Why my CRM is not generating results?
Why my CRM is not generating results? – CRM Hurdles
Over the decades, the researchers have found that between 20% to 60% of CRM implementations fail drastically which is an extremely disturbing figure. Some of them may not be complete failure but they fall short of generating expected results.
A Survey in 2001 by Gartner Group displayed 50% of failures and in 2009 survey by Forrester showed a reduced number of 47 percent of failure rate.
Not to ask anyone why you are here. The simple and straight reason is that CRM is a kind of investment which is not only expensive but it also help in reaping great results, enables you to grow multi folds, helping in finding the weak spots, opportunities. This business era has identified the importance of retaining customers. The objectives may differ from company to company, some may looking forward to do resale, some may keep the customers to generate references, however some may just keep details to encourage better post sales services. Its quite an old generation idea to do hefty of marketing and then sit back and watch customers coming and going. That’s where CRM has found its place as best tool to change the laid back attitude of businesses towards valuable customers.
So have you identified what is your area of focus or expectations from your CRM? Not yet? Okay, lets first see what exactly CRM is and what it can do.
May be you are looking forward to replace your existing CRM or purchasing your first ever CRM. A clear mind is better when making big purchases. This is the reason I have made this handy E-book to make sure you know why exactly a CRM is failing.
Now of course, here is the part where you are lacking behind. You have resources, you have CRM tools, you have done the heavy investment. Unfortunately, your results are not aligned with the expectations. Its quite dramatic that despite investment and tech support from crm provider, you are still not able to achieve. Do you blame your CRM for this? Here in this E-book we will discuss some of those hidden points that otherwise you won’t find anywhere else. I have simplified each and every part with lesser technicalities and ease of language so that you get most out of this article.
Considering that you may be a top level executive or a business owner, I would jump straight over the well researched points on why CRMs fail.
While there are other papers which claim various reasons like lack of commitment or focus, I would say these are merely terms as top level involvement always ensures that commitment and focus is not just the thing when it comes to CRM.
Why my CRM is not performing despite heavy investments?
- CRM selection
CRM selection is not a difficult process. The difficult thing is to pen down what exactly our organization want to achieve and what customer is looking for. Most of the people would log in to google, read some articles here and there and fall for the most magnetic predators waiting with their bait on google. Noooo.. This is a big no.
What do you look for when you go and buy a pair of clothes. Color, Size, appeal, fit, budget? That’s how you purchase anything. Right? What are the things you look for when you decide to buy a CRM:
- COMPANY GOALS & OBJECTIVE
- END USER REQUIREMENTS
- TOTAL COST EVALUATION
- EMPLOYEE FRIENDLY
- MOBILE FRIENDLY
- DWELL WITH COMPANY PROCESS AND PROCEDURES
Further to the above points, never forget to evaluate a big purchase of 5Ws –
- What – Understand the complex CRM structure before saying yes
- Why – Do you really need it? Point out reasons.
- When – Is it the right time?
- Where – Check for seller genuinity , take live reference not online references.
- Which – which one to buy? Consider all above four Ws to decide on the last one.
No need to mention. You are reading this only after reading a lot of other articles. Implementation is the core step towards the success of a CRM. The picture below demonstrates implementation well. Most of the customers have faced anyone of these at any given point of time.
- Appoint a System Administrator
- Time Management
- Define a Plan
- Set Standards
- Get “In Control”
- Evaluate & Refine
- CRM as Micro Management Tool
While researching for the reasons, I came across this comment by a anonymous gentleman “My prior employer was a company that implemented CRM software and then couldn’t understand why they failed to recognize benefits. As obvious as it was, they couldn’t understand why customers trump products, why promoting products around perceived needs often didn’t work or why the sales team only viewed the CRM system as a micro-management tool – and consequently failed to properly use it or use it at all. I also didn’t recognize it until after the fact, but we were one of those companies that tried to use technology without accompanying strategy.”
If I share my own experience, my previous company used the CRM to track sales person’s activities, meetings, timings they stayed out of office and to estimate the value of sales each month. After every meeting the only thing that ever mattered was the figures that sales person entered as an estimate of next month sale to achieve targets which is most of the time an exaggerated figure. Focus on customer requirements was completely missing.
CRM. They fail to understand that customer is the focus point of business. They fail to survey their customers and have no idea what the lifetime value is for any of their customers. Until you create the strategy that orients your business around your customers, CRM software has little value.
- Fixing Existing Processes
|A problem we incurred when trying to implement our salesforce.com CRM system was not recognizing and fixing our inefficient and broken business processes before we deployed the new system. Only after we realized we were implementing far less than ideal business processes in the new CRM software did we stop the effort. This caused us to terminate a 3 month implementation, go back and revise processes and then start again. We eventually got it right, but that lesson learned cost us an extra 6 months.|
This real life problem get visible by taking a look at existing processes we take up. Before you look out for a CRM, you must do a background check of other processes and align them in a way that it supports a new system to get in and function properly. We all know the famous quote “Get back to the basics”. Look out for the existing problems with an open heart and mind, accept the mistakes and loop holes and fix them right away by following new and unorthodox ways.
- CRM Team
Purchasing a software is not a big thing. It gives an impression of right long term investment. Yes of course a CRM is really long term investment until and unless you have the right people to handle it.Those resources who are sitting right behind the hustle bustle of direct customer interaction and watching each and every step taken by your potential customers and helping you making conversions. Those who generate n numbers of reports whenever and wherever required. While you purchased an expensive CRM, on the other hand you were trying to save on manpower expenses. Selection of a software and selection of right manpower goes hands on hands. If you take right amount of time in selection of Total Quality People (TQP), it will help you to curate right information required to crack a deal, believe me you’ll have always right data on your table to act upon. Bang on!!!
But wait!!! While I was talking about right manpower selection, were you thinking about your decision of selecting the right candidate or not? I may be clear on saying right or wrong selection but we need to put our pressure on one more thing before you go and act weird to your CRM employees. May be your candidate selection was right but what if:
- They are underutilized?
- They are talking, but you are not listening?
- They have fake data entered by your sales team?
- They have right data but not right utilization?
- They don’t have right guidelines to act upon?
- They are burdened with other tasks?
I might sound little employee friendly here, but what if they loose their job without being properly utilized? I would leave these answers on you to work and resolve. This would be the best thing you’ll do today to enhance CRM usage.
I will soon come up with the list of CRMs which are not just market leaders but fit the pocket in true sense. The ones with the best tech support for life.