How to Avoid CRM system failures?

How to Avoid CRM system failures?

Companies consider CRM system as an IT project, rather than a business initiative.

Business process analysis is the most critical stage to any CRM implementation.  How does information flow? How do we follow up on customer concerns?  There are so many questions that need to be answered before moving to implementing a CRM system.

Most organizations fail to grasp the idea that CRM is a strategy rather than merely a software package. In order to implement CRM successfully a company must change the way their organization works.

Many corporations suggest that CRM failures are comes from pitfalls in the CRM system not from mistakes in their implementation in the organization.

Many corporations think that the CRM software supposed to work directly without an expert consultant like a robot and produce periodic reports that deliver them with useful information without their interaction with the system.

 Another complication is that many of the reports define success based on management’s impressions, rather than evidence that came from the data mining.

The implementation strategy of CRM system is important as the quality of the software.

That doesn’t mean that all CRM software is equal, or equally applied to different customers.

Most of the financial benefits of CRM come from a CRM project that keeps customers from temptations by competitors and encourages them to increase the amount they spend with the company.

The Benefits from a CRM system usually came in the long-term more than in the short-term but most organization success in achieving quick profits during the short-term period.

No single factor is enough to enhance the odds of a successful CRM implementation to achieve the potential expectations and avoid failures, there are a lot of them:

1) Adopt a customer focus strategy:

Customer focus strategy is one of the most important factors while applying a crm system because today’s customers act very differently from customers of just a few years ago. Now they realize that they have a choice and they can demand more and more depending on the competition.

A lot of companies deal with CRM as a way to calm these customers rather than truly re-orienting the company to accomplish customer needs and satisfy their desires.

2) Engage Relevant Staff:

You should convince your staff such as sales people and customer service agents to comply with the idea of adopting the CRM system because you can’t force your staff to use CRM tools.

Companies that educate relevant staff members about the business benefits of CRM in the organization and give them a CRM training sessions to use it properly are more qualified to achieve success.

Make your staff figuring out how the CRM system will make life easier for them so they can see how they will derive direct benefits from CRM tools.

3) Be willing to change the organization

Companies must also be willing to change their organizational structure and to be more flexible to take advantage of CRM system.

Unwillingness to change organizational structure or organizational roles or being more flexible is more likely to be static company in a variant market and becoming a follower to the competitors not a leader with a competitive advantage.

4) Set measurable goals

Unclear goals contribute to CRM failures. Figure out exactly what you want to accomplish through adopting a crm system.

Know your goals and make sure they are time-bound and measurable. Determine what CRM business problems you are working to solve, then review the relevant products to solve them.

Companies can’t effectively define success. It’s difficult to monitor progress of a CRM system and its actual payback without first establishing metrics and evaluating performance to determine the yield benefits from applying the CRM system in your organization.

5)Supervising the CRM projects

Companies should avoid lack of supervision by applying auditing and maintenance for CRM system every fixed period.

Lack of executive care will lead to CRM projects failure. Don’t even think of implementing CRM software if corporate executives weren’t involved in the software selection process and aren’t  support the implementation.

This is not a small project. You’re not just installing a new software on everyone’s desktop computers.

You are potentially modifying all of your customer business processes, changing staff performance measures.

 you need to be confident that your company’s executive team has reviewed and signed off on the proposed strategy before you decide on any vendors.

6) Don’t over promise

CRM system not the answer of all your problems whether its IT or Business problems. Don’t expect that after applying a crm system you won’t face any problems, that’s not true because  business conditions will change.

 But the idea is that you are heading into the project with a reasonable expectations.

Just don’t go overboard with the promises. Give reasonable goals and work to exceed them.

7) Wrong Vendor at right price and viceversa is no bargain

Find out which CRM solutions are built to handle your problems and which CRM vendor will offer you a crm system with your requirements with high quality and proper price.

Don’t judge the CRM software company only from the monetary aspect you must make sure that they have quality system standards because higher price not guarantee of the quality and viceversa, reasonable price also not mean that it has poor quality.

You can save your money and also getting a crm system with high quality from a new vendor.

8) Keep it simple

Don’t introduce too many features which in turn make it difficult for users to apply the CRM solution.

Simple is better. Easy-to-understand is better.

Make sure that what you apply in your company makes it easier and more satisfying for staff to do their jobs.

9) Bring in Expert

You should bring in an expert CRM consultant in your company or give a training sessions to some of your staff to become a CRM Consultant to be ready for the pitfalls of an implementation.

10) CRM is part of company culture

Consider CRM reports as a regular component of your periodically staff meetings.

you will be discussed a questions like How successful was the new marketing campaign at bringing in new customers? Etc

Depending on these reports can also be used as the basis for creating a competitive advantage, or getting a new hint about processes needing improvement.