Stories and statistics of CRM projects being deemed failures 75%+ of the time are running rampant in the marketplace. In my opinion, unfairly so.
SearchCRM.com 2004 Link: 'F' word still dominates CRM thoughts.
The perception of failure is usually due to wishful thinking or unrealistic expectations (or maybe overselling). What is it that we really expect a CRM tool to do? To increase sales? To lower cost of sales? If you think of what CRM tools do ... the answer is neither. CRM tools are critical to a businesses success needed them to track and manage past/present/planned activity (calls, meetings, to-do lists) and to keep track of sales pipeline quantity/timing/probability. Yes, they do provide some level of efficiencies from a time management perspective and help sales efforts from the perspective of ensuring that we are following up on a regular basis. But ... CRM, in and of itself, does nothing to help us sell more, sell faster, or sell more profitably. Sales occur because:
- of a relationship developed between the sales person and the decision-maker based on credibility, knowledge, trust, confidence
- the decision-maker feels the sales person understands their issue(s)
- the decision-maker perceives that the sales person's organization has a solution that will alleviate his/her pain
The degree to which the above three bullet points are true also play a large part in determining the quality (or reality) of the sales pipeline.
CRM tools are not, and never were, intended to help us sell more, sell faster, or sell more profitably. So if that is the expectation that the 75% failure rate is based upon ... it's an unfair measuring stick.
Posted by: #gennic[bdxsgvtroj] | January 12, 2012 at 04:06 AM
Posted by: Sale On Ugg Boots | January 06, 2012 at 04:15 AM
Posted by: denfaifiliGof | January 03, 2012 at 04:08 AM
Posted by: #gennic[kvafrtghjk] | January 03, 2012 at 04:06 AM
Posted by: ticsNeetuib | December 27, 2011 at 03:58 AM
Posted by: Crutseurope | December 27, 2011 at 03:12 AM
Posted by: Cheap Ugg Boots Uk | December 25, 2011 at 03:15 AM
Posted by: ruiniatuh | December 21, 2011 at 04:01 AM
Posted by: Bpmhalrqxz | December 12, 2011 at 03:16 AM
Posted by: FDServicee | September 11, 2011 at 03:20 AM
Posted by: FDService | September 03, 2011 at 03:46 AM
Posted by: Ben | December 28, 2008 at 10:12 PM
Posted by: Arne Huse | February 26, 2008 at 04:24 PM
Thanks for your insights and opinions. I truly value all angles.
My point here is that "failure" is defined by mis-guided expectations and definition of success. From personal experience and polling I have done with the sales teams out in the field, it is clear that no matter how perfectly a CRM tool is implemented it will do very little to impact sales effectiveness. Don't get me wrong ... I believe a CRM tool is critical piece of technology needed to run today's sales organization ... it is an enabler though, not a catalyst. Ask any sales person out in the field.
The most important factor in sales effectiveness, regardless of technology, is the sales person's ability to effectively relate with the decision-maker. I would go so far as the say that the only thing that really matters in driving sales effectiveness are two things, none of which relate to CRM at all ... those two things that drive sales effectiveness are the sales team's ability to:
* Effectively identify and communicate the intersection point between their solution offerings and a decision-maker's issues.
* Demonstrate, and validate, the value of that intersection point.
Proof? Sales used to occur very effectively when we used to use index cards and manual tickler files --- as long as those two bullet points were met.
Posted by: Scott Jones | April 29, 2005 at 08:55 AM
Posted by: Mohankumar Devarajan | April 29, 2005 at 12:41 AM