Identifying Crucial Reasons for a CRM Project Failure

By CIOReview | Friday, February 22, 2019

A customer relationship management (CRM) is data analysis of customers' historical data with a company to improve business relationships with customers by focusing on customer retention to drive sales growth. There can be several reasons for a CRM failure.

Lack of user adoption

Low user-adoption is the leading cause of most customer relationship management (CRM) project failures. If the CRM isn’t well integrated with existing workflows and processes, employees and other CRM users actively resist learning essentials of the system. This situation can be tackled by bringing end users to participate in the design and user-experience testing processes, and by proper CRM training.

Lack of vision

With a clear vision of what companies need CRM software to accomplish, the more likely it is that the implementation will be a success.

The technological solution needs the right users

The CRM’s technology must be combined with the proper workflows, operated by well-trained employees, and managed thoughtfully to use the system’s full potential.

Not putting the customer at the centre

The true purpose of CRM software is to enhance relationships with customers. When a CRM is designed without considering customers’ needs many of the software’s best features are wasted.

Poor planning

Implementing a CRM system is a multi-stage process, refining a general outline into clear workflows, software systems, data curation, user testing, and employee training. Proper planning helps prevent later confusion, ultimately helping to avoid CRM failure.

No plan for growth

A good CRM should be designed with growth in mind, for expansion, refinement, and other future needs. This helps in identifying issues and improvements to include in the next iteration of the CRM.

Improper training

It is imperative that companies provide proper training to their teams. Lack of CRM training results in low user adoption rate which ultimately leads to CRM failure.

Wrong vendor

A right CRM partner will always build a customised CRM solution that fits a company’s unique needs. A conflict arises between the client’s business processes and CRM software if companies have to change the business strategy rather than modify their CRM code.

Customers’ view

The job of a CRM is to assemble customer information in one central location efficiently and to make it easily accessible when needed. If a company feels that its CRM is failing, it has to see how their customers interact with CRM.

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