I have talked to many distributors who shared miserable stories about bad software implementations. ERP implementations that were delayed by years, not months. CRMs that required customization before being usable. Talent quitting because the user experience was so bad. Sales reps sticking to the old ways — outside the platform — despite access to better functionality.

Given this, it’s not surprising that many distributors worry when shopping for a CRM that they might create their own horror stories by selecting the wrong CRM, wasting money and their team’s time.

A CRM is as critical for distributors as the ERP they choose. Many CRMs on the market feature bells and whistles that can complicate decision-making. Once you decide, it takes time to get it off the ground. And if you go through all of this and find out your sales reps aren’t adopting it, or it doesn’t work for your needs, it’s not as simple as requesting a do-over and swapping it out.

This guide to buying your first CRM should help prevent buyer’s remorse.

Look for a sign you need a CRM

Often, the initial hurdle for first-time CRM buyers is answering the question: Do we really need a CRM? Many distributors deliberate whether they’re “ready” for it. Would their limited budget dollars do more supporting something else? As a leader in your organization, you must believe a CRM will tackle your challenges, such as moving prospects through your pipeline faster, improving your customers’ buying experience and increasing wallet share. If you trust you’ll get ROI from a CRM, it’ll be easier to feel confident it’s the right time to make this investment.

The bar for CRM readiness isn’t as high as many people think. In fact, it’s quite the opposite. It’s the right time to invest in a CRM if you have more than one salesperson and over 10 customers. When you reach a point where you can no longer keep track of all your customers and what’s happening with them in your head, it’s a clear indication you need a CRM.

The need becomes even more pressing if you have thousands of customers and dozens of reps. A CRM tracks customer interactions. It ensures that no customers are neglected, especially in larger teams. It consolidates customer data, removing it from your sales reps’ heads, emails and other systems. Centralizing your data makes it possible to analyze it with AI and mine it for sales insights.

If you see your inside and outside sales reps pointing fingers and struggling to collaborate, if your data is leaving when a rep retires or leaves the company, or if you’re not able to solve a customer problem without speaking to the rep responsible for their account — you need a CRM.

Avoid getting burned by thinking you’re not ready for a “real” CRM

Some distributors make the mistake of starting with a lightweight CRM. They assume dabbling with a less expensive CRM is a good place to get buy-in and quick ROI without a large investment. After they experience success, they expect to switch to a more robust CRM.

This is the wrong approach. Switching from one CRM to another is very similar to going from no CRM to your first CRM. It’s not as simple as flipping a switch.

Getting salespeople to adopt any new system is hard. So, if you’re going to go through that effort, you might as well do it with a tool you’re actually excited about — and one that will get the results you want.

Sales-driven businesses need a CRM purpose-built for sales activities, not marketing

If you’re a direct-to-consumer brand with no sales reps, a CRM optimized for marketing makes sense. But in distribution, salespeople drive revenue.

Your CRM should be designed to make your sellers more successful.

The right CRM will help your sales reps consistently manage their accounts, growing them and capturing more wallet share. It gives them the spot to store account management details from frequent calls and visits, document what they talked to customers about, and what customers like and dislike.

For distributors, revenue isn’t just about chasing new leads — it’s about mastering account management. Sales reps are crucial in nurturing existing customer relationships, uncovering opportunities within accounts and growing wallet share. Unlike businesses where marketing plays a dominant role in driving sales, distributors rely on their sales teams to actively engage with customers and keep the revenue flowing.

A CRM built with marketing features may look impressive, but if it doesn’t cater to the needs of your sales reps, it’s not the right fit. Your reps need a CRM that helps them efficiently manage accounts: logging customer interactions, spotting gaps in product coverage and identifying upsell or cross-sell opportunities. Marketing can support the CRM decision, but the focus should be on what makes your sales reps successful. Opt for a CRM that equips them to excel in account management, because that’s where the real revenue growth happens.

Preparing for your first CRM purchase begins with the end in mind

Distributors should start their CRM buying journey by considering the sales outcomes they want to achieve. The right perspective — neither thinking too narrowly nor widely about CRM — is important to getting the CRM solution you need.

If you think too narrowly about CRM, such as “we’re looking for a CRM so we can win more projects,” you risk overlooking what’s important to make a CRM successful company-wide, such as strong integration with your ERP, high adoption and usage rates among your reps, and more.

If you think too big, you’ll end up with a Frankenstein tool that could work for everyone but is used by no one, including your sales reps.

Instead, aim for a “just-right” perspective by clearly defining your CRM goals. For instance, instead of only focusing on winning projects, broaden your objective to growing overall sales by a specific percentage. This approach ensures you’re considering essential needs, like ERP integration and ease of use, which are crucial for driving rep adoption.

And if managing jobs or projects is key to revenue growth, prioritize a CRM with job management capabilities that align with your sales process. By finding this balance, you’ll choose a CRM that not only supports your sales reps but also drives the outcomes that matter most to your business.

The sales team should drive CRM selection and implementation

To make a CRM successful, it’s crucial for the Vice President of Sales or Chief Revenue Officer to take the lead. They should be deeply involved in choosing the right system and commit fully to the implementation. While sales leaders can delegate tasks like shortlisting options, they need to be the decision-makers and champions of the CRM because its success depends on their buy-in and their team’s accountability. Without this commitment, the CRM is likely to fail.

Finding a CRM champion within the sales team — not IT — is also essential. In distribution, CRMs often get a bad reputation as “Big Brother” tools, especially if reps feel the tool is being forced on them by someone outside their team. The champion should be a sales leader who genuinely believes in the CRM’s potential and understands the sales reps’ day-to-day needs. When reps see a respected leader who’s excited about the CRM, it’s far more motivating and helps build a positive attitude toward using the tool.

Breaking through the stigma of CRMs requires strong sales leadership and a dedicated champion from within the sales team. With the right guidance, a CRM can be seen not as a chore but as a productivity tool that makes reps’ jobs easier and more effective.

Essential features of distribution CRM

When selecting a CRM, distributors should prioritize features that directly contribute to sales growth, improve margins and increase predictability. It’s easy to get sidetracked by flashy features, but the key is to stay focused on what will drive business revenue.

I often notice distributors getting excited about features that sound impressive but are unlikely to impact their main business goals. Take automated marketing emails, for example. While they can certainly boost productivity, they shouldn’t be viewed as a make-or-break feature of a distributor’s CRM.

To help distributors assess the real value of specific features, I ask questions like, “Have you ever sent out a transactional email before?” The typical response is either “No,” or “Yes, but it didn’t drive any revenue.” These answers reveal a common pitfall: getting distracted by features that don’t directly contribute to sales success.

It’s important to focus on the tools that align with core sales objectives and truly drive business growth.

‌Change management considerations for your first CRM

There’s going to be a hump you need to get over in the beginning when adopting any new technology, and CRM is no different. Sales leadership needs to be willing to push the rock up the hill, knowing that when it rolls down the other side, it will roll down to a higher point than before. This involves a commitment to overcoming the initial resistance to ensure the CRM is used — and used effectively.

For example, a large electrical distributor we worked with needed a significant initial effort to get their team to actually use the tool. Once they were over the initial hump, the CRM’s benefits were substantial. The CRM now captures institutional knowledge from veteran sellers and enables new hires, even those with little industry knowledge, to be productive more quickly. Outside sales reps have also been able to increase sales during their customer visits because of the CRM’s upsell and cross-sell suggestions. The company closes quotes in a matter of days instead of months.

That initial effort is worth it because the CRM will ultimately lead to higher efficiency and better sales performance.

Related: The Coming of Age of CRM

As you prepare to purchase your first CRM with these considerations top of mind, focus on how CRM will help your business thrive. An effective CRM for a sales-driven organization is purpose-built for sales reps. It is robust enough to achieve your business goals and sales leadership must support it. This support ensures sales reps use it.