3 Not-So-Obvious Benefits of CRM

Whenever I ask people if their sales team uses CRM, I typically get one of two responses: “Yes,” or “What’s CRM?” If you’re actively leveraging the power of CRM at your company now, you already know the many benefits. I like to say CRM helps you, “box above your weight class” because you get far more done in less time. But for those who have not yet jumped on the bandwagon, this post may prompt you to take a closer look.

shutterstock_306779873

So, what is CRM?  “Customer Relationship Management” is both a technology tool and a sales strategy. At its most basic level, CRM allows you to capture, store, and organize highly detailed Customer and Account information and share it across the entire organization. Today’s CRM got its start in the 80’s with the advent of digital rolodex tools (also known as Contact Management Software or CMS) like Act!, Goldmine, and Time & Chaos. The big leap forward came in the 90’s when companies took many features of database marketing, automated them (SFA), and combined them with contact management systems. CRM continued to evolve throughout the latter half of the 90’s and into the early 2000’s.

In 2007, Salesforce.com created the next big change by introducing the world to cloud-based CRM. These systems are subscription based, continuously updated and highly customizable.  Fast forward to today, there is a full array of very powerful CRM systems – Salesforce.com holding the largest share of the market with over $4 billion in annual revenue.

There are many benefits of utilizing a cloud-based CRM system in your sales process. Some of them are quite obvious like improved business relationships, better retention of your best customers, and driving steady sales growth. But here are some “not-so-obvious” benefits you may not have thought about:

1)      If you want something done right, do it yourself

Take, for example, the wine industry where you must use “middle men” or distributors to execute your sales and marketing plans.  It can be very frustrating to rely on a third entity -especially if that entity is serving many masters. Taking a page out of the direct-to-consumer (DTC) playbook, sales organizations can now manage relationships directly with restaurants and fine wine shops in a B2B fashion via email and social media interactions. The work of distribution still gets done (and expertly, I might add), but the brand owners themselves assume responsibility for maintaining and keeping those key customers by fostering strong, personal relationships.  I know several wineries, both large and small, who leave nothing to chance because they have a system for managing all interactions, conversations, events, and commitments with their best customers. A CRM strategy helps brand owners take full responsibility for the quality of their distribution while improving the “sticky-ness” of their top customers.

2)      For once, Sales & Marketing are pulling on the same rope

Profitable, healthy brands get built because sales and marketing work together seamlessly. Sometimes Sales teams lose sight of the importance of brand equity and, in the aggressive pursuit of volume, the temptation to lower price wins out. Marketing pros are often accused by the Sales team of being too disconnected to the “real world.” When a Marketing team’s campaign fails, they blame Sales for poor execution. When a plan succeeds, both Sales and Marketing want the credit. More often than not, these “disconnects” are caused by poor communication and lack of collaboration. Enter a cloud-based tool whereby everything is visible to everyone in the organization 24/7 and mobile, too. CRM helps facilitate a unified social engagement with customers plus provides full collaboration of “corporate knowledge” (read: no silos). And thanks to the abundance of hard data, there’s only “one version of the truth.”

3)      The Need for Speed on Steroids

Speed has become such a differentiator in today’s competitive marketplace. The need to adapt, respond, and innovate has always been around. But companies with both the will and the ability to accelerate the pace of doing business (well beyond their competitors) have a huge advantage. Huge! When people tell me they don’t have time to use CRM systems, I’m just astounded. Why walk when you could run? Why drive when you could fly? And why fly when you could interact in real time on your mobile device? It’s like when people ask me to give them directions or send them a link or “get back to them.” I’m like, are you kidding me?! This is 2016, there is no “getting back” to anyone! I can get anything and everything I need with a couple of taps on my phone – including any piece of Customer or Account info in my CRM database. I spend zero time waiting, inquiring, or wondering. Get out a pencil and see what your sales team is costing your company. Then ask yourself, what kind of return on capital could I realize if I could double or triple the speed at which things get done?

We are in the midst of a glorious era in the world of business – especially for industries behind the curve in the adoption of cloud-based technology in their sales & marketing process. Real, meaningful, and significant advantages await those who make the leap now. Within 5 years, everyone will be using CRM and, looking back, will wonder how they ever got along without it. I urge you to get out of the stands and onto the field – today! I can’t promise someone will “get back to you.”

5 Ways to Stop “Heat Loss” in Your Sales Process

shutterstock_366616988

Last summer I was doing some research for a speech I was giving about the role of technology in the “flavor experience.” I was fascinated by the latest advancements in commercial cooktops. With the old way of cooking, you light a gas burner and place the pot or pan on the flame to heat the contents. In the new way of cooking, vessels are heated via magnetic induction. Not only can you achieve rapid increases in temperature, but there is virtually zero “heat loss” and more “thermal efficiency.”  It turns out when you use an open gas flame, 70-80% of the usable heat is lost into the environment. Only 20-30% of the heat makes it to the pot or pan.

Ever since I’ve learned this, I’ve been relating this phenomenon to “heat loss” in the context of selling. Just stop and think for a moment how much energy is wasted by the average sales team: by pursuing low value customers, by failing to keep track of every last detail, and from poor follow up. What if the same “heat loss” percentages that apply to conventional cooktops also applied to conventional sales teams? That got me thinking about the importance of identifying (and then drastically reducing) the “leaks.”

If you want a 1-to-1 return on your time, money and energy, (zero heat loss), you need to first identify the specific areas where heat loss is occurring. Here are five of the most common ways to stop value leakage in your organization and maximize the high cost of having a sales team.

1)      Stop treating all customers as if they had the same value to your organization.

Failure to embrace the 80/20 rule may be the single biggest source of heat loss for a sales organization. You must put in the time and research to identify the most attractive and responsive accounts. Focus the majority of your time and energy where it will make the biggest impact to your organization. Identifying the best prospects should never be a matter of opinion or “gut feel.” The DATA will tell you where to aim so aim precisely!

2)      Set specific goals and have a system by which to measure progress against them.

One of our firm’s strategic partners is GreatVines, a CRM provider with over 10,000 sales users. Tim Jones the Co-Founder likes to ask, “What 3 strategic initiatives must we execute to ultimately achieve our goals?” Tim goes on to say you need KPI’s that are true leading indicators (as opposed to lagging indicators). Eliminate heat loss by making sure your goals and key measurements are perfectly aligned with your business objectives.

3)      Track every last detail of ALL conversations, activities, events, and commitments- with your mobile device.

Let me be 100% clear about something. It is 2016. If you are not using a cloud-based CRM system in your organization, you are experiencing major heat loss! Maybe you are currently keeping track of details but how are you doing it? In Excel spreadsheets? In Outlook? God forbid, on a legal pad? Even if you’re diligent about it, it’s impossible to share that information across your entire organization. Meanwhile, your competitors are doing all of this seamlessly – with their cell phones and tablets. We live in a world where nothing should ever fall through the cracks. Zero heat loss. Feel free to join the rest of us at any time.

4)      Systematize collaboration across your organization.

Ask yourself this question and give yourself an honest answer: “Is teamwork elevated to an exalted status at my company or is it seen by most as a hindrance to productivity?” Do people share info & resources or hoard it? Great gobs of heat loss occur every day because companies have neither the culture nor the technology to collaborate across functional lines. I challenge you to take 1 hour of your day to research two things: a) why so many companies utilize popular collaboration apps like Slack, Base Camp, and Chatter and b) the benefits of having a cloud-based CRM system. The ultimate goal here is to pursue and retain the best customers faster and with greater ease – with zero heat loss!

5)      Don’t step over a dollar to pick up a dime.

One of my favorite sayings is “You can’t save your way to prosperity.” I see many companies paying the equivalent of $100 per hour to a top tier sales pro and then asking him or her to do $20 per hour administrative work. Much heat loss is experienced when salespeople do not have adequate tools and support to do their jobs. I’m not talking so much of admin support people as I am providing your sales team with the latest technology tools (and the training in how to use them effectively). These tools not only cut down dramatically on the amount of time spent on administrative tasks but they provide rich, actionable data to everyone in the organization. Why should a salesperson spend an hour preparing reports and updates to his manager or his marketing team when the info can easily be only a few mouse clicks away? Is CRM expensive? “Expensive” is a relative term and the only way to answer the question is to ask a another question: what is the return on capital invested?

I hope this post has caused you to think more deeply about ways to identify “heat loss” in your sales organization. Identifying them and taking steps to reduce them is a very cost effective way to do more with less. There’s an old Vaudeville joke about a guy who goes to the doctor complaining about a sharp pain in his eye every time he drinks coffee. The doctor replies, “Take the spoon out of the cup.” Start looking for the spoons in your organization.

The Future of Selling is Already Here

the-future

I’m halfway through Daniel Pink’s book, “To Sell is Human” and enjoying it immensely for two reasons. First, it’s the book I wished I’d written. I have all these ideas running around in my head so it’s very affirming to see someone else express similar concepts in such vivid detail. It validates so much of what I believe and how I think about the profession of selling. Secondly, the book does a fantastic job of something I’ve been struggling to do lately, which is to articulate the big shift that is taking place right now in the world of sales. I can feel it. I try to warn others about it. But I struggle to explain it. So, thank you Mr. Pink. You’ve emboldened me to press on in my attempts to convert traditional sales pros into what you so artfully call, “non-sales sellers.”

 

I also recently attended Dreamforce 2015, the giant, global convention for Salesforce.com and it’s users. During a seminar called, “The Evolution of Technology,” I made a note of a powerful prediction. The most important force shaping the future of enterprises and what disturbs C-level managers most is technology. The second most important force is “customers.” Now, just stop and let that sink in for a second. The good news for most of us in sales is whenever you hear the word, “customer,” you can be sure our jobs will be secure for some time to come. The bad news, however, is unless we keep up with technology; we’ll be obsolete by the time the summer Olympics kick off in Rio.

 

Now, what I’m about to say is super-hard to grasp for most people making a living in sales today. In fact, if you’re in your forties or fifties, odds are high you may have neither the desire nor the willingness to go down this road with me.  Feel free to just pass the link to this blog post along to your younger counterparts because they need this info too, and might already be way ahead of me.

 

I recently heard a factoid stating, in today’s world, a working engineer needs to spend at least 7.5 hours a week for 48 weeks per year reading and learning just to keep pace. So, just because you’ve graduated from college does not mean you’re done studying. It’s simply the reality of the world we live in today. Technology is advancing at an increasingly rapid rate while, at the same time, the half-life of facts is shrinking. I reel in horror when I think about the tens of thousands of sales pros running around the country who have not read a non-fiction book since college. They are literally stuck in the 80’s.  Many of them may be working for your company. You might even be one of them. So here is your big wake-up call.

 

Sales people of the future will look and sound nothing like the “traditional” sales people of today (and yesterday). In fact, since the future of selling is already here, I’m going to use the present tense for the rest of this blog post. The mobile phone is now the most powerful piece of business equipment. Cloud based CRM and analytics tools provide data-driven action steps for sales pros, at their fingertips. Data about your customers, their usage of your products and services, and even their attitudes about their engagement with your company (via social media feeds) are all now, quite literally, in the palm of your hand. Data and analytics for sales teams used to amount to little more than, “What happened.” Thanks to today’s technology, we now know why it happened, what is going to happen next and how to make it happen again.  News flash to all you stuck-in-the-80s sales folks out there: data helps you perform better. It helps you be more precise about whom you target and what you target them with. Yes, the future is here now but are you here, too, or are you getting left behind? Here’s a quick test. If you’re using legal pads, Excel spreadsheets, Outlook address book, and your email inbox to manage your customer data, you are getting further behind every day.

 

In “To Sell is Human,” Daniel Pink says, “What salespeople do and how we do it must change. What an individual does day to day on the job now must stretch across functional boundaries. We are now in an era of non-sales selling.” Salespeople today need to be part I.T. pro, part customer service pro, part marketing pro, and part social media pro.

 

Most reasonable people would agree when I say the way people sell today has changed a lot in the last 20 or 30 years. What keeps me up at night, however, is how little awareness there is about how much the way we sell has changed in just the last year. Wake up, my friends. You’re in the future!