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Why CRM Project Fails

Posted by Nitin Dhawan on June 13, 2009

CRM has received a lot of negative publicity over the years because of the failure rate of CRM implementation projects. A recent Butler Group report found that 70 percent of CRM implementations fail. A Gartner study found that approximately 55 percent of all CRM projects failed to meet software customers’ expectations. In a Bain & Company survey of 451 senior executives, CRM ranked in the bottom three categories among 25 popular tools evaluated for customer satisfaction.
  • CRM initiatives launched without a strategy.
  • The CRM strategy is not integral to the business strategy.
  • The CRM toolset is based on someone else’s success.
  • CRM is launched with no regard for enterprise or customer interfaces.
  • CRM is launched without customer input.
  • CRM is considered an IT project – not business initiatives leveraging technology.
  • CRM is launched without defined metrics and objectives.
  • CRM is considered a one-time event.
  • Assume you have a customer-centric culture because you have customers.
  • No top down leadership and employee buy-in for CRM.
  • Altering the CRM solution to accommodate current business process and behavior
  • CRM is regarded without urgency.
  • Try to implement “everything CRM” at one time.
  • Download Butler Group Latest Report Stresses the Importance of Enterprise Portals.
Butler Reports Download Butler Group Latest Report Stresses the Importance of Enterprise Portals
Gartner Reports 1.Gartner Says Worldwide CRM Software Market to Grow 14 Percent in 2008
2.Don’t rush into CRM projects, says Gartner
3.Gartner Customer Relationship Management Summit 2009
4.Eight Steps to Implementing a Successful CRM Project
5.Maximising the benefits from CRM
Bain Report  
Why CRM Projects Fail

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