How to save on sales & customer service.(Operations)

* Create a single inbound sales and service group: Mitch Russo, chief operating officer of Sage U.S., says his TimeSlips division recently combined an entry-level customer service group (which handled calls about shipping and ordering problems) with inbound sales. Previously, the two groups had "different salary and commission structures, different training levels, and different objectives," Russo notes. But by giving the service reps additional sales training, "we saw a sales increase of about 12%, net of commissions and comp increases," he says. "This approach may not work for every type of product, but for TimeSlips it paid off in better service, higher revenue, and happier employees."

Mitchell Russo, chief operating officer, Sage US, 17950 Preston Rd., Dallas, Tex. 75252; 972/818-3900. E-mail: mrusso@sageus.com.

* Hire a rep firm: Companies that sell through retail channels typically need a sales force to visit individual stores, check inventory, and run promotions, but Quarterdeck vice president Joe Fusco says that an independent rep firm can often do this job for much less than an in-house sales organization. Even better, says Fusco, "you can sometimes negotiate to pay based on the units that sell through versus units sold in."

Joseph Fusco, vice president of utilities business unit, Quarterdeck, 13160 Mindanao Way, Marina del Rey, Calif. 310/309-3780. E-mail: jfusco@qdeck.com.

* Share T&E savings with the sales force: "Travel and entertainment are a huge cost for any company, especially technology companies that have people all over the company four or five days a week," says Jordan Levy of SoftBank Services. LevyOs cost-saving advice: Insist that the sales organization develop a T&E budget, then offer incentives to reps who spend less than the budget allows. "If reps make their sales quota, they should keep some percentage of any unused dollars (an even split is enticing) as a reward for using cheap airlines and staying at less expensive hotels," Levy suggests.

Jordan Levy, co-chairman, SoftBank Services Group, Box 1722, Williamsville, N.Y. 14221; 716/871-6444. E-mail: jordalev@sbservices.com.

* Use online alternatives to live customer service: Chris Randles of MathSoft points out that software companies are often "the last to employ technology to their own benefit," especially in automating routine functions like customer service. MathSoft's fulfillment services now "include automatic acknowledgement of orders and confirmation of shipments via e-mail," he says. "And customers--channel or direct--can track their own shipments online, saving time and money in customer service."

Chris Randles, vice president of marketing, MathSoft, 101 Main St., Cambridge, Mass. 02142-1521; 617/577-1017. E-mail: crandles@mathsoft.com.

* Use electronic ordering to improve accuracy: Another benefit of online transactions, Kathy Lane of Centura Software points out, is a dramatic reduction in expensive order entry mistakes. "With paper forms, errors can be as high as 20%; when you go online, it's less than

Kathy Lane, senior vice president of marketing, Centura Software, 975 Island Dr., Redwood Shores, Calif. 94065; 650/596-4886. E-mail: kathy.lane@centurasoft.com.