5 Valid Reasons Why CRM Software Can be a Waste of Money

Few companies can survive without CRM software for Customer Relationship Management. But all too often, companies are wasting money on a full-blown system with amazing features and functionality, then they let the implementation fail. All-in-all, they only use it as a somewhat advanced contact manager.

It is terrible to have powerful CRM software that is reduced to a contact manager only – or worse yet – a way to monitor sales people. Here are the most common reasons why the CRM software you purchased may be wasting money.

Low Expectations

Frequently, the company bean counters and the super sales people have a similar expectation of new CRM software. The bean counters want to see what the sales people are doing to generate profits and the sales people are resisting the invasion of their sales process. Both of them are totally wrong about what the system can do for them.

Short Term Vision

A good CRM has the ability to gather information that informs the entire sales and service process. With the right processes in place, all interactions with sales leads and customers are entered into the database. From the information gathered over time, it increases sales, informs marketing campaigns and improves customer service interaction.

Simply assembling contact information without consistent series of communications will do little other than store contact data. The value of CRM software is in the long-term results gained over time and the incremental improvements that have a big payback.

Senior Manager Weakness

Putting processes into place to use the CRM software are essential to its success. However, without a strong introduction to the benefits, lower level employees will not do the extra work initially. They will whine and complain about the inefficiencies of doing the tasks in the new way. When rules are not enforced, the entire initiative can cave in on itself.

Poor Training and Administration

Everyone in the company needs to understand what is expected of them to implement the CRM software for the company. When companies cut corners in training, they are literally cutting the potential profits that could be realized.

In addition to the general training given to all employees, a super-user or administrator should be trained more extensively. In fact, this role is so important to your success, it is a good idea to train a back-up administrator in case the super-user is absent or leaves the company.

The super-user is a resource to other team members. They can answer questions and trouble-shoot when things hit a snag. The CRM expert will become very valuable to the organization.

Trying Too Much at One Time

Some managers have a big vision about what the CRM software can do for the company. They become like a kid in a candy shop and want to implement it all at the same time. This approach is doomed to fail. Without the enthusiasm to make such a huge change, resistance and overwhelm can send the system down a fatal path.