I recently spoke to the owner of mid-sized manufacturing company who told me, “We know our customers from top to bottom”.  While this owner did know a great deal about his customers there was much more that he did not.  Sales Xceleration recently compiled data from almost one thousand client companies and found that 92% had some sort of customer database.  However only 30% were using the data to effectively manage and grow revenue.

Many companies utilize CRM software – but don’t actively manage it.  Populating data is inconsistent and reporting often goes unused or is ignored.   Sales teams hesitate to “invest” the time it takes to manage a CRM or database.  Management often does not force the issue even though these tools are often a significant expense.

It’s no secret that consistent revenue growth drives valuations higher and makes a company more marketable in a transaction.  We consistently see a direct correlation between growth and effective use of customer data to drive revenue.  The majority of CRM tools produce a wealth of reporting that gives insight into not only projected revenue both profitability as well.

Companies that have already invested in these tools should focus on maximizing their use and those that have not yet invested should examine the wide range of options available.