Why CRM implementations Fail and what to do about it Take 2
From everything I read and it was a lot, there are several common threats that occur over and over again: No Clear Strategy, Lack of Process Improvement, and Lack wholehearted of Executive Support. The real surprise for me was that over the past 15 years or so of studies, it steadily gets worse. Some companies had several failures in a row! One other factor that in a way sums it all up is the Business Disruption – Change bringing on a CRM causes. This matches my own observations of the scant attention given to Change Management in many CRM implementations. If you live in a Manual, Paper & Email driven world bringing switching to a 24/7/365, paperless, automated, transparent, Cloud base world is a huge culture shock. The speed of business has accelerated the Manual, Paper & Email driven world is just too slow, either you jump a head or your competitor will. This lack of vision often makes the CRM a very expensive rolodex rather that transforming the business through massive gains in efficiency. CRM should be Disruptive and Change the way you do business. One example is it requires that we define our selling process (example below)
It all started one fine day I was at a client that dealt the 7 of the 10 largest Wall St. Banks and I was asked to help a colleague create a New Salesforce Report. It was simple enough She want a report on all of the Cases that Tech Support of a particular product line, had closed last week. Being curious I asked Why? She replied so I can send them and email with a link to our customer satisfaction survey. I asked how are you doing it now ? She said Manually, it takes me about 2 hrs a week and I do it every week. I asked is there any reason for you to look at this report other than to click on their email address and hit send? She said No. I said Well today is your lucky day! We can create a Workflow that will automatically send personalized email template directly to every customer when a case for that product, once the Tech Support Person changes the Case to closed. This saved her 100 hours a year doing a mindless task, she was a smart highly educated professional that can now make more valuable contributions to the business. We saved about $3,000 in the first year.
In the above example the person could not ask for automation because they did not know Salesforce CRM could do that type of thing. A good consultant can find the pain points that a CRM can Solve. The Business has to be open to “Changing the way we do things around here” if not it becomes an expensive rolodex – a ROI failure. It takes time to Build a Vision to see what could be and define those benefits in hours saved, new sales generated and to track it.
A more detailed look at a compilation of the top 3 failure reasons ranked:
1. Lack Cross Functional Coordination 50% (50% Saw this as one of their top 3)
a. My take: It was dumped in ITs’ lap; Sales & Marketing see it as an IT thing
b. Solution: It’s a team effort with a high-level Steering Committee & Goals
c. See: Creating a High-Level Vision The FIRST of SIX Steps to CRM Implementation Success
2. No CRM Business Strategy 48% (50% Saw this as one of their top 3)
a. My take: Lets just do it, no clear goals, or how will it serve the business
b. Solution: Take the time to define How it will grow the business, Measurable Goals. Good Change Management – Team involment
c. See: Define Your Strategy https://wp.me/p1pDnL-zSk
d. Define Your Metrics The FOURTH Step to CRM Implementation Success Identify the Metrics
3. Lack of Process Change 45%
a. My Take: Team still clings to Manal Process, Email, & Paper
b. Solution: Map your existing process, define measurable goals to improve that process or better yet create a new process enhanced by CRM Automation.
c. See: Define Your Goals & Objectives https://wp.me/p1pDnL-zSq
d. Prioritize Your Initiatives Step FIVE of SIX – Prioritize Initiatives
4. Lack of Executive Support 40%
a. My Take: If the Top Monkey doesn’t use it neither will they.
b. Solution: All reporting is out of the CRM, at meetings crack open the CRM and have Outside Sales, Marketing, Inside Sales, Tech Support do their reporting Directly Out of the CRM
c. See: Salesforce Best Practices https: //help.salesforce.com/articleView?id=000325465&type=1 Salesforce Help Executive Support
5. Poor Business Representation on the Team 32%
a. My Take: It’s and IT thing so we send a low-level person
b. Solution: Either Go Big or Go Home, if you don’t insist on key managers being present it is a non-starter.
c. See: Define Your Strategy The FIRST of SIX Steps to CRM Implementation Success
The top 5 Items listed in Bold are from: Meta Group Leadership Strategies in CRM Jan 2000 and Data Warehousing Institute March 2001. The: My Take: Solutions and See: are my original work.
If this seems like a lot of work to even get started it is, the alternative is yet another CRM implementation failure. When there is a lack of firm clear commitment to doing the upfront work its best to well…… not start at all. On the off chance you all do want to start a CRM Implementation feel free to contact me.