I read an interesting article in the Calgary Herald, “The U.S. shale oil revolution has only just begun” by Robert Campbell of Reuters. The article speaks about the transformation that is coming to America’s oil patch due to the “tight sands” and “oil shale’s” technology. The article speaks about the growing expertise of the industry and huge amounts of investment capital that is increasing oil & gas production in North America. The expertise and technology is changing the popular opinion that North American energy production had peaked in North America to a new point of view that the market has the potential for significant growth.
Living in Calgary and being a CRM sales & marketing consultant, I can’t help to compare what is happening in the Oil & Gas industry and the Sales & Marketing industry. The internet is changing the way that companies & consumers make their buying decisions and the smart companies are responding to this change by adopting new technologies within their sales and marketing organizations. The two areas of change that I have identified are the ability for companies to tap into broader geographic markets for less money and better results; and the ability to generate more revenue from high value accounts by leveraging information within your sales and marketing processes.
Expanding Geographic Markets – I have customers and their target market has many customers and the transaction value with these customers is less than $5000. They have been able to leverage market data from Hoovers, SalesForce.com CRM, Digital Marketing, Webex and telesales to address this large market while keeping the cost of acquisition low. In the old model they would have hired a large sales force in the geographic markets to pound doors; this is not financially viable for a small company.
Generate more Revenue from High Value Accounts – I have customers who sell to a few companies and the transaction value is large. They have been able to harness explicit and implicit data about their customers within their CRM to create leads and route leads to sales departments and marketing departments based on lead scores. In the old model they relied entirely on the sales team to interpret explicit and implicit data and make a decision to act on the information.
The changes in the Oil & Gas and Sales & Marketing industry are revolutionary and disruptive and it is important that companies adopt to these changes.