DSC Tech Library
This section of our technical library presents information and documentation relating to CRM Solutions and Customer relationship management software and products. Providing customer service is vital to maintaining successful business relationships. Accurate and timely information provided in a professional manner is the key to any business and service operation.
Our CRM software application TELEMATION, was developed with this in mind. But the ability to change is just as important in this ever changing business environment.
Telemation call center software was designed from the very beginning for this environment.
Many call center managers, with unique and changing requirements, have chosen and continue to use our CRM software as their solution of choice.
Our contact center CRM solution is ideally suited for call center service bureaus.
The Top 10 Reasons CRM Projects Fail
by CGI, www.cgi.com
Depending on which survey you read, you will see comments and statistics such as “over
50% of CRM (Customer Relationship Management) projects fail.” On the other hand, you will
also see published results that show double-digit percentage growth in revenue, improved
productivity, and increased customer satisfaction from new CRM projects. What drives
companies to have such different results from the same initiatives?
Before we look at reasons, let’s define the scope of CRM. CRM has been one of the most
confusing terms established in eBusiness. In many cases, it has been defined, as what the
user of the term is promoting.
In the context of this article, we want to look at CRM as the following.
CRM is a strategic approach that combines the business processes, technology, employees,
and information across an enterprise to attract and retain profitable customers.
CRM projects are launched to realize the plans and achieve the objectives defined in the CRM
strategic plan. Let’s look at why many CRM projects fail and many others achieve great
success. Here is CGI’s top-ten list of reasons CRM projects fail.
1. CRM initiatives launched without a strategy.
Simply stating “We’re going to do CRM this year” is not a strategy. A CRM strategy needs to
clearly define how you will be viewed by and manage all touch points with your customers. It
should also define how you plan achieve this result.
2. The CRM strategy is not integral to the business strategy.
CRM cannot be viewed as a project or solution separate from your overall business plan.
How you develop and grow customer relationships is the lifeblood of your company.
Customers must be a core part of your overall business strategy.
3. The CRM toolset is based on someone else’s success.
There are many CRM tool offerings in the market place. Typically, these started around a
particular process and product offering that was very effective. This offering has since been
expanded to offer broader functions through acquisition or system development. Be sure to
evaluate tools against your business requirements to get the best product for your highest
priority needs. Not everyone serves customers the same way, has the same business
processes, or has the same priorities as your business.
4. CRM is launched with no regard for enterprise or customer interfaces.
Can you afford to invest in making one part of the customer experience excellent only to
destroy it at another step in the lifecycle? Make sure every touch point you have with the
customer provides consistent, knowledgeable, and high-quality service.
5. CRM is launched without customer input.
It is so easy to get caught up in the rush to implement CRM solutions that you forget those
people on the outside of your business. Talk with your customers. Find out how they want to
be serviced. How can you better meet their needs? How can you collaborate for a true
win/win initiative? What are other suppliers doing for them that they like?
6. CRM is considered an IT project – not business initiatives leveraging technology.
Customers interact with your company through people, processes, electronic media,
transactions and indirect relationships. They typically will not know what language your
tools are written in or what platform they run on. The capability, quality, function and
reliability of the systems are critical. But design them to support the best customer
processes you can provide. The greatest success will come from the coordinated efforts of
business users and technologists in the company.
7. CRM is launched without defined metrics and objectives.
An important part of any rollout of new processes is the expectation of improvement. If you
don’t expect performance to improve, don’t measure it, or manage it. Consequently, you
won’t see improvement. Even if you achieve it. Set expectations. Measure performance
improvement. Provide feedback. Reinforce successes. Look for ways to continue the
8. CRM is considered a one-time event.
Once your initiative is launched, you’re just getting started. Look at it as an evolutionary
development of your organization that will require multiple iterations to implement. You will
have some employees who resist the change. There will be bumps in the road. Solicit
feedback. Learn from the new data at your disposal. Refine your strategy. Set new goals.
Develop plans to achieve these new goals.
9. Assume you have a customer-centric culture because you have customers.
The global economy has broken down consumer barriers, reducing geographic constraints
and revealing little difference between the products and prices of one competitor to the next.
As a result, quality and service have become driving forces behind brand preference, loyalty
and bottom line results.
Be sure to look at your company as your customers do. Consider how they want to do
business with you. Develop your strategy, design processes, and make decisions looking
from the outside in. Measure, analyze and track customer service performance. Solicit input
and feedback from your customers. Benchmark with other organizations. Drive this
“customer first” culture throughout the organization. Reinforce it with every employee.
10. No top down leadership and employee buy-in for CRM.
Every employee will be affected by fundamental changes in CRM. Appoint an executive
sponsor. Communicate vertically and horizontally through the organization. Get employees
on board. Get them excited about doing a better job for your customers and making your
company more successful. Create momentum toward a competitive customer focus. Provide
training so employees know their role and the rationale for change.
OK here are three more at no additional charge.
11. Altering the CRM solution to accommodate current business process and behavior.
Benefits will accrue from the adoption of new processes that leverage the information,
speed, integration, lower operating costs and improved service resulting from new CRM
tools. Be sure to take advantage of these revenue, service and productivity enhancements.
12. CRM is regarded without urgency.
Your customer’s expectations are increasing. Maybe not from your direct competitors but from
other service providers. Will your competitors announce a quantum leap tomorrow? If they
do, what will it take to get customers back after you have lost them? How much is it worth to
pre-empt your competitors and lock in new customers?
13. Try to implement “everything CRM” at one time.
What about the sense of urgency you ask? It is difficult to change the entire organization
overnight and keep it running. Organizations have personalities and need to learn new and
adaptive behaviors. Go after your highest leverage, or highest priority areas first. Show
successes to bring the rest of the organization along. Move forward in manageable steps.
Support from the top of the organization is critical to success of any significant initiative.
Decide to succeed with your customers and then lead your company there.
Founded 1976, CGI has worked with clients in a wide range of industries to help them
leverage the strengths of information technology (IT) to optimize their business performance
and produce value-driven results. We also offer a comprehensive array of business process
outsourcing (BPO) services, enabling us to help manage and improve our clients’ day-to-day
business processes while freeing them up to focus more on strategic decision making. Our
consulting, systems integration and outsourcing services provide a total solution package
designed to meet our clients’ complete business and technology needs. We approach every
engagement with one objective in mind—to help our client win and grow. CGI provides
services to clients worldwide from offices in Canada, the United States, Europe, as well as
centers of excellence in India and Canada.