Most CRMs Fail to Meet Expectations
A study found that more than half of customer-relationship-management system installations in 2001 failed to meet expectations, as cited in an article by Peer Munck, managing director at DiamondCluster International Inc., which appears in Context Magazine. Many companies rush to spend tens of millions of dollars to install CRM systems, not stopping to think first about how to get the most out of the software.
Companies need to take the time to make sure that they know what problem a CRM “solution” will solve. No generic CRM application will tell just what to measure. According to Mr. Munck, at least six questions need answering:
- What do we want to know about current and prospective customers?
- What is this knowledge worth to us?
- Who needs to do what with this knowledge and when?
- What should our incentive structure look like?
- How do we know if we’re doing the right things?
- Do we have the appropriate technology infrastructure? If not, what will it take to get it?
Once answered, he adds, here are some steps that need to be taken:
- Reset your sights.
- Learn where the best information is held.
- Create the incentives to make sure changes become permanent.
Moderator Comment: Why do CRM programs not live up
to expectations?
Start with unrealistic expectations and work back from
there. [George Anderson – Moderator]