Wednesday, January 21, 2009

Why CRM fails

Customer Reltionship Management projects have a high failure rate. There are many reasons for failure and most of them have nothing to do with software. A recent article on InsiderCRM describes the issues.

The key to any software project is to recognize that there are three components to success, People, process and technology, and any project that focuses solely on the technology is doomed to failure.

To start with, you must recognize that salespeople are often independent operators within a business. If they don't see the value, they won't do what you need. Other parts of the business are often easier to work with, because their activities are integrated with the use of the software. Salespeople seldom can function without the software.

Secondly, you must recognize that the software is useless without a sales management process. The software provides you with a framework to deliver and improve that process, but it is not necessarily obvious.

The last is the software and other technical components. As some of these activities are complex and often take a lot of time, they often become the focus of the project. This is where everything gets off the rails. Yes, you must plan and implement the software, but this component is the least important.

The article that I have referenced describes this in more detail, but there are two items that stand out:
  • Face the truth. What are the obstacles and challenges to making this work? They are unlikely to be the software or technology.
  • What's in it for us? How will your business be improved by implementing CRM? Be very specific in terms of business outcomes. A wish will not achieve it.

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