A Fresh Look at CRM Software Failure Rates

Rick Cook notes that failure rates for new CRM software implementations remain at about 50-70%, even though companies and leaders have grown more savvy about training and developing new generations of customer service professionals. He outlines three important reasons why CRM applications often fail to deliver results:

Failing to put the customer first. Deep down, in your heart of hearts, does your company really put your customer first? Are you implementing new CRM software so you can speed up the ordering process for your customer, or are you hoping to shave a few cents off the cost of maintaining your call center. It doesn't mean that you can't do both, but if your motives for a new CRM system are solely based on the cost benefit, you'll find yourself in the pleasant company of business owners who have tried and failed to install new CRM applications.

Failing to secure buy-in. Cook cites a Gartner Group report that illustrates how a lack of motivation among team members can result in a failed or an incomplete CRM software implementation. If your organization doesn't track the results of your new initiative, team members may not be motivated to comply. In fact, a few of them may use the cover of ignorance to openly attack your project. Selling new CRM software to your internal customers is equally as important as selling it to your company's clients.

Assuming that technology will solve all of your company's problems. CRM applications can do remarkable things, but they can't drive new leads to your door or automatically turn around lost sales. Understanding the role of CRM software in your overall sales strategy will prevent you from overspending or under-training in critical areas.

As customer relationship management professionals, it seems like we have to revisit these themes frequently. The statistics speak for themselves, however. Until we can drive overall success of CRM software implementation above 50%, we'll continue to have these kinds of conversations with our teams.