After two years of working on the frontline of channel strategy and digital transformation in my role as VP, Global Channel Strategy and Management at Henkel (Loctite), Channelvation is relaunching our blog on channel insights and experiences. We’re just getting started, but will soon add announcements about our soon-to-be-published book on building a digital vision and experiences drawn from business headlines. We’re back and look forward to getting started!
Channelvation’s newest article is available online at Industrial Distribution Magazine. Two key excerpts:
Today’s CRM systems are innovative, flexible, and mobile, and offer considerable value for distributors. CRM can improve salesperson performance, upgrade sales management, and connect sales leadership with real-time data for making better and faster decisions. CRM can strengthen distributor competitiveness and profitability, often by allowing wholesalers to manage their sales organization as they run the rest of their business — with disciplined processes and metrics.
But there’s a catch — a missing ingredient in many distributor plans to select a vendor, integrate with business systems, provide training, overcome barriers, and encourage adoption. After months or years of effort, CRM all too often fails to deliver an acceptable return on investment, with failure attributed to salesperson resistance or a poor fit with distributor business models. In most cases, however, the root cause of failure is more fundamental, and it is a failure of leadership, of planning, or of vision.
There’s much more inside, so read the full article at:
In his new article on HBR’s Blog Network, Sunand Menon offers sage advice on monetizing the value of data. Among his many useful insights, I particularly liked this passage (emphasis added)
I have come to realize that your target customer may not be your traditional customer. For example, a product evaluating nonprofit organizations may be highly useful to a wealth manager seeking to help his client to select a charity as part of a value-added tax efficiency service. Or a healthcare data offering evaluating physicians’ perceptions on a new drug may be useful not only to brand managers at pharmaceutical companies, but also to portfolio managers at asset management firms seeking to find promising investment opportunities.
Sunand’s full article is definitely worth a read. You will find it at:
Channelvation is launching our second major research initiative in partnership with the NAW Institute for Distribution Excellence. We are looking into digital trends, including e-commerce, CRM, social media, big data, mobility and multichannel. Our goal is to create a digital channel playbook and find opportunities for strengthening the wholesaler-distributor business model. We’ll gather experiences and insights, track the pulse of adoption and change, and help guide innovation and entrepreneurship. I’m looking for priorities as we get started, so please send your ideas through our secure contact form here, whether you are a distributor, manufacturer, vendor or customer.
The Digital Channel Project builds on Channelvation’s first NAW Institute book, Getting the Most Out of CRM: Best Practices for Wholesaler-Distributors. We are excited about our new initiative and committed to sharing findings along the way. Best of all, our plans include community and collaboration, so the Digital Channel Project will walk the walk as we talk the talk!
Please join me for a dynamic discussion of sales enablement, collaboration and CRM at the IBM Innovation Center in Chicago. Louis Richardson, IBM Social Evangelist, will share IBM’s experiences and ideas with an emphasis on what it takes to become essential to your customers. You can get to know Louis on his blog at http://www.creativitycrisis.com/blog/
I will be sharing research from my new book, Getting the Most Out of CRM, published by the NAW Institute for Distribution Excellence. Scott Tabeck of Highland Solutions will add his considerable expertise and lead demonstrations of innovative solutions, focusing on collaboration and enablement.
Please click here (or below) to learn more about the event and register. Space is limited, so don’t delay if you plan to attend:
Channelvation has the lead article in Hay Group’s quarterly ESE report for Enterprise Sales Executives, and will be a frequent contributor going forward. I’ll write about channel and sales strategy, with an emphasis on human capital requirements. Please click below to find my article, and scroll down further to send me a personal message with your ideas and experiences. If you don’t know, Hay Group is the leading global management consulting firm focused on human capital, organization and change with a dedicated practice on sales effectiveness.
Click here for Hay Group’s ESE newsletter and my article, Enabling Strategic Sales Growth:
Our latest article on sales enablement is now online at Industrial Supply. Distributors are giving CRM a hard look and learning from the mistakes of others. Innovative and disciplined distributors are achieving results. Manufacturers should take note!
Click below for our research on the Top 10 benefits of CRM and for the critical factors that determine success or failure.
If you have comments or questions, please share them here. And for a copy of Getting the Most Out of CRM: Best Practices for Wholesaler-Distributors, click here or on the book image at the bottom of this post.
Please join me for new ideas and networking at our workshop on sales enablement sponsored by the Chicagoland Chamber of Commerce and Highland Solutions. We’ll talk strategy, execution and tools, drawing on our work and the experiences of business leaders and sales professionals attending the workshop. Highland Solutions will share state-of-the-art approaches to CRM, collaboration, social selling and e-commerce. I will offer thoughts on the ongoing evolution of digital channels and lessons from my research and new book: Getting the Most Out of CRM: Best Practices for Wholesaler-Distributors.
Please click below for more details to register for this exciting event:
The commercial culture for selling and acquiring products is changing, and with it many long-established rules for optimizing sales productivity. Under the old school of sales effectiveness, top performing salespeople achieved results by cutting back on activities to focus only on the few critical actions that were essential for closing a sale. The goal was to find the shortest path to success, avoiding time-wasting entanglements with customers and colleagues
Here’s the problem: the shortest-path sales strategy only works if the salesperson is the primary conduit for learning about and acquiring solutions! Today, this is most definitely not the case. Customers are empowered. Online access, digital information and social tools have freed customers from the tyranny of acquisition processes controlled by salespeople for sales advantage.
This new reality is why collaboration is essential for sales success. Highly successful sales people must work with customers, matching their efforts to the customer’s buying process and business needs. As one of my favorite sales leaders puts it, “Collaboration is for closers!”
Collaboration strategies drive results by building a foundation of common understanding and aligned interests. Salespeople build customer equity through proprietary relationship networks, within and across customers, companies and communities. They ask questions, understand the customer’s market, business goals and success metrics, and then offer ideas. Moreover, they work to align the resources of the sales person’s company to meet the needs of the customer, trading information and advice for openness and loyalty. In this environment, successful sales happen quickly, but the new model is more about precipitating sales rather than driving them. When the stars align, sales happen!
Working with clients on the leading edge of new sales models, often enabled by digital channel tools, I have identified five guiding principles for developing a highly effective collaboration strategy for optimizing sales results:
- Collaboration begins at home. Sales people must understand the goals and metrics of internal partners, to build a high-powered network for responding to customer opportunities.
- Put information at fingertips, virtually. CRM can proactively put data, testimonials and marketing materials in front of sales people at the exact moment it is most effective.
- Incorporate connections in sales territories. Customer assignments should transcend geography and segments to include connections managed through social media and personal interactions.
- Build your own best practices. Find out what works for your customers and products, then train and coach sales people, marketers and leaders for consistent execution.
- Leverage a value-selling process. Collaboration leads to sales when sales people work to build sales from ideas to possibilities to solutions, and follow up offering proof of value.
Going forward, best-in-class sales organizations will build collaboration as a culture, competency and process, with best practices and metrics. The best results are enabled with technology, and if you would like to see examples, please check out these ideas offered by my friends over at Highland Solutions:
Salespeople and other channels play a critical role in delivering complex messages to customers. Historically, the best methods for essential communications have been face-to-face conversations or sometimes, telephone calls. Today, videos are playing an increasingly important channel and sales role for customer education, training, value propositions, and on and on. Predictably, new companies are springing up and offering “video as a service” to meet this need. It’s all part of the changing commercial culture for interactions between suppliers, channels and customers.
My Take? If the ultra complex topic of health care reform can be explained effectively through videos, any topic is a potential fit for a digital communication. Benefits for channel strategists will include delivering a consistent message, meeting customer expectations for on-demand education, lead generation and customer activation, and so on.
Click below for complex messages delivered through a creative video service:
Sales are brisk and include manufacturers and distributors. If you’d like to discuss how our book might be helpful for your business, please send a message on LinkedIn or Channelvations’s secure contact page.
I welcome ideas and look forward to hearing from you!
Please click here for Channelvation’s newest white
paper, Enabling Sales: Strategic Sales Effectiveness. In it, you will find ideas and experiences on strategies for driving growth and thoughts on the role CRM can play in accelerating results. This white paper accompanies my recent webinar, Laser-Sharp: Achieving Strategic Sales Effectiveness sponsored by Highland Solutions.
Please download Channelvation’s newest white paper here:
My webcast on digital channels sponsored by the Society of New Communications Research (SNCR) is now available on SlideShare here (slides only) and here (with audio and animation). I welcome ideas and discussions, so please feel free to reach out to me on Channelvation’s contact page if you would like to follow up or arrange a briefing for your company. You can learn more about SNCR here.
Please join me for a complimentary webinar hosted by the Society of New Communications Research (SNCR) on Wednesday, July 17, 2013 from 10:00 – 11:00 AM PDT / 1:00 – 2:00 PM EDT. I will share findings from my new book on CRM and discuss broader implications for the ongoing evolution of channels and channel strategy, as driven by the combined influence of CRM, social selling, multichannel, mobile commerce, big data, and other digital technologies.
If you are interested in these topics and don’t know about SNCR, you should. The Society of New Communications Research is a global nonprofit research and education foundation and think tank focused on the advanced study of the latest developments in new and emerging communications tools and technologies and their effect on business, culture, and society.
SNCR webinars max out early, so please click below for my agenda and to register:
Please join me on June 26th at 12pm EST for a discussion on state-of the-art trends for enabling sales people and improving sales effectiveness. I will offer insights from my work with leading sales organizations and share findings from my new book, Getting the Most Out of CRM: Best Practices for Wholesaler-Distributors. Additionally, Scott Taback of Highland Solutions will offer insights on team selling and technology.
Here’s a preview of my talk:
Perhaps the most important finding from my research of more than 200 executives is that CRM fails without strategy and follow through. The opposite is also true. By aligning CRM with strategy through a laser-sharp planning process, successful companies find that CRM can be a critical enabler for improving sales effectiveness and achieving strategic goals. The first step is to clearly define goals and build the required strategy. During our webinar, I will share best practices and results from three “hot topic” strategies:
- Value-selling — as competition intensifies and product differentiation vanishes, more and more companies are looking to achieve success through the actions of sales people. Often, this requires a fundamental shift to a new sale process. One that is based on sharing actionable insights and information with customers, shepherding opportunities through a disciplined process, and measuring success in the customer’s business outcomes
- Moving the Middle — a sustained, strategic commitment to sales coaching and performance management can yield career-making results through organic growth. The key is to focus on the middle-performing sales people, and providing tools and training to both sales people and frontline sales managers. Behavior-based competency models are part of the solution, as is providing data and information for fact-based coaching and performance reviews
- Digital Channels —forward-looking companies are moving beyond social media and digital marketing, to incorporate digital tools within their channels as a way to improve performance and grow profits. There is a smorgasbord of digital tools available, including mobile apps, big data, social selling, multichannel, e-commerce and CRM. Uncertainty abounds, but the new rules of channel strategy are emerging
To achieve strategic sales effectiveness, it’s necessary to build a strategy. Your strategy may not be one of the three above, but you must have a strategy for achieving your goals. Then, you can go on to complete your own laser-sharp planning process by answering the following questions:
- What information and data is essential for executing your strategy?
- How can data best be organized for action?
- What is the best way to put the information in the hands of sales people at the moment it can make a difference?
- Once enabled with information, what are the behaviors that will actually lead to achieving your desired results?
I have found that it’s important to think carefully about behaviors. Time and time again, leading users of CRM emphasize that successfully implementing CRM is about driving organizational change. CRM arms sales people with customer information and provides opportunity management tools for tracking progress. But, results are not achieved without action. If your company is implementing a value selling strategy, your new behaviors will be about sharing information to communicate possibilities and solutions, and following through with actions that gain commitment. If your strategy is more about moving the middle, your goal will be to help middle performers adopt the best practices of top performers. Either way, sales people must act differently to achieve your company’s desired results.
To hear more about these topics, register for our webinar on sales enablement and strategic sales effectiveness.
Our research with more than 200 distribution channel executives revealed an uncomfortable truth — CRM fails without strategy and follow through.
It’s not that CRM can’t work as an automation tool. It can. But without a clear vision and disciplined execution, CRM will not deliver on its promise to significantly improve performance, or its potential for game-changing competitiveness. Upfront, high-performing implementations align CRM with predetermined strategies with specific sales, marketing and service behaviors essential for growing sales, moving share and increasing profits. After launch, a well thought out change management plan is mandatory for overcoming organizational resistance, encouraging adoption and building a new culture of data-driven actions and continual improvement.
Our research is the foundation for our new book, Getting the Most Out of CRM: Best Practices for Wholesaler-Distributors. It’s a comprehensive, soup-to-nuts guide for achieving business results through CRM. More than that, Getting the Most Out of CRM raises strategic considerations for distributors and manufacturers.
- How can individual distributors leverage CRM to identify, reinforce, track, measure and reward the unique behaviors that drive improved profitability?
- What investments in sales coaching and training are needed to overcome barriers, and to encourage CRM adoption by salespeople, managers and leaders?
- How can distributors develop new capabilities for value-selling, account acquisition and territory development, enabled by CRM, for game-changing results?
- What actions are required to use CRM for strengthening customer relationships and distributor brands around differentiated services and customer impact?
- As an industry, how will distributors utilize CRM to enable value-chain innovation around services, visibility, forecasting, coordination, and collaboration?
- How can manufacturers leverage distributor CRM to improve sales, marketing and service support for products, services and brands?
- Which strategies for encouraging CRM adoption are most effective for open, selective and exclusive distribution policies?
- How will channel marketing, loyalty, compensation and joint planning programs change to reward distributor CRM capabilities?
- What are the new best practices for improving customer intimacy, supply chain visibility and sales forecasting?
- Are manufacturers making the most of their own CRM tools? Are they keeping up with distributors?
Channelvation is offering executive briefings and custom workshops to help
distributors and manufacturers get the most out of CRM through high-impact strategies and execution. For more information, please reach us through our secure contact form here.
To order a copy of Getting the Most Out of CRM for your management team or personal use click here.
Read about our new book on CRM here, or visit our secure contact form to schedule a 30 minute executive briefing. You can place an order here through the NAW Institute for Distribution Excellence and receive your copy in mid-June.
“Our salespeople are flying blind!” CEO, Industrial Wholesaler-Distributor
“Stick with CRM .. the end result is worth it!” CEO, Outdoor Power Equipment Distributor
This post links to my third (and final!) audio interview on CRM for MDM’s Executive Briefing. The topics for this discussion are common mistakes and overall best practices. Our upcoming book will offer ideas and experiences for getting the most out of CRM, and will be published in June by the NAW Institute for Distribution Excellence.
This post links to my second audio interview on CRM for MDM’s Executive Briefing, focusing on CRM’s impact on Manufacturer / Distributor relationships and tips on selecting a CRM vendor and longer-term partner. Our upcoming book will offer ideas and experiences for getting the most out of CRM, and will be published in June by the NAW Institute for Distribution Excellence.
You can listen to the first audio interview here. Please click on the link below for the second interview:
Our Ideas Blog has posted evidence of sell-side innovation by drug stores here and here. Now comes word that the ongoing evolution of the US healthcare ecosystem is prompting innovation on the drug store buy-side.
Walgreens and Alliance Boots announced a joint venture last year (officially named Walgreens Boots Alliance Development GmbH). The joint venture has just signed a deal with AmerisourceBergen to supply branded, generic and specialty pharmaceutical drugs. In exchange for its drug business, the Walgreens / Alliance Boots joint venture gains the option to buy a minority interest in AmerisourceBergen and to nominate directors for the drug wholesaler’s board.
Key excerpts as reported on Fox Business:
“As we all recognize the imperatives of health reform not only here in the U.S. but also globally, we have entered into a unique opportunity to unlock value in the pharmaceutical supply chain by collaborating to leverage all of our proven strengths,” said AmerisourceBergen CEO Steven Collis.
In exchange for the supply deal, Walgreen and Alliance Boots, which struck a joint venture last October, have the option to buy an interest in AmerisourceBergen starting with a 7% stake. The drug distributor granted the retailers equity warrants exercisable for a 16% stake in the company.
Under the terms of the transaction, Walgreen will be allowed to appoint one director to the AmerisourceBergen board once it acquires a 5% stake. A second director can eventually be added. The drug wholesaler said it will add the two seats to its nine-member board.
My Take? As reported, this deal is mostly about supply chain services and a form of vertical integration and globalization. Still, one company’s supply chain is another’s sell-side channel, and we will be on the watch for new go-to-market developments for companies that rely on Walgreens / Alliance Boots for market access. If nothing else, this deal further strengthens the channel power of an already-strong ecosystem player.
Read the full article on Fox Business here: