Rocket Readings: Will Technology Solve My Sales Problem?

Will Technology Solve My Sales Problem?:from Sales Force Effectiveness Blog by Scott Gruher

As the head of sales you can become overwhelmed with Garbage in, garbage out

technology options. With limited time, how do you prioritize initiatives? We will discuss how your sales organization can prepare to utilize technology effectively.

Many sales organizations are using new technology to automate broken processes. Why? They are looking for a quick fix. This leads to a lack of faith in the technology.

We will discuss the following:

If your processes is ready for emerging technology
How to build an infrastructure to support technology

Download the process maturity tool to determine if your process is ready for new technology.

I recently worked with a client that believed technology was the answer. They had 27% quota attainment within their sales force. Their opportunity win rate was 14%. I learned they had no idea how to fix these problems. They knew quota attainment was poor. They knew conversion rates were awful. They knew leads weren’t converting to opportunities.
Why didn’t they fix these issues? They were always chasing the new shiny ball. They implemented the best new CRM system. They purchased the best marketing automation solution. Why did they invest in new technology? They wanted to track more customers and prospect data. They thought the technology would drive more leads and help with forecasting accuracy.
This client wasn’t executing the fundamentals. Technology alone won’t fix their quota attainment problem. It won’t convert more opportunities to customers. They weren’t being honest about the true problem. Both the technologies they purchased can be incredibly powerful tools. But first they needed to fix their internal processes.
CRM Data Integrity Issues - this client didn't reinforce process usage. Many customers in the CRM system only had 1 or 2 contacts listed. Email addresses weren’t populated consistently and much of the contact information was outdated. Forecasting was forced at the field level and not based on real numbers. Executives used the field rollup, but deviated from the technology. Sales people would guess as to what stage each deal is in. Proxy close rates were applied to each stage. This was really a systematic approach to ensure inaccurate forecasting.
Marketing Automation Not Fully Utilized – the system was being used to track and capture leads. This data was used to launch mainly new logo marketing campaigns. Current customer campaigns were neglected because sales professionals blocked marketing from contacting them. Sales leaders allowed the field to “own” their customer contacts. 80% of this customer’s growth came from upsell and cross-sell within the base. How much incremental revenue were they leaving on the table?
Technology alone won’t solve your problem. It may help support a solution. Solving the problem starts with people and processes. Don’t invest in technology as a quick fix to a complex issue.
Sound familiar? Try to following instead.

Build an infrastructure to support technology

Before Marketing Automation

Accurate customer and prospect data – you can’t drive leads without accurate contact information. It is very important to have a customer marketing program as well. Driving leads is not just about prospects. To drive leads within the base you first need accurate contact information.
Integration into CRM – determine how the two systems will work together.
Buyer Research – marketing automation will be more effective if your messaging is relevant to customers.
Lead Management Process – you are going to be driving demand into the technology. How do you separate the real leads from the fake?
Content – marketing automation will not be effective without great content. The content should be built based on your buyer research. What do your customers respond well to?

Before investing in a new CRM

CRM expectations – data integrity expectations need to be clear to all stakeholders. Data entry progress should be tracked and rewarded. Some sales organizations will make CRM data integrity a scorecard item.
Sales Methodology – if the process isn’t built into the CRM, reps won’t use it. Build your sales methodology into the CRM to drive adoption.

Ensure clear demarcation between sales methodology phases
Track sales methodology phase progression statistics based on historical performance

Leadership reinforcement – a CRM will only be used if leadership uses it. Forecasting, pipeline reviews, and deal reviews should all be done with CRM data.
The Sales Team should live in the CRM

Here are a few examples

Sales Process execution
Embed sales methodology tools
Force usage to move deals forward or add to forecast
Calendar management
Knowledge management

We discussed a couple technology options that will make you more effective. Don’t waste money investing in technology before you are ready. Technology will not replace execution by your people or world class processes. It will help make them more effective.