Can CRM add value and enhance the way distributors do business? In short, yes.
To shed a little more light on the subject though, in 2013 the NAW Institute for Distribution Excellence did a study of CRM and its use in Distribution companies. The findings of the study concluded that CRM for distributors and distribution companies has proven itself in the industry and is widely believed to increase the profitability of companies who correctly apply it. Additionally, automation features are quickly making CRM a standard software for distributors, and many companies who do not currently use CRM are either shopping for it or in the process of implementation.
The survey found that 61 % of distribution companies surveyed are already using CRM on at least a basic level to store customer information. Based on other findings in the study, it is safe to assume that those companies will increase their use of CRM as time goes on. Many companies who are just starting out with CRM make a small investment at first and gradually add users and features to make CRM a part of their long-term growth and profitability strategy.
Of those companies who were not using CRM at the time of the study, many of them are in the process of adopting it:
- 40% reported that they were actively shopping for a CRM solution at the time of the study.
- 20% of them had recently purchased a system and were in the middle of implementation at the time of the study.
Below is a graph of the full survey findings:
What should this survey mean to you? it means that if you do not have a CRM system in place, you’re missing out on significant benefits and stand to lose your customers. It also means that your competition likley already has a CRM system and may be able to offer your customers more value because of it. So what are you waiting for?