5 reasons for CRM implementation failure

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While there are many benefits to implementing a decent CRM system, doing so is far from easy. Even with the proper setup and best intentions, companies do sometimes fail to implement CRM. Once this happens, the company does not only lose revenue but stands to lose on reputation. So, with this in mind, we are going to cover the most common reasons for CRM implementation failure and how to avoid them.

Most common reasons for CRM implementation failure

CRM systems can be surprisingly complicated, multiplayer tools that seep into every aspect of a company. Unfortunately, while they are powerful in their own right, it can be surprisingly hard to use them properly. More often than not people struggle with proper implementation simply because they don’t have the necessary understanding of what their CRM system is about and how to use it. So, know that doing your homework is the only tried and true solution for good implementation. With that out of the way, let’s explore the most common reasons.

Failing to keep employees up to speed

A person teaching a team about CRM use.
Unless you train your employees they simply won’t know how to utilize your CRM system.

CRM systems are costly. Therefore, it is not uncommon for company managers to spend weeks if not months looking for a decent one. If you do the job right, during that time you will familiarize yourself with the system in order to see what it can offer you. So, by the time that you buy it, you should be quite familiar with it. But, here’s the catch. Your employees aren’t. Just because the CRM system looks and feels intuitive to you doesn’t mean that the rest of your company will find it such. Unfortunately, a large number of company managers don’t pay much attention to this. They assume that their employees will pick up what they need as they go along. Especially if the people from the CRM company explained the program to them. But this is simply not the case.

To avoid this common pitfall, assume that your employees know nothing until you train them properly. You and you alone have the best understanding of what the CRM system can do and how to best use it. So, do your part and make sure that your staff is up to speed.

Not having clear goals

A CRM system, no matter how complicated, is a tool. Therefore, in order to use it properly, you need to clearly outline its purpose. One of the common reasons why people fail to implement a CRM system is that they don’t have a clear goal for it. Know that “Being able to have a better rapport with customers.” isn’t a goal. You need to clearly outline what your CRM needs to do, how you are going to use it, and what effects you are looking for. By outlining this you can track your progress and see if you need to make any alterations.

You shouldn’t expect to hit the jackpot right off the bat. Especially if this is your first time using a CRM system. Instead, accept that you will make mistakes and that your goal is to notice and mitigate them as soon as possible. The clearer your goals are, the easier it is to notice mistakes.

Choosing the wrong CRM

A person trying to find a good CRM system on their own, showing one of the reasons for CRM implementation failure.
In order to pick the right CRM system, you need to carefully consult with your employees.

Even a quick Google search will show you that there are numerous CRM systems for your to choose from. Some cater to small businesses with a limited customer base. Others are more suited for enterprises where there are worldwide customers. Pick the wrong one, and you’ll soon find yourself spending a lot of money on a tool that doesn’t do the job. Unfortunately, this is quite common as people don’t seem to be bothered with doing the necessary research. Every business purchase, especially one that is as expensive as a CRM system, should be backed with diligent research and careful consideration.

Failing to meet the sales team requirements

The main reason why you need to find the right CRM system is that your sales team has an easy time integrating it with your business model. When it comes to handling customer complaints, pretty much any CRM system will do the job. But, when you actually need to connect the sales practices with your CRM capabilities, the cracks start to show. To avoid this, you need to have a firm understanding of what your sales team needs and how the CRM system will help them. Ideally, the CRM will streamline the sales team’s efforts and reduce the necessary workload to achieve a sale. But, it often happens that the CRM system becomes more of a burden. In this instance, the sales team has to jump through hoops solely to satisfy the CRM requirements, which is detrimental, to say the least.

Overcomplicating customer management

A person holding a sigh with innovation written on it.
Trying to be innovative without any need is one of the main reasons for CRM implementation failure.

Unless you have experience with customer management it may seem that the more depth a CRM system has, the better it is. But, as it turns out, this is often not the case. What happens is that company managers, awed by the numerous capabilities of their CRM make customer management needlessly complicated. Remember, you don’t have to use your entire CRM. The whole point of it is to make everyday business easier. So, it is always smart to avoid pushing the new system where the CR team has no need for it.

Final thoughts

While there are different reasons for CRM implementation failure, they all boil down to a lack of understanding and communication. Company managers get the wrong system, and then try to push their employees to use it. And, while you can use a CRM system intended for sports goods as a tool for a moving company, it is always better to look for client relationship management software for movers. The goal is to align the CRM to the employee’s requirements. Not the other way around.

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