Five Reasons why a CRM System is Critical for Success in Federal Contracting

CRM Stands for Customer Relationship Management and a CRM System is a crucial tool that will help you see success in the federal marketplace. The CRM System is one that allows you to import your prospects, customers, and targets and reach out to them in a timely and organized manner.

Below I’ve outlined five reasons why having a CRM System is critical for success in Federal Contracting.

1) Federal Government Procurement is a Relationship Based Market

A common mantra here at TargetGov is, “the government is a relationship based market.” This idea often seems counter-intuitive to many of our clients, they can’t picture federal Decision-Makers basing their decisions on relationships.

However, the risk adverse nature of the federal government means that the people who make the key procurement decisions are more likely to use a vendor they’re familiar with and know well. This creates something of a challenge when trying to be successful in this marketplace, because it is difficult to keep track of everyone who might have a hand in making that final decision. That’s where the CRM System comes into play.

2) You Need to Track Too Much Information

A quality CRM System allows you to keep track of the Decision-Makers, where they work, their role in the agency, and even the types of goods and services they usually procure. This is too much information for any one person to know about all of their potential targets without a tool to help them.

A CRM System becomes a necessity when you’re faced with the sheer volume of information that has to be taken into account and tracked on a regular basis.

3) Federal Employees Have a High Transfer Rate

There’s no guarantee that the Decision-Maker you’ve spent time and money developing a professional relationship with is going to stay in that position, or even in that agency. A high transfer rate means that you’ll need to keep your list updated and accurate as time goes on, allowing you to swiftly change targets and begin developing further relationships.

A good CRM System will help you follow your contacts to their new agencies, letting you keep in touch with them even though they have changed jobs. This would be a great way to get a foot in the door to a market you had not previously been pursuing.

4) A CRM System Allows You to Reach Out Quickly and Consistently

A consistent messaging plan will help you keep in touch with those federal Decision-Makers that you’re trying to build relationships with. We recommend you reach out at least once a month to keep your company’s image at the top of their minds.

Keep in mind that the touches you send out will need to be relevant and compelling. This is why you can’t simply dump all of your contact’s emails into one mass emailer and expect results. You’ll need to fully utilize your CRM System to send targeted emails.

5) You’re Able to Track Action Items and Sales Statistics

With so much to do, it’s easy to let important tasks and follow up slip through the cracks. A CRM System allows you to keep track of these action items, even alerting you to due dates and upcoming issues.

It’ll also help you track the conversion rate of your contacts. If one decision-maker isn’t having the return that you were expecting, a CRM System will be able to track that and help you decide if it is worth continuing down that path.

We here at TargetGov don’t have a specific CRM System to recommend. We suggest that you do your research and look into them before making a purchase. Look into the features you will require to be efficient and successful. If you’re just starting out, an excel spreadsheet with the proper headings can be used as a beginner CRM System. If you would like us to send you an article about the Top 40 CRM Systems, email us at FAST@TargetGov.com today.

We’re the experts at marketing to the Federal Government and our clients have won billions of dollars. Click here to learn about the TargetGov FAST Process, or here to learn about the Government Contracting Institute’s upcoming classes.

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