Friday, August 5, 2011

Major Reasons for the failure of CRM

After Reading different blogs, watching demo versions of softwares, listening to different people i have discovered some of the Major Reasons for the failure of CRM. They are as follows:-

Strategy Errors- This type of errors occur because
a-of the absence of right leadership
b-A business leader needs to be in charge of the CRM effort. A successful CRM is basically a major business initiative
c- Quite often the strategy is hazy and not clearly sketched out

A perfect CRM strategy and vision need to anticipate and define what customers are going experience at each touchpoint, and how will they be handled at each touchpoint. The vision needs to be clear to everyone. Problems occur when an Organization's business constituents have differing expectations of the benefits of CRM.
CRM strategy and business strategy are not properly aligned

CRM is an expensive way to automate inefficient or ineffective processes.

Companies get better results from CRM when they begin by focusing on sales processes:

Customers not consulted

Implementation Errors
Inability to link channels
People errors
Introducing CRM simultaneously to thousands of employees.

It's easy to want to do too much, too fast. Get it right first with a small team of employees chosen to represent a cross-section of your company. Choose an initial project that can make a dramatic difference, with clear key performance indicators. Strong pilot results will help you avoid the next pitfall:
Changing the system, but not the people
Process errors


To avoid the pain of revision, some companies don't take the opportunity to re-engineer and optimize their processes. They look to CRM as a patch rather than an opportunity from the ground up to increase customer satisfaction, revenue, service and overall productivity.


Technology Errors that is double entry of Data

Often marketing, sales and service departments already have different types of CRM software, from different vendors, to track the same customers. As a result, these departments can't share data, and have redundant support and administration costs.


Customer Management Errors
Customers do not get to experience the new benefits.

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