Why CRM Fails

After doing some quick research on CRM, I was surprised to see that roughly 50% of CRM systems fail to live up to their promises. Why is this? Some further research revealed some of the top reasons why CRM systems fail to produce the results expected of them. I have summarized a number of them below.

• Failure to clearly define goals and objective in measurable terms
• Failure to test new CRM software customizations in controlled environments
• Poor employee training and support
• Incomplete or improper data entry
• Not understanding that CRM technologies are only useful if they mesh with a businesses' preexisting processes
• Inability of current IT infrastructure to handle CRM technology 
• Failure to contract with an independent CRM consultant
• IT has complete control of CRM service 
• Failure to integrated existing data into CRM service
• Choosing a CRM service that does not fit the needs of the organization
• Expectations that the CRM service will be fully automated
• Failing to integrate all departments into the CRM service
• Failure to regularly evaluate CRM service
• Failure to take into account customer's experience interacting with CRM service
• Exclusively trying CRM success to ROI
• Focusing on short-term success vs. long-term sustainability
• Data overload resulting in inability to effectively analyze data and find new insights
• Upper management is not supportive of CRM system
• Over customization of CRM service

For more details on each check out these sources:

http://www.articlecity.com/articles/computers_and_internet/article_4846.shtml

http://www.realmarket.com/required/lghcons1.pdf

http://www.crmsolution.com/top10failure.html

http://www.salesforcetimes.com/why-do-crm-implementations-fail/

http://www.crmblogguy.com/crmfailure.htm

http://www.crmodyssey.com/Documentation/Documentation_PDF/Why_CRM_Implementations_Fail.pdf

http://multichannelmerchant.com/opsandfulfillment/orders/fulfillment_big_app/