The CRM Dilemma for Distributors: Why Adoption Rates are Low and What Needs to Change

As a Chief Revenue Officer working closely with distribution sales teams, I’ve observed many distributors face a recurring challenge: traditional CRMs just don’t work for them. Only 50% of distribution sales teams actually use their CRM—if they even have one. This isn’t because sales teams aren’t tech-savvy or because they don’t see the value in data-driven tools. The real problem lies in the tools themselves.

The CRM Gap in Distribution

The distribution industry is highly complex. From managing fluctuating inventory to tracking multiple customer touchpoints, sales teams operate within a fast-moving environment. Traditional CRMs, designed primarily for standard B2B sales operations, fail to account for these unique challenges. As a result, they often feel clunky, irrelevant, and out of sync with the workflows distributors need to succeed.

The low adoption rate of CRMs among distributors speaks volumes. If a tool is not enhancing productivity or simplifying the sales process, it won’t be used. And unfortunately, many CRMs aren’t designed to meet the specific operational needs of the distribution industry.?

Why Sales Teams Aren’t Engaged

When we talk to sales teams, the feedback is often the same: “Implementing a CRM just adds extra work to our plate” or “It doesn’t integrate with how we actually do business.” These statements point to a broader issue—most CRMs don’t align with the day-to-day demands of distribution. They’re often seen as just another task on the to-do list rather than a tool that drives efficiency and growth.

In 2022, a staggering 32% of sales reps spent more than an hour daily on manual data entry, largely due to the lack of proper CRM adoption. This is time that could be spent on building relationships, closing deals, and improving customer satisfaction. When a CRM isn’t adopted properly, salespeople are left juggling spreadsheets, emails, and paper trails—an inefficient and frustrating experience.

Salespeople are naturally results-driven. They want tools to help them close deals, build stronger relationships, and optimize their routes and time. Yet, when CRMs don’t provide immediate value or require manual, time-consuming data entry, they’re often abandoned. And with 50% of sales teams not using their CRMs, it’s clear that something needs to change.

What Needs to Change for CRM Success in Distribution

Several key shifts need to happen for CRM adoption rates to improve in distribution.

1. Tailored, Industry-Specific Features: A generic CRM simply won’t cut it. Distributors need tools designed to address their unique challenges, like optimizing delivery routes, tracking inventory in real-time, and accurately predicting customer demand based on order history and trends.
2. Effortless Workflow Integration: CRMs should blend seamlessly into a sales rep’s routine, not create extra work. This means integrating with current systems such as order processing platforms, automating repetitive tasks like data entry, and providing insights that sales teams can act on immediately without jumping between tools.
3. Designed with the Sales Team in Mind: Many CRMs cater to management’s needs, leaving sales people frustrated. For widespread adoption, the CRM must be intuitive and easy to use, reducing manual data entry and demonstrating clear benefits—such as time savings and better customer interactions—from the first interaction.
4. Actionable Insights, Not Just Data Collection: It's not enough for CRMs to serve as data warehouses. They must analyze and convert data into real-time recommendations that enable sales reps to anticipate customers' needs, manage their schedules more effectively, and make data-driven decisions that drive success.
5. Mobile-Optimized Accessibility: Distribution sales teams are always on the move. A CRM must prioritize mobile functionality, allowing reps to update customer info, track order status, and access key data no matter where they are, whether it’s in the office or out in the field.

The Path Forward

The low CRM adoption rate among distribution sales teams isn’t a failure on their part; it’s a reflection of the tools that have been available on the market for the past several years. CRMs must evolve beyond traditional models to truly become valuable assets in the distribution industry. CRM platforms can become the strategic tools they were meant to be by focusing on industry-specific needs, seamless integration, and user-friendly design.?

It’s time for the distribution industry to embrace a CRM that works for them—a system that not only captures data but actively drives sales growth and operational efficiency. When the right tools are in place, the 32% of sales reps who spent over an hour each day on manual data entry can finally reclaim that time, and the 50% CRM adoption rate can—and will—rise.

Chris Dowling is the CRO and Co-Founder of Ohanafy, the #1 AI-powered CRM and Sales platform for Food and Beverage. Leveraging his deep understanding of the Salesforce ecosystem and a resolute commitment to delivering tangible results, Chris has played a pivotal role in developing Ohanafy into an innovative solution for the distribution industry.

For more information about Ohanafy, please visit www.ohanafy.com or contact our team to discover how we can elevate your business to new heights.