{"id":49129,"date":"2009-08-04T05:33:09","date_gmt":"2009-08-04T02:33:09","guid":{"rendered":"https:\/\/www.altoros.com\/blog\/?p=49129"},"modified":"2021-09-23T06:27:03","modified_gmt":"2021-09-23T03:27:03","slug":"what-makes-customer-relationship-management-projects-fail","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/","title":{"rendered":"What Makes CRM Projects Fail"},"content":{"rendered":"<p><center><small>(Featured image credit: <a href=\"https:\/\/tdwi.org\/research\/2008\/10\/bpr-4q-customer-data-integration.aspx\" rel=\"noopener noreferrer\" target=\"_blank\">TDWI<\/a>)<\/small><\/center><\/p>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#Wrong_approaches_to_CRM\" >Wrong approaches to CRM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#How_to_scale_CRM_initiatives\" >How to scale CRM initiatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#Keeping_CRMs_data_quality_at_its_best\" >Keeping CRM&#8217;s data quality at its best<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#Related_slides\" >Related slides<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#Further_reading\" >Further reading<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Wrong_approaches_to_CRM\"><\/span>Wrong approaches to CRM<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Customer relationship management (CRM) has become extremely popular in the recent years. Today, many companies have accepted the importance of CRM systems and have made the decision to implement these initiatives enterprise-wide. However, a great deal of CRM strategies fails.<\/p>\n<p>These failures may be caused by different factors; however, here are the most typical reasons for CRM project failures:<\/p>\n<ul>\n<li style=\"margin-bottom:6px;\"><strong>Believing that CRM starts and ends with software.<\/strong> Instead, a CRM project means the right people executing the right business strategy, using the best possible tools at their disposal. (<a href=\"https:\/\/www.zdnet.com\/article\/three-big-reasons-crm-initiatives-fail\/\" rel=\"noopener noreferrer\" target=\"_blank\">This article<\/a> by Michael Krigsman at ZDnet is a good read on the topic.)<\/li>\n<li style=\"margin-bottom:6px;\"><strong>Undercommitting to a CRM initiative<\/strong>, which means failing to invest enough time and attention to develop a comprehensive vision for sales process reengineering, settling instead for a series of minor, tactical changes.<\/li>\n<li style=\"margin-bottom:6px;\"><strong>Considering CRM to be a part-time project.<\/strong> A part-time approach will not generate part-time results; it will generate no significant results at all. The reason is that CRM projects require full-time assignment of people for the duration of the project, active executive involvement, full-time commitment of personnel, accountability for results, and a process-driven budget.<\/li>\n<li style=\"margin-bottom:6px;\"><font color=\"#333333\"><strong>Having big expectations and small budgets.<\/strong><\/font> Trying to implement a CRM initiative as cheaper as possible is a mistake a company will regret very soon. A low-cost approach is extremely prone to failure. Starting a CRM initiative, one should never focus primarily on price, but only on the results.<\/li>\n<li style=\"margin-bottom:6px;\"><strong>Picking wrong technology partners<\/strong> is a mistake that occurs when a company chooses vendors based only on product features. However, a company must think about its specific needs related to sales process functionality.<\/li>\n<li><strong>Misleading the implementation<\/strong> or assuming that automating your sales process will be similar to automating manufacturing or finance. The degree of complexity in customer relations and human personality is significantly higher than the other two examples, since it is not that straightforward. Budgets and other resources should be provided for necessary improvements, customization, personalization, and ongoing system maintenance.<\/li>\n<\/ul>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/08\/enterprise-crm-suites-forrester-report-2007.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/08\/enterprise-crm-suites-forrester-report-2007-1024x692.png\" width=\"640\" class=\"aligncenter size-large wp-image-63517\" \/><\/a><small>The market of enterprise CRM suites in 2007 (<a href=\"https:\/\/www.forrester.com\/report\/Topic%20Overview%20Customer%20Relationship%20Management%202008\/RES45138#\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_scale_CRM_initiatives\"><\/span>How to scale CRM initiatives<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While the issues above are focused on the core goals of the CRM project, here are some factors to consider for amplifying the benefits of CRM adoption:<\/p>\n<ul>\n<li style=\"margin-bottom:6px;\"><strong>Foster user adoption.<\/strong> According to a Forrester survey <a href=\"http:\/\/viewer.media.bitpipe.com\/1033409397_523\/1291242505_651\/IBM_sCRM_SO032092_E-Book_111910.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">cited<\/a> by the TechTarget network, &#8220;<i>companies that achieved only 30% user adoption after three years saw only 5% ROI on their CRM projects.<\/i>&#8221; A lot of organizations don\u2019t think about the right user training. Companies looking to maximize the benefits from their CRM investments should focus on additional user training, demonstrating how to achieve the goals of the sales team and automate the daily routines.<\/li>\n<li style=\"margin-bottom:6px;\"><strong>Build real-time systems<\/strong>. Access to real-time information is highly important to sales people for the sake of relevance. Make sure you select applications and integration tools that provide live data or scheduled information updates, rather than rely on batch processing that requires a lot of manual effort.<\/li>\n<li style=\"margin-bottom:6px;\"><strong>Monitor system usage.<\/strong> Consider monitoring the use of the system, either by soliciting user feedback\u2014leveraging system monitoring tools included in many CRM applications\u2014or investing in monitoring software. In addition to improving security, this will also help to understand the most important functionality that leads to success, as well as discover bottlenecks.<\/li>\n<li style=\"margin-bottom:6px;\"><strong>Employ integration experts.<\/strong> If you are not sure your staff is skilled enough for CRM implementation or integration, you better choose professionals to do this for you. They may help to analyze what functionality is more advantageous for company\u2019s certain business needs. Thus, it will help to avoid acquiring bulky solutions, many parts of which will never be in use.<\/li>\n<li><b>Improve data quality.<\/b> Years ago, Gartner <a href=\"https:\/\/www.destinationcrm.com\/Articles\/Web-Exclusives\/Viewpoints\/Successful-CRM-Hinges-On-Data-Quality-41571.aspx\" rel=\"noopener noreferrer\" target=\"_blank\">found<\/a> that &#8220;<i>bad data is the number one reason that CRM projects fail<\/i>.&#8221; In addition, a <a href=\"https:\/\/tdwi.org\/research\/2008\/10\/bpr-4q-customer-data-integration.aspx\" rel=\"noopener noreferrer\" target=\"_blank\">TDWI survey<\/a> revealed that low quality of data (as well as incomplete data) is one of the major barriers to <a href=\"https:\/\/www.altoros.com\/blog\/customer-data-integration-not-that-scary\/\">customer data integration<\/a>, which also means a failed single view of your prospects\/leads. Don&#8217;t wait until the information degrades, make data cleansing and <a href=\"https:\/\/www.altoros.com\/blog\/the-role-of-data-stewards-in-data-integration\/\">data governance<\/a> an ongoing process (see below for more).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Keeping_CRMs_data_quality_at_its_best\"><\/span>Keeping CRM&#8217;s data quality at its best<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/neglecting-the-quality-of-data-leads-to-failed-crm-projects\/\">Data quality<\/a> is very often one of the most neglected areas of CRM implementation and is one of the major pains for sales people. So, trying to learn more about the problem, I came across some practices that could help maintain and enhance the value of the customer data.<\/p>\n<ul>\n<li style=\"margin-bottom:6px;\">Do not ignore &#8216;<a href=\"https:\/\/www.altoros.com\/blog\/solving-data-quality-problems-in-three-steps\/\">bad data<\/a>&#8216; until it starts affecting your work. Keep an eye on your customer information and monitor any changes in its quality. Implement a <a href=\"https:\/\/www.altoros.com\/blog\/data-management-longs-for-data-quality-solid-grounds\/\">master data management<\/a> strategy.<\/li>\n<li style=\"margin-bottom:6px;\">It\u2019s a good practice to manage, normalize, format, qualify, and filter out the leads outside your CRM and then have them uploaded\u2014so that what is not valuable does not get added.<\/li>\n<li style=\"margin-bottom:6px;\">Regular data updates are important, though they may involve a lot of manual effort and may seem time-consuming.<\/li>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/03\/sound-data-quality-for-crm.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/03\/sound-data-quality-for-crm.jpg\" width=\"640\" class=\"aligncenter size-full wp-image-63189\" \/><\/a><small>Common customer data issues (<a href=\"https:\/\/www.slideshare.net\/divyamalik\/sound-data-quality-for-crm-presentation\" rel=\"noopener noreferrer\" target=\"_blank\">image credit<\/a>)<\/small><\/center><\/p>\n<li style=\"margin-bottom:6px;\">Duplication is, possibly, one of the most common problems, generating redundancy as well as inaccurate reports. So, it has to be kept in check.<\/li>\n<li style=\"margin-bottom:6px;\">The same thing may be said about expired data that simply junks your CRM. The more regularly you look for expired data, the healthier your CRM is.<\/li>\n<li>And, finally, if <a href=\"https:\/\/www.altoros.com\/blog\/wrong-approach-to-data-quality-right-approach-to-data-quality\/\">data cleansing<\/a> is what helps you maintain your database quality, then data enrichment is what will help you enhance your data quality and make it more valuable to the end users.<\/li>\n<\/ul>\n<p>Thus, here we go with the conclusion: the right business strategy, commitment, ongoing information management, constant data cleansing and enrichment\u2014that\u2019s when your CRM could really become an asset and have a positive effect on ROI.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Related_slides\"><\/span>Related slides<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><center><iframe loading=\"lazy\" src=\"\/\/www.slideshare.net\/slideshow\/embed_code\/key\/xbOuUZzAVs9pB\" width=\"595\" height=\"485\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" style=\"border:0px solid #CCC; border-width:0px; margin-bottom:5px; max-width: 100%;\" allowfullscreen> <\/iframe><\/center><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_reading\"><\/span>Further reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/customer-data-integration-tips-and-tricks\/\">Key Strategies for Successful Customer Data Integration<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/customer-data-integration-not-that-scary\/\">Customer Data Integration\u2014Not THAT Scary!<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/neglecting-the-quality-of-data-leads-to-failed-crm-projects\/\">Neglecting the Quality of Data Leads to Failed CRM Projects<\/a><\/li>\n<\/ul>\n<hr\/>\n<p><center><small>The post is written by <a href=\"https:\/\/www.altoros.com\/blog\/author\/olga\/\">Olga Belokurskaya<\/a>; edited by <a href=\"https:\/\/www.altoros.com\/blog\/author\/alex\/\">Alex Khizhniak<\/a>.<\/small><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Featured image credit: TDWI)<\/p>\n<p>&nbsp;<\/p>\n<p>Wrong approaches to CRM<\/p>\n<p>Customer relationship management (CRM) has become extremely popular in the recent years. Today, many companies have accepted the importance of CRM systems and have made the decision to implement these initiatives enterprise-wide. However, a great deal of CRM strategies fails.<\/p>\n<p>These failures may be caused [&#8230;]<\/p>\n","protected":false},"author":81,"featured_media":63534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[960,895],"class_list":["post-49129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","tag-data-integration","tag-research-and-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Makes CRM Projects Fail | Altoros<\/title>\n<meta name=\"description\" content=\"Learn why customer relationship management does not meet its goals, as well as how to improve this.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Makes CRM Projects Fail | Altoros\" \/>\n<meta property=\"og:description\" content=\"(Featured image credit: TDWI) &nbsp; Wrong approaches to CRM Customer relationship management (CRM) has become extremely popular in the recent years. Today, many companies have accepted the importance of CRM systems and have made the decision to implement these initiatives enterprise-wide. However, a great deal of CRM strategies fails. These failures may be caused [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/\" \/>\n<meta property=\"og:site_name\" content=\"Altoros\" \/>\n<meta property=\"article:published_time\" content=\"2009-08-04T02:33:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-23T03:27:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/2008-tdwi-customer-data-integration-barriers-survey.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2684\" \/>\n\t<meta property=\"og:image:height\" content=\"1725\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Olga Belokurskaya\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Olga Belokurskaya\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/\",\"url\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/\",\"name\":\"What Makes CRM Projects Fail | Altoros\",\"isPartOf\":{\"@id\":\"https:\/\/www.altoros.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/2008-tdwi-customer-data-integration-barriers-survey.png\",\"datePublished\":\"2009-08-04T02:33:09+00:00\",\"dateModified\":\"2021-09-23T03:27:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.altoros.com\/blog\/#\/schema\/person\/b4c29d31973f82a70fcb5e68c5aa5b60\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#primaryimage\",\"url\":\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/2008-tdwi-customer-data-integration-barriers-survey.png\",\"contentUrl\":\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/2008-tdwi-customer-data-integration-barriers-survey.png\",\"width\":2684,\"height\":1725},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.altoros.com\/blog\/what-makes-customer-relationship-management-projects-fail\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.altoros.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Makes CRM Projects Fail\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.altoros.com\/blog\/#website\",\"url\":\"https:\/\/www.altoros.com\/blog\/\",\"name\":\"Altoros\",\"description\":\"Insight\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.altoros.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.altoros.com\/blog\/#\/schema\/person\/b4c29d31973f82a70fcb5e68c5aa5b60\",\"name\":\"Olga Belokurskaya\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.altoros.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2020\/04\/Olga-Belokurskaya-96x96.jpg\",\"contentUrl\":\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2020\/04\/Olga-Belokurskaya-96x96.jpg\",\"caption\":\"Olga Belokurskaya\"},\"description\":\"Olga Belokurskaya is a writer with a long history of working in the information technology and services industry. 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