Presented by: CRM and Distributors: Essential, Nice-to-Have, or Irrelevant?" January 31, 2013 Mark Dancer, Channelvation Scott Thomas, Parksite

Today’s discussion  Adoption and use  Selection and implementation  Best practices  What’s ahead?  Facts and best practices – CRM for Wholesaler- Distributors: A Strategic Guide for Planning and Results (Spring, 2013 )  Real-world experience – Parksite examples © 2013 Channelvation, Inc. All rights reserved.1

 Software tool for managing interactions with customers and prospects – Organize, automate, and synchronize business processes and metrics Principally sales, but also marketing, customer service, technical support, etc.  Goals – Find, attract, and win new customers – Service and retain existing customers  Value – Increase sales – Reduce costs – Improve productivity 2© 2013 Channelvation, Inc. All rights reserved. What is Customer Relationship Management (CRM)?

 Innovation  Cloud / SaaS benefits  Mobility  Ease of use 3© 2013 Channelvation, Inc. All rights reserved. Why is CRM “hot”?

 CRM creates a clear picture the pipeline, tracks win rates by sale person, product and supplier, and reports product and segment performance Construction Equipment Distributor  We use CRM to manage prospects, customer activity and lead generation. CRM also assists in outbound calling to lower sales cost activity Sanitary Supply Distributor  CRM accelerate sales, new products and technology, not so much for existing products that are well understand by sales people and customers Industrial Distributor  CRM enables contact management, emarketing campaigns, sales dashboards, opportunity tracking. We don’t use CRM for funnel or forecasting Electrical Wholesaler  CRM provides a common base of information that includes customer's technical and anecdotal information, quotations and contacts Gas and Welding Distributor 4 How are distributors using CRM? © 2013 Channelvation, Inc. All rights reserved.

Are wholesaler-distributors adopting CRM? © 2013 Channelvation, Inc. All rights reserved.5 CRM is an essential tool and standard practice for any sales organization. Distributors that don’t use it will fall behind. Healthcare Distributor

Will CRM impact partnerships with manufacturers? © 2013 Channelvation, Inc. All rights reserved.6

7 Which CRM vendors are used by distributors? Potential vendors are those that reflect our core values in their products, support, sales strategy and profitability. Motion Control Distributor  Our research found 24 vendors in use and a marketplace with ~300 companies -Contact Activity Manager (SX) -Clear Technologies -Constant Contact -CORrelation -Epicor Prophet 21 -Goldmine -Infor -Insightly CRM -ITML CRM -Microsoft Dynamics -Oracle -Sage ACT! -Sage SalesLogix -Salesforce.com -SAP -SAS -Siebel -SMP (Sales Management Plus) -Solve360 -SugarCRM -Tour De Force -Tribridge -WP-CRM (WordPress) -ZOHO

How can I get the most from CRM for my business? © 2013 Channelvation, Inc. All rights reserved.8 Recognize Denial & Push Forward Overcome Barriers & Create Success Improve Performance & Expand Use  Benefits are achieved through three phases of implementation CRM isn’t about micromanaging. It’s about changing the way we manage. Building Materials Distributor

 A data-driven world – Manage by metrics, improved analytics, Big Data 9© 2013 Channelvation, Inc. All rights reserved. What’s ahead for CRM and distributors?  360 o communication – Across functions, customers and suppliers  Customer experience – Multi-channel selling; build the distributor brand Historically in distribution, the sales rep has owned the relationship and that is dangerous. The company needs to own the customer relationship, with visibility provided to all functions to know the customer’s business and meet the customer’s needs Building Materials Distributor

What should leaders do? © 2013 Channelvation, Inc. All rights reserved.10 Tool STRATEGY RESULTS  Capabilities – People – Process – Tools  Culture – Values – Behaviors – Rewards  Change – Plan – Manage – Measure

Introducing Parksite: © 2013 Channelvation, Inc. All rights reserved.11

Parksite’s CRM history © 2013 Channelvation, Inc. All rights reserved Co-op App & Customer Program App  Self-designed for 2012 Managed More with CRM  Early Buy Promotion  Surfaces Sales Contests w/App  New product Launches Chatter App  “Business is Social”  Real-Time Feedback  Sales Opportunity Tracking via Live Feed Updates  Internal Chatter Groups CRM Future  Intranet on Chatter platform / Content Libraries  Logistics Team makes Chatter main Com. Tool  Sales Teams have KPI’s and salary criteria related to Pipeline Management  Shared Chatter Feeds with Vendors 90% usage80% usage25% usage Initial Vendor  Sales Logix (on Premise) Switched Vendors  Salesforce.com  Supplier Request Switched to Cloud  Sales Logix (Cloud based)  Re-tooling / re- training turned off users  Lost site of tool during downturn

© 2013 Channelvation, Inc. All rights reserved.13 Return on Marketing $: Co-op Management

© 2013 Channelvation, Inc. All rights reserved.14 Sales Effectiveness: Early Buy Opportunities

© 2013 Channelvation, Inc. All rights reserved.15 Social Media: Chatter App

1.CRM’s value to a distributor is determined by matching functionality to strategy  Tip: Start with what you want & work backwards to customize 2.Sales & Marketing Leaders need to commit & collaborate with IT on customization & rollout  Tip: Don’t buy all your licenses at once, stage in by user groups 3.Leadership must embrace the CRM tool and respond to its outputs visibly  Tip: It’s a 50/50 Proposition 4.Dedicate a resource and don’t underestimate the importance of a strong administrator (in- house or 3rd party) that understands your business  Tip: Don’t wing it with a 3rd hat 5.Train, Train, Train again – preferably interactive 6.Don’t cave to high profile non-believers – “everyone plays” 7.ROI creates transparency into sales opportunities, sales activities, and process / communication improvement  Tip: Use tool to drive “revenue generating behavior” 16© 2013 Channelvation, Inc. All rights reserved. Lessons Learned

About the Presenters Mark Dancer President Channelvation, Inc. Channelvation works with leaders and entrepreneurs to create competitive channels and winning sales teams. Our working style is collaborative, challenging and fact- based, and focused on achieving each client’s specific and unique goals. We bring experiences and ideas, and follow through with hard work and dedication. Contact information: Scott Thomas Director of Marketing Parksite, Inc. A 16 year career in distribution has provided experience in sales, marketing, and management. CRM has become a major focus in achieving sales and process efficiencies in an ever tightening distribution channel. By focusing on strategy first; great outcomes have been realized through the continued application of CRM to meet business needs. Contact information: © 2013 Channelvation, Inc. All rights reserved.17