To some degree, all new technologies and methodologies disrupt the current way of operations. As CRM integration requires adoption throughout the organization vertical, it also has a relatively higher degree of deviation when compared to other technologies. For the same reason, sometimes it’s also vulnerable to a high risk of failure.
According to qualitative research, almost 70% of the CRM implementation fails without adding appreciable value to the organization. Without the right implementation strategy, the CRM can become an encumbrance than an asset. This could be a result of escalation of total costs, lack of alignment between different departments and high licensing costs. In short, you can’t be shortsighted during the time of CRM implementation as it may cost you both time and money.
In this article, we will be discussing the seven seldom discussed causes for CRM integration failures. I will also tell you the positive ways to mitigate those risks and provide healthy alternatives.
Not Customized to Business Requirements
The usage of cut-and-dried CRM solutions could lead to under-organized business processes. Usually these solutions can’t address or optimize internal organizational operations or manage operational resources. Having a customized solution also lets you scrutinize processes to increase its proficiency.
As this can’t address internal organizational operations or manage development resources, this could become a quickly scrutinized path towards under optimized process. When unable to derive clearly discernable results, the CRM could be on its way to be considered unhelpful.
This could be mitigated through understanding organizational requirements throughout the vertical and taking steps to implement them.
Information Distortion across team verticals
This could be considered the end-result of incomplete CRM integration across the organization. In this scenario, information gets distorted while passing through the retailer to distributor and finally to the manufacturer. In FMCG, this information distortion is known as the Bullwhip effect. It could be the end-result of either wrong implementation or incorrect manual entry.
As integrated information management is the chief objective of a CRM platform, this could lead to unfavorable assumptions, fairly quickly.
This issue could be overcome through implementing a carefully aligned information flow.
Rather Complicated Organizational Procedures
The increasing competition has presented mixed incentives for developers to actually simplify their Software API. You can string together multiple features that don’t have any practical utility to gain more visibility and traction in the short term.
A business can actually gain more mileage by combining the most necessary utilities in an easily accessible form.
Uneven Adaptation across Organization
It’s common business knowledge that all technology adoption is driven by user interest. This stands true for CRM integration too. Ideally, the CRM platform should be adaptable across the business platforms. This also guarantees the combined outputs, which are significantly better than individually derived outputs.
A customized CRM needs to integrate essential utility across your organizational structure. It helps you build equal consensus for the CRM solution across teams, thereby driving-up usage.
Unable to increase customer retention
Studies have shown that overwhelming majority of customers leave due to bad customer service.
A well-integrated CRM should be able to put a stoppage to this frequent cause of customer loss. Customer retention also happens to be an effective and easily monitored metric in customer evaluation.
A well-integrated CRM solution shouldn‘t be just limited to managing digital customer interactions.
By having an easy-access platform, you can manage all direct and face-to-face interaction to positively increase your customer retention.
High Investment on Platforms
As CRM implementation is an organization wide activity, the collective CRM licensing costs can turn out to be an apparently large scale investment. This demands a proportional increase in efficiency. Unfortunately, most businesses are unable to achieve this large scale investment.
Moreover, the global pricing of a CRM product may remain unaffordable in developing countries.
In this scenario, one needs to carefully choose an affordable alternative to existing solutions.
Not Scalable to current organizational Demands
The CRM could be forming the crux of multiple ongoing processes. Unfortunately, this also means that any issues or inadequacies will also be amplified and pronounced. Often, the CRM companies are unable to provide stable 3rd party servers. In these situations, the CRM solutions can suddenly become inaccessible under normal processes.