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How CRM Increases Enterprise Value for Distributors

The most common determination of enterprise value in wholesale and durable goods distribution is a long-term track record of profit and sales growth. Shareholders, financing partners and potential acquirers of your business see through short-term strategies to boost profits. You cannot cut your way to real value. What makes your company attractive and valuable is proof of a reliable system for driving profit through sales growth.

Dependable sales growth is simply evidence that a distributor has created a unique position in the markets they serve with a repeatable process and competitive differentiation. This is why companies who use distribution-specific CRM are typically acquired at a premium compared to their peers.

Why does CRM increase enterprise value? It creates differentiation and professionalism across all of your branches, even if your reps don’t use it consistently across your organization.

Technology Drives Professionalism – Even Without Adoption

Professionally managed distributorships are valued more highly across the board than typical mom and pop organizations. What may surprise you is that the value of your organization increases with CRM and business intelligence even if members of your team are slow to adopt them individually. Professional organizations have tools in place to get instant answers and drive quick responses for clients and new prospects. These tools add value no matter how your team uses them.

The SMP platform makes it easy to demonstrate value through your professional processes to customers, key vendors and private equity.

  1. Process: Companies with CRM in place can demonstrate a consistent, measurable process for driving sales growth.
  2. Information: Having important information at your fingertips – key customers, growth areas, changes in buying behavior and more – allows you to respond quickly to new opportunities and demonstrate greater value to customers and partners.
  3. Measurement: Tracking key metrics drives professionalism and constant improvement – your team manages what gets measured.
  4. Access to enablement tools and BI: Easy to use sales enablement like mobile CRM and customizable dashboards give your team the tools they need to respond quickly and out-compete other distributorships. Both customers and key vendors prefer to work with professional and responsive distributors.
  5. Faster targeted follow up: It’s important to differentiate with value added services, friendly locations and product breadth; however, sometimes the sale just goes to the distributor who can respond and solve a problem in the quickest timeframe.

Process and professionalism drive value by demonstrating differentiation and strategic, repeatable systems of revenue growth. SMP has helped many distributors improve their processes with it’s leading CRM and BI platform. Schedule time with us today to see how we can help you increase your enterprise value with easy-to-use technology.

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