The Question Behind CRM: Documentation or Engagement?

 

The Question Behind CRM: Documentation or Engagement?

We just ran a poll in which we inquired about the kind of data we should gather this year from our external advisers. We made an attempt to reexamine how sales businesses are now using technology in order to assess whether or not it has a substantial impact on sales. In an attempt to prevent unneeded complexities at the commencement of this study, the following question was included in the poll: Customer relationship management (CRM) is employed as a system of record for collecting and maintaining customer data and prospect information, or as an engagement system for enhancing interactions with customers and prospects?

After getting more than 500 responses to the survey, we had a quick look at the data, which indicated that respondents were virtually equally split between the two categories. When we then investigated the sales performance of both cohorts by analyzing the outcome of the anticipated transactions, we got crucial knowledge, as seen in the graph that follows.

In light of the present uncertain economic and political situation, when most sales organizations are seeking tactics to improve sales performance, the significant discrepancy in win rates was evident. When assessing win rates, the major focus is not on expanding the number of possibilities identified by a sales organization; rather, it is on increasing the number of prospects that have already been discovered and successfully closed. The difference in scores between those using systems of record and those utilizing systems of engagement is around 30%. If a sales organization that depended on a system-of-record was successful in executing the necessary improvements to turn CRM into its system of engagement, the impact on revenue performance would be substantial. Nonetheless, this creates the following issue: What separates the CRM practices of these two groups?

When a CRM is primarily used as a system of record, the most often used features are, in order, tools for managing contacts, accounts, opportunities, and pipelines. When we asked sales organizations to list the top three benefits of CRM as a system of record, the most common responses were that it reduced the administrative burden placed on sales professionals, improved communication between salespeople and sales managers, and streamlined the process of sales forecasting.

Clearly, these are positive modifications, but what they actually represented was an improvement in the sales process's efficiency. In light of the fact that sales teams face challenges in terms of their effectiveness, sales organizations must not only seek ways to free up salespeople's time so they may make more calls, but they must also use technology to aid salespeople in making good calls.

If you are just utilizing CRM as a record-keeping tool at the present, you should immediately research the numerous ways you may begin transforming it into an interaction system. And if you are currently using an engagement system, verify that your sales people have gotten proper training on how to integrate these features into their usual workflow. This is particularly crucial if you currently use an engagement method. The return on investment (ROI) will cover the cost of adopting this adjustment, which represents incremental enhancements to your current sales processes.