NEWS RELEASE October 2023
Integrating the MPM and CRM Systems
Major tools for business strategy and tactics are consultants and CRM systems. Top management, with periodic guidance from consulting companies, forecasts the markets and plans accordingly. These forecasts are not granular but assumed to be accurate. Granular forecasts are made continually by the sales force who has to decide day by day where to spend its time.
The imperfections in the system result from the reality that top-down forecasts are just guesstimates. So are the estimates of each salesman.
There is the assumption that AI and CRM systems will resolve these imperfections. The reality is when you aggregate and iterate guesstimates the output is more guesstimates.
These imperfections can be eliminated with the Most Profitable Market (MPM) Program which not only provides reliable niche forecasts but the details the salesman needs. It can be incorporated as a major feature of your CRM system.
A prevailing school of thought is that with diligent communications by your salespeople plus sales lead services opportunities will arise, which could otherwise not be predicted. The CRM system which gathers and analyzes these gems of knowledge is considered the most viable option for identifying opportunities.
In the air, water, energy markets there is another option. Factors can be leveraged which make reliable prediction economic.
- Less than 1% of air, water, energy product sales are to companies which do not have similar products in operation.
- It is most likely that the product will replace an existing product.
- Unless you have a monopoly, it is likely it is a competitor’s product which will be replaced.
- Product life is predictable.
- Most products are purchased by large companies.
- The number and size of components can be determined for any process.
- Due to government regulations, details on each process in each plant routinely appear in permits to operate.
The Most Profitable Market (MPM) program is structured around niche superiority. Each niche is pursued separately. While an analysis to determine the location of each valve or pump in the food industry is not practical, it is possible to determine their locations for chocolate manufacture or beet sugar.
The market is shaped more by product life than by industry expansion. Since the sales approach differs between the two it is very important to determine the mix. The following ratios are the percentage of the installed base which will be purchased next year.
RATIOS AS A PERCENT OF INSTALLED BASE
On average the replacement of competitor products is 2.5 times bigger than products for industry expansion. The MPM program is well suited to predicting specific competitor replacements.
NEW VS REPLACEMENT
Regardless of whether the expansion is onsite the MPM program is valuable. This is because only a small percentage of onsite expansions are where the supplier has installations. Since most of the replacements involve competitor’s products the opportunities will not be in the CRM.
Here is the specific comparison between the CRM and MPM Contributions.
MPM CONTRIBUTION
When the average factors are considered the MPM system is more than 3x more useful at predicting opportunities.
VALUE IN PREDICTING OPPORTUNITIES
CRM systems have been very valuable in tactical pursuits. But certain aspects of the MPM program are also helpful in tactics and can be integrated. One is Value Propositions appearing in the Productivity Hub. Another involves articles appearing in magazines and linked from the Hub.
When the MPM and CRM program are integrated there is a flow of wisdom which improves both the MPM and CRM reliability and results in granular market forecasts being a foundation for business strategy.
For more information on the Most Profitable Market click on www.mcilvainecompany.com
Bob Mcilvaine can answer your questions at 847 226 2391 or This email address is being protected from spambots. You need JavaScript enabled to view it.
