Question

What are the risks of implementing a CRM (customer relationship management) system and how to Mitigate it?

Answer 1

During CRM implementation, companies face the same problems:

• neglecting business processes and only emphasising technological solutions
• simultaneous request management (back-and-forth between business and IT)
• software too complicated to use
• customer segmentation designed according to internal organization instead of customer needs
• employees uneducated in the use and advantages of CRM
• lack of metrics to gauge CRM project success

To mitigate these risks, follow the below steps:

1. DETERMINE THE PROCESSES, CHANNELS AND ORGANIZATIONAL UNITS

Prior to the beginning of CRM implementation, set a precise project scope.

Successful CRM projects simplify and automate business processes, like managing customer data, managing contacts and activities, loyalty programmes, managing complaints, customer acquisition, product management, managing orders and contracts…

Companies, in cooperation with their IT partners, determine which processes the project will focus on.

Along with business processes, the following must be set prior to any CRM project:

• communication and sales channels (retail, contact centres, web sites, social networks, etc.)
• customer segments (private, business, wholesale, etc.)
• services (customer support, direct sales, online shops, etc.)
• organizational units that will use CRM (sales, marketing, contact centre, human resources, management, etc.)

2. SET CLEAR AND MEASURABLE GOALS

Which parts of your business do you intend to improve? Do you want to increase revenues through cross-sells and up-sells, reduce operating costs or expand the service portfolio?

Define specific goals for each area:

• sales and marketing
• product development
• process efficiency
• financial savings
• business strategy
• customer satisfaction

3. RECOGNIZE AND SET AN EFFICIENT DATA MODEL

While planning a CRM project, ask yourself where your data is stored and what their quality is.

Decide whether you want to migrate all or just certain data. Check which systems own the data to be migrated.

If you do that before the project begins, you will speed up the implementation process and prevent the usual problems from arising.

4. SELECT AN ADEQUATE APPROACH TO PROJECT IMPLEMENTATION

The CRM implementation mode depends on the project scope, goals and data models.

The incremental approach encompasses gradual implementation of parts of a CRM project over an extended period. Even though it is dynamic and requires an environment adaptable to changing demands, it is a less of a shock to a company and its employees.

The Big Bang approach means a complex implementation of all CRM system functionalities in a shorter period. During project implementation, significant changes to the environment may occur, which may constitute a greater shock for employees.

5. PREPARE YOUR EMPLOYEES FOR THE NEW SYSTEM

With the implementation of CRM, employees change the way they work and think. Explain to them how CRM will impact their daily tasks and how much easier their work will be.

Furthermore, you can speed up employee adjustment to CRM if you:

• organize training workshops in cooperation with your partner IT company
• include the employees in the project from its onset
• reward those who actively use CRM
• provide financial incentives for employees.