User:Teck&TingTing
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[edit] What Factors Cause Customer Relationship Management Fail?
Although the Customer Relationship Management could enhance customer satisfaction and retention, implementing a CRM might involve much time and costs. A recent Gartner Group study found that 40 percent of companies surveyed had not made an investment in CRM-and that more than 50 percent of those that had saw the installations as failures. There have several reasons cause the CRM to fail:
Lack of Communication The common reason cause the CRM to fail is lack of a communication between everyone in the customer relationship chain. They frequently do not have communication of the objective and implementation procedures. It made the CRM technology in a vacuum because it did not get input from the people who will be using it everyday. "Without a consensus for the expectations of the project, and an agreement on the measures that will be used to measure progress, different departments can end up developing their own divergent set of objectives and metrics that clash with the metrics and objectives of other departments."
Underestimate the CRM Some of CRM initiatives fail because they are under-resourced, under-estimated and under-budgeted for their project. The best CRM effect is that it can make marketing, sales and service under efficient processes.
The Importance of Clear CRM Objectives There have many companies fail to establish a clear set of goals causes the CRM fails. Thus, even you have good data ware house, you still can’t achieve your goals. Many CRM original just try to encompass everything but they do not really pin down what they really want to get out for it. Every CRM initiatives must ask themselves how they can use the CRM information to build a competitive advantage before install the CRM.
Bad Data Effects Some companies have CRM implication, but they don’t use it properly. Because those companies don’t aware the poor quality of data, it drives their CRM failed. This information is based on a survey in July 2002. It asked 150 top companies’ executive managers, and they point out Customer Relationship Management has not achieved its full potential. In the survey, we also found that 19 percent of companies are using all their customer data to drive sales, while 45 percent said such data is being used to some extent. Thus, we can see the unawareness of data also drive CRM fail.
Make Sure the Right Speed of CRM To attract consumers, some retailers said that their CRM solutions can be installed and working in less than a week. It really attracts many customers who want to go through easy way. However, it may lead CRM fail. The main factor affects the CRM is the complexity of a project. Before we deicide which program we want to choose, we must check what CRM can meet our needs.
Initial Objectives’ Accomplishment This factor simply means that if the head manager of CRM be changed, the new manager may base on his or her value to change the original CRM objectives. It leads the unaccomplishment of the original objectives and simply stops them.
Conclusion This paper discusses what factors can cause CRM to fail. As showing above, those factors are the lack communication between customers and CRM, the underestimated of CRM, the poor quality data effect, the right speed of installing and working CRM solutions, the importance of clear objectives and the initial objectives’ accomplishment. After the detailed discuss, we can conclude, a good CRM implementation must overcome those factors. They are the keys to success.
