The most difficult part of an enterprise to transform is the sales organization. Many leaders see their revenue machine as a mystery black box filled with a little bit of science and a lot of art. On this, the allure of sales and marketing software tools (CRM, Methodology Playbooks, LinkedIn Sales Navigator, and social selling platforms) promise to bring increased reach, accelerated results, buyer alignment, consistency in sales execution, transparent pipeline creation, timely opportunity progression and predicable forecasting.
Yet the failure rate of software projects is alarming. ERP implementations fueled by Y2K fears back at the turn of the century had failure rates of 40% (source: Dr Michael Hammer). Hot on the heels of the ERP craze (Enterprise Resource Planning – eg; SAP and Oracle enterprise management systems) was CRM (Customer Relationship Management – eg; Salesforce, Siebel, Oracle, Sugar, Dynamics, etc.) and the statistics are sobering:
I think the failure rates of CRM today are approximately 30% - 40% based on anecdotal and 'show of hands' surveys when I speak at conferences. But does this mean we should avoid implementing CRM and other sales transformation technologies? ABSOLUTELY NOT!
You have no chance of being customer-centric and driving effecieint process to create best customer experience unless you have a brilliant CRM.
You also have no chance of improving sales success without embracing social selling, especially LinkedIn's platform.
Every leader knows that they must drive transformational change. I've been preaching for years that "the way we sell is more important than what we sell" and our ability to leverage technology and create superb customer experience is the biggest point of difference as we go to market.
Using technology and people to create sensational customer experience is the key to dealing with the forces of disruption and commoditization. The best leaders and sales people embrace technology and social platforms to remain relevant and prosper in competitive markets. But how do you manage the implementation risk of CRM, Sales Navigator, Playbook methodologies or social selling tools?
I've been the regional leader for a CRM technology provider and I've also been on the other side as sales Director for a public corporation implementing CRM and LinkedIn. I now work with clients helping them navigate the risks in achieving the outcomes they need from investing. Ironically, I see many increasing their risk by sending the message that they are uncommitted in driving the necessary change; and they do so with ill-conceived trials and pilots.
Doing software trials with sales people is like hitting them on the head with a hammer and then asking them what they think!
The stakes are high in any change management program and that's exactly what's being done when implementing LinkedIn's Sales Navigator, CRM, Playbooks, qualification methodologies or opportunity management tools. Success is not an option when you consider the fact that B2B sellers have somewhere between 40% (Corporate Executive Board research) to almost 70% (TAS Group) of their sales people failing to achieve their revenue numbers!
Here is my candid advice for anyone considering the implementation of CRM or LinkedIn's Sales Navigator.
Independent researcher C9 Inc surveyed 36 companies and 9,000 sellers, finding that those who embraced LinkedIn's Sales Navigator tool created 7 times more pipeline and 11 times more revenue. LinkedIn themselves analyzed a cross section of new and existing sellers who increased pipeline by 45% and the probability of achieving their sales targets by 51% simply by improving their social selling index (SSI) scores.
For LinkedIn Sales Navigator or any other sales enablement technology; build your business case, understand user experience, be clear about the problem your solving and the results you expect. Carefully design and communicate KPIs and then drive change with committed leadership. If your considering LinkedIn's Sales Navigator, deploy to the entire organization just like many others have done to realize the network. See case studies here. Avoid doing small pilots because they achieve nothing but damage momentum and the probability of success.
The risk is not in the technology, it is in your ability to lead and manage change within your sales team.
Having trouble navigating the CRM landscape? Membrain has produced a guide to help point you in the right direction and identify which type of solution best suits your needs.
Tony Hughes is a bestselling author, award-winning blogger and the most read LinkedIn Author globally on the topic of B2B sales leadership. Tony’s first book is a business bestseller with his second book, COMBO Prospecting, available for preorder on Amazon here. He can be found at TonyHughes.com.au and RSVPselling.com.
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