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Pitfalls in CRM Selection

CRM packages have been promising more satisfied customers, more sales and more profit for years. However, practice is much more unruly than this theory. Companies are struggling with the introduction of a customer relationship management package and many projects therefore fail, mostly due to a wrong approach to the selection process. How do you prevent mistakes that others have already made for you? Which pitfalls do you need to manage to avoid? You can read these in the books and publications published by the independent IT information center.

Some pitfalls highlighted

- Following the example of industry peers and competitors, many organizations say "we want customer relationship management!". It's often unclear why people want to get started with this (reason), what they want to achieve with it (objectives) and whether it actually generates money (business case). Competition, market and problem analyzes aren't carried out and CRM is started as a 'me too' project. After all, the competitor also uses CRM and the 'customer first' naturally always sounds good. If a good starting position for the project is missing, the chance of failure is high.

- When organizations start with customer relationship management, people usually start immediately with selecting a software package. One after the other software supplier comes to praise its products and sales pitch is swallowed. What the company will do with the software package isn't yet clear, but that's not a problem. They later examine for which purposes, customers, business processes and departments the relationship management package will be used. Unfortunately, after a while it appears that departments and employees can't and / or can't use the CRM system.

- CRM is nice, but it shouldn't last too long. Time-to-market is the magic word and the payback time must be short. Managements are in a hurry because they have to score. However, rushing is rarely good.

- CRM is mainly seen as something for the marketing or IT department. From an ivory tower, such a department devises what is good for the organization. Other departments and important parties such as customers, suppliers and sales and distribution partners don't appear in the document. An integral and multidisciplinary approach is missing.

- Many companies do customer relationship management 'just for a moment'. The introduction of CRM doesn't get that priority from the management it deserves. CRM temporarily requires more capacity, knowledge and money, and that companies can't or can't free up. Dare and want to change are far to look for in the organization. The management says that they consider customer relationship management and customer focus important but doesn't act accordingly. Commitment from the top is missing. Departments, people and organizations don't work well together. The will to make something of it together is missing. The software project is dying a slow death. Sin of all that effort, on to the next job!

- If your own operational processes aren't yet in order, wait a little longer before communicating more intensively with customers. The disorder only gets bigger and customers even more dissatisfied. It's not without reason that the paradox is 'the more investments are made in CRM, the more dissatisfied customers are'. Think before you start with CRM and only start when the most important 'customer processes' run smoothly and are under control!

- You may be hiring capacity and knowledge for the selection of your CRM package. Don't automatically opt for the large consultancy firms. These are often not independent, certainly not if they also act as a representative and implementation partner for large software packages. Make sure you don't get a too large and too expensive CRM package and that an army of consultants makes the costs unnecessarily high.

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