Small Business CRM Failures

What are the top reasons that contribute to the high rate of CRM failures in traditional CRM implementations?

  1. Lengthy CRM software deployments:
    Hard to customize and integrate traditional CRM software solutions require CRM consultants and system engineers and adequate IT staff to build a company-specific CRM solution. Some traditional CRM implementations have taken years to deploy and many more to even realize a return on investment (ROI) on.
  2. High TCO Total Cost of Ownership and acquisition costs.
    Traditional CRM software solutions require:
  3. Expensive License fees, including costs per user and per each model added.
  4. Server & Network hardware components and constant upgrade and maintenance.
  5. Expensive CRM consultants.
  6. IT programmers to customize the CRM software application to a small business specific workflow and processes.
  7. Continual upkeep of hardware, network, software systems, data and backups.
  8. Continual CRM software upgrades license fees year after year. Hard-to-use traditional CRM software applications require constant training to ensure maximum benefits are gained.
  9. Passive employee resistance and low user adoption rates. Employees just don’t buy it! Resisting change is human nature, and is perfectly normal. What’s not normal is to let the resistance and the low adoption rate cause a company’s CRM strategy to fail. An intuitive and friendly user interface, an employee-centric and customer-centric CRM solution will make your employees addicted to using the CRM software system. This will lead to a quick ROI on your CRM project and ensure CRM success, not CRM failure.
  10. CRM: Is it a software solution or a business strategy? Small businesses who perceive CRM Customer Relationship Management as a software solution rather than an actual planned business strategy are more likely to fail at implementing CRM.

    CRM requires people to drive change and software to automate processes. CRM is a strategy, CRM software solutions are part of a small business strategy to enhance customer experience, customer loyalty and customer retention, increase employee productivity, and streamline business processes, increase sales and profits.

1 thought on “Small Business CRM Failures”

  1. Just stumbled across this – great list. Low adoption in particular can derail an expensive implementation effort. Proper education and setting expectations up front with key users can go a long way toward better user adoption.

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