider this aspect can be catastrophic if the right customer expectations are not met
2. Understand the cost benefit and ROI analysis: Unlike purely hardware sales or software sales, RFID usually a mix (unless the customer is the one deploying the system). There are three key pieces to the ROI:
1. RFID tag form factor and asset tagging: The successful salesman is an expert on the type of tag and the asset to be tagged. While it is true that RFID is somehow more mature now than when the Wal-Mart mandates were first introduced, the type tag chosen is directly proportional to the read rate and read range performance. Lack of an understanding of this aspect will result on unacceptable read rates and high costs on portal or read point troubleshooting. On my experience I have seen a lot of time an effort lost trying to tune a portal to find out that the wrong type of tag was chosen for the asset from the beginning
2. Reader Infrastructure and reader network: the experienced sales person will have a estimated number of readers that will be needed in the customer facility based on the expected points of visibility within the process, the salesperson should lay on the proposal that the larger the number of RFID readers, the lower the cost of tags since the benefits of the tag visible in the facility’s reader network will surpass the cost of the incremental tags.
3. Middleware and software integration costs: Sales person has to understand how the data will flow from the RFID readers to the customer dashboard. The implications for this part of the proposal are key with budgetary costs for software. Some customers will reluctant invest on a new software system because of RFID. Therefore, the middleware piece has to be analyzed to make sure that the business rules and the existing software is accounted. This opens the door to new business therefore RFID integrators should be aware of the type ERP or WMS the customer uses.
4. Installation and professional services costs: the salesperson should be an expert on the RFID reader hardware and mounts and the amount of time it will take to make and install. Failure to have an understanding on the field install could critically diminish profit because of ill estimated costs for professional services.
3. Understanding the customer business: it is critical since RFID can be a significant investment for any company or enterprise. The salesperson approach to business in RFID has to go beyond the sale and has to be perceived as a partner. RFID is a technology that requires a long term commitment and along the way, because the way RFID technology works, the customer will have to make compromises in its processes and the way it interacts with its people and customers. The better the salesperson understand the customer the better the chances for recurring sales and service.

In summary these are some of the aspects that I consider a sales account manager should have experience on to be successful in RFID sales. While some will recognize that some of these traits are shared among other sales disciplines, I would emphasize that the RFID sales person ought to be an expert (unlike other sales disciplines) on the areas mentioned above and well versed in wireless technologies and the supply chain in order to be successful and help his/her customers.