What’s The REAL Reason Half Of CRM Systems Fail To Provide ROI?

We find it almost unbelievable that recent research found that HALF of Fortune 1000 companies get zero ROI for their CRM systems. These businesses are investing millions of dollars and thousands of hours all for — get this — nothing. Wow.

That 50 percent statistic is a pretty staggering number. To tell you the truth, we think the figure sounds more like the Siebel implementation failure rates that we saw about a decade or more ago.

Since then, Salesforce, Dynamics CRM, Sugar CRM and other cloud-based CRM solutions have done a lot to decrease the complexity of CRM implementations, which has absolutely made CRM easier for IT, sales management and individual account managers to use the systems.

But still, even with these improvements, it’s clear that far too many businesses are still failing to get enough value from their CRM investments.

Score More Sales recently shared an article suggesting the three biggest reasons for this failure including: integration issues, lack of use and an inability to tie your social strategies into marketing or sales.

While these reasons might have an impact on some companies, the biggest reason for failure is not any of the listed ones here. The core reason why CRM implementations continue to fail is the lack of added value to front-line sales professionals.

In most cases, CRM is still a management tool for sales group managers or other types of sales and corporate management functions to do pipeline forecasts. It is an inspection, monitoring and reporting tool that doesn’t help sellers on the front line to engage better with their prospects or customers. 

And if there is anything that sales professionals really hate to do it’s exactly that: Typing data into a system that adds little to no value to their conversion and success rates.

The Tellwise Nutshell (TTN): At the end of the day, front-line sales professionals go back to phone calls and emails when they contact their customers, so they have no motivation to put information into CRM systems. It helps their managers, but it’s absolutely useless to them when it comes to prospecting and engaging with customers.

Source: Score More Sales, September 2013

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