AI, CRM and sales approach. How they can integrate to boost the growth.

When discussing Customer Relationship Management (CRM), many sales professionals often express reluctance. They frequently perceive CRM systems as mere repositories for tracking initiated negotiations or recording orders to be processed, viewing them as tedious and time-consuming tools. However, CRMs are designed not only to monitor sales activities but also to establish a digital "historical memory" of interactions with prospects and leads.

According to the 2022 Sales Performance Scorecard study by Sales Mastery, 42% of surveyed companies utilize CRM solely for storing information on existing and potential customers, while 15% possess a CRM system but do not use it at all.

Further statistics from CSO Insights reveal that from 2012 to 2019, the percentage of salespeople achieving their quota decreased from 63% to 57%. Additionally, sales representatives reported dedicating only 32% of their time to actual selling activities, with the remaining 68% spent on non-revenue-generating tasks, often engaging with CRM systems only superficially.

Many experts suggest a correlation between declining sales performance and the underutilization of CRM systems. Effective use of sales data can enhance outcomes, depending on the salesperson's approach and their relationship with customers.

Salesperson-Customer Relationships: The Challenger style.

The Sales Executive Council, referenced by companies like General Electric, identifies five common salesperson archetypes:

1. The Relationship Builder
2. The Hard Worker
3. The Lone Wolf
4. The Challenger
5. The Reactive Problem Solver

Contrary to popular belief, the Relationship Builder is not the top performer. In fact, they often have lower performance metrics, with only 25% achieving average results and a mere 7% reaching or exceeding sales targets. While they maintain good rapport with both the company and clients, their customer service-oriented mentality may limit their sales effectiveness.

The Lone Wolf, characterized by independence and self-assurance, often delivers high revenue growth. However, their autonomous nature can make them challenging to manage.

The Challenger stands out as the most effective archetype. They possess a comprehensive understanding of the client's business, are well-versed in competitors' offerings, and educate customers on industry challenges and solutions. By discussing economic factors and proposing complex solutions, Challengers anticipate supply issues, suggest additional profit avenues, and proactively address potential emergencies.

Statistically, 23% of Challengers achieve average revenue yields, while 39% are top performers, consistently driving growth even in declining markets. They differentiate themselves by fostering customer loyalty through profit growth.

In terms of sales complexity:

1. The Relationship Builder operates as a transactional seller or preferred supplier, offering straightforward exchanges of price for quantity, typically involving low-complexity products or services with short sales cycles.
2. The Hard Worker and The Reactive Problem Solver excel in simple contexts where the frequency of interactions outweighs the complexity of the sale, functioning effectively as solution consultants.
3. The Lone Wolf often navigates complex solutions, acting as a strategic partner due to their independent approach.
4. The Challenger serves as a trusted co-creator, deeply understanding the client's context and crafting comprehensive solutions that elevate the customer beyond basic product offerings.

Types of Sellers and CRM: Effectiveness in Utilizing Sales Data

The application of CRM varies across these salesperson categories:

• Transactional Sellers (relationship builders) and Solution Consultants (hard workers): Utilize CRM to track previously purchased items, identify cross-selling opportunities, schedule follow-ups (e.g., contacting clients at regular intervals for consumable products), and prevent customer attrition. The CRM serves operational and monitoring functions.
• Strategic Partners (Lone Wolves): Leverage CRM to compare a client's or project's financial performance against competitors, aiding in the development of similar initiatives. The CRM provides comparative performance insights.
• Trusted Co-Creators (Challengers): Engage in mature collaborations with clients, using CRM to facilitate interactions between the supplier's and client's CFOs, anticipate potential supply chain delays, and more. For Challengers, CRM offers holistic market information, enabling them to elevate sales discussions beyond traditional price and quantity negotiations.

Conclusions.

Integrating artificial intelligence (AI) into CRM systems, combined with a strategic sales approach, can significantly boost sales performance. Notable examples include:

• Trellix (formerly McAfee): Employs CRM and AI to recommend prospective companies to the sales team, resulting in a 300% increase in opportunities converted into orders.
• SAP: Utilizes CRM's AI capabilities to analyze the social profiles of client employees, gaining insights into both corporate decisions and individual preferences, thereby enhancing engagement strategies.
• Honeywell Aerospace: Collaborates with software firm Aviso to use CRM for accurate project forecasts, identifying and mitigating potential obstacles that could delay engine production.

In an ever-evolving global market, relying on a simplistic sales approach and treating CRM merely as a data repository can lead to revenue stagnation. Conversely, leveraging the synergy between complex sales strategies and dynamic, data-rich CRM systems can enhance both revenue and profitability, even amidst adverse market trends. Adaptation and innovation are key to thriving in the current market landscape.

(Source:

Harvard Business Review "Can AI Really Help You Sell?"

Matthew Dixon, Brent Adamson "The Challenger Sale: Taking Control of the Customer Conversation")