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.
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.”