CRM as a Pre-sales Strategy for Metalworking Companies
As the owner of a metalworking company, you've probably tried to grow your business by attracting new customers. If so, you know firsthand how challenging it can be. Managing initial customer contacts and following up on opportunities often becomes chaotic and disorganized, leading to missed chances and lost deals.
So what's the solution? Many firms have found success by implementing Customer Relationship Management (CRM) systems.
But before you invest in a CRM system, there are a few key things you need to know to ensure you get the best results. This guide will tell you what you need to know to select a CRM system that enables you to effectively manage and improve your customer relationships and sales opportunities.
What is CRM?
CRM stands for Customer Relationship Management. In simple terms, it's about managing customer relationships to improve them over time.
CRM isn't necessarily a software solution, though that's often what people mean by it. It could be a whiteboard in the meeting room, a notice board with cards, or a kanban board in your preferred tool.
However, to work in a data-driven way, I usually recommend a software solution. That's what we're focusing on in this article.
The goal of CRM
The primary goal of a CRM system is straightforward: revenue growth. But it's also about improving customer relationships, better follow-up on opportunities, and entering new markets.
A good CRM system helps you focus on new business in a structured way. This allows the already busy business owner to concentrate on their core tasks.
Remember: CRM is more than just a tool; it's an essential strategy for business growth and market positioning. It manages and analyzes all customer interactions and relationships. A good CRM system identifies opportunities, manages the sales pipeline, and deepens customer relationships.
Getting plenty of enquiries but struggling to create quotes? Check out this article first:
Luke van Enkhuizen
Why is CRM essential for metalworking companies?
The pressure of growth
What if your turnover needs to grow? What if you realize your current customers are no longer profitable? What if you have no bargaining power and are dependent on your current customers? This is stressful and risky.
CRM can help you overcome these challenges by providing a structured way to attract new customers and improve existing customer relationships.
Lost opportunities
Think about all those times you spoke to a potential customer and then the conversation disappeared into the chaos of daily emails and urgent projects. Maybe you had a good chat at a trade show, or a promising enquiry via your website. But without a structured system to follow up on these contacts, these opportunities often vanish into thin air.
Inconsistency in pre-sales
In the pre-sales phase, you often need to go through several steps before you can submit a quote. You need to investigate whether the project is feasible, whether it fits your company, and whether you have the right qualifications. This not only takes time but also requires coordination between different departments within your company. Without a central system to manage these steps, important details can be overlooked and potential deals lost.
Efficiency and team alignment
A good CRM system helps to centralize all information about potential customers and projects in one place. This ensures that your team always has access to the most up-to-date data, improving collaboration and communication. Moreover, tasks and follow-up actions can be easily assigned and tracked, reducing the chance of miscommunication and missed opportunities.
Choosing the right CRM for your metalworking business
When looking for a CRM system, ensure you get something that will help you manage your sales opportunities effectively by considering these factors:
- User-friendliness: Make sure your CRM system is easy to use. If it's too complex, your team will struggle to use it and important opportunities will slip through the cracks.
- Integration capabilities: Ensure your CRM can integrate with your existing systems like your ERP. This ensures seamless data transfer and better efficiency.
- Flexibility and customizability: Any good CRM system should allow you to customize your workflows and pipelines. This is important because every business has unique processes that need to be supported.
While not essential, some valuable bonus features of a good CRM system include task automation, advanced analytics capabilities, and mobile access.
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5 relevant CRM systems for metalworkers
Here are some CRM systems I've had good experiences with. This overview is for informational purposes and does not constitute a recommendation or guarantee. For substantiation, check out my consultancy offer.
#1 Salesflare
- Pros:
- Simple UI, no unnecessary features
- Automated data entry saves time
- Workflow suggestions enhance efficiency
- Affordable with strong customer support
- Integrates with 1300+ apps
- Cons:
- May be too simple for complex needs
- Limited customization options
- Reviews:
- Highly rated for ease of use and automation features, praised for saving time on manual data entry and enhancing team collaboration
#2 Zoho CRM / Bigin
- Pros:
- Comprehensive suite of tools, scalable
- Affordable compared to major competitors
- Supports extensive automation and integrations
- Cons:
- Overwhelming for those needing basic functionality
- Reviews:
- Known for its extensive features and integrations, but users note it can be complex to set up and navigate
#3 Pipedrive
- Pros:
- Excellent visualization of sales pipeline with Kanban, list, and forecast views
- Intuitive, user-friendly interface
- Strong focus on sales processes and automation
- Customizable pipelines and extensive integration options (over 300 apps)
- Cons:
- Limited marketing functions
- Basic reporting features can be restrictive
- No free version; some advanced features can be pricey
- Reviews:
- Users appreciate its visual sales pipeline and ease of use, but some find its reporting and customer service lacking
#4: HubSpot CRM
- Pros:
- Comprehensive integration of sales and marketing
- Free basic version with substantial functionality
- Extensive inbound marketing and lead generation tools
- Strong task management and personalized email sequences
- Advanced automation and workflow capabilities
- Robust reporting and analytics features
- Cons:
- Advanced features can be costly
- Limited customization options for dashboards and pipelines
- Reviews:
- Praised for its extensive features and user-friendly interface, but higher tiers can be expensive and some users find customization options lacking
#5: Microsoft Dynamics 365 Sales
- Pros:
- Highly expandable, flexible, and customizable
- Extensive automation capabilities
- Strong integration with Microsoft products and ERP systems
- Cons:
- Steep learning curve
- Can be overwhelming with numerous features
- Reviews:
- Known for its robust features and integration with Microsoft ecosystem, but criticized for its complexity and high cost
ERP systems and CRM: the pros and cons
Many companies also work with ERP systems and try to add custom tables to them or have already done so. While this can work fine, I notice that for focus it's sometimes better to separate this, especially because it has very different data for pre-sales. Many opportunities are not customers and this otherwise leads to data pollution.
Read more about ERP systems here:
Luke van Enkhuizen
5 reasons to separate CRM from ERP
- Specialization: CRM systems are specifically designed for managing customer relationships and sales pipelines. This makes them more effective and user-friendly for these tasks than ERP systems.
- Data pollution: Pre-sales data often contains information about potential customers and leads that are not current customers. Merging this data with your ERP can lead to confusion and pollution of your customer database.
- Flexibility and customizability: CRM systems often offer more flexibility and customization options for managing sales processes and customer interactions.
- Mobile access: CRM systems often offer better mobile apps and access, allowing your team to access the necessary information anywhere.
- Scalability: You can start with a simple CRM system and later expand it with advanced features, such as marketing automation and AI analysis, without making your ERP system more complex.
Example: Business Central
Business Central is an example of an ERP system that can be expanded with CRM functionalities. This is an advanced solution that can be very powerful, especially for companies that are already deeply integrated with the Microsoft suite. It offers extensive data management capabilities and can be expanded with sales functionalities.
You can even synchronize the databases of Business Central and the Sales module, if desired. However, see my comments above.
While this system can deliver impressive results, it's important to consider whether your team can handle the complexity and learning curve. For many companies, a specialized CRM system like the options mentioned earlier may be a better choice, as it's simpler to use and specifically designed for customer relationship management and pre-sales activities.
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Luke van Enkhuizen
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Custom CRM for your factory
A standard CRM setup often doesn't work for metalworking companies. Standard CRM systems are usually generic and designed for sectors such as software sales or product development.
They focus on simple sales cycles and standardized processes, which don't align with the specific and complex needs of metalworking companies.
Metalworking companies often deal with lengthy sales cycles, technical feasibility studies, certifications, and precise quotes. This requires more customization and flexibility.
From experience, I've developed an effective pipeline structure that you can directly adopt in your system, whether that's your current ERP, a Teams kanban board, or a CRM of your choice.
Customized pipeline stages
Here's a proven structure to make your CRM truly effective:
- Lead capture: Register potential large projects and new market opportunities. This includes direct requests, leads from trade shows, networking events or inbound marketing. Talked to someone at a trade show? Lead in. Got an email from your website? Lead in.
- Opportunity assessment: Evaluate the feasibility and strategic value of each potential deal. Have you received a quote request but need to check if it fits you first? Is there sufficient potential? Put it in assessment. Determine if the project is technically feasible and if it fits within your production capabilities.
- Technical review: Have your engineers review the technical aspects of the project in detail. This includes identifying required materials, special processing techniques, certifications and any special purchasing requirements. Sometimes this means requesting drawings before making a quote, or going to the factory/location to measure or consult with the customer.
- Quoting: Prepare detailed quotes based on the collected information and technical evaluations.
- Negotiation: Follow negotiations and adjustments. Discuss terms, timelines and budgets to reach a mutually beneficial basis for collaboration.
- Closed won/lost: Record the outcome of the deal. Document reasons for won or lost deals to learn from and improve future strategies.
By following this structure, you ensure that your CRM system effectively supports your pre-sales activities. It helps you identify promising leads early, build relationships strategically, and make a seamless transition from first contact to concrete projects.
Remember that this pipeline should be flexible. Some opportunities may skip certain phases or stay in them longer, depending on the complexity of the project and the relationship with the potential customer.
Let me help you
Need help implementing this pipeline in your metalworking company?
I've successfully done this with multiple companies and can guide you through every step of the process.
Get in touch with me today for a no-obligation chat and let's work together on an effective CRM strategy for your business.
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Practical tips for implementation
- Start simple: Begin with a user-friendly system like Salesflare if you're new to CRM.
- Focus on big opportunities: Use your CRM for strategic projects, not for daily small sales.
- Integrate with existing systems: Link your CRM to your ERP for seamless information exchange. For example, quote numbers and tasks.
- Regular reviews: Schedule weekly CRM sessions with your team to discuss progress and determine strategy.
- Culture is king: Ensure good training and encourage a data-driven way of working throughout your organization.
Conclusion
Now that you know what to look out for when choosing a CRM system, you're ready to make an informed decision and effectively manage your customer relationships and sales opportunities without worrying about missed chances and inefficiencies.
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