BSP Solution: Plan for CRM Success

Many of us have read recent industry analyst reports stating that a high percentage of CRM implementations have failed to meet the customer's expectation. A natural conclusion of these reports is that the application software is at fault. This is often not the case. In fact, CRM failures are usually the result of poorly planned implementations, rather than a problem with the technology or the underlying concepts of CRM. In many cases, implementation factors that determine the success of a CRM project include (1) adopting a customer-focused company culture, (2) engaging frontline employees in the process, (3) being willing to change company processes, and (4) setting measurable goals. To achieve a successful CRM implementation, companies must do a good job in all of these areas.

Adopt a Customer-Focused Company Culture
This is the most important factor and the one most often responsible for project failures. Customers now realize that they have a choice and they are demanding more performance from their suppliers. A lot of companies treat CRM as just a way to increase efficiency, rather than truly re-orienting the company to satisfying customer needs. This leads to a mechanical approach to CRM, because it is viewed as only a way to lower cost and increase speed. A customer-focused culture includes making decisions that are in the best interest of the customer, even if they conflict with the short-term interests of the company.

Engage Frontline Employees in the Process
You can't force sales people and service agents to use CRM tools. Frontline employees must be educated about the business benefits of CRM and trained to use the tools properly. Before they will embrace the new technology, they must see how it will make life easier for them -- and the specific benefits they will derive directly. One way to accomplish this is to involve them early in the project to focus on the ways that the CRM system will make them more productive.

Be Willing to Change Company Processes
Companies must be willing to change their organizations to take full advantage of CRM. For example, organizations that give all pricing authority to management may not realize all the benefits of CRM technology, unless they let sales people negotiate pricing directly with customers -- and thereby close sales faster. Unwillingness to change organizational processes -- to allow users of the CRM system to achieve its benefits -- is likely to contribute to a failed implementation.

Set Measurable Goals
To monitor the success of a CRM project -- and its payback -- metrics must be established, against which performance will be measured. To establish metrics, most companies need to do customer research -- before and after the CRM project is implemented. This research helps companies establish the current level of performance in such areas as customer turnover, satisfaction levels, sales figures, and areas of weakness.

It's also good to keep in mind that even though specific CRM software is not a significant factor in determining a CRM project's success, it doesn't mean that all software is equally suited for all users. The CRM application and the solution provider should be selected very carefully. And lastly, CRM is not a good match with short-term financial strategies and a quick ROI. Most of the financial benefits of CRM come from building customer loyalty and encouraging them to increase the amount they spend with the company. These benefits usually take at least a year or two to be realized. Companies that won't wait for the long-term benefits of CRM, should probably avoid it altogether.