door Jordi van Berkum
•
13 april 2022
In this blog I will give the four reasons why your CRM will not ensure an improved sales process. And how you can achieve that! In the field of CRM, there are extensive systems that, as market leader Salesforce indicates, are widely used for contact management, productivity purposes and sales management. And that's exactly where it goes wrong. Because organizations that want to teach their sales team new sales skills think they can enforce this by recording the process steps in CRM. This is a good start, but it is far from sufficient to bring sustainable change. How do you use CRM when you want to develop your team with (new) sales skills? In this blog, I will give you four reasons why your CRM won't improve your sales process (and how you can!). 1. A ruler is not a jumping stick CRM systems are ideal for recording data and tracking results. That's how they were developed: as a well-documented module for relationship management. However, we see that CRM systems are often 'misused' to (co-)create results instead of measuring results. This is done by enforcing process steps and desired behavior from salespeople via the CRM system. However, making certain fields in your CRM mandatory does not lead to different behaviors. In this case, CRM as a ruler is used as a jumping stick. There is of course something improper in this because cause and effect are reversed here. It is therefore not surprising that this only gives better results to a certain extent. 2. Administrative burden or added value? Following the right steps in sales processes will indeed show an improvement in conversion rates, for example from appointment to quotation and from quotation to assignment. However, most CRM systems are not designed to really help salespeople put new skills (read: behaviors) into practice. As a result, it is making the job of the salespeople in your team more complicated, and the CRM system is mainly seen as an administrative burden. The skills that salespeople have learned in training cannot be enforced through fill-in exercises in the CRM system. 3. Better conversion rates, but is it really getting better? Many top managers use information from analyses out of CRM data as a tool to boost sales. In their pursuit of improving sales results, it is then tempting to address poor performers first. But the effect of this "approach" is often not what you had hoped for. For many salespeople it becomes a special art to fill the CRM system to expectations. You as a manager will then see what has been recorded: many activities. But are the sales results better? An improvement in conversion rates from lead to appointment or from appointment to quote will certainly become visible. But the ultimate conversion, from quotation to assignment, immediately deteriorates. Because the number of orders remains the same while the number of visits and quotations that are registered rise to the sky. First of all, sales require skills. Registration of customer activities is at most a tool, but it cannot offer structural improvement. 4. From steering on KPIs to proactive coaching Growth and skill development require the right mindset and the practice of new behaviors. How tempting is it to go back to old behavior when you must achieve short-term KPIs, and you are held accountable for them? Pretty tempting, right? The most effective method is not to focus as a sales manager on punishing lesser KPI results, but to coach your people to keep trying. And to support them to practice. By giving your sales reps the confidence that they always know more than their customer and don't have to worry that they will be judge by them if they don't execute the new skills perfectly, you help them through an essential phase of adoption and growth to a higher level. If you don't get through this, you'll be stuck in the existing level. Help, challenge, and practice Sales skills that salespeople have learned in a training cannot be enforced through fill-in exercises in the CRM system. But by continuing to help and challenge them a lot to practice on what they have learned and by giving them the confidence that the customer will not judge them if they do not do it perfect yet. Practice is the only way to really become proficient and too structurally improve the conversion into orders. Would you like to know more about embedding a higher level in the sales organization, coaching and talent development through a proven successful approach?