Why CRM fail ?
Most CRM implementations have failed
Many businesses of all sizes have implemented CRM (Customer
Relationship Management) systems for different reasons and purposes,
in most cases for improving the Lead Generation, Sales process and thus improving
Different studies have found that a large number, maybe even the majority of the CRM implementations have failed or have not been really successful, as they are hardly used.
The reasons mentioned:
- The solution is not accessible from everywhere, but solely from within the company.
- Too much data to enter for every lead or customer record.
- Working with the CRM becomes labor and time consuming instead of efficiency improvement for sales people.
- Impractical and apparently useless information for sales people, which is mainly for management purposes.
- The CRM becomes an administration tool, instead of a sales tool.
- Sales people become clerks of the CRM, instead of sales people.
- Sales processes of the CRM are not being used.
- The Sales team sees the technology as a threat, not as help or a benefit
- The CRM has become nothing more than a large expensive address book, which they already had using Microsoft Exchange (Outlook).
- The goal is to control the sales people, instead of helping them.
- Garbage data in, is garbage data out. No value in the data input, no value in the reports.
- The benefit of using a CRM should be for the salesman and the sales team first, management and management information is secondary.
- Flexibility or processes not adapted to the business.
Remedy: user centric CRM
In order to succeed, the benefits need to be obvious for the people (Sales and Sales reps), who are required to use the CRM application. They need to have their benefits too. This makes it user centric.
- These can be tangible benefits:
Getting leads from the website, prospecting with less efforts, automated information retrieval and capturing: thus less input, ...
- Or intangible benefits:
Convenient in use, low learning curve leading to high adoption rate, ...
- Hosted web based solution, accessible from any web browser from any web-enabled device.
- KISS methodology – Keep it simple silly/stupid:
- No overwhelming amounts of data to enter
- Company data – Contacts data – Event/action data and website data
- Practical ergonomic layout
- Practical and useful functionalities and features
- Versatile enough to address a wide range of businesses
- Data mining for information::
- Instead of gathering data from the salesman and his team, the CRM needs to provide data to them:
- Data on Company
- Data for finding contacts
- Data from the website
- Data available from the Internet
- Automatic and constant inflow of information for the salesman and team:
- The more Company, visitor and contact data is automatically captured and presented in the CRM, the more interesting the CRM becomes to be used.:
- The CRM should become a source of information, not a filing of information by clerks.
- Dynamic analysis and reporting
- Data and information presented understandable and comprehensive.
- Data aggregation on both Enterprise level as visitor or contact level
- Limiting CRM market focus of LEADSExplorer:
- Only B2B businesses
- B2C website visitors come on a website to make a purchase. Only one decision maker.
- B2B website visitors, come for gathering information.
- Multiple people involved in decision making, thus all these people need to be addressed
- Only B2B businesses having a website:
- The main driver of the solution is the website
- All businesses have a website and all potential
customers will visit the website.
- Salesman and sales team centric solution, as described here.
- Computer Assisted Selling instead of CRM
The selling and building the relations is the job of the Salesman, not to be replaced by Information Technology.
Is the CRM being used of customer relationships or as Control Reps Manager?
All CRM implementations start out with the goal of improving the business: more leads, more closing sales, improving nurturing customers and customer retention.
However once in operation the CRM is being used as a controlling system for sales reps and sales people.
Instead of a benefit to sales it becomes a company management system for controlling the sales people. More
The next generation of CRM systems will have to deliver information instead of being a data entry system.
Currently your CRM demands to enter all information in order to retrieve it afterwards.
In the future a CRM should collect and aggregate all digital information automatically in order to become a data source for sales. More