Getting the Most Out of CRM An Executive Guide for Planning and Execution Mark Dancer OPEESA Annual Meeting St. Petersburg, FL March 3, 2015

OPEESA 2015 Annual Meeting - Getting the Most Out of CRM Today’s objectives Adoption, benefits and barriers for the use of CRM by distributors Distributor executive perspectives on planning, implementing and achieving results CRMs role in enabling common distributor strategies A peek at the larger topic of becoming a digital distributor 2

Insights are “by distributors” and “for distributors” OPEESA 2015 Annual Meeting - Getting the Most Out of CRM3

“CRM is a standard practice for any sales organization. Companies that don’t use CRM will fall behind” OPEESA 2015 Annual Meeting - Getting the Most Out of CRM4 Data represent findings from online survey of distributor executives.

CRM is new again … OPEESA 2015 Annual Meeting - Getting the Most Out of CRM5 Innovative Flexible Mobile

… but CRM has it’s place!! OPEESA 2015 Annual Meeting - Getting the Most Out of CRM6 “CRM is a tool, not a solution!” CEO, Distributor

Competitiveness = unique solutions for common challenges OPE market dynamics Customers = commercial service dealers, consumers Price, margin and channel pressure Whole goods and parts Marketing programs and lead management Seasonality … and variability Long sales cycles (new account acquisition) Potential threat from online disruptors Acquisitions / consolidation … OPEESA 2015 Annual Meeting - Getting the Most Out of CRM7 What is your strategy?

Will CRM change information sharing and collaboration between distributors and suppliers? OPEESA 2015 Annual Meeting - Getting the Most Out of CRM8 Data represent findings from online survey of distributor executives. Examples: Velocity and win rates Full cycle lead management Force multipliers vs. joint calls Proof of value

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM9 Technology ≠ strategy

Top 10 Benefits of CRM 1Manage customer contact information. 2Manage sales pipeline or territory results. 3Provide access to customer data for salespeople. 4Provide data for coaching by sales managers. 5Improve handling of leads and prospects. 6Automate reports for salespeople and management. 7Provide data for management decisions. 8Execute marketing programs through salespeople. 9Optimize product mix sold to customers. 10Improve accuracy of sales forecasts. The “Top Ten” benefits of CRM OPEESA 2015 Annual Meeting - Getting the Most Out of CRM10 Data represent findings from online survey of distributor executives.

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM11 New results require new behaviors

Distributor strategies vs. priority CRM modules Strategy determines behaviors  information improves results OPEESA 2015 Annual Meeting - Getting the Most Out of CRM12 Strategy Contact Mgmt. Call Planner Customer / Territory Dash BoardCall ReportsPipeline Marketing Automation Social Comm. Right information, Right customer, Right time, Every time Sales Activity Management, or Territory Optimization Account Optimization, or Customer Stratification ? ? ? Alignment of strategies with priority modules will vary for each distributor’s unique information enablers

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM13 Start small before you go big

Strategy Contact Mgmt. Call Planner Customer / Territory Dash BoardCall ReportsPipeline Marketing Automation Social Comm. Seasonal Loading, or Product / Solution Sales Demand Creation, or Marketing Optimization Field, Inside and Web Activity Coordination and Optimization Distributor strategies vs. priority CRM modules Strategy determines behaviors  information improves results OPEESA 2015 Annual Meeting - Getting the Most Out of CRM14 ? ? ? Alignment of strategies with priority modules will vary for each distributor’s unique information enablers

Improving sales productivity is a top priority for more than 75 percent of executives OPEESA 2015 Annual Meeting - Getting the Most Out of CRM15 Data represent findings from online survey of distributor executives.

Formula for organic growth OPEESA 2015 Annual Meeting - Getting the Most Out of CRM16 Value Selling Sales Coaching

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM17 The people you have may not be the people you need

Talent upgrades begin with defining the required sales role and competencies for your business OPEESA 2015 Annual Meeting - Getting the Most Out of CRM18  Business acumen  Relationships  Solutions  Proving Value  Confidence  Influence Trusted AdvisorDeal Maker For a discussion of value selling, see “Addressing New Sales Roles” by Michael Vaccaro and Tom Hill of Hay Group, World and Work Journal, 2014 (2 nd Quarter), Vol. 23, no. 4Addressing New Sales Roles

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM19 “Discipline: the bridge between goals and accomplishment.” Jim Rohn

Value selling requires a disciplined process OPEESA 2015 Annual Meeting - Getting the Most Out of CRM20 IdeasPossibilitiesSolutions Measures Business acumen Relationships Confidence Solutions Influence Proving value

One distributor’s journey From account maintenance (farming) … OPEESA 2015 Annual Meeting - Getting the Most Out of CRM Informal Plans Favorite Calls Opportunities Territory plans Milk run Personal relationships Inventory checks and order status Reactive pricing 21

To business development (hunting) OPEESA 2015 Annual Meeting - Getting the Most Out of CRM One distributor’s journey PlanQualifyAssessProposeCloseGrow Targeted accounts Onsite analysis Quantified gains Non-price negotiation Opportu- nities Territory plans 22

Fitting CRM to your sales model OPEESA 2015 Annual Meeting - Getting the Most Out of CRM23 Results! Behaviors Information Processes Customers

Designing your CRM tool kit OPEESA 2015 Annual Meeting - Getting the Most Out of CRM24 YourSalesProcessHere

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM25 “Stick to it, the end is worth it.” Distributor Executive

“Move the Middle” – A Strategy for Organic Growth OPEESA 2015 Annual Meeting - Getting the Most Out of CRM26

Unskippable: Three Phases of CRM implementation and ongoing execution OPEESA 2015 Annual Meeting - Getting the Most Out of CRM27 Recognize Resistance and Push Forward Overcome Barriers and Create Success Improve Performance and Expand Use

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM28 Focus on making salespeople successful

Sales people will resist OPEESA 2015 Annual Meeting - Getting the Most Out of CRM29 Data represent findings from online survey of distributor executives.

Overcoming barriers OPEESA 2015 Annual Meeting - Getting the Most Out of CRM30 Top 10 Methods for Overcoming Barriers 1Include active support from leaders 2Develop follow on training after launch 3Implement face-to-face training 4Add online and telephone training 5Include coaching by sales managers 6Match CRM to your sales process 7Assign CRM champions 8Recognize and reward top users 9Make CRM mandatory 10Roll out CRM in phases, not all at once Data represent findings from online survey of distributor executives.

Lessons from the school of hard knocks OPEESA 2015 Annual Meeting - Getting the Most Out of CRM31 “CRM is not about micromanaging, it’s about changing the way we manage.” National Sales Director

A “distributor approved” framework for managing organizational change OPEESA 2015 Annual Meeting - Getting the Most Out of CRM32

CRM is part of a larger, ongoing “digitalization” of businesses and distribution channels OPEESA 2015 Annual Meeting - Getting the Most Out of CRM33

… the way we do our work … … the way we live our lives … Digital tools are changing …. 34

… and ultimately, the way we create value! 35OPEESA 2015 Annual Meeting - Getting the Most Out of CRM

CRM, in combination with other digital tools, can create strategic value for distributors OPEESA 2015 Annual Meeting - Getting the Most Out of CRM36

A multichannel strategy is essential for leveraging information and optimizing the use of digital tools OPEESA 2015 Annual Meeting - Getting the Most Out of CRM37

Lessons from the school of opportunity OPEESA 2015 Annual Meeting - Getting the Most Out of CRM38 ““If we are smart, digital tools will dramatically improve our productivity and solutions. Customers and suppliers are also using digital tools. In the end, digital tools will transform the value chain.” President, Wholesaler-Distributor

Thank you!