CRM systems are just record systems. They are not developed with any kind of methodology behind them. That is the problem.
There is an increasing trend in the number of software solution sales. This can clearly be seen in customer relationship management or CRM. People previously thought that CRM was merely a tool that only big enterprises use. However, it is now known as a tool that all businesses use, even small businesses.
Statistics show that most companies are using CRMs at the earliest possible time. One huge CRM solutions provider named Salesforce saw a 26% increase in its revenue in 2017. The reason more companies like these are implementing CRMs is they find that it greatly enhances their overall performance. After all, CRM systems can examine, track, and manage every interaction made with customers so that sales can be achieved. To simplify CRM interaction salespeople resort to automation tools (like Closer.bot). Entrepreneurs love how CRMs make it sales so much easier for them. That is why they purchase them so quickly.
Remember that you’re going to have a limited budget when you start your own company.
So, you need to take a few points into consideration before investing in a CRM. For one thing, CRMs are designed to assist the salespeople of your organization. But those salespeople will not be using CRM at the rate at which you are purchasing it.
Five years ago, roughly 37% of salespeople were reportedly adopting the CRMs. Fast forward to 2018 and now 46% of salespeople have adopted them. These statistics come from CSO Insights’ 2018 Sales Operations Optimization Study.
Since so much money is being invested in these management systems, how come less than 50% of salespeople are only using them? Let’s find out the answer…
CRM Systems Fail to Make Sales Performances Better
In the mid-1990s, technology businesses like Oracle and SAP introduced a cloud-based version of CRM which was much more cost-effective. As a result, sales organizations budgeted their information technology expenses in a whole new way. Ever since then, an increasing number of corporations began using CRMs and it doesn’t look like that trend is going to stop, even after 20 years. Strangely, recent studies have revealed that fewer sales quotas are being met. How can this be?
Investments into CRMs are not going well because…
– CRMs are not focusing on sellers, but rather on the executives. Since the beginning, CRMs were created to make it easier for management teams to view data and for revenue to be pipelined. However, CRM has not been so great for frontline sales users, such as coaches, sales representatives, and managers,
– Managing CRMs cuts into selling time. Even though this software was designed to increase productivity, this goal has not been realized by many salespeople. There are a lot of administration tasks of CRM which cut into the time needed for conducting sales tasks. Basically, CRM has turned into a big distraction for salespeople. According to a new study that just came out, sales representatives conduct administrative tasks for about 66% of their workday. That means only 33% of their time left is spent on conducting actual sales tasks.
– CRMs do not provide current insights. It is overwhelming and challenging for sales teams to deal with all the data, especially when most of it has uncertain accuracy. If sellers are going to be successful, they require guidance on the best ways to increase their chances of getting a sale.
– Sellers love to utilize technology during the sales process. The only thing is they expect this technology to make selling easier. What they don’t realize is that behavior is what brings in more sales. Methodology is what makes good behavior possible. Unfortunately, CRMs were not designed to have methodology. Instead, they were only designed to be a record system.
What entrepreneurs can do to alter their sales technology approach.
Nowadays, most sales companies realize that their sales teams need more than just CRM. If sellers are going to land more sales, they need technology which targets the performance requirements of sales managers and the sellers who work under them (e.g. Closer.bot – a sales bot for easier CRM interaction).
There are starting to be more sales executives, information technologies, sales operations, and sales enablement which are coming together to create sales tech stacks that feature a wide variety of CRM tools. If you want to remain competitive in this busy marketplace, then you need a sales analytics platform which can do a number of important things. Below are some of these things.
– The platform should support the sales methodology. If sellers use original sales technologies, it will help them utilize this methodology so that daily selling activities are easier to do.
– The platform should drive the actions of the seller. A sales analytics platform is going to recommend certain actions in which sales representatives need to do to enhance their success rates. Not only that, it will recommend how they can establish stronger customer relations. It is important for your sales team to always feel empowered toward making the right decisions in their deals.
– The platform should give something valuable to your sales teams. Technology should not be viewed as some annoying thing because it is a critical resource which sales teams must utilize to be more effective at their jobs. If a CRM solution is presented to your sellers, it will be most beneficial to them and the work they do for you.
In conclusion, modern organizations may still have problems getting their salespeople to use a CRM system. Fortunately, more salespeople are learning about it and using it every day. In fact, most salespeople want to find new technology which can make their jobs easier. Two companies that have already done this are Outland-Carillion and Safe Foods. Their ROI was practically instant. They did this by taking advantage of sales methodology and analytics to drive the actions of their sellers. There is no reason why your company cannot do the same.