I have heard that there are technology-driven and customer-driven reasons that CRM programs fail. Can you expand on this a bit? What are some examples of technology-driven and customer-driven CRM program failures?

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CRM programs often fail because companies rush to buy CRM technology without fully planning for the strategic and operational changes required. Organizations think that the technology will do the work; when in reality, the technology is just a tool. If you know what to do with it, you will see great results, and if not, it will just be an expense.

Other reasons for CRM failure include:

1. Lack of change management – The company does not plan for change management, including the changes in user behavior required to adapt to the new tools.

2. Lack of executive leadership – CRM is sometimes passed off to middle management, and without active senior executive sponsorship, it does not take off.

3. Shortcuts mentality – The company does not plan for a long journey but rushes and stays at the "quick wins" level.

4. Inadequate user buy-in – The company does not adequately prepare users for CRM.

5. Unstructured relationship – The company does not clearly define what is expected from customers as part of the new CRM program.

6. Failure to operate the CRM program – The company does not turn goals into measurable actions and institute them across the organization.

This was first published in June 2008

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