Key Points:
- Customer Relationship Management (CRM) Systems hold equal importance as Quality and Resource Planning systems.
- CRM enables businesses to manage their data, standardize sales processes, and measure performance using KPIs.
- Modern CRM systems are flexible and can be customized according to a company’s needs, even within budget constraints.
INTRODUCTION
With the manufacturing sector facing multiple challenges, like the Covid pandemic, supply chain disruptions, and economic fluctuations, companies must harness every tool available to stay competitive. One area of focus is meaningful sales KPIs and analytics. Not just because I studied, and love, statistics, but in many companies I work with today, the data is not available to track key areas like close rates (by product or segment) or quoted margins (versus company margins). The primary reason is an absent or ineffective Customer Relationship Management (CRM) system.
WHY CRM IS INDESPENSIBLE
Data Ownership: Centralizing data is vital. Often, businesses entrust sales teams with data collection and maintenance. Leadership must reclaim ownership of this crucial data using CRM systems.
Sales Tracking: CRM solutions offer comprehensive tracking from lead generation to deal closure. This tracking provides insights into performance and areas of potential enhancement.
Process Standardization: A well-defined sales process ensures consistent deal pursuit and accurate data collection. CRM offers clarity and transparency about deal statuses.
Data-Driven Decision Making: Businesses can access in-depth reports and analyses with CRM. These insights can highlight stalled deals and provide strategies to revive them.
Accountability: Through CRM dashboards and metrics tracking, businesses can glean insights into lead quality, pipeline health, and more.
ESSENTIAL METRICS FOR MANUFACTURING BUSINESSES
CRMs offer numerous metric fields, from win-loss rates to pipeline size. But to derive more nuanced insights, consider incorporating:
Segment: Different segments might have varied pricing or margin trends.
Price/Margin: While some may hesitate to include this in CRM, understanding pricing trends, material content, and other related metrics can be valuable.
Buying Role: A multifaceted sale involves multiple influencers. Ensure your team communicates with all stakeholders to prevent unexpected setbacks.
Competition Tracking: Knowing which competitors, you’re up against can offer insights into their strategies. For example, some might adjust their pricing based on their operational capacity.
Lead Source: Associating deals with their lead source can refine understanding of successful lead generation strategies.
CONCLUSION
Just as a Quality System is vital for product excellence, a CRM system is essential for sales and business growth. With options available for every budget, businesses can find and tailor a CRM system to match their unique needs, ensuring data ownership, sales tracking, and clear accountability.
Article is courtesy of Karl Berger, President of – Fractal Sales Solutions
Editor’s Note: Need help with selecting the right CRM? Reach out to Karl for assistance.