SellingPower.com offers up an interesting article in their CRM newsletter – Is CRM Really Improving Sales Productivity? The short answer is no for a handful of reasons. One item resonated with me:
Mike Bosworth, author of the bestseller CustomerCentric Selling (Wiley, 2005) argues that the sales process must be adapted to customer buying processes prior to being automated. But that€™s not what€™s happening. Instead, when sales managers see sales productivity dropping, they€™re likely to turn to CRM in an attempt to make their existing, traditional process more efficient. That€™s like stepping on the accelerator when you€™re heading for a cliff.
He’s right – there is no reason to automate a “traditional” process if it is not adapted to modern-day realities. I have personally seen this approach fail at previous employers (full disclosure – I spent a couple years selling CRM software back in the ’90s). Adding a CRM system to a sales department without a clear selling system (approach) institutionalizes existing problems. I particularly enjoyed this description of the changes in today’s market (emphasis mine):
The report explains that because of the availability of information on the Internet, the buying process often starts long before the sales process, as prospects access product facts, pricing, reviews, existing customer feedback, etc., without ever talking to a salesperson. When sales reps are eventually brought into the process, buyers are now expecting the reps to bring much more to the table than just a rehash of product knowledge, features, and benefits. Instead, they expect the reps to have done the homework on their needs and be able to describe how the product/service offering will meet and exceed their expectations.
Any selling system that does not adjust for this tremendous shift in the modern marketplace is woefully inefficient.