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June 16, 2009

What Makes Customer Relationship Management Projects Fail

Filed under: Database Integration — Tags: , — Olga Belokurskaya @ 5:54 am

CRM has become extremely popular in the recent years. Nowadays, many companies have accepted the importance of CRM and have made the decision to implement CRM initiatives enterprise-wide. However, a great deal of CRM strategies fails. In fact, those failures may be caused by different factors. But here are the most typical reasons of CRM projects failures:


  • Believing that CRM starts and ends with software. However, a CRM project means the right people executing the right processes, using the best possible tools at their disposal.

  • Under committing a CRM initiative – which means failing to invest enough time and attention to to develop a comprehensive sales process reengineering vision, settling instead for a series of minor, tactical changes.

  • Considering CRM to be a part-time project. A part-time approach will not generate part-time results; it will generate no results at all. For CRM projects require full-time assignment of people for the duration of the project, active executive involvement, full-time commitment of personnel, accountability for results, and a process-driven budget.

  • Having big expectations and small budgets. Trying to implement a CRM initiative as cheaper as possible is a mistake a company will regret very soon. A low-cost approach is extremely prone to failure. Starting a CRM initiative one should never focus primarily on price, but only on benefits.

  • Picking wrong technology partners is a mistake that occurs when a company bases vendor choice only on product features. However a company must thing about their specific sales process functionality needs.

  • Assuming that automating your sales process will be similar to automating manufacturing or finance. The degree of complexity in implementing a CRM system is significantly higher than the other two examples. Budgets should be provided for necessary upgrades and for ongoing system support.