New market pressures are changing how CRM is used.
We hear over and over that CRM implementations often fail to meet expectations. But why? Much of this is due to changing trends and market pressures, a lack of internal support capabilities, underestimating the degree of cultural change needed, and poor overall project leadership. Getting together the right team, and developing a plan based on trends and future needs, will produce the best results.
As the founder of SalesProcess360, Brian Gardner likes to say: “You’ve got to get your house in order first to be able to optimize the technology. Optimizing starts with a clear look at processes and the technology. We also need to identify a CEO for CRM adding necessary internal leadership to ensure overall project success.”
A decade ago, few knew CRM’s capabilities would eventually be supercharged by AI and high-level intel plugins for analytics. We are beginning to see CRM transform into a more powerful tool that will leverage new SaaS products and the coming wave of new tech. The industry looks strong.
CRM adoption is reflecting that shift.
Gartner and Statista estimate the North American market size for CRM to be around $68B in 2023 with a healthy +12% CAGR over the next 10 years.
What has been driving this expansion?
- Emerging technology that’s enabling sales teams to collaborate in a way previously not possible.
- Heightened expectations for transparency at all levels of the organization.
- Changing customer expectations for a seamless experience across all channels.
- Greater employee expectations for tools that can make them more productive and effective.
Customer expectations have widened. New tools have opened up their options to work with companies the way they want: online, by phone, email or in person. Customers want rich technical training and support online, purchasing history, better pricing and to see how peers solve common problems.
Sales management requires more transparency of customer habits and field sales actions. Field sales needs better tools to remain competitive like visibility into planned turnarounds, previous maintenance buying patterns, competitive insight and more.
What they need is a CRM tuned to their business.
A modern CRM can support these demands but only with the right focus on processes and technology. But these steps are often missing, and CRM continues to fall short despite its growing potential.
The result? Unfortunately, upwards of 80% of the implementations fail to meet expectations Here’s why:
- Poor planning for current and future needs
- Low adoption by key stakeholders – CRM is still often seen as an admin burden. Commonly heard: “Creates more work and doesn’t help close more orders.”
- Data input is inaccurate and time consuming
- Project managed by IT and not sales
- Lack of leadership from the top
The chart below shows the evolution of CRM to meet changing market needs:
| Feature | Past 5 to 10 years | Current to future |
|---|---|---|
| Client contact management (CMS) | Basic info, names, address, industry | Full client insight, applications, turnarounds, svc records, competitive info. |
| Electronic pricing | ERP connections for quotations, front end to ecommerce and CPQ | Complex taxonomy, dynamic pricing, gateway to AI, and business intel plugins |
| Channel evolution | 1 or 2 channels to market | 3 or more channels (direct, indirect, sub reps, OEMs, etc.), managed pricing models, real-time accuracy |
| Source of truth | Account ownership, sales credit | Manage account with a 360-degree view |
| Enhanced client experience | Product data sheets, basic solutions, specs, etc. | On-demand training, application, VR/AR, content rich |
| ROI | $6:1 | $20:1 |
| Forecast capabilities | Low probability | Predictive analysis – real time and accurate |
| Success and adoption rate | Low 20 to 25% | Top 25% if you plan properly |
Back to Basics, Even as CRM Evolves
As always, to get ROI from CRM, key stakeholders from sales, IT, management and other departments must get together and plan the right path based on a thorough audit of needs and wants. Project leadership can prioritize them and keep everyone aligned. After Project Design and Execution are complete, Onboarding must hold equal importance, including ongoing training and documentation.
Getting the most from the project requires a combination of talents, from inside and outside the organization. The first is a platform-agnostic partner who will lead and support the design and execution of the project from the outside. Consider someone with deep industry insight that is not contractually tied to a certain technology or platform. This partner should be concerned only with the right form, fit and function for your business.
The next resource is a designated power player or CEO for CRM. This person is responsible for the success of your CRM project and adoption. You can have an internal CEO for CRM or bring in one from the outside as a partner. The CEO for CRM leads the overall Project Design, Execution and Onboarding. This person has high credibility with the team and can delegate tasks. This is a key role to reach the high user adoption levels necessary to drive project success.
The evolution of CRM over the past decade has been nothing short of transformative. From a basic tool for managing client contacts, CRM has emerged as a gateway for advanced technologies like AI and business analytics that can reshape the role of sales and customer engagement.
Reach out to SalesProcess360 to get started today.