In a recent article explaining the top 5 components of any sales stack, we listed CRM as the #1 sales stack technology for any sales process. In 2014 CRM adoption among sales organizations was above 83%, a near 100% increase from just 10 years prior.
But as small businesses (<$50 million revenue) begin to adopt CRM in mass, many lose sight of the fact that CRM is a holistic solution that enables the customer-focused value chain, not a point solution. Those who fail to appreciate the investment as a broader sales architecture shift are also destined to squander ROI, experience fleeting adoption rates, and induce greater friction for those left using it.
Why should you care? Although business use has been rising, adoption by sales reps has now started to decline! Today we examine the implementation of CRM and offer best practices to ensure your CRM investment sees a measurable return.
CRM Implementation
Understanding CRM Buyers
Those who are currently implementing CRM are doing so in order to help grow their business, build relationships faster, and enhance the sales process overall. The following chart illustrates the current customer relationship management strategies in use by those seeking CRM:
[Image Source: Software Advice, 2015)
The primary trigger for CRM is a customer database that grows too large for the current tracking method. Therefore, it makes sense that 50% of the group buying CRM are also using a manual method (Source: Software Advice, 2015).
Benefits Sought from CRM
72% of small businesses investing in CRM feel that technology investments will pay off more than new hires. “The Customer of 2020” report by Walker Consulting suggests that businesses need to start focusing on big data and make customer intelligence accessible throughout the business in order to remain relevant, understand individual needs, and personalize the experience.
As a result, 91% of CRM buyers noted ‘sales automation’ as a desired feature for buying CRM, with just 30% citing marketing automation.
Interestingly however, many buyers requested both sets of automation, likely seeking greater sales and marketing integration from CRM, and the associated benefits of sales and marketing alignment (Source: Software Advice, 2015).
Nicole Mertes of Weidert Group points out that “when alignment is fully enacted, sales isn’t just responding to marketing’s needs – it helps to instigate a better marketing process” (Source: Software Advice, 2015).
Thus the Problem with CRM is...
A Major Gap: the trigger for purchasing CRM is completely misaligned with the desired benefits.
Think about this, if the majority jump into CRM because their current contact management strategy is failing to facilitate the increased volume of business, and a top benefit sought is greater sales and marketing alignment, the implementation won’t achieve either. Instead you’ll start to see a list of challenges such as:
[Image Source: Software Advice, 2015)
In our recent article analyzing the most popular digital content management solutions, a CRM system was the primary choice for 1 in 5 businesses. CRM is not a content manager, nor is it an aligner of sales and marketing. It’s part of a holistic solution that enables the sales process. CRM is only one of five essential components to any sales stack.
[RELATED CONTENT] Poorly implemented CRM is one of four major challenges facing sales and marketing teams in chapter 1 of our "Sales Enablement Success" series. Click the link below for more.
How to Choose the Right CRM Solution
Always remember the Sales Stack!
For now there is no “one size fits all” solution for your entire sales and marketing lead generation-to-close engine.
Barry Trailer at CSO Insights has pointed out that CRM is like a Ferrari - but it’s one thing to have a world class race car and quite another to be capable of driving it and winning races (Source: Destination CRM, 2014).
Where CRM is your car, supporting automation platforms like Sales Enablement make up the insight into track conditions and appropriate tires, and marketing automation provides the fuel that propels it. Together they create an aligned sales and marketing system. As you can imagine, the best car in the world wouldn't win one race without the appropriate enabling components.
So, how do you get sales stack component #1 right the first time?
1) Pick the right software for your team and sales process
“Don’t get caught up in the sexiness of technology if it doesn’t fit your business process” – Colleen Francis, President and Founder of Engage Selling Solutions.
Analyze your entire marketing lead generation to sales close process, and invest in CRM that enhances each step of this value chain with few excess features that would induce friction.
You’ll begin to notice that CRM is a facilitator of data coordination, not email marketing, landing page design, digital sales content management, etc.
2) Generate buy-in to ensure adoption
Bring in the primary users of the system, work with them to understand how they view the inherent benefits of the platform, and use their insight to gauge the areas where the system could actually induce friction without the right enabler. Think about the Ferrari, but don’t forget the tires! Although it’s more obvious with a car, the same concept applies to CRM.
Mark Hunter, Sales Trainer, Keynote Speaker, and Author notes, “if you allow people in on the decision-making process, they are much more willing to accept it and spread the word about it.”
3) Don’t rush implementation
Don’t chop up your implementation and rush training. Understand that you’re looking at an overhaul of the architecture of your sales process, and invest accordingly to ensure you never have to double back and update something that could have been done right the first time.
4) Make sure the data is correct
40% of business initiatives fail because of poor data. CRM relies on high quality data, and you want to look for CRM that integrates your crucial data points before migrating to that system. You also want data sources that enhance your CRM with automated functionality. Poor data impedes adoption, meanwhile automated data integration cuts labour and increases efficiency.
Your sales rep must feel like the driver of a fine-tuned Ferrari ready for the track and your system needs to be that Ferrari.
Recall that declining adoption rate from the intro? In 2014 SmartSellingTools noted adoption rates of CRM at below 50% of sales reps. In our next post we’ll reveal the 12 billion dollar question plaguing the CRM industry, and ways that you can improve adoption. Subscribe to our mailing list an instant notification of release. Check back here for a link to that article when released.
If you want answers to achieving sales and marketing alignment, improved adoption rates, and reduced sales cycles, request a demo and let us show you just how potent your current CRM can be.
