The important "theoretical" opportunities that CRM offers are known to all. In successful cases, results are found in the operational area such as sales increases of up to 43% per salesperson, increases in customer satisfaction of 22%, sales cycle reductions of 24%, etc.
However, some data on the success of CRM implantations is chilling. According to Meta Group, 55 to 75% of CRM projects do not achieve objectives. Gartner Group states that currently 65% of CRM projects fail and that percentage will grow to 80% in 2003. These problems are mainly based on not meeting expectations as well as a significant increase in initial budgets.
If the decalogue of the reasons for CRM failure is analyzed, it is found that they are similar to those of other areas related to e-business:
1. To think that technology is the solution. Technology only makes sense after having perfectly defined business objectives. A study by the CRM Forum indicates that only in 4% of the cases with problems, these have been due to the solution adopted, which shows that technology is not the critical element in CRM projects.
2. Lack of support from management due to lack of knowledge of the opportunities that the CRM offers
3. There is no "passion for the customer" in the culture of the organization
4. Unclear return on investment because it is not a mature sector and there is widespread ignorance about its ROI.
5. Lack of vision and strategy. It is a common problem not to have a clearly defined strategy and, therefore, measurable business objectives in the CRM area. Furthermore, the problem increases when there is no correct allocation of resources and a correct methodology for the development of the project.
6. Do not redefine processes. As in other types of technology projects, it is necessary to redefine business processes to achieve the desired results. It is necessary to redefine the way things are done in the organization to achieve results.
7. Poor quality of data and information. One of the pillars of CRM is customer knowledge (customer intelligence) and within this concept the quality of data and information is basic since it is from them that conclusions are drawn.
8. Problems with integration. An IDC study indicates that less than 10% of respondents have integrated their CRM with their ERP or their "data warehouse".
9. Not managing the change correctly. Like any major project, proper management of change and organizational culture is necessary.
10. Little implementation of analytical CRM: The analytical part of CRM is responsible for drawing conclusions about current and potential customers from large amounts of data. Without the analytical part, a global vision of the client is not achieved and therefore most of the advantages that CRM offers.
In addition, there would also be causes due to the "immaturity" of the market: poorly developed and validated solutions, lack of "vertical" solutions, lack of specialized consultants, etc.
To quantify the importance of each of the areas, a study carried out by the CRM Forum in which it defines the causes of CRM failures:
In this study of the CRM Forum, it is observed how purely organizational factors represent 41% of cases and other aspects that may seem more important, such as problems with software, only represent 4%.
To explain the current CRM situation, the "Gartner Hype Cycle", a cycle defined by Gartner, can be used to model the introduction and development of new technologies.
In this technology life cycle, after its appearance and initial growth, there is usually a peak of expectations above the actual results. After that moment, there is a "disappointment" that lowers expectations while tangible results grow, converging both in the medium term. This cycle is described in the following graph:
Introducing in this figure the CRM concepts and technologies appear:
From these graphs it is deduced that the CRM phenomenon is similar to that of the introduction of other technologies such as the Internet, ERP, etc.
In fact, the current situation and evolution of CRM is completely analogous to that of ERP a few years ago, the time when the use of ERP was widespread. In the early days of ERPs, failures often came from concepts similar to those that appear in CRM studies and practical experiences: lack of business vision, failure to reshape processes, lack of management support, unclear ROI, etc.
