CRM Fails at Times - Who's to blame?

CRM fails at times - myth /fact? The truth is that CRM failures is a sure thing if not properly implemented.Despite the fact that the staggering statistics show all is well in the CRM arena and that it is bound to grow immensely, it is not the case. CRM is riddled with pitfalls and any improper implementation is definite to have disastrous results.

CRM does fail in some instances. That cannot be disputed. CRM reviews show that the failure rates of CRM could reach a high of an amazing 80% in a few years time. That's entirely in contravention of all the highs that have been predicted right? It just evidences the fact that if CRM is to be employed it has to be done with the utmost caution exercised and with full attention to implementation.

Are software companies to blame?

The view on that is divided. While some experts blame the companies themselves others blame the mode of implementation. It's probably a combination of both factors. On the software company front, their chief mistake could be the way they handle SFA as a component. What happens is that despite the fact that they endeavor to help sales persons actually gain ground in their sales efforts they wind up doing the opposite. Since the systems are devised chiefly by people who are not at the forefront and who know very little about sales activities personally, this has an impact on its user friendly attributes. Sales personnel therefore find them quite difficult to handle and more often than not nonproductive as well.

Another vital mistake that most software companies make is the fact that they fail to realize the fact that the technology that they implement is so advanced that it seldom keeps up with the intellect required to handle it. If the technology surpasses the intelligence required then it will not have the desired results. Software companies need to make sure that the CRM packages are easy to use and learn since they need to be used by the common employee.

Secondly CRM packages tend to fail also on account of their inflexibility or shall we say their rigidity. A CRM solution tends to view the customer as yet another transaction. But customers are far from that. Seeing them as figures and numbers is one of the loopholes in the CRM industry. The human element is lost in the entire spectrum of activity. Decisions are required to be made on a daily basis that cannot be incorporated in the CRM package itself. It has everything to do with spontaneous, decisive choices being made by the employees who are face to face with customers.

Customer interaction? Despite the fact that CRM systems advocate the importance of customer interaction, the actual amount of interaction that takes place is sometimes very limited depending on the work done online itself. CRM systems tend to focus far more on the data they store rather than the subject of that data. The wavering of customers is not taken into account. Instead their past histories, preferences are all considered to be sufficient information to make decisions on. CRM solutions need to incorporate the fact that these decisions are to be made and sufficient leverage be given to them.

One reason CRM systems often fail is because the employees themselves are reluctant to use them or unable to use them in the appropriate manner. Armed with insufficient knowledge and misconceptions they are hesitant and ill equipped to deal with the CRM efforts. Disappointed with the initial implementation results employees start to grumble. Reluctant to give it a chance they stop giving off their best efforts only to aid CRM failure. The hype about CRM is often to blame - leaving employees believing in the magic wand sweeping away all their difficulties. When the actual pitfalls are felt, they stop working towards CRM goals. Result - CRM failures.

CRM also fails because businesses seldom bother to make the right choice of CRM software and often do so after little or no deliberation. Ensuring that the chosen solution can and will support all their business processes, is essential and must be carried out, but it is something businesses seldom do resulting in CRM collapse.

So who's responsible for CRM failure?

Actually it's a combination of both - Organizations employing CRM as well as those selling them. Organizations haven't learnt how to employ its business processes in the right manner so as to get the most out of its CRM implementation while CRM sellers need to make sure that their systems are user friendly and easily adaptable and most importantly take into account the various factors that have been so far overlooked. Companies need to learn the golden rule. Merely installing CRM packages does not ensure success. It is by no means a surety of positive results. Understanding the fact that the strategy does have its drawbacks, working on those drawbacks and doing their best to get the most out of their CRM implementation alone will obliterate CRM failures and yield success.

Related Articles

CRM's Unfulfilled Promise - why CRM fails at Customer Retention
CRM ROI - Far from Expectations
Bringing in Outside Resources when CRM Fails - Does it Help?
Know your Vendors Before you Choose
Get the Best out of Your CRM Choice