a successful customer relationship management (CRM) system?

Have you thought about your sales process? CRM works best for companies with well-defined processes already in place. Automate chaos and it’s still chaos.
Larry Tuck, editor of CRM Magazine, 2000

Companies require tools that help them manage a sales process to build a quality pipeline, create forecasts and meet the overall goal to deliver top-line revenue. A CRM system is a means to that desired end - it should track activity as well as progress and provide consolidated reporting to support the goal. In order for a CRM system to be successful the following must exist first:

• Pipeline and funnel milestones
• Repeatable processes
• Solid messaging (product usage information for sales)
• Selling skills and compensation that support the sales methodology and defined model
• Consistent and verifiable input

If a set of standards and/or rules for the selling process is not established, management has to depend on unreliable data, general opinions, past information (figuring out why deals were lost and reacting) instead of proactive planning and course correction (with a desired outcome of winning the deal). As well, other organizations within the company (e.g. Marketing) cannot provide an effective support structure (e.g. solid messaging) without knowing the defined sales process.

Therefore, the following must be determined and have the support of management:

1. Selling Methodology (e.g. Strategic Selling, Solution Selling, or Customer Centric Selling). A selling methodology encompasses the following concepts:

• Sales Process - this is the framework, or selling activities, to sell to customers or prospects. You can have many sales processes, for example: national account, partner account sales process, professional services, contract renewal sales process, etc.
• Sales Pipeline Milestones - are critical steps within the process, that can be verified, that establish where the opportunity is in the sales cycle. Milestones typically include:
• When buying cycle begins (lead is qualified as opportunity)
• Steps involved in making a recommendation
• Steps necessary to have buyers understand how your offering addresses their goals/problems
• Estimated decision date documented to confirm the buyers agreement
• Built in feedback loops (to permit adjustments in timing, etc.)
• Sales Funnel Milestones - are critical steps within the lead development process that establish where the lead is during the prospecting sales cycle.

2. Sales Model (direct, indirect, hybrid). A sales model defines the various ways a customer can purchase your product and services, by territory, and articulates the most efficient cost of sale for each transaction type. For example, all orders under $1,000 should be through an eStore. Telesales will handle inbound and outbound direct calling for quantities under 10 units. Resellers will be engaged for territories without direct coverage and so on. To summarize, a sales model encompasses:

• Optimum selling channels for product and services offerings
• Territories and responsibilities

3. Sales Compensation. A selling methodology and sales model will only be as successful as the compensation plan that supports it. Compensation incents behaviour and must support the selling methodology as well as eliminate channel conflicts.

Once these three points are determined you then have a framework for which to build your CRM system, and internal support infrastructure, that will support your overall goal (understanding and delivering top-line revenue).