Why CRM fails and how to fix it

◦ GROUP 6
CRM – Brief History
◦ CRM = Customer Relationship Management Tool
◦ Between 2000 and 2005, organizations spent $220 billion implementing CRM solutions, for creating a market
worth almost $50 billion per annum
◦ Types of CRM systems available in market:
◦ 1) Operational : help incorporate the various sets of information available on each customer into one useful
file. It also provides a support center to the sales, marketing and customer service departments.
◦ 2) Sales Force Automation : This CRM system will keep a record of every stage of the sales process,
helping employees automate activities like making reports, scheduling calls and mailings.
◦ 3) Analytical : Uses techniques like data mining, to come up with patterns and trends for marketing purpose.
◦ 4) Campaign Management : This is a combination of Analytical and Operational systems as it can store,
analyze and track the various campaigns the company has.
◦ 5) Sales Intelligence : This is similar to an Analytical system, but is used as a sales tool for employees who
can look at trends and sales performance.
CRM modules and different CRM tools
available
Modules Tools Available
1) Zoho CRM

2) MS Dynamics CRM

3) Salesforce

4) FreshDesk
Why CRM failed in many cases
◦ Companies continued running their business as they always had and assumed customer would value results
of their investment.
◦ The marketing and sales functions typically sponsor investment in new CRM technology and write the
business case. This case then becomes a technology project whose focus is selecting and deploying new
technology.
◦ Limits marketers in learning new technology, rather than helping marketers carry out new and different
activities to understand customers and changes in their attitudes and behaviors.
◦ The human resources function focuses on skills development of individual marketers, rather than addressing
how the organization develops new marketing capabilities.
Key insights for managers responsible for
their companies’ CRM investment decisions
◦ 1) Capabilities are the precursor of CRM investment and
not vice versa
◦ Generating marketing capabilities are very important, to generate return from investment in CRM.
◦ Capability development means that once the company does acquire significant new CRM resources, it will
have in place a team of skilled and knowledgeable people ready to make the best use of them.
◦ Deferring the very large investments in big CRM solutions until the business case is clearly understood and
the CRM team’s marketing capabilities are evolved.
Key insights for managers responsible for
their companies’ CRM investment decisions
(contd…)
◦ 2) The rate at which capabilities develop varies between
companies
◦ The rate of organizational learning, rather than the size of the company’s CRM budget, determines how
rapidly companies can change the way they relate to a consumer
◦ Managers should be realistic about both the level of return and the time it will take to develop new
capabilities. It is our experience that CRM programs are all too often designed to meet a short-term horizon
of a business case, removing time from those in charge of implementing CRM to engage in cycles of
learning and reflection
Key insights for managers responsible for
their companies’ CRM investment decisions
(contd…)
◦ 3) CRM cannot always be driven top-down
◦ Every customer has different requirements
◦ The understanding of CRM capabilities and the ability to develop them are emergent rather than immediately
obvious
◦ Using agile methodology in projects will allow a team to capture the changing customer needs and get
feedback at an early stage in the project development.
◦ These teams can then come back to top management when they need further investment to support further
learning and development of their CRM programs.
◦ An organizational culture that tolerates experimentation will be more successful at building new CRM
capabilities.
Key insights for managers responsible for
their companies’ CRM investment decisions
(contd…)
◦ 4) Hard work and commitment are what it takes to develop
marketing capabilities
◦ Marketing capabilities linked to CRM are far from being a black box and can be developed through
conscious, goal-directed learning
◦ Flutter did not merely know about consumer behavior — they knew their consumers. BMW (UK)
traditionally relied upon survey data to know about consumers, rather than knowing their consumers.
◦ It realized that in order to develop its one-to-one marketing capabilities, it would first need to take consumer
relationships and their interaction in-house in order to start “talking” to individual consumers and to learn
from the experience.
Who can benefit from CRM?
◦ 1) Small businesses looking to grow.
◦ CRM can take the burden of IT management off your employees by automating your business processes so
you can focus on what's important: leading your business to succeed.
◦ Cloud based CRM solutions can help them centralize their data and offer insight on the strategies.

◦ 2) Industry leaders wanting large-scale solutions

◦ Sales leads can now be tracked more efficiently.
◦ Use artificial intelligence (AI) to guide your business decisions and drive innovation
Examples where CRM failed/passed
◦ CRM Implementation Success

◦ CRM implementation failure

◦ 1) overstock.com
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