Caselet 2: Choosing a CRM System for Burlington Mechanical Solutions
Bobby Puckett, sales vice president of Burlington Mechanical Solutions (BMS), feels that it is time to introduce a customer relationship management strategy at his $500 million-in-annual-sales firm. BMS sells all types of mechanical solutions to original equipment manufacturers (OEMs) in the automotive industry. Currently, BMS employs 110 salespersons that cover nearly 400 subsidiary and independent subcontractors that manufacture components for the “Big Three” U.S. and on-shore Japanese and European automotive manufacturers. The BMS sales force is organized by product and geography, and, because of duplication in different manufacturing areas of an account, each salesperson is assigned about 30 customers. Puckett has come to understand that not all customers are the same. That is, a small number of customers are categorized as “A” or “key accounts” and a slightly larger number are “B” or possessing potential to move to key account status. Until now, the BMS sales force has devoted significant time to “B” and even less profitable “C” accounts. Puckett is convinced that by switching to a CRM strategy BMS will see increased profits from the same group of customers. However, a number of questions remain to be answered before the new strategy is implemented. Puckett has met with three providers of CRM software to learn about the types of systems that are available. Puckett was surprised to learn there were over 300 CRM software systems on the market that varied significantly in cost, based upon the amount of customization needed for BMS’s customer group. First, what process should BMS follow to purchase a CRM system? Second, Puckett knows that any CRM system he purchases must be user-friendly for his sales force. Several articles he read and discussions with peers from other competitors convinced him that if the sales force requirement to add information to the system is too demanding, the sales force will oppose the new system. Lastly, Puckett feels that it is important to identify the type of information that will benefit the sales force and help them improve their productivity. As Puckett sits in his office after everyone else has left for the day, he ponders how he should proceed with this very important decision. Purchasing a CRM system will be costly, but buying a system that likely will not be adopted by the sales force is fraught with risk. He would like to delay the situation while he studies the pros and cons of the new strategy, but given BMS’s competitive position, there is little time to waste. Finally, Puckett decides to sleep on the problem and see how he feels when he arrives back at work in the morning.
Questions
1. How can Puckett ensure the CRM system is easy for the sales force to load and use? What role can members of the sales force play in making the CRM system “userfriendly”?
2. Is CRM an information-based system, a sales force-based strategy, or both? How does each role vary? In what ways do they vary?
3. Make a list of important information that a CRM should provide to a sales force. How should a sales manager use this information to assist the sales team? What is the likely outcome if CRM information does not help the sales force succeed?