Managing CRM Projects
Written by: Ron Enns, PMP
Top Five Reasons why CRM Projects Fail
Depending on what you read you will see a variety of comments regarding the failure or success of new CRM projects (Customer Relationship Management). Comments such as “over 50% of CRM projects fail”, and on the other hand you will also see published results that show, improved productivity, increased customer satisfaction and single or double-digit percentage growth in revenue. What are the reasons behind companies having such different results from the same type of projects?
In this context, let’s look at CRM as the following.
I. An approach that combines business processes, technology, employees, and information across the organization to attract and retain customers, profitable customers.
II. CRM project are struck to achieve and realize the plans and objectives defined in a CRM strategic plan. The following is a brief look at why many CRM projects fail and others achieve great success.
Based on my research here the top-five reasons CRM projects fail, and an approach for the Project Manager in mitigating these risks.
1. CRM project is launched without customer input
It is easy to assume how the customer wants to be served, and in the rush to implement a CRM solution the customers are often forgotten. Talk with your sponsor, have they done the analysis? As business enabler’s/transformers it is a Project Manager responsibility to lead the stakeholder in understanding customer impacts. Some questions that need to be asked are; how does the customer wants to interact and be served by the company. How can the project/initiative serve those needs better? How can you work together for an initiative that is a win for both? What is the competition doing for the customer that they like?
2. The project is based on someone else’s success
Most CRM tool offerings typically started around a particular process and product offering that was effective. The offering has since been expanded with broader functions though further development or acquisitions. Not all companies serve customers in the same way, or have the same business process and priorities as your company and project. Given the number of CRM tool offerings in the market the Project Manager must have a strategy in leading the business in a close evaluation of the tools against business requirements. This ensures the best product for the highest priority needs.
3. CRM project is launched without a strategy
The statement “We’re going to launch CRM this year” is not a strategy. Unfortunately this happens more often than we like to admit. A CRM strategy not only defines how the company will be viewed by and managed at all touch points with the customer. It should also define how the project and Project Manager will achieve this result, and this information should be included in the project charter. A common, clear understanding of the strategy is needed by the stakeholders, Project Manager and project team members.
4. CRM is considered a one time implementation
Simply stated, once the project is launched the stakeholder is just getting started. Multiple iterations will be required to develop the organization. Project Managers need to assist stakeholders in business transformation efforts, developing change management plans that assist in achieving these goals. Employee’s will resist the changes; expect bumps in the road and consider it as an evolution of the company.
5. CRM is launched without clearly defined objectives and metrics
If objectives and metrics are not clearly defined the organization can not refine its strategy, set new goals, or develop effective plans to achieve these new goals. Consequently, the project will recognize no measurable benefit, even if you achieve it. Set expectations. Measure the project performance. Project Managers need to be involved in helping the business refine the strategy, and provide feedback.