Problems with CRM software installations

Customer Relationship Management (CRM) software projects have been problematic. I found an article that mentions some of the reasons why. The list of problem areas is valid, but it doesn't go deep enough.

Here are the six problem areas identified:
1. Lack of strategic goals
2. Accurate and up-to-date data
3. Start slow. Have a staged approach.
4. Ensure the CRM system is actually used.
5. Hosted or on-premise solutions
6. Too much customization can be a problem.

Items 2-4 address major issues and are related. So is #6. In order to ensure that you have accurate and up-to-date data, people have to use the software and use it consistently. The causes of lack of use are primarily:

• Too much data being collected and too much customization

When CRM projects are initiated, there is usually a basic goal: to get more business. When requirements are defined, the potential for increased information is recognized, but not the problems in getting it.

Firstly, people need to change how they do business. They have to collect new data (some may be easily available) and they have to enter it in the system. When and how do they do this? For telephone sales and support, it is usually easy, since the salesperson is sitting in front of a PC with other data about the customer. The situation isn't the same for the salesperson on the road. They have to enter this data when they get back to the office or at home. This cuts into their personal time.

Secondly, the more data that you collect, the more you have to analyze. Since there will likely be a focus on certain goals and therefore certain data, much of the data will be ignored. People will know it is being ignored and will stop collecting. Then you lose out on item #2, accurate and up-to-date data. That causes your project to fail.

Thirdly, when you start the project you have certain ideas in mind. These can be articulated, but you will find that as you collect data, your understanding of your business will change and you will want to change what you collect. With the items that are less well defined, it will be even worse. It is likely that you will find the data has no value, at least in its initial form.

The final reason of too much customization falls into this category. Most software products give you the opportunity to customize to meet your specific needs. If you have a very specific need and know exactly what you are going to get from it, do it. If you don't, leave it for later. Remember that many people have had input into the development of the CRM software. With little or no experience and no specific goal except to collect information, you may find that it is not required. Something else may fill the bill.

Out of the six points mentioned above, two are critical:

1. Have a goal.
2. Ensure that the data you collect is accurate and upto-date and helps you achieve that goal.

If you do that, you are likely to succeed.

Here is the article that I referenced.