Even when more and more companies are embracing CRM solutions for streamlining their businesses quite a large number of such project implementations also fail leaving organizations to flounder with huge overhead costs. There is no denying of the fact that a customer management software is essential for a modern business to stay afloat in the competitive environment. But only through successful implementation one can derive the optimum benefits of it. This article has discussed about some of the most obvious reasons for a customer management software project implementation failure.
Absence of business strategy: Even today decision regarding customer management software is an ad hoc one for many businesses. Sometimes it is driven by the choice made by the competitors or by the suggestion made by a peer to the CEO and lacks in proper planning. Most companies fail to realize that their choice for the customer management software should depend upon their internal business policy. They try to adjust their operation method according to the CRM instead of doing it the other way round.
Ambiguity about CRM optimization: Often implementation projects suffer from ambiguous or non-existent objectives. CRM can only help in streamlining your business if you have set goals and a plan to measure your progress and results. You need to have a clear idea about what you want to achieve through it. You would need a clear policy to integrate technological initiative with business goals.
Missing key factors: Identifying the key factors that drive your business and developing proper CRM strategy to measure those are absolutely crucial for successful project implementation. You would need to define clear metrics in determining the performance of your key performance factors.
Over customization: CRM customization options are to help you in redesigning the product to align it with your business environment. But over customization is also undesirable from the point of view your business performance. Keep your customer management software simple and user friendly.
User rejection: Rejection by users is one of the most dominant factors of CRM project implementation failure. Implementing a CRM policy without analyzing user needs and not incenting them for its use will result in rejection. Another factor that leads to lower user adoption rate is insufficient training. You would need to organize training programs depending upon the technical know-how of your employees.
Incorrect data: It is important to remember that at the core a CRM is nothing but a database and the data you’ll input in it will only get reflected. You are likely to receive a misleading picture of your performance if the input in the interface is incorrect. You need to scrub your existing database to remove wrong and incomplete information before transmitting it to CRM.
Improper integration: Some organizations commit the mistake of treating CRM as a stand-alone system and fail to ingrate it with other enterprise applications like ERP or POS. But modern customer relationship management software has come a long way in becoming a complete business solution that needs integration with other applications for optimum performance.
There are several other factors that determine the success of the CRM project – timely execution of the project, overall cost of it, project management and execution method and so on. Companies need to test the water before they decide on adopting CRM policy. An exhaustive market survey of available solutions can help in choosing the right option.