CRM magazine names six barriers to CRM success

August, 2003

CRM magazine’s cover story in its August issue cautions against six common CRM roadblocks to avoid. Here is a summary:

1. Lack of guidance. According to research-firm Gartner, Inc., more than 60 percent of companies that have implemented CRM failed to agree internally to goals for their projects prior to installation – akin to building a house without a blueprint. The CRM project leader must start crafting a valid business case for CRM before selecting a CRM vendor. Well before implementation begins, consider processes that can be automated to improve user productivity, boost customer satisfaction, and streamline marketing and sales functions. Create a phased implementation plan. Conduct smaller, manageable implementations that can be completed, say, every 30 days. Look for fast return on investment.
2. Integration woes. Even midmarket CRM applications will require some customization work. Remember that customization does not happen like flicking a switch, but through an evolutionary process working with your consultant or implementer.
3. No long-term strategy. Businesses still have a propensity for looking at CRM as a technology rather than a process change supported by technology. Failing to align process changes with corporate short- and long-term goals will lead to disillusionment and possibly failure.
4. Dirty data. Poor data quality has only been exacerbated by customer information today being entered at multiple customer touch points and the speed at which people can enter data thanks to the Internet. Since this data will fuel your CRM system, rely on your CRM implementer who has data-cleaning expertise. A good implementer will fix inaccuracies and inconsistencies in customer and prospect information and uncover multiple records for the same customer due to spelling errors, spelling variations, and other anomalies.
5. Lack of employee buy in. Communicate the benefits of the new CRM system to sales reps and other users before and during implementation. Sell the idea that it’s worth the change for not only the company, but especially its employees.
6. No accountability. Bake accountability into managers’ bonus options or other compensation packages. Give project ownership to one individual. Often a team of business and IT project managers are responsible for IT success. It may be better to have a single project manager, preferably a senior business executive, who owns both the business and IT piece. He or she will then be more interested in and effective at driving change throughout the organization.