Is Management to Blame for CRM Failures?

Get Motivated By Value Not Price

The CRM software sector is in a bit of disarray. There was a time not so long ago when companies would select CRM software products based on the value and return on investment they felt they would realize from the solution they chose. Smart businesses were well prepared and engaged CRM solution providers with fully documented business requirements, a deployment preference (i.e. on premise or hosted online CRM) and were keen on fostering a business relationship where the vendor played an important role in the implementation, training and ensuring the proper utilization of the product.

But that was then. Today, at least in the small to mid-size business sector, it appears companies are just not as well prepared as they should be. As a result, many small to mid-size enterprises are selecting CRM software solutions based on price instead of value.

Perhaps this is the reason why more than 70% of CRM software implementations in the SME sector fail to get properly implemented and utilized.  This number makes sense if companies are selecting business solutions based on price rather than value.  This problem is easy to understand because the CRM software sector is viewed by many as a commodity sector where every solution is pretty much the same.

If you feel this way then price becomes the only differentiator and cost becomes the overwhelming factor.

Management Failing to Engage

As a sales representative selling CRM software, I often get amused at the calls I get each and every day from the SME community looking for CRM software. Here are some of the questions I get.

  • We are looking for a CMR system”. What does yours do?
  • How much does it cost for a complete system?
  • Do you charge any extra fees?
  • Is there a contract?

When you get these types of questions you know right away that the poor person asking has no idea what the company’s business objectives are or what a CRM system does.  They have simply been asked by their management to search the internet and find a few good CRM software solutions. To an inexperienced person, the best CRM system is a low cost one. So who’s to blame here?  Management is.

If the executive management team has not taken the time to document their specific business requirements and inform their staff of their objectives, how can they expect the staff to recommend or select the best CRM solution for the business?

What typically happens is that they end up with some low cost solution that they can use and pay for month to month. And if they are not happy with how it works of what it offers they can simply terminate their use.

But is this the proper path to addressing their business requirements and improving how they market, sell and provide service to their customers?  Of course not.  So what do you do if your company places you in this situation?  Perhaps I can help.  The attached link will provide you with an informative white paper called “Don’t Make a CRM Buying Mistake: 7 Points to Consider Before Selecting Your CRM System”.  Take a few minutes to review it. You’ll be glad you did.

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