What is the reason behind high CRM implementation failure, learn the secrets of marketing with us. Customer Relationship Management (CRM) is often misconceived as an extension of the sales team’s address book. The few progressive enterprises (make an exception) by using CRM software to manage customer service calls as well. However, most organizations (surprisingly both big and small) assume that the CRM alone will miraculously ‘fix’ their business. But then is this perception right? And most importantly is CRM only a software application?
In the words of Mark Sauter, president and CEO, GTP Associates Inc – ‘’ CRM is more than just software – it’s an ethos. It’s a behavior called CRM, not a technology”
The question whether the perception of the business leaders about CRM is right or not has come under focus after the increasing rate of failed CRM implementations.
According to industry studies, CRM implementations continue to fail at an alarming rate. Forrester Research suggests that close to half of all CRM projects fail to deliver the expected benefits.
This table stated below lists the year, different organizations conducted the research, and reported CRM failure rate.
Is high CRM failure a case of CRM vendors overstating the potential benefits, or do people wrongly assume that the CRM software alone will miraculously ‘fix’ their business? Why do CRM software implementations continue to “fail”?
Throwing light on this context, here is what Bill Band, Principal Analyst at Forrester Research has stated – ‘’Many businesses, post implementing an online CRM software solution immediately assume that their sales and efficiency levels will rise. They operate their business operations as usual, waiting to see what happens. After a few months when the expected results fail to materialize, CRM is dismissed as a failure. It falls into neglect, or becomes an over-glorified address book.’’
‘’What businesses fail to realize is that they have missed the point of the exercise. They have simply implemented CRM software, rather than adopting it as an ethos.’’
20% of CRM implementation problems are related to strategy and deployment – Forrester Research.
For a successful CRM software implementation, it is essential to carefully analyze internal business processes. Business owners/entrepreneurs need to answer questions like:
In regards to this context, Peter Weedfald, vice president of strategic marketing and new media at Samsung Electronics America stated – ‘’Without answering to the above-mentioned questions, an organization cannot undertake the next step of the CRM software implementation process. For example my goal is to [use CRM to] suck the air out of my competition and to do so it’s necessary to unify the company under one CRM vision.’’
1.Establish and communicate vision, strategy, purpose and goals. Communicate specific goals and expectations to your employees.Let them know that CRM requires a new corporate culture and mindset and not just software training.
2.Streamline sales, marketing and customer service processes before implementation so that processes can be automated and data can be shared across the company.
Cultural change: to place the customer at the centre of every business operation.
(The senior management needs to first adopt cultural change before implementing it downwards throughout the organization.)
Adam Honig, CRM consultant and strategist – ‘’If executives aren’t committed to the CRM project, don’t expect middle managers to buy in. Likewise if the head of sales or service won’t lead by example — and make employees work differently — don’t expect CRM project success.”
Process change: to ensure business activities are undertaken with a focus on meeting customer needs.
CRM software helps underpin cultural change – and to bring about this change: