During the economic bubble of the late 90’s, and early 2000’s, many companies invested hand-over-fist in Customer Relationship Management (CRM) technology. With the anticipated benefits that CRM brings, it is no wonder that many companies jumped on the bandwagon. Benefits realized by the effective implementation of a CRM system include:
- Increased revenue and profitability through repeat and new business
- Improved customer retention and employee satisfaction
- Increased operational efficiencies through simplified management routines
But first, what is CRM?
Customer Relationship Management has been defined as a business approach that integrates people, process and technology to maximize relationships with all customers, through the seamless coordination between all customer-facing functions.
Yet, according to estimates provided by leading analysts, over half of all CRM projects fail to meet their initial ROI targets. A recent study published by Nucleus Research, Inc. found that 61% of Siebel Systems’ reference customers reported negative ROIs from their CRM implementations after two years of use. Another report issued by The Gartner Group, Inc. estimated that well over 65% of all CRM projects fail. There are a handful of reasons at the root-cause of CRM failures. We will review each, and identify the strategy that you can use to avoid common these pitfalls.
I’ll cover the flowoing pitfals of CRMs over the next few days:
- Viewed as a technical, not a business, problem
- Driven from the top down
- Lack of senior management involvement
- Not targeting the areas of highest adoption
- Driven by the IT organization vs. business leaders
- Trying to do too much at once



