5 Reasons CRM Initiatives Fail

The value customer relationship management software can bring to an organization is enormous, from centralizing data and optimizing customer & prospect communication to automating support and marketing efforts. Today, it’s no wonder that CRM is one of the fastest-growing business software segments. Now the question arises, Why, then, do so many CRM implementations fail? It has been observed that as many as 65%-69% of all CRM initiatives fail to effectively get off the ground.

Let’s take a closer look at some of the primary failure causes and how you can ensure your company’s CRM implementation is successful.

Absence of Executive and Managerial Sponsorship

The absence of executive and managerial sponsorship is the most consequential factor causing CRM initiatives to fail. If top management is driving a CRM program, there is a much higher chance of it succeeding. Without this executive force to drive it forward, CRM efforts may fail and eventually fall off as a priority for team members.

Poor End User Adoption

As we have observed, a CRM project may result in some initial objections on the part of a few members of the team. Managers who establish hope and work closely with their team, providing backup, motivation, and guidance, will get better results and higher user adoption. Additionally, finding a CRM “champion” can be helpful to raise interest and enthusiasm for the solution, and help other team members speed up their learnings. This CRM leader should understand company objectives and processes and have an understanding of CRM technology and how to align company objectives with CRM processes.

Complex, Irrelevant, and Excessive Configuration

The effectiveness of CRM depends on how you configure it. One of the important functions of a CRM system is to provide the sales team with tools for pipeline management. However, the CRM platform is also an exceptional reporting tool. All too often, though, CRM’s target as a sales tool is eclipsed to fulfill requirements of managerial reporting, which in turn usually needs more information to be entered, tasking the sales team with excessive data entry demands.

Certainly, reporting considerations should be taken into account. In fact, the absence of report consideration may also damage CRM initiatives. It is essential to strike a balance; develop accurate reporting but be mindful of data input demands.???

Take steps to minimize the effort required, by ignoring or hiding fields irrelevant to the users’ tasks. And make the process simple, by using fields such as dropdowns with preset options and checkbox fields — instead of text fields. Reduce manual processes when you can by using the CRM’s automation capabilities to create workflow automation for repetitive and routine tasks.

Lack of Established Goals and Inaccurate Expectations

To get everyone on the same page and moving in the same direction, established goals and expectations are necessary. Without them, uniformed CRM processes may never get established or remain poorly defined and your CRM project may lack the focus necessary to establish a foothold within your organization. Controls and discipline must also be established to make sure everyone is adhering to the established processes.

In the pre-implementation phase, organizations should clearly identify and define milestones, the structure of the organization, team member responsibilities, and security profiles, as well as reporting and dashboard needs. In addition, cleaning and formatting your data in anticipation of migration to the new system is also very important.

However, most companies making their initial foray into the world of CRM systems, simply don’t know what goals to set, or what their expectations should be. The SalesBabu implementation team has completed hundreds of CRM implementations and can help first-time CRM users understand what to expect and what goals to target.

Lack of Quality Training

In recent years CRM software functionality has exploded, and now requires at least a certain level of proper training. At the user level, whether they wish to master the CRM, or simply maintain proficiency at their individual tasks, it is crucial that users consistently dedicate time to improving their skill set in using the CRM system. The few hours a day or week set aside for your team’s uninterrupted training will be more productive than made up for with increased knowledge and efficiency.

We understand the important role training plays in CRM success, and we are dedicated to providing exceptional training resources. Our ever-evolving knowledge base, comprehensive video library, live training sessions, and readily accessible support staff comprise an invaluable resource pool for getting your team up quickly and providing for their continued training.

A correct partnership with the right CRM vendor may support you to navigate the pitfalls that undermine a CRM initiative. The partnership is dedicated to helping you achieve lasting success. They provide you with the resources and assistance to get you up & running and keep your team engaged. Launching a CRM system is a huge step in an organization and a trustworthy vendor will be there to guide you every step of the way.