Why do some CRM projects fail?
Why do some CRM projects fail?

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CRM projects fail primarily for one or more of the following reasons:

Loose Strategic Alignment: Some CRM initiatives fail because they are not closely aligned with enterprise business strategy, marketing strategy, or key performance indicators. The enterprise executive management team and marketing management teams who are accountable for executing the enterprise business plan and marketing plan, do not therefore recognize the strategic significance of these initiative and fail to fund and sponsor them accordingly.

Vague Business Case: Other CRM initiatives fail because they are not supported by fact-based business case and value propositions. These initiatives therefore fail to compete with other initiative for scarce resources and secure the funding and resources needed to implement them effectively.

"One-Functional" Executive Sponsorship: Many CRM initiatives are sponsored by one line of business or by one functional area, e.g., customer care, technology, web development. These initiatives often therefore fail to fully consider the key requirements of the other lines of business and other functional areas. Moreover, these projects typically yield sub-optimal "point-solutions" that fail to support integrated business or marketing initiatives.

Slow Speed to Value: CRM initiatives also fail because they are not designed to deliver near-term business value. These initiatives challenge the patience or their key stakeholders, and therefore risk losing management attention, funding, and dedicated resources.

For more information, check out searchCRM's Best Web Links on Implementing CRM.


This was first published in November 2001

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