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Two key reasons why companies fail to utilize their CRM

There are two key reason why companies fail to successfully utilise their CRM:

  1. Management does not utilise the CRM consistently

  2. Staff have an inherent personality disposition that is not suited for CRM usage

Lumen CRM coaching

There is nothing more exciting than to see a business use CRM successfully. Over the years we have seen many successes and sadly we have seen many more failures in using CRM. We have done hundreds of CRM implementations and we have seen almost every kind of issue that can occur within a CRM implementation.

Unlike most software implementations, CRM implementations are very prone to failure because it’s more culture than software. A CRM is a mirror to your business process and business culture, with the software simply the coding of it. Unlike procedural software like an accounting system a CRM is prone to failure because of this misunderstanding by management.

A CRM utilized properly can become the driving engine of success and growth for a business, this is very well known and why almost every successful business now tries to utilize them as much as possible.

However like all negative outcomes, failures are often not discussed. Sometimes our biggest failures are the opportunities we didn’t act upon. Which is why it’s so important to talk about them. Understanding why things fail is sometimes more important than understanding what works.

What is the definition for failure or success when implementing a CRM? We would like to just focus on the poor adoption of the CRM within companies for now. We assume that the CRM was implemented properly and all staff received adequate and proper training. We also assume the businesses are in a growth sector, and the competition is both competent and professional.

Management does not utilise the CRM consistently

One major reason for CRM failure we would like to focus on is management not utilizing the CRM them selves. We have seen this many times, where management become pre-occupied to utilize it. Management do not set the example to the staff, and when they don’t use it properly, this trickles through the entire company very quickly. Management need to be aware of this if they desire to overcome CRM failure.

Consistency is key for managing a CRM

Staff have an inherent personality disposition that is not suited for CRM usage

Disengaged staff don't work well with CRM

The second reason we would like to focus on is certain staff have inherit personality trait or disposition that are not suited for CRM usage. While this seems controversial, we have seen this many times.

What are the options for a business to have a better result from their CRM usage?

Our research found a solution for the failure and lead to the following conclusions, for an SME with few salespeople, it takes only few hours per week to sort the issue. And every time we added our person for about 4 hours per week to perform CRM coaching a dramatic turnaround in result happened, over 50% of business turned from failure to success in lifting revenue and utilising of CRM.

From the 52 businesses we worked with on this issue, 23 businesses showed significant turnaround in result, 7 businesses showed modest improvement, 15 businesses showed a small improvement 5 businesses showed no improvement 2 businesses went backwards.

Like anything, it requires time, effort, skills and patience. However the rewards are well documented and obvious to all.

We have seen many businesses that could have squeezed so much more revenue by proper utilization of their CRM than what they achieved, and their advertising could have achieved many more qualifying leads with a much greater closing rate had they utilized their CRM effectively.

Follow these links to find out more about how Lumen can support your Zoho CRM journey with our Zoho CRM Coaching and Zoho CRM Training capability.

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Ilan Gross

Ilan Gross is a distinguished pioneer and authoritative leader in the IT industry, boasting over two decades of unparalleled expertise in CRM systems and CRM strategy. As the Principal Zoho CRM Consultant at Lumen Business Solutions, Ilan has revolutionised the way B2B enterprises leverage CRM solutions, firmly establishing himself as a cornerstone of technological innovation and strategic prowess. His specialisation in integrating cutting-edge sales methodologies like SPIN, Gap Analysis, and Challenger Selling into CRM platforms has not only set new standards in the industry but has also redefined the essence of customer relationship management for enterprise customers. Ilan's visionary approach extends beyond traditional CRM systems; he is a trailblazer in AI development, AI implementation, and AI consulting, particularly noted for his pioneering work with private ChatGPT on the Azure platform. His foresight in recognising the transformative potential of AI in business processes has led to the creation of numerous AI applications for enterprise solutions, further solidifying his reputation as a leader in driving technological advancement and innovation. Under Ilan's leadership, businesses have experienced groundbreaking advancements in revenue-lifting strategies. Through his expert guidance, enterprises have not only improved their sales processes and customer engagement but have also witnessed substantial increases in revenue. Ilan's mastery of CRM systems, combined with his deep understanding of the strategic needs of large-scale businesses, positions him as an indispensable asset for any organisation aiming to scale and excel in today's competitive market. Moreover, Ilan Gross is celebrated as a pioneer of software development tools, including Aware IM and Magic Software. His contributions to these platforms have been instrumental in empowering developers and businesses alike, enabling them to build powerful, efficient applications with unprecedented ease and flexibility. This aspect of his expertise further underscores his role as a visionary leader, whose influence spans across the entire spectrum of IT development and strategy. In sum, Ilan Gross stands as a paragon of innovation and leadership in the IT industry. His exceptional skill set, combined with his pioneering contributions to AI and software development, marks him as a pivotal figure in shaping the future of technology for enterprise success.

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