More than half of all CRM implementations fail. Find out why here. Jit Goel, XCEL Corp Jit Goel

Why Do More Than Half of CRM Software Fail?


Customer relationship management is a very important aspect to all companies. From small businesses to large multinational corporations, clients make their businesses work. Tending to your clients’ needs and focusing on providing better services is what makes companies to improve and grow their businesses. Usually companies hire client relationship managers to handle all interactions with the clients, but people are bound to make mistakes.

These mistakes could cost you a client leading to business downfall.

Over the past decade, Client Relationship Management (CRM) software has gained in popularity. They are thought to be more reliable and efficient at managing client requests and in providing on-time delivery of products and services. But the question is how successful are CRM software? While you may want to believe it is very successful because software marketing wants you to think so. On the contrary, about 30% to 70% of CRM software fail to deliver on the expected results.

CRM software is expensive and it should support the expected role. But there are many reasons why it fails in organizations. The failure mostly happens during the development and implementation period but there are several other influencing factors as well.

Here are 5 reasons why CRM software fails

1. Lack of Goals:

CRM software can benefit your organization in numerous ways. It can help you to optimize your turn around times, get valuable business insights, know customer behavior and sentiments and much more. However, for this to succeed, the company planning to implement CRM software should establish the goals they are looking to achieve. Next is when it is built, you should ensure that every feature of your software is in line with your business objectives. Many companies expect their developers to create a CRM that fits all their needs without saying what they expect. When their final product is not in line with their business strategy and goals, the CRM fails.

2. Not involving end users:

Software is built for your staff to use but the decision to purchase and acquire a CRM lies with the leaders. The leaders are unfortunately not the ones who use the software and don’t know what the end users might require. So when the final product is out, the leader would approve; but the CRM itself would be of very little or no help to the end user causing it to fail eventually. It is important that the end user is involved during the development stages to clearly establish the requirements. As an added advantage, the end users also develop a sense of ownership towards the CRM while they are involved and would be looking forward to using it when it is out. This improves the success rate of the software immensely.

3. Not Just Technology:

When CRM software is implemented in companies, the end users tend to believe it is one of the digitalization efforts of the company. However CRM is not just implementing new technology but it changes the way every employee interacts with the customer. CRM software is effective only when it is fully absorbed by the organization. The technology is enabled when the users adapt to it. Ensuring this decides the success or failure of a CRM in a organization.

4. Support Failure:

Like all software, reliable support is required even for CRM software to succeed. This responsibility usually likes with the software developer you choose to work with. While in constant use, there will be new errors, bugs, and snags which will arise over time. With a good support team, you can handle all these obstacles with ease. When you do not have good support for your software, it will be bogged down by errors and eventually fail.

5. Clogged Data:

This happens when too much data is entered into the CRM where it is not able to provide clear, accurate, and verified insights about the business. This will handicap your ability to forecast your businesses and by that time, your CRM would have lost its purpose. You should always ensure only valuable, and accurate data is entered in your CRM. One way to do this to ensure your employees are interested in the analytics of the CRM. Then, they will understand the importance of entering the right data and not do it just as a chore.

There are many other reasons as well which lead to failure of a CRM. One of the best ways to avoid a CRM failure is to choose the right service provider. The right service provider will develop software that is concurrent with your business objects, provide quality support, easy to communicate, and listens to the requirements of the end user.

XCEL Corp has worked with numerous organizations to develop highly efficient and successful customer relationship management solutions. Just as we built our own, we build software for our customers with the same attention to detail. To get a successful and effective CRM, visit our website right now!

Author: Jit Goel ( President/CEO )

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