March 21, 2024 How Modern CRM is Transforming Manufacturing

The manufacturing industry is transforming business models with AI-driven CRM solutions to drive revenue growth and customer retention.

The manufacturing industry is increasingly adopting digital transformation to improve various aspects of its business. However, there is still room for improvement. To address this, many are turning to advanced technologies to transform traditional business models and drive revenue growth and customer retention.

According to McKinsey & Company, manufacturers globally are investing heavily in key technology areas to overcome challenges in their operations, improve product and service offerings, and stay competitive.

Intelligent customer relationship management (CRM) solutions are one of the most important technologies driving this transformation. These platforms use artificial intelligence (AI), machine learning, advanced analytics, and automation to serve as a hub for the manufacturing industry’s digital transformation.

This article explores some of the top ways modern CRM platforms are being used to revolutionize the manufacturing sector and turn transformation investments into revenue.

Driving Customer Retention and Expansion by Delivering Seamless CX Across Teams

Manufacturing companies rely heavily on repeat purchases from existing customers. Therefore, deploying a balanced CRM strategy is crucial for both existing account management and new customer acquisition to generate additional revenue. Marketing automation tools can enhance customer communication by leveraging data gathered by the sales team and segmenting customer marketing campaigns for more personalized and timely engagement. CRM platforms can also streamline the sales process, shorten sales cycles, and alert sellers to increased support volumes or service requests. Above all, manufacturers must deliver seamless customer experience across all customer-facing teams, including sellers, marketers, and service professionals — a value single, unified CRM platforms deliver.

Streamlining Operations — Even for Niche Sectors

Manufacturers often operate in specific markets that cater to industry-specific or customer-specific needs. As a result, they require CRM systems that can be easily configured to meet the unique information and process requirements of their target markets. For instance, CRM solutions for the construction industry must be configured to connect the sales process to construction projects that involve multiple contractors and suppliers. Manufacturers that have integrated CRM with construction information services, such as Dodge Data or ConstructConnect, can automatically create opportunities from newly identified construction projects and initiate the sales process early.

Recognizing the Value of Rapid Integration Models for User Adoption

Manufacturers typically have several back-office systems that provide valuable information to customer-facing teams. These systems should be linked with CRM. The most common integration is with ERP (enterprise resource planning) or accounting systems, allowing the CRM system to display customers’ order history and invoices. Marketers can use this data to create campaigns based on purchase history, sellers can analyze purchase patterns and identify opportunities for retention or expansion, and customer service can better understand which products or services have been purchased.

Conducting Product Sales Analyses for Improved Customer Retention and Revenue Generation

Sales leaders expect account managers to know their customers well, but they sometimes need help. Product sales analysis examines product and sales data at the item level, identifying trends and opportunities that might be overlooked. By integrating item-level sales analysis into CRM systems, manufacturers can quickly understand product performance and customer preferences. This information helps sellers identify cross-sell and up-sell opportunities and target marketing campaigns more effectively. It can also help manufacturers address problems before they impact customer satisfaction or revenue generation.

Shortening the Sales Cycle with Quotation, Proposal, and Contract Management Tools

Manufacturers are often challenged by long and complex sales cycles. Intelligent sales automation platforms provide quotation, proposal, and contract management tools that help manufacturers streamline sales processes and shorten sales cycles. These tools enable sellers to generate quotes quickly and accurately using easy-to-navigate product and pricing catalog information. Contract management tools within CRM systems automate contract creation, negotiation, and approvals, reducing the time and effort required to finalize deals. Manufacturers can leverage these tools to increase sales velocity and improve the bottom line.

Providing Intelligent Pipeline Analytics and Revenue Forecasting Capabilities

To manage the sales force effectively, it’s crucial to understand the sales pipeline dynamics. CRM systems provide robust pipeline and revenue analytics tools, enabling sales leaders to make accurate forecasts and comprehend what is working and what is not. Sales leaders must track win rates, sales cycle time, performance to quota, and other pipeline metrics. AI-based predictions for leads and opportunities deliver actionable insights into sales pipelines for sellers. These pipeline and revenue analytics capabilities are critically important to manufacturers and should be inherent capabilities of CRM.

Improving Territory Account Coverage by Adding Mobile Geographic Mapping Tools

To improve sales, manufacturers can use geographic mapping tools in CRM systems. These tools help visualize territories, plan efficient routes, and allocate time effectively. Analyzing customer location data can identify gaps in account coverage, enabling informed decisions about territory realignment or resource allocation. A mobile CRM with mapping tools can optimize routes and improve efficiency. Mapping tools can also analyze market trends and competitor activity, providing valuable insights into growth opportunities and threats.

Helping Sellers When Navigating Complex Customer Organizations

Manufacturers often sell products to large enterprises with complex structures and decision-making processes. To succeed, sales teams must quickly navigate customer locations and identify key stakeholders who can influence purchasing decisions. CRM systems help sales teams navigate complex organizations by providing charts, contact information, and insights. By visualizing the hierarchy of customer organizations, filtering for buying centers and tracking interactions with decision-makers, sales teams can target their efforts and build relationships with the right people in the right locations.

About the Author
Christian Wettre is SugarCRM’s Chief of Staff. Sugar is CRM software that helps marketing, sales, and service teams reach peak efficiency through better automation, data, and intelligence so they can achieve a real-time, reliable view of each customer. Sugar’s platform provides leading technology in the sales automation, marketing automation, and customer service fields with one goal in mind: to make the hard things easier. Thousands of companies in over 120 countries rely on Sugar to achieve high-definition customer experience by letting the platform do the work.

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