Benefits of CRM for the Distribution Industry
Why distributors need customer relationship management software
Distributors deal with multiple challenges around customer relationship management — from keeping up with current market rates and customer needs to ensuring a personal approach to a diverse group of customers.
With eCommerce and direct-to-customer models, distribution companies often find themselves selling directly to multiple stakeholders from a single account, meaning they must keep track of even more customers. Enterprise resource planning (ERP) software lacks the functionality to make distribution businesses manage these varying customer needs, interests, and desires. That’s where a customer relationship management (CRM) system designed for distributors can help.
A tailored CRM for the distribution industry comes equipped to deal with this changing environment and adapt to new customers quickly and easily.
Understanding CRM in Distribution
CRM software helps you manage interactions with current and potential customers, suppliers, and business partners throughout the sales pipeline management and the distribution process. The CRM manages contacts, leads, sales, customer service and support, and automates marketing outreach.
It can also help with analytics, reporting, and collaboration. Tracking all of that on an Excel spreadsheet will lead to a lot of lost information and lost sales.
Traditional CRM solutions can be expensive and have less useful features for distributors. They also don’t account for the variations in customer needs and industries.
An effective CRM integrates with multiple parts of the distribution industry workflow. Order processing and customer management benefit from centralized product information hubs. Sales and marketing can use task reminders so reps remember to follow up, improve efficiency with automated email workflows, and create marketing campaigns to drive more revenue.
Native quoting within a CRM – synced up with product, pricing, and inventory information from your ERP – helps you close deals faster and allows you to see purchasing and payment history that may impact pricing.
A lot of distributors have already experienced the major benefits of distributor-specific CRM software. Katie Crowl, the CRM administrator at LEPCO wholesaler, says, “It was so great to see a CRM for wholesale distributors that emphasized business intelligence. It just became more and more evident that White Cup really understood our industry and truly has expertise in this space that goes beyond the software.”
Angela Hirsch of Relevant Industrial echoes this: “I love the single-page concept of everything right there on that one page. The layout of it, in general, I’m just blown away.” In addition, Relevant Industrial has saved time and resources by implementing automated workflows with White Cup CRM.
Key Features of Distribution Industry CRM
While most CRM software shares some core functions, distribution-specific CRM features stand out when you look at functionality.
Distributors deal with a complex network of connections that make automation of the sales and distribution processes essential. Some of the key advantages of distribution CRM software are the ability to measure sales goals, use pre-built email templates for faster follow-ups, and show every rep how their efforts impact the bottom line with sales dashboards. The ability to integrate with a distributor’s existing ERP is the core benefit — all of your existing data becomes easier for the entire organization to navigate.
Nothing can sour a good customer relationship faster than failing to deliver on promised goods. Giving your sales team visibility into key inventory metrics through a CRM + BI solution lets them see exactly what resources you have available to sell and if you can get them to the customer relationships requested location on time.
Without solid customer data analytics and reporting, it’s almost impossible to identify high-value customers, track purchasing patterns, and achieve logistical optimization. Good analytics also allows you to personalize communications by understanding individual customers’ needs and motivations and factoring those into your communication.
This is where a CRM with built-in business intelligence is your secret weapon.
With built-in BI, your ERP, eCommerce, and sales data are accessible to everyone in dashboards, which allows your team to easily spot trends and jump on opportunities faster. Integrating your CRM with BI reduces time spent digging through data and unifies that data into a central location. Having data accessible leads to more meaningful conversations and improved sales effectiveness.
Selecting the Right CRM for Distribution Sales Teams
Choosing a CRM solution can be tricky. For years, distributors have tried to make do with CRMs designed for any industry, shoe-horning their specific needs into generic solutions. The result: overwhelming software and frustrated users. Plus, most general CRM Solutions require multiple add-ons at a higher cost to make them function well for distributors.
For example, a CRM for distributors should include features like pre-built reports and workflows for distributors, eCommerce integration, and ERP integration with standard offerings. You may be able to find these features in a general CRM, but they will come at an extra cost or will involve third-party providers.
The right CRM should also include BI to let you make the best decisions in interacting with customers. Integrating data analysis and insights into your approach to customers cuts back on the guesswork (and the busywork) and helps you market and communicate effectively and efficiently.
You’re probably not the only one deciding on a CRM solution, which is why it’s important to get key stakeholders on board by comparing and contrasting options and considering the benefits of a CRM solution designed for distributors.
Integration With Existing Systems
Choosing a CRM that offers out-of-the-box ERP integration will save you time, compared to contracting with a third party to build a custom integration that could take months or even years to complete.
Built-in integration with eCommerce platforms also allows you to follow up with customers based on online activity, send targeted email campaigns to increase order value, and optimize operations and planning with more accurate sales and inventory data.
For example, Hartfiel Automation was able to integrate White Cup CRM with their existing ERP platform to identify opportunities within existing customer accounts, spot potential problems early on, and support an improved customer experience.
With more than 50,000 sales contacts and 8,000 active opportunities, the seamless integration allowed the team to get the sales process going without missing a beat.
Training and Support
A CRM for a distribution company should have a simple design and intuitive user interface. But the landscape of the industry changes every day — which is why a good CRM provider will have ongoing training and support available.
Implementing CRM software takes some careful planning. Setting solid timelines and milestones for the implementation process, transferring existing customer data into new contact management systems, and ensuring that all users understand how to use their CRM tools go a long way toward a smooth adoption.
See Customer Data Clearly
An effective CRM lets you see customer data clearly and easily. Customer scorecards, for example, provide essential insight that helps your team increase engagement by putting all your information on a customer in one place.
Customer scorecards in White Cup provide a comprehensive view of customer health and behavior, featuring valuable components such as purchase history, online and offline sales trends, and overdue balances, enabling sales reps to prepare effectively for meetings and drive proactive engagement.
Integrated business intelligence also lets you see your most profitable accounts and contacts from a single view. You can leverage this data to ensure your highest-priority customers are receiving the care and attention required to continue fostering strong relationships.
The Future of CRM in the Distribution Industry
CRM for distribution is changing quickly. As in many other industries, artificial intelligence (AI) is having a massive impact on our business processes and practices. White Cup’s webinar on practical ways to use AI discusses these issues in-depth, highlighting AI’s potential for upselling, cross-selling, and increasing customer lifetime value.
Other trends in the industry include omnichannel engagement, more robust data integration and analysis, and a greater focus on customer experience. In all these areas, CRM software will continue to be an integral tool in the distribution industry.
