Companies by and large have some form of CRM already implemented but
Forbes estimated that less than 0.5% of the data available in a business is being analyzed and used by its people.
In 2019, less than 40% of organizations have achieved a 90% adoption rate for using CRM.
They also reported that sales teams spend up to 17%, or almost one day per week, entering data into a sales tracking system.
Dun & Bradstreet has shown that 91% of the data in CRM systems is incomplete, 18% is duplicated, and 70% goes obsolete every year.
8 out of 10 companies believe that their lousy data disrupts the sales process and creates brand damage.
Given that this all true, why would a company continue to invest in building a CRM database? The answer is clear; management needs to have some way of assessing the business’s state and what is happening to customers, and on new business opportunities is a critical part of that assessment.
Leaders in the industry take steps to overcome these deficiencies in the use of CRM systems to provide much-needed business information that they can use to make decisions. Some of these steps are:
Establish sales and business unit teams to evaluate and streamline the CRM system’s data requirements. Their objective is to keep the data entry demands as low as possible, find CRM solutions that automate as much data validation and checking as possible, and reduce redundant or unnecessary data entry requests. By focusing on keeping it as simple as possible but still providing as much value to the business as possible, you will reduce the sales organization’s time demands and maximize its benefits.
Create a business analytics team that creates high-value graphical interfaces to improve data usage within the management and sales teams. By offloading the analytics to a separate group, you can standardize what analysis is done, create standard auto-generated business review templates, and build a data-driven decision process that demonstrates the value and payback for diligent, consistent data updates and validation.
Build business rules into the system, so the data is screened to find the highest value business opportunities and use these business rules to set priorities, investments, and workforce decisions.
Establish structured KPIs to set business objectives for the team with goals clearly defined, hierarchically linked to overall company objectives, and tracked in every business review. KPI performance at the group and individual level should be visible to all and a crucial part of focused attention from management daily. When KPIs are integral to the CRM process, the value of timely performance and update becomes essential, and adoption issues are significantly reduced.
Action items and task tracking embedded in the CRM linked to specific business results allow you to maintain focus on execution and deliver the business results you need to meet the goals. With a world-class CRM solution, you can identify critical business opportunities and objectives, evaluate the potential ROI, and track what has been done and what needs to be done to maximize your chance of delivering the business and meeting the goals.
By monitoring what has happened on well-defined opportunities in a CRM system, you can get out of the typical company paradigm of having to call or email or have a meeting to find out what is going on for a specific business opportunity. When a team sees the value of keeping the CRM Opportunity information up to date because the business and management team is asking what they can do to help instead of what is going on, you can turn the company decision process away from tracking what is going on to one of finding solutions and creative ways to help close business.
When you have a well-established CRM database, building an accurate forecast for management to plan with becomes a critical part of becoming a data-driven company. Forecast automation that converts opportunities and confidence levels into monthly demand forecasts becomes a straightforward tool that sales can use to build confidence. Right CRM solutions have highly automated, validated forecast solutions embedded in them that tie opportunities, shipments, orders, aged backlog all together to make a customer/program driven forecast that can be tracked and improved with performance tracking tools so you can see what parts of your forecasting system are overly optimistic, overly pessimistic or too conservative. This will let you make adjustments or management overrides to drive improved accuracy and change individuals’ or managers’ performance.
You should have a person chartered with keeping the data accurate and up to date, so it does not burden the sales team with simple data scrubbing activities. They should look for incomplete records and fix them, track companies and contacts to find changes and add them to the system, and strive to keep the database as accurate and up to date as possible.
Building a high value, focused CRM solution for electronic component and semiconductor manufacturers is what NEHANET has done for the last years. If you want to find out how a CRM solution can deliver all the benefits discussed above and help you become a data-driven, customer-focused organization, we would be happy to show you what we have developed.
Contact us at www.nehanet.com for more information.