In the classic play and movie, Glengarry Glen Ross, Blake, the strident troubleshooter from downtown, informs us that “Sales is a tough racket.”
Selling is not only tough on the sales rep, but also on the company. For that matter, it can be tough on the buying party and buying company, as well.
Before we go further, I want to say that I have the highest respect for good salespeople. They have a tough job, and we all depend on them to do their jobs well. But not all salespeople are created equal. For every few Zig Ziglars, there is an Orville Haney. For each Og Mandino, you will also find a Herb Tarlek
Consider the average transaction. Two large organizations represented by two individuals negotiate a deal. Money and products are exchanged. All of this happens behind closed doors, out of sight and with little or no oversight. Granted, larger deals may involve more folks on both sides of the desk, but these still require a considerable amount of trust.
Companies frequently find themselves prey to unscrupulous or incompetent sales reps or simply bad business practices. As a VP or director of sales, you are responsible for the actions of your sales team. While you (hopefully) trust your team, anyone who has been in the game long enough knows that the landscape of a sales organization is prone to sudden and dramatic shifts based on unforeseen actions of sales reps.
It really does not need to be this way. There are easy ways to ensure that the selling process is transparent and easy to manage and follow so you and the company do not get burnt.
Let us look at a few more common scenarios and how they can be mitigated. Let us meet the Sales Reps from Hell.
What is CRM and CPQ?
In the world of modern sales processes, two tools stand out as essential: Customer Relationship Management (CRM) and Configure-Price-Quote (CPQ). CRM software is the backbone of managing customer relationships, providing a centralized hub for all customer information. It allows companies to track interactions, identify trends, and improve communication across sales teams, support, and customers. Imagine having a digital Rolodex that not only stores contact details but also logs every conversation, email, and meeting—making it easier to nurture customer relationships and enhance the overall customer experience.
On the other hand, CPQ systems are the wizards behind the curtain when it comes to pricing and quoting. They dynamically configure highly customized products and services, ensuring that sales reps can quickly generate accurate quotes. CPQ software uses smart rules to prevent incompatible product pairings and streamline the quoting process. Think of it as having a personal assistant who knows every product detail and pricing rule, helping salespeople save time and boost productivity. Together, CRM and CPQ form a powerful duo that can transform the efficiency and effectiveness of sales processes.
The Disappearing Sales Reps
If you have been around sales folks for any length of time, you’ve most likely run into this fellow. He is likeable, he seems to stay busy, and he closes some business now and then. He has been around for quite a while, but he seems to always be a month away from closing the big deal.
He is kind of a cowboy in that he doesn’t share a lot of details about what he’s doing. But, since he does earn a bit for the company, no one complains, and they let him kind of run his own show.
Then, one day quite unexpectedly, he leaves the company. He has gone and no one really knows why. He does not go alone. His contact list, his deals, his customer files, his price list, his product information, and his calendar all go out the door with him. They go out the door and down the street … to your primary competitor.
Today, companies do not have to accept this. CRM systems provide a place for contact, customer, and activity reporting. Sales reps that do not use CRM need to understand that this is not acceptable anymore. More companies are adopting a policy that if something is not in CRM, it isn’t real. No commissions are paid; no exceptions.
Sales managers have every right in the world to be informed of everything going on in their territories. If a sales manager sees a month of no CRM activity posted by a sales rep, they need to place that individual on an improvement program or show them the door.
Parting ways with partners and employees is not an easy process. Situations will vary. The key is to understand what your rights and responsibilities are in this area.
The Limitations of CRM Alone
While CRM software is a powerhouse for managing customer relationships and tracking interactions, it has its limitations. When it comes to configuring products, pricing deals, and creating accurate quotes, CRM alone often falls short. Imagine trying to build a complex Lego set without the instruction manual—sure, you might get something that resembles the final product, but it is likely to have a few pieces out of place.
This is where CPQ software steps in to save the day. CPQ complements CRM by picking up where it leaves off, focusing on the practical details of the quoting process. It enables sales teams to create precise and customized quotes, reducing the risk of manual errors and delays. Without CPQ, sales reps might find themselves stuck in a quagmire of spreadsheets and guesswork, leading to a lack of visibility into the entire sales cycle. By integrating CPQ with CRM, businesses can ensure a seamless and efficient sales process from start to finish.
In the Midnight Hour: Streamlining the Sales Process
This guy is always too busy to come in and talk. He is never in the office, and he is always late with reports or other work. He may close some business, but not very much. He may miss sales meetings or other gatherings, always with a last-minute excuse.
He works out of his home, and many times he doesn’t answer the phone, instead allowing it to roll over to voice mail. He is perpetually vague about who he is talking to and what the status of this or that deal is. It is only by accident that you learn the truth—your man in Topeka is also someone else’s man in Topeka.
He is a moonlighter. It may be Amway, or it may be your primary competitor. Either way, he is stealing time from you and defrauding you.
Perhaps you are paying him a salary plus commission, or you call it a draw. Regardless, it is money wasted.
Once again, a requirement to use a CRM system is the best insurance against this. Daily discussions with prospects and customers are recorded. This has the added benefit of improving your ability to forecast business based on real data instead of polling reps every month or quarter.
Undoubtedly, there are the few that will interpret this as spying on them. They will complain about a lack of trust.
Too bad. Too much is at stake. The Air Force and Navy both require two keys to be turned simultaneously to launch a missile. Generally accepted accounting practices require multi-party authorizations on maintaining the financial records and activities for the corporation. It is not a matter of trust; it is a matter of corporate credibility.
How CRM and CPQ Integration Drives Business Growth
Integrating CRM and CPQ systems is like combining peanut butter and jelly—each is great on its own, but together, they create something truly special. This integration streamlines the sales process, boosts sales productivity, and enhances customer satisfaction. With both systems connected, sales reps have a one-stop shop for accessing customer data, quotes, and product information. No more toggling between different platforms or hunting for information—everything is right at their fingertips.
Automated sales processes through CPQ tools mean that reps can instantly provide customers with personalized quotes, leading to increased customer satisfaction and loyalty. Satisfied customers are more likely to return and refer others, driving revenue growth. Additionally, the integration of CRM and CPQ provides valuable insights and reporting capabilities, allowing businesses to make data-driven decisions and optimize their sales strategies. By harnessing the strengths of both CRM and CPQ, companies can create a more efficient and effective sales process that propels growth and success.
Play Ball! Strategies for Motivating Sales Teams
Sales reps, by their very nature, love to have the answer. They hate having to say, “I don’t know.” So, when the customer is listening early on, the pitch asks, “How much?”
These guys feel compelled to toss out an answer—usually calling it a ballpark quote. But is it? Is it a quote or is it an estimate?
The problem with ballpark quotes is they become etched in the mind of the customer and three months later, when the final presentation is given, they are shocked to find that the price has tripled.
Of course, during those three months, all manners of additional functionality are revealed as required for the delivered product.
A CPQ system allows the rep to generate as many quotes as required. Each will reflect the exact functionality built into the system being quoted. It is not a ballpark; it is a firm quote for a firm product. Documenting the quotation in the CRM system will also add to the validity of the quotation. If you must produce it down the road, it will clearly spell out what was included.
This is helpful when the customer suggests that promised functionality is not included in the deliverable. People remember things inaccurately. CRM and CPQ systems remember things exactly the way they were entered.
The Flim-Flam Man: Building Trust in Customer Relationships
It’s the last day of the fiscal year and one of your reps who is down a few points off quota walks in with a last-minute order that puts them over the top! Hooray! All the incentives kick in, bonus checks are written, and the hero is headed to Tahiti for the 100 percent club meeting. The sales manager gets a kiss, and the VP of sales is honored, as well.
Three months later, all the money was spent, the club trip is a memory, and all eyes are focused on the new year. A return for credit is quietly processed for the customer who placed the over-the-top order. It seems that they are not going to need the product due to some unforeseen situation.
In reality, it was always a bogus deal. The customer may have placed the order. It really doesn’t matter because the whole thing was bogus to begin with.
Yes, there are sales folks out there who can do this. I personally know of a case involving a computer salesperson who did this on multiple occasions. The customer loved this rep so much they would do anything to help him out. Machines were ordered then they stayed on the pallet on the receiving dock. After a few months, plans would magically change, and the box was returned for credit.
Once again, steady use of CRM to document ongoing sales cycles is an effective way to avert this kind of fraud. Last-minute deals, especially ones involving incentive kick-ins or similar perks, should be easy to track in CRM. If they aren’t there, by policy, the deals should be handled on a tentative basis. This isn’t a slap in the face; it’s smart business.
Technology does more than speed things up or help us eliminate mistakes. Technology keeps honest people honest. Selling is so critical to any company, and so many rides on the integrity of the transaction and the people consummating the deal.
A handshake may have been good enough for folks of years past, but today we require more. CRM and CPQ are just two tools that not only reinforce the integrity of the selling process, but they also help the sales rep close business. It is, after all, the business that owns the data and is incurring the liability for storing that data.
FAQs
1- What is the difference between CPQ and CRM?
CPQ (Configure, Price, Quote) and CRM (Customer Relationship Management) serve different but complementary functions. While CPQ streamlines product configuration, pricing, and quote generation, CRM helps sales reps manage customer relationships, track interactions, and drive engagement. Integrating CPQ with CRM enables a seamless sales process by improving efficiency and accuracy.
2- CPQ vs. CPQ Plus: What’s the difference?
CPQ solutions focus on automating quoting and pricing, whereas CPQ Plus offers advanced capabilities like AI-driven recommendations, real-time pricing optimization, and deeper integration with CRM and ERP systems. Businesses requiring more automation and intelligence in their sales process may benefit from CPQ Plus.
3- Why is CRM important for sales reps?
CRM for sales reps helps manage leads, track sales activities, and streamline customer communication. With features like pipeline management, automation, and reporting, it ensures sales teams stay organized and focused on closing deals efficiently.
4- What is the best CRM for sales reps?
The best CRM for sales reps depends on business needs. Salesforce, HubSpot, and Zoho CRM are popular choices, offering lead tracking, automation, and integration with CPQ tools for seamless quoting and deal management.
5- What is the best CRM for outside sales reps?
Outside sales reps need mobile-friendly CRMs with real-time data access. Salesforce Sales Cloud, Zoho CRM, and Microsoft Dynamics 365 are among the best CRM options for outside sales reps, providing on-the-go access, geolocation tracking, and AI-powered insights.
6- What is CRM Plus, and how does it enhance sales processes?
CRM Plus is an advanced version of standard CRM software, integrating sales, marketing, and customer support functionalities. It provides a 360-degree customer view, AI-driven analytics, and seamless integration with CPQ solutions, making it a powerful tool for sales teams.
