Thursday, July 02, 2009

If Knowledge is a Key Ingredient for Success in Sales…



How is it managed? Is it through CRM systems? You can read my blog post discussing this question also here.

The 3 C’s of Knowledge

For a successful sales campaign, adequate knowledge is needed about:

  1. The customer’s/prospect’s situation
  2. The competitive landscape
  3. The supplier’s capabilities

How do CRM Systems Support These Domains?

Using the above framework, we can make the following observations.


1. Customer Knowledge

One of the primary purposes of CRM systems is to provide data structures allowing tracking every relevant interaction between the companies customer facing people with the customers/prospects, they look after. Thus a body of situational knowledge is created. Consultation of this knowledge is then particularly valuable in the maintenance of a customer relationship.

This body of knowledge is however not sufficient when building or expanding a customer relationship. In this case, the following additional elements are needed:

  • Background information about the prospect
  • The current situation the prospect is in
  • Trigger events causing sales people to want to build the relationship to eventually close a deal.

While CRM systems might provide a structure to capture this information for ready reference, the original source is outside of such systems. What is captured is the knowledge salespeople have gained through research activities such as: General searches on the internet, reading general printed press or specific trade journals and increasingly through the use of specialized systems made available in a Sales 2.0 context. CRM systems support the research activity through specialized systems by providing embedded links to such system. The research can be conducted without leaving the CRM systems context. Some of those specialized systems can also automatically push information into CRM data structures.


2. Competitive Knowledge

For building and consultation of competitive knowledge, CRM systems are used pretty similar to what is described above for customer knowledge. In large companies, there might though also be dedicated people researching the competitive landscape and making it available for ready reference in CRM systems, together with the knowledge built up by sales people themselves from information learned through customer interactions.


3. Capabilities Knowledge

Was one to ask salespeople where they get the information about their companies and product and services capabilities so they know what to say in a particular sales situation, they hardly would answer, that the CRM system is the primary source. Most CRM systems do though hold some capabilities knowledge usually referred to as company literature. The original design idea for this was to enable sales people to easily and efficiently answer fulfill information requests from their customers. There are though two factors that limit the usefulness of such company literature repositories. First, the internet has caused the number of such direct information requests from customers to drop drastically. Second, it is a well known fact that salespeople consider such literature not to be of much use in their campaigns anyway and make thus little to no use of it.


Capabilities knowledge is probably mostly stored in Sales Portals. These portals are often built from a product marketing perspective. Salespeople are thus left on their own to match the complexity of the customer requirements and the complexity of their companies capabilities to propose a valuable solution to the customer. Furthermore, customers today do not tolerate salespeople being simple conveyers of canned marketing prepared standard value propositions anymore. Salespeople are expected to be able to add value to the interaction. The messaging has to be adapted to the individual customer and to the current context of a sales campaign.


Conclusion

While CRM systems are configured to guide salespeople in what needs to be done in a sales campaign through the implementation of sales processes, they provide no support for the sales people of what is best said to the customer in a particular phase of the process. Sales portals are also no help for this as capabilities knowledge is stored under a different view point there. It becomes thus pretty obvious that sales enablement systems guiding salespeople in what needs to be said in a particular phase of the sales process and allowing furthermore the tailoring of the messaging to the specific customer context can significantly improve the productivity of salespeople, while maintaining image integrity required from a marketing perspective.

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