3 The New Sales Challenge Sales forces are experiencing significant new challenges in the sales process:Internal challenges include integrating:(SFA) toolsConsistent use of CRM systemsExternal challenges include:Competitive environmentImproving technologiesNew data resources
4 The Use of CRMCRM has been developed to meet the ever-evolving needs of salesSales forces use CRM systems to deliver:The right offerTo the right customersAt the right time
5 CRM and SalesA salesperson’s principle responsibility is to improve his or her business and relationship with his or her customer continually.Today’s sales forces must record customer needs.The single greatest impediment to effective CRM is the lack of sales force participation.
6 CRM and Sales Strategies There are several different selling strategies currently used based on the strengths of organizations.Transactional sellingConsultive sellingStrategic sellingPartnership selling
7 Strategic Selling Example 3M uses this approach in its adhesive divisions with their windows and doors industry customers.Invest significantly in providing technical resources for new customer new product development.The key account representative must mobilize resources in 3M for the long term.
8 Who Executes these Sales Strategies? Same sales technique?Boeing 787Wellbutrin XL (an antidepressant)Crest toothpaste
9 Who Executes these Sales Strategies? Different skills are needed by:Manufacturer’s representativesBrokersDirect salespeopleInside telephone salespeopleCRM system can help
10 CRM Benefits CRM provides salespeople with the ability to Document customer needs quicklyProvide senior management exposure to customer problemsDirect other departments
11 Sales Challenges in Consumer Package Goods Sales is challenged withManaging extensive customer relationshipsReacting to customer demandsDeveloping local promotional programs to achieve marketing objectives
12 Sales Challenges in Consumer Package Goods (CPG) What caused this organizational change for sales?The introduction of scanner technologyRetailers were more aware of customer demandData collection system was faster and more accurateNew data created a new approach to customer management called frequent shopper or customer loyalty programs
13 Sales Challenges in Consumer Package Goods (CPG) Leveraging household data and running promotions are at the heart of the channel conflict between manufacturers and retailers.Who will control the dollars and the message used to motivate households to purchase products?Who makes decisions?
16 The Selling LandscapeThe selling landscape today is filled with a variety of selling techniques:SPIN SellingMiller HeimanThe time is right for us to consider selling as a buying management process
17 Sales Models and CRM Sales models today use fact-based selling Essential facts and compelling reasons to buy must be recorded in a CRM databaseWhat if your sales representative leaves?
18 Commitment to Customer Management At its heart, CRM is a disciplined approach to customer management.Successful CRM requires a clear commitment of the entire company to the process from the top down.CRM is not technology dependent but rather a business framework for improving performance.Small companies with good knowledge of their customers, such as Dry Cleaning to Your Door, practice CRM without a sophisticated CRM system.
19 CRM and Customer Management Today, sales strategy is changing because of the need to serve larger and more influential customers more expeditiously.CRM systems can provide a wealth of information previously unavailable.CRM empowers sales to take more control of customer management.Account Specific MarketingCategory management programs
20 Information Empowerment CRM is providing sales forces with the capability to monitor their business better.The foundation for these capabilities is the acquisition of better information collected from a variety of customer touch points.Sales collects and inputs the following buyer organization data:objectivesmotivationspurchase cyclesavailable budgets (open to buy)purchase authoritybuying-committee involvement
21 Information Empowerment In addition, the salesperson is responsible for inputting:sales forecastssales probabilitiesdelivery specificsexpected sale timing
22 Information Empowerment Today’s CRM systems provide for superior relationship management because information is moreaccuratetimelycomprehensiveCRM systems provide management with improved sales forecasts and better pipeline management to direct production
24 What Strategies Work Better when Supported by CRM? The following strategies are now utilizing new data resources and better analytics to improve company performance with retailers:Category Management (CM)Account Specific Marketing (ASM)Continuity and Frequency Programs (FSP)
25 Using CRM for SellingWe evaluate the impact of CRM with the following analyticsROISales opportunities closedPrediction accuracyThe capability to track major sales eventsIt is easy to see how sales leaders are using CRM and gaining prominence in their organizations
26 Objectives, Strategy, and Tactics? Objectives specify an intended accomplishment.A strategy statement focuses on how you will accomplish your objective.A tactical statement is what you will do specifically to reach your goal.
27 Category Management and CRM Category management is selection of the appropriate assortment, shelf space, and promotion for a group of products.Sales forces regard CRM as a valuable tool for category managementit improves the speedaccuracyquality of information exchanged by partners by using CRM analytics to evaluate the performance of the sales force and the profitability of the programs
28 ASM and CRM CRM supports Account Specific Marketing through improved customer informationmore timely communicationproviding better pipeline dataThe metrics observed in ASM areopportunity conversion ratesrevenue and profitability of account initiativesThe sales force is responsible for ASM
29 Loyalty Programs/Frequent Shopper Club Programs and Sales Loyalty programs become CRM programsMost loyalty programs are in a B2C channelsUnited Airlines Mileage Plus ProgramThe Hertz Gold ProgramHilton Hotels Honors ProgramPrograms in B2B2C environments such as Safeway’s Safeway Club are also CRM programs
30 FSP and CRMFrequent shopper club activity in the grocery industry is a promotion effort that works on three levels at any timeA reward to customers for purchaseA means to deliver in-store electronic incentivesA vehicle to target and deliver incentives via direct mail, web site, and at checkout
31 CPG, Promotion, and CRMAs sales forces become more involved with customer strategy, CRM becomes more important to a company’s success.CRM provides the sales force the analytics to measure product and campaign performance.
32 CPG: What Have we Learned? A new generation of leadersDecisions made by sale forces are determining the success of customers’ marketing effortsEmpowered by CRM, the line between the sales and marketing functions is being blurredStrategic decision making regarding loyalty programs, category management, customer communication, and consumer promotion are made by sales
34 CRM: The FoundationCRM systems serve as the foundation for sales action maintaining record ofBuyer preferencesProcess requirementsPurchase cyclesContact datesContract informationCustomer service interface informationForecast sales
35 Proactive Sales Action and CRM The ability to be more proactive with CRM results from having the right information to address a problem immediately.Companies need to reduce the response time for solutions due to competition and technology.According to Frank Loftus, 3M’s General Manager of Automotive Sales in Detroit, “Our customers require answers to business problems in minutes and hours not days!”
36 The Issue of Sales Usage The key, of course, in sales involvement in CRM is actual usage of a CRM system.According to Todd Forsythe, VP Integrated Marketing at Oracle, “The number one reason that CRM has not been successful is connection of the CRM system to the sales force. All the technology and sophistication of CRM is dependent on one function and that is the sales person must believe in the value that the system can provide.”
37 The Issue of Sales Usage CRM systems used by sales forces began as server-driven programs exclusively designed to speed order entry.New on-demand solutions like salesforce.com or NetSuite provideEasier system accessSimpler interface to the systemA shorter system learning curve
38 CRM: Sales Force ValueCRM’s value to salespeople translates into the following areasCRM must save the salesperson time,CRM must save the salesperson effortCRM must make the salesperson more productiveCRM must streamline the decision-making process for a sales organization
39 McKinsey and Company on CRM Usage If salespeople are recalcitrant regarding system usage, they can cripple a CRM initiative.Salespeople are inherently skeptical about CRMSalespeople fear they loose their value to the companyManagers understand the benefit of CRM, but short- term volume pressure can compromise the initiative.If sales managers do not support CRM, employee skepticism results.
40 CRM System UsageSales managers must focus on increasing sales force CRM participationShort-term incentives for CRM complianceImplementing more user friendly applicationsRecognition of exceptional CRM complianceMerchandising successful CRM results
42 A Question of ValueHow does CRM help to increase customer satisfaction?More timely response to needsAn improved and smoother sales processBetter forecasting and performanceProviding the correct solutions at the right time
44 Creating Customer Value CRM helps to establish a competitive edge in providing added value and differentiating the companies offering by creating process value.Two ways to add customer valueImpressive cost or process advantages (Southwest Airlines)Creating better consumer perception of value
45 CRM and the Sales Organization The sales force can be enticed to participate more fully in CRM ifThey are part of a team responsible for CRM deploymentClear direction is provided to the entire sales organization
46 CRM and the Sales Organization A CRM solution can play a critical role in the reorganization of a sales department, both on the cause and effect sides. On the cause side, new tools make it possible to segment the customer base easily based on a criterionLike company sizeOr market potentialIn segmenting the sales operation, companies can use an inside sales force to service the smaller accounts This provides the benefit of reducing the cost per sale and providing better service since it is easier to reach the inside person. GBC (General Binding Corporation) recently went through a reorganization of this sort and it was very successful. CRM was implemented after the sales changes.On the effect side, CRM applications have the ability to assign accounts to the correct salespeople because of reorganization.This lets the company get on quickly and easily with its plan. The newly assigned sales representative gets immediate access to the account history, including scheduled follow-ups.This lets them hit the ground running and minimize the disruption caused by reorganization.
47 Sales EngagementOnce sales is fully engaged in the CRM process, the company will be prepared to deal effectively in a new sales environment withDifferent management structureCompensation platformsAccount assignmentsCall plans
49 The CRM Sales CycleIn the CRM system, the campaign results are input into to the database for future reference and promotional activity.Successful campaigns build relationships. Long-term success breeds true partnerships between companies.
50 ConclusionThe success of the company and often their customer will be dependent upon how well sales forces use CRM.