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What makes for CRM system success or failure?

Written By Kautsar R.Aritona on 8/17/2014 | 3:04 AM

Payne and Frow argue that successful implementation of CRM programme depends upon four critical factors: 
            (1) CRM readiness assessment
            (2) CRM change management
            (3) CRM project management
            (4) employee engagement. 

A CRM readiness assessment is an overview audit which helps managers to assess the overall position in terms of readiness to progress with CRM implementations and to identify how well developed their organisation is relative to other companies. CRM change management involves strategic organisational change and cultural change. Senior level understanding, sponsorship, leadership and cross-functional integration are clearly critical in a complex CRM implementation. CRM project management requires forming cross-functional teams of specialists who manage the enterprise's CRM implementation programme. Successful CRM projects deliver against the CRM objectives derived from the corporate objectives and support the overall business strategy. Finally, employee engagement comprises support and commitment of the employees to CRM projects. Increasingly, firms recognise the significant value their employees contribute to the business, which extents well beyond the basic fulfilment of core duties. Companies cannot develop and operate appropriately customer-focussed CRM systems and processes without motivated and trained employees.

Various arguments have been put forward for the failure of CRM systems. Day suggests that main reason for CRM project failure is the lack of strategic planning prior to the implementation of CRM. Maselli found that the reasons for failure of many CRM initiatives ranged from technological implementation problems to a lack of organisational integration and customer orientation. Jain et al. state that most such failures are attributed to poor design, planning and measurement of CRM projects. They comment that capturing the wrong customer information, unclear goals, inappropriate selection and use of technology, inability to integrate people and processes and use of misleading metrics or improper measurement approaches are the major barriers in implementing and managing CRM projects. According to Kale, the seven deadly sins for unsatisfactory CRM outcome are: 
           (1) viewing the CRM initiative as a technology initiative; 
           (2) lack of customer-centric vision; 
           (3) insufficient appreciation of customer lifetime value; 
           (4) inadequate support from top management; 
           (5) underestimating the importance of change management; 
           (6) failing to re-engineer business processes; and 
           (7) underestimating the difficulties involved in data mining and data integration. 

He states that most executives are not even aware of these issues, even though they could spell disaster for their careers and for the company. Others argue CRM failures are heavily influenced by the firm's lack of ability to integrate CRM technologies into its functional processes.

Further more information about this articles, please you check on Journal of Database Marketing & Customer Strategy Management.
 
By Bryan Foss, Merlin Stone & Yuksel Ekinci
Repost by Acarre Community Media
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