CRM implementations collectively cost organizations up to $10 billion annually, an amount that rises 10%-20% each year. Yet half of these ventures fail to meet management expectations.
Why is this?
As a small business marketing manager, I have managed four CRM implementations and, having learned by experience, these are the main reasons they fail and how to avoid them:
Unclear management expectations. It is important to involve management in the decision making process, be realistic about what the system can do, and to clearly communicate the benefits/limitations of the CRM you are choosing.
Scope creep. In the implementation process, management may find that the features of the CRM are limited and may need additional services that were not previously budgeted. This causes the project to drain resources more quickly and increases the chances of failure. When determining the project schedule and allocation of resources, clearly communicate what the system will look like and what functionality it will have to avoid a creep in the scope.
Costly add-ons. CRM solution providers LOVE add-ons. Chances are the CRM they’ve given you to test drive is not the base model, and to get the bells and whistles you’ve gotten used to, you will have to pay extra for them.
Lack of technical support. On-demand CRMs are notorious for poor technical support. For over the phone service, you typically have to pay extra to receive a live person within a timely manner. This causes frustration and further budget usage. Prior to deciding on a CRM, make sure to test the support during your trial period and ask ahead of time what type of support can be expected with your plan.
Lack of user adoption. By not having a formal change management plan and training program, you are setting your employees (as well as the project) up for failure. It is important to clearly communicate the benefits of the CRM, train employees how to use it, and have an onsite, dedicated “go-to” person they can call on for help.
