Why Do CRM Strategies Fail: These 3 Reasons Will Surprise You?

Posted on September 17, 2015 in CRM

The purpose behind an organization erecting strategies is to enhance and boost the achievement of set goals. Unfortunately, some of the best techniques no matter how promising have been known to fail. For example, customer relationship management is renowned as a great management tool that is effective for enhancing a company’s customer relationship through increasing income, brand loyalty, and client’s satisfaction. It is however shocking to discover that many of these strategies adopted to boost this management tool fails, why? The surprising fact of this erroneous circumstance leaves so many people baffled and very much interested in knowing why some CRM strategies fail.

1. Diversion from the primary interest:
Any organization that wishes to enjoy competitive edge and business sustainability will make their customer’s satisfaction a priority. Because some CRM focus primarily on technology and vendor, the interest of customers are ignored. The customers who are the center of marketing strategies aren’t given their due acknowledgement and for this reason strategies fail. The customers are the core of CRM operations and for this reason they should be given paramount interest. The fact stands that the actual return on investment is found in acquiring new customers and brand loyalty and not in client’s alienation. Therefore, to restore the workability of some CRM strategies, fulfilling customer’s interest must be a primary focus.

2. Overemphasis on technology and Vendor:
It is indeed shocking how companies become slaves to their own inventions. They are over dependent on technology and focus on getting the perfect CRM strategy available. Many organizations erroneously direct their focus on getting the best CRM technologies like the best call-center, On-Demand CRM, blackberry devices, etc. Although these machineries are very helpful, overdependence on them can get any organization off course. While it is a good management strategy to always seek for the best technology, it is however imprudent to become a slave to flamboyancy as it can lead to failure.

3. Hastiness in adapting CRM strategy:
Another surprising mistake that leads to CRM failure is the hastiness in which many organization presidents adapt their CRM policy. Once these companies’ presidents get hold of any CRM strategy, they go bonkers with it and make overzealous decisions like making all the company branches CRM-ready as quick as possible. CRM is a strategy, a tool that requires careful planning and implementation, rushing through the stages of CRM adaptation is a recipe for disaster.

Every strategy has a pitfall. While CRM is an excellent tool that could drive a company success to the roof, ignoring it’s weaknesses can also lead to failure. Therefore, to erect a CRM strategy that works, customer’s interest, and other factors already discussed must be integrated into the whole process.

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