Why CRM Implementations Fail
by Jeff Vahrenwald, Kraft Enterprise SystemsWith CRM systems becoming more affordable and functional, more companies today are turning to CRM to change the way they do business. For companies from start-ups to Fortune 500's, a well-implemented CRM system can increase operational efficiencies, boost sales and productivity, improve customer satisfaction, and contribute to the overall development of the business. And with advances in features around Business Intelligence (BI), many businesses have used CRM to establish intelligent business systems and gain visibility into their organizations.
"Purchasing a new CRM system can be a business-transforming decision rather than just another IT spend," according to Cherie Zydel, the Microsoft Dynamics Practice Director at Kraft Enterprise Systems. "However, like with any software implementation, many CRM implementations are doomed to fail before they even begin."
Here are four of the most common reasons why CRM implementations fail:
1. Customers Skimp
The do-it-yourself mentality has caught on among CRM installers thinking that going it alone will ultimately result in a less expensive implementation. Unfortunately, without the planning and design of experienced project managers and consultants, these implementations invariably get dragged out well past their projected go live date, resulting in a poorly-installed system, untrained employees, frustrated users at all levels, and a failure to execute the goals for which the system was implemented in the first place.
2.Lack of a defined sales process
CRM technology is not going to define a sales process on its own. It can, however, greatly improve the effectiveness of a solid existing sales process. Or if no sales process exists, it can be implemented along with a well thought out CRM system. "A CRM implementation is a great opportunity to improve and define your sales process," says Zydel. She encourages clients to use what she calls a "bumper bowling" approach to sales that sets up a process for success that can be repeated over and over again. "Take the time to look at your sales success and use the CRM system to help you do it over and over again," she advises.
3. Lack of executive sponsorship
CRM is frequently brought in to solve an operational problem. The executives who are funding the implementation, however, will often tighten the project budget because they are not dealing directly with the problem the way front line users are and they cannot see the need for a solution as clearly. Getting backing from executives who understand the problem and the benefits of a solution gives the project the momentum it needs to result in a successful implementation. "Start with the executive vision and drive that through to the end users," says Zydel.
4. Failure to integrate with existing systems
Looking at a CRM solution as solely a sales application can limit the effectiveness of your system. Zydel recommends taking the time to integrate your CRM system with other business critical systems such as your accounting or billing systems. Systems that can share data provide more reliable information and eliminate the need for employees to spend time entering information into multiple systems. "The result," says Zydel, "is more accurate reporting, higher user adoption across multiple divisions, and a 360 degree view of each client."
We have extensive experience helping companies define critical business processes and is a licensed reseller of Microsoft Dynamics CRM.
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