In this blog I consider some of the main ways how to avoid CRM failure within any organisation.
There’s been a Failure against CRM in recent years with 25-30% of companies that implement CRM solutions feeling that they are getting the return they expected.
The findings of a poll of 100 SME organisations with CRM implementations revealed that even though 60% of sales directors said that CRM is fundamental to their sales processes a quarter of them have lost customers directly through ineffective use of the technology.
Which is why they’re not getting the returns they expected.
How to avoid CRM failure, why your CRM is not delivering what it should
Other possible reasons might be nothing to do with the technology itself, such as:
1. Failure to put the user first
Low adoption rates have plagued the CRM sector (with on average 42% of licences unused) but they can be improved with proper planning of processes, protocols, training and change communications to ensure staff understand the value properly.
2. Failure to follow up
Research by Sirius Decisions showed that only 20% of leads are followed up by sales teams, and that 70% of them are dumped at a later stage. This is often down to the leads being poorly qualified, with the contact lacking proper timescale or budget. It has been shown that in organisations where sales and marketing are more closely aligned — and leads are managed using a CRM system — up to 40% of the qualified sales pipeline has been generated through marketing activities.
3. Failure to retain customers
If you’re not exploiting the benefits of CRM then you are failing to increase customer retention. Research has shown that many B2B organisations see their CRM data management as an onerous chore. But in the best-performing ones, they make customer data quality a priority, and consequently out-perform other companies in customer retention, sales quota attainment and reducing the length of sales cycles.
If your CRM system hasn’t been aligned with your business objectives and users are not engaged with it, you won’t be delivering the best service. This means you may only be achieving a paltry 10% customer retention rate, compared to 91%, which the best-performing companies enjoy.
A CRM system should benefit the whole organisation as a whole. If we take sales example, The visibility that a CRM offers is fundamental to managing sales performance and control of the sales process. This visibility enables management to understand why, when, who and how opportunities are being won, stalled, or being lost. If it cannot be monitored, it cannot be managed.
The visibility offered within the CRM system also allows management to make educated business decisions based on hard data. A CRM system will enable structured data to be used to access performance. This assessment should indicate which sales person is out performing others.
How to avoid CRM failure – ProAptivity can help
ProAptivity are an independent CRM solutions provider. We focus on the implementation, training, and support of highly customised CRM software solutions. Our CRM software supported by our sales training provide customers with the tools needed to deliver successful sales process management.
Fundamentally, we help organisations embed CRM best practice throughout their organisation. This helps organisations become more competitive, customer focused and ultimately more profitable. To discuss more ways of how to avoid CRM failure, get in touch with us today.
If you need help in understanding why my business needs CRM, maybe some of our eBooks could help! Alternatively visit Maximizer CRM for more information. Contact us today in Belfast on 028 9099 6388 or at our Bedford office on 01234 214004. Alternatively email us on email@example.com. Contact us today for a free CRM consultation that will assess if your business is CRM ready.