If CRM is So Important Why Are There So Many Failures?

AMR Research has recently (September 2007) published a study that one in three CRM implementations fail. Why?
If CRM is so important why in the world aren’t CRM vendors doing more to make CRM more productive. This should be a red flag to you.
In my “Six Rules”, one rule is that “Microsoft Outlook is NOT CRM” and I advocate smaller businesses doing all they can to implement true CRM solutions.
Entellium a sponsor of the upcoming Third Annual Small Business Summit 2008 has CRM solutions specifically designed for smaller businesses as does Infusion CRM and NetBooks.
Entellium has a number of very good whitepapers to help you purchase the best CRM solution for you.
What is CRM all about?

It’s a system that enables you to gain intelligence about your customers to actively and passively meet, exceed and anticipate their needs.
CRM is about knowing who your customers are, what they have purchased, what they want and what they wished for. Linked to your sales, marketing and logistics channel – your business will be fully empowered to meet customer needs.
Brent Leary, of Business Technology Radio has a blog that covers many CRM issues. He also has done a show on the Profitability Channel about CRM – check it out here.
CRM is absolutely critical to your business if you want to keep customers and increase profit. However, HOW you implement the CRM system and what technologies power the CRM system is vital to understand.

3 thoughts on “If CRM is So Important Why Are There So Many Failures?

  1. Arun Chearie

    All CRM investments that are seen as “only technology systems/enablers” will sooner or later fail.
    Enterprises that do not have strategy/approach/operational tactics to Customer Management, in my opinion, should not even consider getting onto the CRM bandwagon.
    It is imperative to get the Customer Management strategy and processes right first, then comes the power of technology to increase the process efficiency.

  2. Perry

    Good point about MS Outlook, although there are a couple of products that turn Outlook into a fairly respectable CRM by embedding it into their app.
    Management should include the users ie. the sales people, in their CRM purchasing decision, rather than thrusting some CRM onto them that merely satisfies management reporting requirements. Not only would they get a more suitable CRM spec, but also their buy-in, which is crucial to success.
    Small Business CRM Resource Center

  3. Arne Huse

    After being a sales rep for many years, I moved into leading a large CRM initiative. I have now completed a research paper entitled “The CRM Dilemma.” I have concluded through my research that the main cause behind CRM failures (No one is using it) is the fear of activity controls. I was shocked to discover that employees will not enter information into a system if they perceive the information will be used against them. Since quantitative data about the activities of employees HAS to be used, sales reps work very effectively to mutiny against CRM. This dilemma is best summed up in a quote by James Hartle “It is a rare dog that will carry the stick with which it is to be beaten.” Please feel free to have a look at my research informally presented on my blog, “The CRM Dilemma.”

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