CRM and Distributors:
Essential, Nice-to-Have, or
Irrelevant?"
January 31, 2013
Presented by:
Mark Dancer, Channelvation
Scott Thomas, Parksite
Today’s discussion
 Adoption and use
 Facts and best practices
– CRM for WholesalerDistributors: A Strategic Guide
for Planning and Results
(Spring, 2013 )
 Selection and implementation
 Best practices
 Real-world experience
 What’s ahead?
© 2013 Channelvation, Inc. All rights reserved.
– Parksite examples
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What is Customer Relationship Management (CRM)?
 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
© 2013 Channelvation, Inc. All rights reserved.
2
Why is CRM “hot”?
 Innovation
 Cloud / SaaS benefits
 Mobility
 Ease of use
© 2013 Channelvation, Inc. All rights reserved.
3
How are distributors using CRM?

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
© 2013 Channelvation, Inc. All rights reserved.
4
Are wholesaler-distributors adopting CRM?
CRM is an essential tool and standard practice for any sales
organization. Distributors that don’t use it will fall behind.
Healthcare Distributor
© 2013 Channelvation, Inc. All rights reserved.
5
Will CRM impact partnerships with manufacturers?
© 2013 Channelvation, Inc. All rights reserved.
6
Which CRM vendors are used by distributors?

Our research found 24 vendors in use and a marketplace with ~300 companies
- Contact Activity Manager (SX)
- ITML CRM
- Siebel
- Clear Technologies
- Microsoft Dynamics
- SMP (Sales Management Plus)
- Constant Contact
- Oracle
- Solve360
- CORrelation
- Sage ACT!
- SugarCRM
- Epicor Prophet 21
- Sage SalesLogix
- Tour De Force
- Goldmine
- Salesforce.com
- Tribridge
- Infor
- SAP
- WP-CRM (WordPress)
- Insightly CRM
- SAS
- ZOHO
Potential vendors are those that reflect our core values in their
products, support, sales strategy and profitability.
Motion Control Distributor
© 2013 Channelvation, Inc. All rights reserved.
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How can I get the most from CRM for my business?

Benefits are achieved through three phases of implementation
Recognize Denial
& Push Forward
Overcome Barriers
& Create Success
Improve Performance &
Expand Use
CRM isn’t about micromanaging. It’s about changing the way
we manage.
Building Materials Distributor
© 2013 Channelvation, Inc. All rights reserved.
8
What’s ahead for CRM and distributors?

A data-driven world

– Manage by metrics,
improved analytics,
Big Data
360o 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
© 2013 Channelvation, Inc. All rights reserved.
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What should leaders do?
STRATEGY
Tool

Capabilities

RESULTS
Culture

Change
– People
– Values
– Plan
– Process
– Behaviors
– Manage
– Tools
– Rewards
– Measure
© 2013 Channelvation, Inc. All rights reserved.
10
Introducing
Parksite:
© 2013 Channelvation, Inc. All rights reserved.
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Parksite’s CRM history
2003 - 2006
80% usage
2007 - 2009
2010
2011
25% usage
2012
90% usage
2013
+
Initial Vendor
 Sales Logix (on
Premise)
Switched to Cloud
 Sales Logix (Cloud
based)
 Re-tooling / retraining turned off
users
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
 Lost site of tool
during downturn
Chatter App
 “Business is Social”
Switched Vendors
 Real-Time Feedback
 Salesforce.com
 Sales Opportunity Tracking via
Live Feed Updates
 Supplier Request
© 2013 Channelvation, Inc. All rights reserved.
 Internal Chatter Groups
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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
Return on Marketing $: Co-op Management
© 2013 Channelvation, Inc. All rights reserved.
13
Sales Effectiveness: Early Buy Opportunities
© 2013 Channelvation, Inc. All rights reserved.
14
Social Media: Chatter App
© 2013 Channelvation, Inc. All rights reserved.
15
Lessons Learned
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 (inhouse 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”
© 2013 Channelvation, Inc. All rights reserved.
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About the Presenters
Mark Dancer
Scott Thomas
President
Channelvation, Inc.
Director of Marketing
Parksite, Inc.
Channelvation works with leaders and entrepreneurs to
create competitive channels and winning sales teams.
Our working style is collaborative, challenging and factbased, and focused on achieving each client’s specific
and unique goals. We bring experiences and ideas, and
follow through with hard work and dedication.
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:
Contact information:
847.840.1781
919-455-5987
mark.dancer@channelvation.com
sthomas@parksite.com
http://Twitter.com/Channelvation
© 2013 Channelvation, Inc. All rights reserved.
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