Since they are designed and developed to facilitate automation and business improvement, one might wonder why CRM implementations fail.
No organization spends time and money to implement a CRM implementation with the intention of it failing or falling short. However, CRM implementations can be quite complex and often leads inexperienced companies and users to not optimizing their potential and eventually pushing the CRM implementations in the failure pile.
In fact, several analysts in a dozen industry-quoted reports say that one-third of all CRM implementations fail. That means around 33.33% of businesses that implement a CRM system fail to make proper use of its features. However, there are other sources that report a much higher number that ranges from 18% to 69%.
Many are disappointed or dissatisfied with results of the CRM implementation, results, performance, or inability to add value to the process automation across the organization. While most failures are stemmed from the implementation of the wrong CRM platform, there are other reasons as well.
Here are some of the various reasons why CRM implementations fail and what you can do to fix them.
Like it is with any other project, a CRM implementation also needs to start with clear and concise expectations. If management or decision makers don’t reflect on the feasibility of their goals and define objectives based on that, they are most likely headed for CRM implementation failure.
If you don’t have a vision or purpose for the implementation, you won’t have a solid ground to create the roadmap to guide your strategy. This way, whatever perceived advantages convinced you at the beginning, will miss their mark.
What you can do
The solution to this dilemma is quite simple. Before you begin the implementation process, consider what you want to get out of it. Connect your CRM strategy with the goals your company wants to achieve. Provide the required resources and personnel to create and rate milestones along the way.
The CRM Platform Becomes a Sales-Only Issue
CRM platforms are wrongly believed to have capabilities only for the sales function. The reality, however, could not be farther from this. CRM platforms are a tool designed for organization-wide implementation to improve business processes and facilitate goal achievement.
Solastis is one of the few developers that are committed to creating a CRM implementation that enhances the opportunities and possibilities of improving customer service and revenue generation. It has features that extend its automation benefits across the company.
What you can do
Understand that customer relationship management is not limited to the sales and marketing department. In addition to these customer-facing units, IT, operations, product development, etc. are all integral to the creation of the customer journey. You need to educate your employees and then organize your process in a way that they are further improved by the CRM implementation.
Lack of Usage
When employees don’t understand the importance and efficiency of the CRM platform, they tend to stray away from using it. It means that the thousands of dollars spent on CRM implementation and upkeep go to waste. Furthermore, it means that client or customer data is not captured effectively.
One of the reasons for the employees’ hesitation toward CRM adoption is their reliance on the tools they were already using. They don’t understand the benefits of the new system. This can curtail your potential to generate more leads and maximize your revenue.
What you can do
The first solution is to find new ways to motivate and encourage your employees to use the CRM platform. Let them know that you understand that the transition from the old system to the new one is hard and time-consuming. Articulate the pain points that the new system addresses. Focus on how it can save them time and make their lives easier.
It is Reduced to a Technology Issue
Quite often we see CRM platforms being reduced to IT projects. It is assumed that it addresses technical issues with its software and helps optimize simple sales processes. They don’t understand that CRM platforms are merely tools that can actually help the leadership bring change in the company culture and thinking.
What you can do
Management can cultivate this thinking by recognizing the importance of the CRM platform as a tool across the organization. Along with focusing on ensuring adoption of the platform, note “how” it is used. Also, don’t force implementation or usage of the software as it can actually be counterproductive and bring the productivity down instead of improving it.
Using the Wrong CRM Vendor
There are hundreds of CRM platform vendors currently available in the market. From extremely and questionably cheap to overly expensive ones, there are many vendors promising to help your business improve its customer relationship management. While some of them deliver what they claim, most don’t.
It is quite common that these CRM software platforms will ask you to make changes to make the implementation work. While minor changes like system upgrades are understandable, changing business processes to fit the software seems a bit too much.
Businesses either end up paying for features that they will never use or getting a product designed for a very specific application. Also, they have to use their preconfigured databases, sales processes, and integrations without an option of customization.
What you can do
Before taking the plunge and caving in to buy the CRM software everyone uses, do your research. There are vendors that create specialized CRM platforms that cater to various industries, company sizes, organization types, etc.
Make a list of the features you require then consider the following for each CRM platform you come across:
- Does it have all the features you need?
- Is it flexible and allows customized configuration?
- Is it easy to implement and integrable with tools your organization uses?
- Is the platform scalable?
Using cost and popularity as metrics for judging the CRM platforms will get you nowhere. In order to avoid implementation failures, you need to have the right software, to begin with. Along with that, make sure that you choose vendors that allow a trial before finalizing a purchase.
Solastis is one of these vendors that allow all interested clients a 30-day trial. In this time, you can peruse through the available features and judge their applicability to ensure it is a good match for your organization.
To learn more about how Solastis can benefit your business and aid your goal of optimizing your customer relationship management, click here.