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 Wholesaler-
 Selection and implementation Distributors: A Strategic Guide
for Planning and Results
(Spring, 2013 )
 Best practices
 Real-world experience
 What’s ahead? – Parksite examples

© 2013 Channelvation, Inc. All rights reserved. 1

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. 7

How can I get the most from CRM for my business?
 Benefits are achieved through three phases of implementation

Recognize Denial Overcome Barriers Improve Performance &

& Push Forward & Create Success 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  360o communication  Customer experience
– Manage by metrics, – Across functions, – Multi-channel
improved analytics, customers and selling; build the
Big Data suppliers 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. 9

What should leaders do?

Tool STRATEGY RESULTS

 Capabilities  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. 11

Parksite’s CRM history
2003 - 2006 2007 - 2009 2010 2011 2012 2013
80% usage 25% usage 90% usage +

Initial Vendor
 Sales Logix (on
Premise) Co-op App & Customer CRM Future
Program App  Intranet on Chatter
Switched to Cloud  Self-designed for 2012 platform / Content
Libraries
 Sales Logix (Cloud
 Logistics Team makes
based) Managed More with CRM Chatter main Com. Tool
 Re-tooling / re-  Early Buy Promotion  Sales Teams have KPI’s and
training turned off  Surfaces Sales Contests w/App salary criteria related to
users  New product Launches Pipeline Management
 Shared Chatter Feeds with
 Lost site of tool
Vendors
during downturn Chatter App
 “Business is Social”
Switched Vendors  Real-Time Feedback
 Salesforce.com  Sales Opportunity Tracking via
Live Feed Updates
 Supplier Request
 Internal Chatter Groups

© 2013 Channelvation, Inc. All rights reserved. 12

 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 (in-
house 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. 16

About the Presenters
Mark Dancer Scott Thomas
President Director of Marketing
Channelvation, Inc. Parksite, Inc.

Channelvation works with leaders and entrepreneurs to
create competitive channels and winning sales teams.
Our working style is collaborative, challenging and fact-
based, 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. 17