The 10 Reasons Your Sales Team May Be on the Hunt

Sales Team May Be on the HuntWe recently came across an interesting LinkedIn post questioning how to keep sales team members from leaving an organization… This is an interesting question, as Sales overall tends to have some of the highest turnover rates over any other department within an organization. Each time an organization loses another sales team member, it is not just the employee loss that hurts the organization. There are many downstream issues that affect the organization from associated revenue loss, recruitment cost, on-boarding cost, and potential loss of client trust. This makes sense as to why organizations should be finding ways to ensure good sales team members stick around longer.

Engaged reps are no longer spending entire careers within one organization but hop job to job every few years in search for the next better opportunity… Why has this become the case? First, over the years, it seems that the way organizations have looked at Sales has drastically changed from strategic individuals within an organization to replaceable butts in seats. As a result, Sales feels less valued by their current employers and are lured away with the hope of finding a role where they are more valued and see more potential in the long term. Let us break it down a bit and share some of the key areas we’ve seen that can affect the sales team’s morale within an organization:

  • Number of Sales Reps = Revenue: Translation: butts in seats = bookings. We’ve lost count to how many executives we’ve seen build their revenue models based on how many reps they have in seats. Are they wrong in this approach? No. But herein lies the issue; they take this perception beyond their revenue models and begin to look at their sales team as a number vs. individuals and treat them as such.
  • Everyone is Replaceable: When management begins to look at the sales team as just a number, they start to convey the message to the sales team that everyone is replaceable. And no one wants to feel as if they are replaceable.

One example of how an organization takes this to the extreme is Oracle. As a starter, teams that have a full head count are allocated the ability to hire a +1 rep. The sole job function of this +1 is to sit on the bench waiting for a rep within the team to leave the organization so they can fill that hole as soon as humanly possible. However, it doesn’t just stop there. Over the years, Oracle has developed a “class of” program, hiring MBAs fresh out of college and spending months training and crafting their ideal reps… These new reps are kind of like the AAA of Oracle, where once they complete training, they are given positions as Business Development Reps where they hone their skills in waiting to be called up to the Big Show. Again, this makes them a lower cost and a faster replacement option as older reps leave. Nothing makes a sales team member feel less appreciated than knowing they are 100% replaceable at any moment’s notice.

  • Three Months: Three months is the average time most reps get to fix their low sales numbers before they are put on a Performance Improvement Plan to fix their numbers or be fired. Now, we agree that bad reps need to be fired; however, we find that many organizations do not take the true time to understand why a sales member is under-performing. Furthermore, we find most performance plans are configured in a way where goals are almost impossible to hit and are essentially designed to get a rep to quit or get fired. In these cases, existing reps are completely aware of these types of plans, and it always sits in the back of their minds.
  • Shrinking Commission: In twenty-plus years, we can count on one hand the commission plan changes that were actually beneficial to the reps! Regardless of the organization, we’ve found that the majority of commission changes typically have a detrimental effect on reps’ commissions. It doesn’t matter how management tries to frame these changes to the sales team; they know how they are paid and will quickly see how a plan will change their compensation. Nothing demotivates Sales more than knowing they are making less money for the same work.
  • Unattainable Quotas: We reviewed this in a past article, but it begs repeating. Sure, as a company grows, so should quotas. But if you have more than 50% of your reps missing their numbers, you have a problem. No one is going to stick with a company if their quotas are so high they are virtually impossible to hit.
  • Career Path: Typically, there isn’t one for Sales. Very few companies actually line up a career path for their sales team, and as a result, there is almost no path for career progression. It is hard to keep anyone motivated if there is no path for them to grow. This is even more painful as they see others in other departments continuously get promoted while they remain stagnant.
  • Outside Management: This is such a tough one as we see the value of bringing in a fresh set of eyes to oversee a team. However, almost nothing makes a sales team less motivated than when leadership brings in management from outside the organization. Not only does it show that management does not believe that anyone within the current team has the ability to lead, but when you couple that with the lack of career development already in place, it truly demotivates a team.
  • Outside Heavy Hitter: A new successful territory becomes available or the opportunity to sell the newest product opens up, but management brings in an outside heavy hitter to take on this new role vs. an existing team member. That’s going to piss off your existing team. Why should someone that is completely new to the organization get a new and exciting opportunity while people that have been with the company for years stay stagnant? You may not believe that, but your team certainly does.
  • Presidents Club: What is that? Nothing is more nostalgic than hearing some of the old-timers talking about “the glory days” of presidents club… Free family trips to Disney World, all-expenses-paid trips to the Caribbean, corporate sporting event buyouts… Sure, there are still some companies that offer these types of trips, but they are few and far between. Even if they do offer some type of presidents club, they almost never stack up to those in the past. Sure, does the lack of Presidents Club cause reps to leave? Of course not. But it certainly does not help with retention, especially when they are being recruited by other firms that might actually have a great Presidents Club.
  • Random Perks: Random breakfast, lunches, or an offer to pay for a night out on the town are the little things that good companies offer reps for all their hard work and time away from their families when traveling. However, many companies do not offer these perks anymore… Again, does the lack of incentives truly make a rep want to leave? The answer is still no. However, just like the Presidents Club, perks make them feel appreciated, and they are definitely being offered by companies that recruit your best reps.

At the end of the day, sales is one of the most stressful jobs in any organization. When you really think about it, each rep essentially has to start at zero at the beginning of every month, quarter, and year… The good sales reps are always focused on how to be successful and close as much business as possible. This results in them not adopting the typical 9–5 shift and working all hours of the day. They continuously sacrifice family time for email, sales calls and travel… However, companies are increasingly devaluing the position of Sales, and they have taken notice. This is why salespeople don’t stick around for entire careers anymore. You want your reps to stick around? Make them feel irreplaceable with an obtainable quota, give them a career path, and instead of finding clever ways to pay them less, find ways to pay them more! Finally, make them feel appreciated by offering perks such as a Presidents Club and little things such as breakfast or lunches (they go a really long way). When people feel appreciated and like a valued part of a team, they will not be wondering how much greener the grass is on the other side of the fence.

Want to discuss more or need help, feel free to comment below or contact us directly at 3SixtySMB@3SixtSMB.com

 

Search Engine Optimization – What is it and why is it so important for Small Businesses?

SEO Search Engine Optimization for Small BusinessesThe internet has been around for a while now, and so has Google… Yet, most small businesses have no idea how the internet or Google work, leading to one of the major reasons for business failure in today’s market.

There is no escaping the fact that almost all sales (business and consumer) start with an online search, and this isn’t new. About ten years ago, we used to share a stat that around 50% of sales start with an online search—and this was ten years ago. Since then, that percentage has grown exponentially to 87%, quickly making online search one of the top facilitators for how buyers find and conduct research around items they are looking to purchase. This quite simply means, regardless of your business type, size, or industry, if you do not have a proper online presence or have a key understanding of how online search platforms such as Google work, you are losing business (not a little amount of business, but a lot). There are plenty of businesses that have embraced the internet and online search full-heartedly, making it a core part of their business functionality. As a result, they close a significant amount of business and are thriving where others are failing! Some have even created models where their entire online presence is geared around a touchless sale, allowing customers to find, research, and place orders for their products and services 100% online without ever having to interact with a representative. However, there are still 36% of small businesses that still do not even have a website. And the number of businesses that just have improperly formatted websites or a complete lack of understanding of how Google works, is quite staggering. Why is this the case? Well, it’s a reoccurring theme that comes up in most of our writings but comes down to the lack of understanding of how the internet really works, or just a general resistance to change. In this article, we’ll cover some of the basics of developing an online search presence.

As a starting point, we need to drive home the point that almost all business and consumer purchases start with an online search. Furthermore, when online search is solely used to start the process, there has been a transition to continue to use online search throughout the entire lifecycle of the buying process. Essentially, what this means is once a buyer has locked in on a prospective company, they will continue to conduct research on that company, industry, competition, along with the various product and solutions offerings. Again, this all boils down to the fact that if your business is not focused on online search, you are setting yourself up for failure. The starting point for all these searches and research efforts is Google! Google currently directs 92.81% of all online search traffic, making Google one of the most single important strategies businesses should be focused on from a marketing perspective. The strategy in relationship to Google, is what is commonly referred to as Search Engine Optimization or SEO. Search Engine Optimization is quite honestly a very simple strategy for optimizing your website and online presences to be properly found (or indexed) by Google and showcased in their search results. Although fairly simple in its nature, even bigger Fortune 500 companies do not know how to properly deploy SEO strategies and often get it wrong (Toys R Us pays $5.1 million for Toys.com domain name, forgets to set up 301 redirects).

With all of that said, let’s focus on the basics of Search Engine Optimization:

The very first item to understand is that there are two types of SEO: Paid and Organic… This leads to the biggest myth/issue when it comes to SEO strategy, as many believe the only way to properly rank in Google, is to pay Google. This is not entirely true as Google showcases results that are both paid and organic… Paid results are indicated as “Ads” and typically live in the first few results of a Google search, but then just below are the organic results. Let us break out the difference a bit:

Paid Search: Google Paid Search, has been Google’s bread and butter for revenue generation since the beginning. Essentially, Google allows individuals to bid on very specific keywords, so that their business will be ranked in Google searches. As an example, pull up Google and search “Search Engine Optimization.” The first three or four results in that search with the little “ad” box next to them are all paid results. Each business in this section has paid Google for their ranking… How it works: each keyword essentially has a value associated to it and Google will assess its value on how popular a keyword might be. Keywords that are more popular cost more money… But it doesn’t stop there; Google has created a bidding process around each of these keywords. Meaning, for example, if you wanted to outrank a competitor within Google’s paid search results, all you need to do is outbid them. Then, as people see your results and click on your links, you pay Google… Here is the catch: the minute you stop paying Google, you are completely dropped from their paid placement. The easiest way to think of this concept is renting a billboard on a super busy highway getting your business a lot of attention until your ad is removed… This also has the tendency to get expensive real quick, and remember, you are only renting this space.

Organic Search: Organic Search is the other way Google profiles businesses in their search results. Again, pull up Google and search “Search Engine Optimization.” The results that show up just below those paid ads were 100% free… That’s right, the companies that rank for that term did not pay Google a dime for that placement. What is even better, is unlike paid search where you are dropped the minute you stop paying Google, they maintain those rankings as long as they maintain a higher authority ranking in the eyes of Google… In the simplest of terms: where Paid search is like renting for that placement billboard, Organic search is like owning the placement… But like anything, there is a catch. Organic rankings take effort to properly rank within Google, and in some cases, organically ranking for super popular keywords such as “Search Engine Optimization” are almost impossible for newcomers. Ranking in Google organically doesn’t happen overnight—it takes time and effort combined with the knowledge of how SEO works to build up what Google referrers to as Authority. How Organic Search works is instead of paying Google for placement, Google looks at a series of characteristics of your online presences, and more importantly your website, and compares it to competing websites to determine which keywords you should rank for and where. In this article we will not cover the specifics of how that works, as there are plenty of articles online that cover the specifics of SEO in great detail.

Again, understanding how Google search works is quite honestly one of the most misunderstood aspects of online marketing for any business… If Google is so simple, why is it so misunderstood? Again, it comes down to a lack of understanding of how the internet works and just a general resistance to change, especially in small businesses. However, there is another aspect that comes into place as well: the website development community. When you look at small businesses, they typically have zero knowledge regarding how to develop a website, so they look to website developers to create a site for them with the thinking they know best. Unfortunately this couldn’t be further from the truth as most designers are taught how to develop a site for looks and functionality, but not for Google. It’s not their fault as colleges and other website design courses are historically slow to adapt to change. This results in website design courses that are built around how to develop a website for looks and functionality, not Google Search… Sure, slowly but surely, more colleges are adding Google SEO to the curriculum, but it is too late for a decent amount of the website development population as they are already out in the field building websites… All of this is a long-winded way of saying that most developers (not all), when building out a website for small businesses, build websites for looks and functionality and not Google. What this all boils down to is that the minute most websites publish, they are already at a disadvantage.

All is not lost… Unless you have a Flash-enabled site (Google does not like Flash sites), most existing websites can be modified with little effort to be optimized for Google. And then from there, it just takes time an effort to build up the proper elements that Google looks for to properly rank a website… Again, it just takes time and education to develop a proper SEO strategy. Spend some time searching Google around Search Engine Optimization Strategy or look at our recommendations: https://blog.hubspot.com/, https://moz.com/, and https://searchengineland.com/. This is also something 3SixtySMB can help with… Regardless of how you develop a strategy, it is important to get started sooner and not later! Your business’s future depends on it…

The Importance of Having an Online Digital Presence for Local Small Businesses

Online and Digital PresenceI was reminded the other day of exactly why it is important to have an online digital presence in this day and age… Even though online and digital mediums have been around for more than 20 years, it seems that many local small businesses are still slow to pick up on the trend. We do understand why, as it was not too long ago that all a local small business needed for marketing was a good Yellow Page advertisement, a good direct local mail flyer, and maybe a well-placed radio ad. These worked extremely well for decades… However, from a traditional marketing perspective, times have changed. For example, Yellow Pages have gone from the must have item for every home, to getting thrown in the recycling bin before even making it into the house. Why has this happened? Well, for one, Google has virtually changed the way people look for various goods and services. Looking for an electrician, carpenter, pizza, or even a restaurant? You no longer need to flip through various ads in the Yellow Pages—you can just search directly in Google. Not only will Google pull the most relevant results, but they also pull other various important details regarding these businesses including address, phone number, website, Google, Yelp and Facebook Reviews, Facebook profiles, and other endless information. These elements alone have factored into the demise of the Yellow Pages. Again, this is not a new concept, as this shift has been happening over the past 20 years… In fact, HubSpot’s founders, Brian Halligan and Dharmesh Shah, revolutionized how people look at this shift almost 10 years ago when they published their book on Inbound Marketing and founded HubSpot. They haven’t stopped preaching the word around Inbound Marketing since…

This begs the question, why haven’t local small businesses caught up to their times of creating and maintaining an online digital presence? The reasons vary from anything from ownership not accustomed to change, to lack of understanding and education around how a local small business can create and maintain an online digital presence. Regardless of the reason, if a local business wants to continue to be in business for the foreseeable future, they need to embrace going online and digital. Let me share a personal experience to why this matters so much.

Residential construction has historically been one of the industries reliant on Yellow Pages, advertisement flyers, or word of mouth to help run their businesses. Looking back maybe ten years ago, the Yellow Pages alone were enough to keep phones ringing off the hooks… but those times have come and gone. Now it is a feast or famine industry, with some businesses still maintaining a strong revenue stream, while others that have resisted change are failing. When inviting a construction company into your home, people want to ensure that they are inviting someone that they can trust to do quality work in a timely manner. As a result, they tend to do research on these companies before calling… which is what happened with me, and it reminded me why a strong online digital presence is so important. My wife and I are personally looking into having some major work done on our home. Like any household, we receive various local advertisement flyers and ValPaks in the mail. This past week, I decided to take a look and see if there were any businesses we should be considering as part to the process. Interestingly enough, in both the local flyer and ValPak, I found a construction company’s very well-made flyer, advertising the exact service we were looking into having done. However, there was an instant red flag for us: the price. The price on the flyer was too good to be true, but I’ve come to learn to never judge a book by its cover. So we did some digging… Naturally, we started with a Google search and then looked at other resources such as Facebook and Yelp. What we found was beyond a website—they had zero online digital presence. No Google or Yelp reviews, nothing on Angie’s List, not even a Facebook profile. This was a bit concerning, so we took our search one step further creating a post on both Nextdoor.com and Facebook asking if anyone in our community has ever worked with this company. We received no feedback on the business at all. When performing our search, we had been hoping to come across reviews from others who have had a great experience with this contractor, or maybe even a Facebook profile showcasing some of their latest work. We were looking for anything to give us the confidence in their business and that we could welcome them into our home—but nothing. As result, I moved on to the next candidate on the list.

Therein lies the problem for small businesses today. If you are not working on building an online digital presence, you are guaranteed to lose revenue to competition… Interestingly enough, while searching for information on this particular construction company, I stumbled upon several other businesses with fantastic online presence, and they were the ones that received a phone call.

Websites are not enough anymore, especially for local small businesses. Building an online digital presence isn’t entirely that difficult, and in most cases, has a zero-dollar investment to get started; it just takes effort and time. We’ve actually been writing about various tactics to improving one’s online digital presence… Here are a few recent articles to help you get started:

We also recognize that creating a strategy to develop or improve your online digital presence is easier said than done… 3SixtySMB is happy to help. Through our 3SixtyAssessments, we will not only evaluate your current online digital presence state, but we will also provide actionable recommendations to developing your own strategy. Feel free to contact us directly via 3sixtysmb@3sixtysmb.com if you need help. As always, we welcome comments or questions below in the comments section of this article. Again, if you have been resistant to adopting an online digital strategy, and you don’t act fast, you could be risking the future of your business.

 

The Industry and Technology are Killing the Industry, not Millennials

Millennials are killingThere is a fundamental shift in consumer-driven businesses that has been emerging over the past few years, and it’s shaking up industries and businesses that once stood as giants for decades. Almost daily, an industry giant is either declaring bankruptcy, layoffs, closing locations, or reporting yet another quarter of subpar numbers. The writing is on the wall…. Yet, most industry leaders are refusing to accept reality. Instead, they choose to blame millennials for their demise… Along with these bankruptcies, layoffs, and store closings, we also see newly published articles regarding how “millennials” are completely decimating industries, businesses, and traditions that have stood the test of time. Here’s the thing: are millennials really to blame? We think not… We are believers that the industry and businesses themselves are the cause of their ow demise—not millennials, or any age group, for that matter.

Let’s elaborate on what we mean by that… The reality is that a majority of businesses are failing to recognize the changing time and focusing on “business as usual”. Looking back on twenty years ago during downtimes, “business as usual” typically meant finding areas of cutting cost to increase margins or creating a few more marketing promotions with the hopes of increasing sales just enough to ride out the lulls in the economy. Those strategies typically worked for most businesses because, looking back at those times, there were only so many places to shop, eat, or consume entertainment. Each industry essentially had a handful of businesses that monopolized their respective industries, which lead to their economic ebbs and flows with the economy. At those times, there were only so many places consumers could spend their money… Great for businesses in those days, right? Here lies the problem—most executive leaders within long-established consumer-oriented businesses are continuing to run their businesses as if it was the 1980s or 90s. However, the market has drastically changed since then. First, in the age of technology and consumer preferences, the 80s & 90s were essentially a 100 years ago. A very millennial statement, but here’s the reality: the market is truly changing at the speed of light, and even looking five years back has shown drastic changes in both technology and consumers preferences. Technology has enabled consumers to essentially have the knowledge of the internet at their fingertips, and forward-thinking businesses have capitalized on this fact enabling an “On-Demand Economy”. Technology has also enabled almost anyone to start up their own online business with the same technological capabilities of a multimillion-dollar business. Never mind the fact that a small startup with a little knowledge of how Search Engine Marketing works can easily outrank a multimillion-dollar organization in a matter of weeks by using the right Google industry keywords. Technology and increased competition are the real reasons these consumer-facing industries are struggling, not millennials… Businesses just can’t cut cost and rely on a few promotions to ride out the lulls anymore, as competition is all too eager to steal that business away. 

While corporations are looking at their calculators, small businesses & startups are focusing on

  • Creating a digital marketing strategy to essentially make the big brands completely irrelevant online.
  • Providing consumers with exactly what they need in the easiest way possible.
  • Creating flexible pricing and packages that match what consumers really want, not finding ways to charge more for the same (or lesser) service
  • Providing value for free when others want to charge for it.
  • Increasing quality, not cutting it.
  • Working on loyalty reward programs that actually provide real value and rewards

When you begin to peel back the layers of the onion, millennials almost have nothing to do with the demise of these industries and businesses at all… Failure lies solely on their shoulders. Let’s take for example Sears… Sears was once an industry giant that had stood for more than 100 years, and for a majority of the time in business, they were the gold standard in retail. In their early days, when obtaining certain items for the general population was almost impossible, they created a first-of-its-kind catalogue of thousands of items that could be delivered to your front door. Then in the 1960s when consumer need for faster access to consumable goods became more prevalent, it led to the blossoming business of malls and Sears was quick to capitalize. Looking back to the 1980s, there probably wasn’t a mall in the country without a Sears taking up some major real-estate. As Sears grew, they made investments in Craftsman tools, DieHard batteries, Kenmore appliances, and others. All of this led to Sears being a formidable industry giant, and they enjoyed that success for decades… However, in the early 90s, Sears decided to focus more on cost-cutting metrics instead of innovation. We called attention to this in another article. As an example, in January 1993, Sears announced the closing of the catalogue, eliminating 50,000 jobs as they didn’t see a market in delivering items directly to consumers’ front doors, and keeping that business running was “too expensive”. Interestingly enough, in July of 1994, Amazon was born, which ended up being a company that could deliver items directly to consumers’ front doors. Yes, really, had Sears thought about where technology was going like Amazon did, they literally could have been the Amazon of today. However, Sears’s cost-cutting didn’t stop there, and for thirty years now Sears has been focusing on cost-saving metrics across the board… Anyone that has been at a Sears in the past few years has come across stores in disrepair, sub-par inventory levels, long lines, and employees that generally don’t seem to care. It’s no surprise that Sears is now closing stores almost daily and in bankruptcy litigation.

However, on the flip slide, you have Target, Best Buy, Walmart and others all seeing great success in today’s tough economy. The reason why is simple: they have all been focusing on innovation, bringing choices and convenience to the consumer. Best Buy, from the beginning, has strived to have a strong ecommerce presence, becoming one of the first big-box retail organizations to have a true website with online purchasing availability. They were also one of the primary innovators of ecommerce purchasing with in-store pickups. Target has focused on innovative payment methods, allowing consumers to skip the line and pay for items in the aisle instead. Target also recently launched a new program to use local stores as virtual ecommerce warehouses decreasing overhead while speeding up the entire delivery process to consumers. Walmart recently announced strong revenues directly related to curbside pickup… These are just a few areas of innovation that has allowed other big-box retailers to stay on top. In contrast, Sears has attempted nothing even remotely close to these innovative methods to save their business.

However, big companies are also not the only businesses thriving. In fact, only 53 companies have been on the Fortune 500 since 1955, including 17 newcomers to the list in 2018. Companies such as Uber, Yelp, Spotify, DoorDash, Zapos, Salesforce.com, Amazon, Facebook, Google were all startups less than twenty years ago. They are not alone; almost daily, a new startup comes from almost nowhere to be a new industry-leading giant… The reality of the whole situation is that millennials are not killing industries… The big-business thinking of yesteryear is.  We’re in a climate where most of the consumer industries that are in the midst of major shake-ups, such as Retail, Cable, General Medical Care, Transportation, Food, and Entertainment, are all struggling… Each are struggling with their own issues of conducting business as if it was still the 1980s or 90s while pointing fingers at millennials for their changing buying habits and lack of brand loyalty. Here is the reality—they are doing it to themselves for all the reasons listed earlier in this article, and it is up to them to recognize the writing on the wall. However, we are in favor of the small businesses and startups! 

CRM The Equivalent Of A Paperweight In Small Businesses

How to Improve CRM Usage

A few months back, we wrote on the importance of a CRM in a small business, but still, we frequently come across executive leadership that is frustrated with their staff’s inability to properly use the tool (or use it at all in some cases), making CRM the software equivalent of a paperweight in many organizations. We understand the frustration, as with most software purchases, CRM comes with significant time and financial investments along with the best intentions in mind for helping a business become more efficient. Yet, regardless of how hard management pushes, usage is essentially zero for many organizations. But, why? In this article, we’ll review some of the reasons why one of the most important tools in any business goes unused and ways to increase overall adoption.

Let’s first start with a few reasons your team might not be using the system:

Lack of Management Use – That’s right: they learned it from watching you. At times, we do see various teams making an honest effort to use the CRM tools in the way they are meant to be used. However, over time, the team has begun to notice the management team’s lack of use. The question of, “Why bother?” then comes into play. As an example, a core use of CRM is around sales pipeline management, but what is the point of keeping a CRM updated when sales leadership continues to run around asking reps for pipeline updates via email, scratch sheets, or Excel spreadsheets instead of running reports with the exact same information from the CRM? Over time, they start to realize there is no value to keeping their CRMs updated because management certainly isn’t using it. Why take the time to update a system when you’re only going to be asked to provide the exact same information via Excel or some other method?

Other Departments’ Lack of Use – We’ve previously talked about the benefits of interdepartmental use of a CRM. When a CRM is not at the core of a team’s daily job function, it becomes less important, and as a result, the usage drops. We recommend that all departments integrate capabilities for their job functions inside the CRM… This means Sales, Marketing, Support, and Finance all need to have critical job functions built into the CRM. Without this integrated functionality, your team will be relying on direct interdepartmental communication for simple client information… The end result is having, for example, customer support or finance continuously pinging the sales department for simple client information… information that should already be in a CRM. Over time, teams start to realize there is almost no point to having that information in the CRM because no one is actually using it, and again, what is the point of all that extra time and effort keeping information updated?

Lack of Proper Functionality – Great CRMs that are properly set up can allow sales and any other department to complete their daily tasks effectively and efficiently. However, out-of-the-box CRMs are inherently generic, and they take some time and effort to customize to make them useful for your business. However, increasingly, we find that when organizations deploy their CRM, they are deployed with zero customization. This results in a generic setup of the tool that doesn’t match the functions of the various teams or business which makes the tool difficult to use… On the flipside, we’ve also seen when management has over-engineered their CRM instance, creating an over-complicated beast of a software solution. This typically results in what management may think of as a “work of art” but is really an extremely complex, inefficient, and painful system to use.

Lack of Usage Visibility ¬ – This kind of goes in line with some of the above, but it needs to be called out… When you have people putting time and effort into properly managing their CRM worlds, yet it goes completely unnoticed, then why bother?

Lack of Accountability – You have two reps: one has their CRM in tip-top shape and constantly up-to-date, and another one that barely uses it and management never seems to care. What do you think is going to happen over time?

Mentioned here are just a few but critical examples of why we see a lack of CRM usage in small businesses. Again, most are truly aligned around the lack of visibility and usage from the management level down to the various departments within a business, leading to the “why bother?” mentality… However, all is not lost as there are tactics that can easily be deployed in any business to increase overall usage. Here are a few:

Complete Management Usage – It starts from the top down. Management needs to start using CRM immediately and continue to use it without exception. You’ll quickly find that once management begins pulling reports and pipeline updates straight out of their CRMs during meetings, within the first few meetings, everyone’s CRMs will be up-to-date as no one wants to be the one with missing or out-of-date information when reports are being reviewed in front of management or their peers. Furthermore, it is important to continuously use it… CRM usage needs to become a habit, and there is a bit of a routine adjustment to using it regularly. All too often, we see executive leadership get on a “CRM kick” for a month or so, only to have them go back to their Excel spreadsheets shortly after. Again, going back to the points we made above, nothing will demotivate a team more than putting in effort for nothing.

Corporate-wide Usage – CRM is not just for sales anymore as it can be integrated across every department within a small business. Make your CRM a central point of departmental information and the only way team members can complete their daily job functions. Once you have complete business-wide integration, there will be zero reason not to use it at that point.

Make it Seamless ¬ Again, a tool that is painful to use will not be used in any business… Take the time to properly customize your setup. Most CRMs are fairly easy to customize, but if you are uncomfortable with customizing yourself, there are plenty of consultants on the market that can do it for you. It is also important to ensure you are taking in feedback from your end-users and constantly working to refine the system. As mentioned previously, all too often, management believes they “know” what is best for their teams, but in reality, they are so far-removed from the process, they couldn’t be more wrong. A painful-to-use tool will not be used—period.

Increase Visibility ¬ Develop and use the reporting system built into the CRM… Most CRMs have fairly comprehensive reporting capabilities out of the box and, with slight customization, can be a very powerful tool for the business and something to ensure that your team is keeping their CRMs up-to-date. Some businesses go as far to have automated reports sent out at preset times (hourly, daily, or monthly). Regardless of the frequency, it is important to remember “what gets measured, gets done”. Furthermore, we highly suggest using your reporting in meetings as well. Have a sales pipeline meeting? Pull up the pipeline in real-time during the meeting. Again, no sales rep wants to be in a pipeline meeting where their pipeline is either out-of-date or missing information… This can be done for essentially every department.

Tie in Compensation – Fairly simple… Sales, do you want to get your commission? No deal gets paid commission unless it is properly tracked within the CRM… This can be done for other departments as well. Things such as lead counts, collections, customer service calls stats and other metrics can all be tracked and tied together with compensation. Quite honestly, this is one of the easiest ways to getting a team to use a CRM as no one wants to miss out on their commission or bonus. However, let’s not forget that you want to ensure you’ve made the proper steps to making the CRM a useful tool in the first place. Let’s remember the old saying “junk in, junk out”, as you do not want your employees wasting time inputting information into the CRM just for the sake of compensation and nothing else.

CRMs are incredibly powerful tools for any small business. When properly implemented and used across all departments, they can drastically increase the efficiency of any team or organization. Efficiency can lead to increased cost savings and revenue while keeping your organization running like a well-oil machine.