Monday, May 14, 2012

CRM Failure Rates

Wherever you look, CRM adoption by sales is a main area for concern. Philippe Le Baron outlines the hard facts about CRM success rates from this Linked In post.  In the end, layering in a change in process like CRM requires a deep dive into human behavior and a hard look at the leadership team for ensuring that the CRM is used. Leadership stands to gain the most from CRM in the form of Reporting, Analytics, employee management, business continuity and so much more which is why they need to own CRM every day.

Some interesting stats:

CRM failure rates: 2001-2009
By Michael Krigsman | August 3, 2009, 6:15am PDT

Discussions about failed CRM projects often begin with statistics describing failure rates. To facilitate those conversations, here’s a summary of CRM failure stats for the period 2001-2009. This is the basic list; see down below for more detail:
• 2001 Gartner Group: 50%
• 2002 Butler Group: 70%
• 2002 Selling Power, CSO Forum: 69.3%
• 2005 AMR Research: 18%
• 2006 AMR Research: 31%
• 2007 AMR Research: 29%
• 2007 Economist Intelligence Unit: 56%
• 2009 Forrester Research: 47%
This table lists the year, organization conducting the research, and reported failure rate. As described below, measurement differences make comparing rate changes across years difficult at best.

Remember SFA (aka; Sales Force Automation)? SFA was a miserable failure as I recall in a 70% average failure rate. Then some brilliant person figured they needed to 're-brand' SFA so... CRM was born and the results are shown above.

I find most organizations fail to recognize that technology is the enabler of a process, not the other way around. Here is some good advice: “Follow The Money”

Until CRM software developers wise up and build in credible functionality RPM will be just another re-branding exercise and will eventually go the way of CRM and SFA.

I focus on revenue generation strategies involving pipeline management and more accurately forecasting near term revenue. My clients have abandoned using CRM software to manage this process, it just doesn't work.

NOW, ask me how I really feel!

Howard Highsmith, CMC
B2B Institute
Howard Highsmith, CMC
Posted by Howard Highsmith, CMC