This is a discussion on the emergence of Gaming CRMs and how they will influence the nature, social identity and behavioral habits of sales...
How The Gaming CRM Space Will Change Customer Relationship Management Forever: Why The Time Is Now
In this series, we’ve discussed who benefits from a Gaming CRM system and the impact Gaming CRMs have on the social identity of sales professionals. Here, we’ll examine why the time is right for organizations to begin adopting Gaming CRMs. We’ll also take a look at industry trends that will make transitioning to Gaming CRMs more palatable for society.
First, it’s important to consider the forces that created the need and marketing opportunity for the Gaming CRM space. Let’s dive in.
Gaming Growth In A Booming, But Concerning CRM Industry
The growth expectation in the CRM industry is establishing an environment that is evergreen and ripe for this type of industry disrupter. In fact, the CRM market is projected to reach $128.97 billion USD by 2028.
To interpret these growth trends is to consider the innovations that will be conceived as a result. We should expect unique value propositions from CRM vendors as a form of disruption to the present establishment. Creative destruction is a natural part of industry cycles and generally provides solutions that are more relevant to modern times. Blue ocean opportunities will present themselves allowing for new business models to flourish.
We have observed the blue ocean opportunity for Gaming CRMs. This opportunity is why Outfield has shifted focus from a traditional CRM business model to one that focuses on customer performance and leveraging game theory to drive productive habits. From our vantage point, we have learned areas where the traditional CRM model is broken. This presents new opportunities.
Remember in the first article the statistic around CRM adoption? If not, here it is again:
43% of CRM customers use fewer than half of their CRM features. (Miller Heimen Group)
Assuming that this statistic holds any truth, many companies are wasting a significant amount of their resources on solutions that are not generating adequate value. From our experience, the source of this problem has to do with several factors.
Lack of Motivation
A large number of sales reps aren’t motivated to utilize CRM because of a lack of understanding on how system usage is of benefit to their performance. Rather, they view CRM as a “tracker” or a micromanaging tool for sales managers.
In other instances, the UI/UX design of the platforms make it cumbersome for employees to enter in their daily activities. This usually results in reps entering subpar data. You’ve heard of “garbage in, garbage out”. Bad data provides no organizational value. Moreover, when managers aren’t getting the proper information, their ability to be optimal in their job responsibilities is inhibited.
Sales Rep Turnover
If accounts aren’t properly documented and up to date by the time the sales rep leaves the organization, then the new account owner will have no idea where to begin working that account list.
All of the problems with the current state of CRM software leaves the door open for new entrants into the space. These are costly problems that need to be solved. With the emergence of Gaming CRMs, we can expect a new approach to addressing many of these issues.
Sales Reps are Growing Disenchanted With Current Roles
According to a study by Harvard Business Review, the average sales organization contains a flight risk spanning 50%-60% of their sales teams. Their research states that compensation adjustments, immediate promotion opportunities, work-life balance, title adjustments, or reaffirming a strong sales culture have very little impact on retention. Further, it mentions that even job satisfaction is a poor predictor of loyalty. In fact, 41% of the sales professionals surveyed reported satisfaction with their roles, but are still searching for a new job.
The authors go on to mention a few ways to reduce the likelihood of flight risk manifesting:
At least two major takeaways can be inferred from these findings, as it relates to the main focus of this article. I’ll begin with the one that’s really at the root of the three bullet points - recognition and self-actualization. Sellers want to perform well. They want to know their performance levels. This will help them better understand their trajectory and career progression. They can then compare these findings against their overall professional goals. Recognition and knowing that they are on the path to reaching self-actualization is at the heart of the genuinely focused sales person. Unfortunately, many companies fall short in satisfying these wants.
The second takeaway has to do with how transient sales reps have become. While it might be true that great sales organizations have put practices in place to reduce attrition, it’s fair to guess that a large percentage will continue to struggle. This means that sales people will maintain being fluid and seek opportunities that will continue their pursuit towards self-actualization. While doing so, why not take something along with them that proves their value (e.g. Player Card)?
Assuming that the data in the above HBR article is an accurate representation of the world we are now living in. We must acknowledge the reality of this new world. If sales people are likely to be more transient, they’ll need to sell themselves more often to prospective employers. Due to the value that they are able to provide, Player Cards are positioned nicely. To get a better understanding of the Player Card, please read the second blog in this series How The Gaming CRM Space Will Change Customer Relationship Management: Social Identity.
The Player Card is a proven track record for how reps have performed in the past. Unlike resumes, Player Cards are based on actual data submitted to managers via a CRM system. Sales reps have less incentive to fabricate performance due to the oversight by his or her upper management. Through the responsible self-regulation of a sales organization’s data, we can assume that the performance metrics and attributes showcased on the Player Card of its team members are relatively true. They certainly are more believable than someone’s resume.
With the Player Card, sales people will have a digital tool that they can take with them. One that can help them showcase their production while they are in pursuit of bettering their careers. Player Cards, which are similar to baseball cards, contain statistics associated with the performance of sales reps. Similar to sports, these statistics will drive valuable decision making in compensation, employee promotions, hiring, dismissals, training, and considerably more.
Millennial Generation As A Growing Percentage Of The Workforce
In our 50-page white paper The Ultimate Guide to Gamifying Your Sales Team Outfield interviewed 100 sales managers across the country. The objective was to learn how gamification was applied towards their sales strategy, along with what those results were. We learned many things. As mentioned in one of the previous articles from this series, Outfield established that 89% of sales managers found that introducing game mechanics to their sales strategy positively impacted sales numbers and revenue.
However, there was a bigger takeaway. There was a segment who were the most responsive to when game mechanics were applied. That group is made up of Millennials. The generation born into a burgeoning world of gaming. This was also the group who was the first to encounter and adopt mainstream social media platforms. It’s clear that the Millennial generation was shaped by these two industries. Therefore, it should come at no surprise that this was the biggest segment impacted by game mechanics being applied to sales execution.
From the Closer’s Coffee article Gamifying the Next Generation of Sales Reps, we gathered that approximately half of Millennials like being noticed and a third held competitiveness as a catalyst for better results, leading to a harder work ethic and more collaboration.
This evidence suggests that the influence of gaming and social media has primed the Millennial generation for gaming CRM technology. Further, they'll likely have a heightened appreciation for the features and value propositions of Gaming CRM companies.
Now is the time to deploy the appropriate work systems in order to capitalize on the needs and desires of this generation. Millennials comprise half of the American workforce, and by 2025, 75 percent of the global workforce according to Inc. As this group continues to grow, we can expect that there will be more pressure placed on companies to adopt tools that cater to its values.
The time is now for Gaming CRMs. Today’s culture is one that prioritizes self-promotion and self-actualization. This reality, combined with the many technological solutions available to bring about individual personal desires, has created certain expectations for software applications. The future generations seek out tools that enable them to enhance their personal brand, reputation, and exposure to the public eye. Moreover, the heightened level of attention paid toward platforms that will complement public perceptions will determine which software companies succeed moving into the future. The Gaming CRM focuses on the value of today’s up and coming generations. Therefore, they are better positioned to drive productive behavior. More companies will consider this point as its reality becomes more apparent.
However, the futuristic leaders are already aware and adopting new technologies. They understand that today’s sales person is not the same as the person from a decade ago. Sales leaders who are early adopters look forward to the emergence of Gaming CRMs and the new value they will introduce to customer relationship management.
The question is: which type of leader will you be?
This is part-3 of a 3-part series where I discuss the emergence of the Gaming CRM and why this why this trend is occurring. The first piece covers who will benefit from the Gaming CRMs. The second piece focuses on how it will influence the nature, social identity and behavioral habits of sales professionals.
Outfield is a performance based CRM company that specializes in leveraging game theory and behavioral psychology to drive CRM adoption, motivation, and overall productivity among sales organizations. With customers in over 50 countries, Outfield’s gaming CRM helps teams work simpler, smarter, and more effectively. Becoming the world’s most highly adopted CRM is their mission, and their vision is to accomplish this by creating a platform that is aligned with the values of the up and coming generation of sales people.