You bet there should be little to no difficulties with the implementation of a CRM system, right? Simply download an app, sign up, add clients — and voilà! After all,91% of companies with 11+ employees somehow use such a system. Meanwhile, the reality is far more complicated. The path to a successful CRM implementation is akin to trekking a treacherous mountain trail. From resistance to change to lack of leadership buy-in, you should prepare yourself to conquer these peaks without a slip-up.
Today, we'll discuss the top 5 challenges employees encounter when dealing with CRM software and equip you with practical strategies to overcome or prevent them altogether.
written by:
Alexey Krutikov
Project Manager, PMP
Contents
Why Do CRM Implementations Fail?
If you google “latest CRM stats”, you'll discover that between 2010 and 2020, the revenue from customer relationship management (CRM) grew from $14B to $69B. In percentage terms, that's an impressive 393%!
While many companies invest substantial resources and effort into the implementation of a customer relationship management system, the harsh reality remains: not all adoptions are conducive to success. What makes them falter?
What can you do to avoid these common traps?
Meet Ryan, our innocent hero. Today, he'll guide you through CRM challenges with humor and unwavering patience. Ryan works at Widgets Inc., a company that sells — you guessed right — widgets. His mission? To implement a shiny new CRM system with minimal hiccups. Armed with enthusiasm and a user guide thicker than a medieval tome, Ryan dives in.
Hurdle #1. Unwillingness to Change
The IT team gathered, carrying keyboards and coffee-stained manuals. “Ryan,” said the project manager, “users resist change like cats avoid baths.”
Ryan nodded, “True. But fear not! We’ll train them. With memes. And cat videos.”
Many believe the toughest CRM adoption challenge is tech-related. Still and all, this is not the case. Today's technologies, like AI development, may appear baffling to non-techies. Yet, of all the CRM issues you'll face, it's your coworkers who'll likely cause the most headaches. We are creatures of habit, and the people on your team may resist the idea of learning a new system and altering their routines. Project management even has a specialized matrix for assessing stakeholder engagement within a project. The PMBOK (Project Management Body of Knowledge) Guide outlines five different levels of engagement, ranging from “Unaware” to “Leading”. When aiming for a successful CRM implementation, it’s critical to get to the fifth level.
How to Avoid a CRM Failure?
Solution
Explainer
Point out the value and benefits.
Illuminate the path ahead for your team. Explain how the new software will streamline their work, boost efficiency, and ultimately lead to more rewarding outcomes.
Involve users from the outset.
Ask for their input and feedback during the CRM selection process. This will boost their sense of ownership and investment in the new system, driving end-user adoption.
Address concerns.
Change takes time, and it's normal for people to experience resistance or frustration during the process. Offer training sessions, tutorials, and a help desk to tackle questions and concerns head-on. Celebrate small victories and recognize those who successfully adapt to the transition.
Hurdle #2. Getting Management Buy-In
Ryan adjusted his tie, standing in front of the imposing boardroom doors. The plaque read, “Executive Team”. What's Ryan up to? Enlisting management support for a CRM project. “Ladies and gentlemen,” he began, “we need a CRM solution. Think of it as a gentle path up customer data peaks. But we need your support — our oxygen supply — to reach the summit.”
The senior executives exchanged glances. Ryan sensed skepticism. “Why CRM?” The CFO asked, adjusting her glasses. “What’s the return on investment?”
“Security?” The CTO inquired. “What about data protection?”
“Ryan,” the CEO leaned forward, “why now?”
Executive involvement in CRM implementation is not a mere formality, but a strategic imperative. Their role extends far beyond signing off on budgets and deadlines. When executives encourage the adoption of a CRM system, it sends a powerful message: “This matters. We're investing in our success.” Such psychological and financial backing fosters cross-functional collaboration. It encourages teams to join forces toward a common goal, breaking down silos and resistance to change.
How to Drum Up Their Assistance?
Solution
Explainer
Quantify the potential ROI.
Management often frets about the financial impact of new initiatives. Show that implementation costs pale in comparison to the benefits — increased revenue, customer satisfaction, and retention.
Spotlight pain points.
Pinpoint areas where current processes are falling short or causing inefficiencies. Outline how a CRM solution can streamline them.
Bring success stories to the table.
Use examples from similar companies or industries to prove the positive outcomes and transformative impact a CRM platform can have on business operations.
Hurdle #3. Data Migration Intricacies
Ryan’s next challenge was like untangling a jumble of legacy databases. The company’s data was scattered across systems that spoke different languages. It was as if Widgets Inc. had hosted a global data summit, and each database had its own agenda. Some of them were fossils. Ryan even came across one that was older than his grandmother. It whispered tales of punch cards and magnetic tapes. Ryan marveled at its vitality and muttered, “Chin up, dear friend. We’ll migrate you to the cloud, where you can reminisce about the good ol’ days.”
Among all the common challenges of CRM platform implementation, this one stands out as particularly intricate. Organizations amass a wealth of data over time, siloed across legacy systems, spreadsheets, databases, and various repositories. The real puzzle arises during the transition to a new CRM system — how to migrate all this information without losing a byte.
How to Nail a Smooth CRM Implementation Process?
Solution
Explainer
Plan the transition carefully.
An ideal option is a migration roadmap. What to include? The key milestones, a list of allocated resources, and realistic timelines.
Add a pinch of coordination and expertise.
Here's where your in-house or outsourced data management experts come into play: data engineers, business analysts, and IT specialists. Just make sure they work in harmony and have the right CRM solution in place.
Prepare user guides.
When embarking on something new, a handy manual can be a lifesaver. Equip your CRM users with guides and provide extra training. They need to navigate the new terrain with confidence.
Hurdle #4. Insufficient Training and Knowledge Gaps
Brenda, the sales manager, asked about CRM workflows. Ryan, who just started studying the manual yesterday, was sweating, trying to figure out what to answer. “Well… It’s about as complicated as herding cats through a maze while juggling burning torches.”
Brenda blinked, “So… kittens and fire?”
Ryan nodded, “Exactly. And don’t forget the occasional leap into the ‘Why Is This Button Here?’ dimension.”
Brenda walked away and Ryan stared after her, thinking, “So much for talking. Why didn't she ask after the training, I would have known exactly what to say!”
Few people can master new software without practice. CRM platforms are quite complex, offering a plethora of features — contact management, integration capabilities, lead tracking, sales automation, etc. Without proper training, users may underutilize these features or even remain unaware of their existence.
Another danger is bad data quality. Employees may not realize the importance of accurate data entry. Incomplete or duplicate data can lead to skewed analytics and ineffective marketing campaigns.
How to Overcome CRM Challenges?
Solution
Explainer
Offer comprehensive training programs.
Invest in thorough training sessions for all future CRM users. Involve employees — your sales team, customer support, and marketing specialists — to cover every detail from basic CRM navigation to advanced functionality.
Work on role-specific training.
Tailor training to different user roles to guarantee a successful implementation of your CRM. Sales reps require specific guidance on lead management, while marketers focus on tracking the customer journey and optimizing advertising campaigns.
Provide ongoing learning.
CRM systems are constantly evolving, with new features popping up all the time. Ensure users stay informed and proficient with regular training updates.
Hurdle #5. Dealing with Time and Cost
The IT team huddled in a dimly lit server room. “Ryan,” said the lead developer, “our servers are wheezing like asthmatic tortoises. Upgrade them for CRM? Costly.”
Ryan thought fast. “What if we crowdsource server power? Employees will pedal stationary bikes to generate electricity. We’ll call it ‘Sweat-Powered CRM.’ Efficiency and fitness combined!”
Jokes aside, though. CRM implementation challenges related to company resources are deadly serious and worthy of discussion. The balance between time and cost is a delicate dance for modern businesses. The process often takes longer than anticipated, as factors like customization, data entry, migration, software integration, and user training contribute to the timeline. Harmonizing the need for thoroughness with the urgency to go live can be tricky. If the implementation is too rushed, it may result in errors and suboptimal courses.
At the other end, CRM projects entail costs that a team should consider and plan accordingly to avoid budget overruns. These are direct expenses such as software licenses, training, and ongoing maintenance, as well as hidden costs:
- Unforeseen customization requirements;
- Data cleansing efforts;
- Post-implementation support, etc.
How to Handle Such Challenges in CRM Implementation?
Solution
Explainer
Prioritize features.
Identify critical functionalities and implement them first to achieve quick wins while deferring non-essential elements.
Assemble a dedicated team.
It should consist of individuals who have experience in CRM implementation and a deep understanding of your organization's objectives. It's also vital to assign a project manager to oversee the tasks, ensuring they are completed on time and within budget.
Find a reliable CRM provider.
Choose a solution that fits your budget and long-term goals. Consider the total cost of ownership (TCO), not just the upfront expenses.
Mediating CRM Benefits and Challenges: Your Winding Path
CRM implementation is not a marathon, but a mountain climb. One where the customer relationship management benefits and challenges are competing to reach the top. Your job is not to let the challenges win. This requires patience and the ability to course-correct when necessary. Users — your team on this voyage — must embrace CRM. Their resistance is an avalanche threatening to drag you down to the foot of the mountain. How to help them? Planning, continuous training, change management, and user engagement are your ski gear.
Remember, just as every climb is unique, each CRM implementation journey has its twists and turns. But with determination, teamwork, and the right solutions provided, you'll conquer the CRM peak and enjoy the thrill of satisfied customers.
Navigating the highs and lows of CRM implementation is not a solo adventure. Contact us and chart a course toward CRM success together with our seasoned team.
FAQ
One of the key challenges is an inadequate implementation process, which causes difficulties and setbacks. Other reasons that contribute to CRM failure are:
- Low user adoption rate;
- Inappropriate CRM software;
- Poor data quality and management;
- Insufficient support and maintenance.
According to CIO magazine, around 1/3 of all CRM projects fail to deliver the expected benefits. Harvard Business Review estimated that the failure rate could range from 18% to 69%, based on different analyst reports.
They can vary depending on the context, goals, and business needs of different organizations. However, some CRM problems are more prevalent than others. These include:
- Manual data entry;
- Employee resistance to adopting new technologies;
- Data migration;
- Data integration;
- System customization;
- Data quality;
- Data integrity;
- Scalability and future-proofing.
1) It simplifies lead management, sales tracking, and forecasting.
2) CRM boosts customer satisfaction and loyalty by enabling businesses to centralize and organize client data, which drives effective communication and superior customer service.
3) It provides companies with meaningful data and analytics that can help to make conscious business decisions, strengthen customer relationships, spot trends, and better direct marketing efforts.
1) Collaborative CRM provides access to the same customer information and data for employees from different departments. This guarantees smooth collaboration and ensures consistency in customer relations.
2) Analytical CRM uses data analysis and reporting tools to provide insights into client behavior and preferences, as well as key metrics to measure the success of marketing campaigns and strategies.
3) Operational CRM aims to automate and streamline various business processes such as sales, marketing, and customer service to enhance employee productivity.
1) Clear objectives;
2) Executive buy-in and support;
3) Data quality and accuracy;
4) Proper employee training;
5) Regular evaluation of CRM effectiveness.
We can add more components, like proper planning, user adoption, integration, and data security, but you should prioritize them according to your specific circumstances to avoid common CRM challenges.
- Salesforce
A multinational corporation implements Salesforce to unify client data across departments, enhance sales process forecasting, and elevate the customer experience. - HubSpot
A tech startup integrates HubSpot CRM to track and nurture leads and automate email marketing campaigns. - Pipedrive
A real estate agency adopts Pipedrive to manage property listings, perfect deal-making processes, and monitor customer interactions.
Contacts
Feel free to get in touch with us! Use this contact form for an ASAP response.
Call us at +44 151 528 8015
E-mail us at request@qulix.com
Feel free to get in touch with us! Use this contact form for an ASAP response.
Call us at +44 151 528 8015
E-mail us at request@qulix.com
