Getting the Most Out of CRMAn Executive Guide for Planning and ExecutionMark DancerOPEESA Annual MeetingSt. Petersburg, FL

March 3, 2015

OPEESA 2015 Annual Meeting - Getting the Most Out of CRM

Today’s objectives

• Adoption, benefits and barriers for the use of CRM by distributors

• Distributor executive perspectives on planning, implementing and achieving results

• CRMs role in enabling common distributor strategies

• A peek at the larger topic of becoming a digital distributor

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Insights are “by distributors” and “for distributors”

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“CRM is a standard practice for any sales organization. Companies that don’t use CRM will fall behind”

Data represent findings from online survey of distributor executives.

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CRM is new again …

Innovative Flexible Mobile

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… but CRM has it’s place!!

“CRM is a tool, not a solution!”

CEO, Distributor

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Competitiveness = unique solutions for common challenges

• OPE market dynamics

• Customers = commercial service dealers, consumers

• Price, margin and channel pressure

• Whole goods and parts

• Marketing programs and lead management

• Seasonality … and variability

• Long sales cycles (new account acquisition)

• Potential threat from online disruptors

• Acquisitions / consolidation

• …

What is your strategy?

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Will CRM change information sharing and collaboration between distributors and suppliers?

Data represent findings from online survey of distributor executives.

• Examples:

• Velocity and win rates

• Full cycle lead management

• Force multipliers vs. joint calls

• Proof of value

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Lessons from the school of hard knocks

Technology ≠ strategy

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Top 10 Benefits of CRM

1 Manage customer contact information.

2 Manage sales pipeline or territory results.

3 Provide access to customer data for salespeople.

4 Provide data for coaching by sales managers.

5 Improve handling of leads and prospects.

6 Automate reports for salespeople and management.

7 Provide data for management decisions.

8 Execute marketing programs through salespeople.

9 Optimize product mix sold to customers.

10 Improve accuracy of sales forecasts.

The “Top Ten” benefits of CRM

Data represent findings from online survey of distributor executives.

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Lessons from the school of hard knocks

New results require new behaviors

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Distributor strategies vs. priority CRM modulesStrategy determines behaviors information improves results

StrategyContact Mgmt.

CallPlanner

Customer / Territory

Dash Board Call Reports PipelineMarketing

AutomationSocial Comm.

Right information,Right customer,Right time,Every time

Sales Activity Management, or

Territory Optimization

Account Optimization, or

Customer Stratification

?

?

?

Alignment of strategies with priority modules will vary for each distributor’s unique information enablers

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Lessons from the school of hard knocks

Start small before you go big

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StrategyContact Mgmt.

CallPlanner

Customer / Territory

Dash Board Call Reports PipelineMarketing

AutomationSocial Comm.

Seasonal Loading, or

Product / Solution Sales

DemandCreation, or

Marketing Optimization

Field, Inside and Web Activity Coordination and Optimization

Distributor strategies vs. priority CRM modulesStrategy determines behaviors information improves results

?

?

?

Alignment of strategies with priority modules will vary for each distributor’s unique information enablers

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Improving sales productivity is a top priority for more than 75 percent of executives

Data represent findings from online survey of distributor executives.

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Formula for organic growth

ValueSelling

SalesCoaching

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Lessons from the school of hard knocks

The people you have may not be the people you need

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Talent upgrades begin with defining the required sales role and competencies for your business

Business acumen

Relationships

Solutions

Proving Value

Confidence

Influence

Trusted Advisor Deal Maker

For a discussion of value selling, see “Addressing New Sales Roles” by Michael Vaccaro and Tom Hill of Hay Group, World and Work Journal, 2014 (2nd Quarter), Vol. 23, no. 4

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Lessons from the school of hard knocks

“Discipline: the bridge between goals and accomplishment.”

Jim Rohn

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Value selling requires a disciplined process

Ideas Possibilities Solutions

Measures

Business acumenRelationships Confidence

Solutions Influence

Proving value

OPEESA 2015 Annual Meeting - Getting the Most Out of CRM

One distributor’s journey

• From account maintenance (farming) …

Informal Plans

FavoriteCalls

Opportunities

Territory plans Milk run

Personal relationships

Inventory checks and order status

Reactive pricing

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• To business development (hunting)

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One distributor’s journey

Plan Qualify Assess Propose Close Grow

Targeted accounts

Onsite analysis

Quantified gains

Non-price negotiation

Opportu-nities

Territory plans

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Fitting CRM to your sales model

Results!Behaviors

Information

Processes

Customers

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Designing your CRM tool kit

Your Sales Process Here

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Lessons from the school of hard knocks

“Stick to it, the end is worth it.”

DistributorExecutive

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“Move the Middle” – A Strategy for Organic Growth

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Unskippable: Three Phases of CRM implementation and ongoing execution

Recognize Resistance and Push Forward

OvercomeBarriers and

Create Success

Improve Performance

and Expand Use

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Lessons from the school of hard knocks

Focus on making salespeople successful

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Sales people will resist

Data represent findings from online survey of distributor executives.

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Overcoming barriers

Top 10 Methods for Overcoming Barriers

1 Include active support from leaders

2 Develop follow on training after launch

3 Implement face-to-face training

4 Add online and telephone training

5 Include coaching by sales managers

6 Match CRM to your sales process

7 Assign CRM champions

8 Recognize and reward top users

9 Make CRM mandatory

10 Roll out CRM in phases, not all at once

Data represent findings from online survey of distributor executives.

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Lessons from the school of hard knocks

“CRM is not about micromanaging, it’s about changing the way we manage.”

National Sales Director

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A “distributor approved” framework for managing organizational change

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CRM is part of a larger, ongoing “digitalization” of businesses and distribution channels

… the way we do our work …

… the way we live our lives …

Digital tools are changing ….

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… and ultimately, the way we create value!

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CRM, in combination with other digital tools, can create strategic value for distributors

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A multichannel strategy is essential for leveraging information and optimizing the use of digital tools

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Lessons from the school of opportunity

““If we are smart, digital tools will dramatically improve our productivity and solutions. Customers and suppliers are also using digital tools. In the end, digital tools will transform the value chain.”

President, Wholesaler-Distributor

Thank you!