Frequently I am asked to show how a CRM System can be used to compare achieved sales with sales targets. The subject sounds simple enough but in fact has considerable implications.

Even assuming that a sales planning process is defined or in place, which is often not the case, it is important to consider how and why a CRM system is required. A comparison of actuals and targets is only of importance for controlling the performance of a sales force or possibly for production or purchase planning. For production and purchasing purposes, much better information can be gained from back office systems, so the only real reason for wanting this functionality is for controlling sales performance.

The aim of CRM however is to increase sales success by helping all those with customer contact to provide a higher level of service to customers and prospects. It may be necessary to set targets so as to provide direction, but neither the targets, nor controlling will

  • help to gain more leads
  • improve the lead conversion rate
  • improve service levels
  • increase customer satisfaction
  • increase customer loyalty
  • improve sales and service efficiency

Since these are the main aims of a CRM application, it is apparent that functionality for sales controlling must take a subordinate role. For this reason, it is better not to place too much focus on quotas and achievement. These functions can be more easily incorporated in a back office system where most of the information originates and where the data input can be carried out by people used to working with financial controls.