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Software

CRM has received a lot of negative publicity over the years because of the failure rate of CRM implementation projects. A recent Butler Group report found that 70 percent of CRM implementations fail. A Gartner study found that approximately 55 percent of all CRM projects failed to meet software customers' expectations. In a Bain & Company survey of 451 senior executives, CRM ranked in the bottom three categories among 25 popular tools evaluated for customer satisfaction. While there are a multitude of reasons cited for failure of these projects, our experience in implementing over 200 CRM projects directly is that user acceptance is the one of the most critical factors.

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The Fear-of-Change Syndrome. You already have a sales process in place. It may be based on printed reports, paper clips, and post-it notes, but it does work to some extent and people are familiar with it. Reengineering requires change, which most people instinctively resist. This fear of change needs to be dealt with early on, or the very people the system is designed to help will be the ones to see that it fails. The Big Brother Syndrome. Be aware that horror stories of the hidden reasons that companies implement CRM programs may already be circulating through your sales force. They may have heard how these systems are designed to track their every move, just waiting for them to make a mistake so that management can pounce on them. This initial distrust is a very serious issue that must be dealt with swiftly.

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