Avoiding CRM Project Pitfalls

Although customer relationship management software is well established as a vital component in a CRM strategy many businesses are still disappointed with the return they see. In many cases failure is caused by inadequate planning and poor implementation.

As independent CRM architects we have around 20 years experience of helping organisations achieve results from CRM. In a new guide we summarize the top 7 CRM mistakes to avoid beginning with: 

Tip #1 - Don't be too ambitious with CRM

Large CRM projects can struggle to get off the ground. All embracing projects that strive to meet 100% of everyone’s needs may take a long time to deploy and will limit the return on investment. CRM projects that aim to achieve a utopian result rarely leave the planning stage.

Often, it is better to start small by prioritising requirements.  Sometime this may be an initial pilot within 1-2 departments before a wider rollout.

Businesses that don’t currently have a CRM solution may find an entry level CRM solution like ACT! will prove more cost effective over 1-2 years rather than embarking on a costly deployment of a more advanced system.

Other requirements may dictate an immediate need for a more sophisticated solution like Sage CRM but even so there is usually more to gain by starting small.

Through careful prioritizing, savvy CRM project leaders focus on those teams where CRM can have the greatest impact – and where it will have the highest adoption. Often, the best candidates are service teams. Because their roles are process led they are constantly striving to improve operational efficiency and follow best practices. We consistently find that CRM is well received by service teams as they recognise the payback that can be achieved with CRM by way of slicker processes and increased customer satisfaction.

Even with a small scale initial phase, CRM projects can quickly gain traction as this payback extends to other teams through better data quality. As a result, marketing and sales staff can get a clearer insight into each customer relationship and see people as unique individuals to better understand their interests and send compelling communications that will resonate.

With a manageable initial phase, streamlined CRM projects can be more easily budgeted and get underway quickly to generate early results that give businesses a solid foundation on which to build on.

The sooner a CRM budget can be identified the better. Like most purchases, CRM results are heavily determined by the investment made so it’s important to make sure that expectations for CRM are consistent with the available budget. To use the analogy of holiday planning, it is pointless making arrangements for a luxury world cruise when your budget will only stretch to a coach trip. There are many world class CRM software solutions available but to avoid wasted time you must determine if their price tag and functionality are consistent with your budget and requirements.

Part 2: Securing buy-in from teams & managers