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Avoiding CRM Pitfalls

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Posted September 7, 2001 By EnterpriseAppsToday.com Staff     Feedback

Two research firms recently suggested ways in which to avoid CRM disasters.

Two research firms recently suggested ways in which to avoid CRM disasters.

"Around 70 percent of CRM projects are not successful," noted Andy Kellett, senior research analyst for the Butler Group. "It's not all down to the vendors, however — companies have made serious errors in thinking they could just walk in, buy a package and let it improve matters ... it's not that simple."

Analysts at the Gartner Group concurred and suggested several ways by which common CRM pitfalls could be avoided.

"Most enterprises still undertake CRM with no idea of what they are hoping to build in the long term," observed one Gartner analyst. "Randomly mixing and matching CRM apps and changing plans from one month to the next is a sure recipe for disaster."

Gartner asserted that properly managed data is mission-critical to a CRM system and suggested that firms establish methods to cleanup existing data and integrate third-party information. "Most firms pay no attention to handling the data that will support their systems," they remarked. Gartner furthermore recommended that businesses deploy cross-departmental systems that span the enterprise and build cross-discipline teams that merge the needs of all aspects of the company into a unified CRM vision.

Lastly, they recommended that firms carefully analyse their customer service processes, reworking or replacing defective areas and carefully training and educating employees in the use and goals of their CRM tools.

"I find it difficult to see who would work without CRM tools in the future, but it is essential that the project is managed correctly and return on investment can be gauged accurately," remarked Kennet. "Companies shouldn't just buy solutions because their rivals do," he added. "They need to evaluate the benefits, weigh their strengths, and focus on which fields can benefit most — then they need to make sure the IT team knows how to manage the solution properly."

Reprinted from sa.internet.com

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