CRM investment has exploded over the past decade with organizations
big and small. However the value of CRM applications are limited to its
weakest link. Hobbled with the absence of pervasive use. What can we do
to motivate widespread adoption. Avoid mistakes. And measure its value.
CRM FAILURE -- something worth examining.
CRM FAILURE -- something worth examining.
Like
a traffic accident. And the curious rubber-necker stopping traffic to
get a glimpse. Isn't it human to be drawn to the failures of others? We
can identify with it. We can draw from lessons learned. And were more
receptive to hearing the humility of personal experience versus the
preaching of how-to's.
Understanding this behavior has its use for
implementing change. Reverse psychology. Devil's advocate. The
optimistic cynic. Whatever you call it - proactively addressing fears,
uncertainties, risks, and reasons CRM fail communicates empathy and
understanding at the very least with your user communities. You
understand the challenges of their job. What's the old adage? Seek to
understand before being understood.
In CRM, the accidents and
horror stories are plentiful. And over the years, the speed at which one
can make mistakes have accelerated. SaaS, Cloud Computing, and
On-Demand CRM have accelerated the 'time-to-benefit' AND
'the-time-to-get-burned'.
I have witnessed three (3) sure-fire
ways of failing to achieve CRM adoption. Enjoy the wreckage and hope
this never happens to you.
Mistake #1: Ignore the Unique Culture of Sales
"Automating sales is like Herding Cats"
"Automating sales is like Herding Cats"
A sales operations
director of an enterprise software company once told me that their sales
force did not understand process. Odd I thought that a sales
organization successful at selling enterprise solutions could succeed
despite lacking this important skill. After further discussion, it
became clear. The director misunderstood choice with lack of knowledge.
After all, we reward sales with being able to expertly circumnavigate
process. Assess the shortest distance to cash. And prioritize activities
that lead directly to revenue. Understand this and you'll have the keys
to their hearts.
And how do we measure adoption for sales? Is it
time spent in CRM or the number of logins? Don't we expect our
salespeople to be visiting with customers instead of tooling around
software? Or is it completing customer data profiles? Kind of an
expensive data collector, don't you think?
Measuring sales
adoption can be tricky. Most sales executives want less time in CRM and
more time selling. A more meaningful adoption metric may be: forecasting
accuracy, efficient use of resources or conversion of administrative
time to selling time.
Mistake #2: Create resentment early in your CRM planning
"If it came from anyone else other than me, it must be bad."
"If it came from anyone else other than me, it must be bad."
CRM
often hatches in one department implemented with a self-centered design
and exported the exported to others without ever obtaining their input.
The gravity of a CRM strategy is centered on a 360 degree view of the
customer-- bridging department silos of people and data. Failing to
incorporate other stakeholders into the design is an excellent way to
create resentment and perceptions that CRM was built for someone else.
The trick lies in selecting delegates that will add value during the
design effort, a topic for later discussion.
Mistake #3: Motivate your employees to input data outside of CRM
"Pay your employees to use another system and they surely will."
"Pay your employees to use another system and they surely will."
A
Director of IT once complained to me that the no-one in sales was using
their CRM. The VP of Sales was pressuring IT to solve the problem of
grossly inaccurate forecast reports. Despite attempts to mandate
compliance, they still found that the transactions were not updated even
after they received purchase order commitments.
In CRM (or any
system), if you can't understand the outcome from data input - is it
worth doing? In the above mentioned case, opportunities were only
updated by sales to manipulate a forecast reports. While another system
was used to fulfill sales orders and pay commission to its salesperson.
Which one do you think the salesperson used? And surprising how often
this happens. If decision making, recognition, or compensation is
derived from every other system but your CRM, guess what? Your CRM has
become irrelevant credenza-ware.
What can be learned from the above blunders?
"Change your plan to plan for change."
"Change your plan to plan for change."
Don't sweep it under
the carpet. A CRM strategy usually represents significant change for an
organization. With change, you can expect fear and apprehension towards
the unknown. If users haven't said it. You can be sure they are thinking
it. How CRM will replace them, micromanage, or add administrative
burdens. Proactively addressing fears, uncertainties, risks, and reasons
to not use CRM may pre-empt these objections. Make a Top 10 list. Don't
take it too seriously. At the very least, you'll communicate empathy
and understanding of these issues - perhaps with a little humor.
For
the people and by the people. Incorporating delegates in your CRM task
force and design can ensure you address critical needs from user groups
intended to use CRM. Delegates have a keen perspective on the job
requirements, business processes, and culture of their business units.
If you play it right, your Delegates will evangelize the CRM agenda to
convert non-believers in a grass roots approach. Leverage your steering
committee members to help you navigate across organizational boundaries.
And
Kaizen! your CRM. If you're experiencing adoption issues already - it's
not too late to turn the ship. Institute a continual improvement
process by which performance tweaks are implemented in bite size
increments at the behest and benefit of the business and its users. Chip
away at the negative perceptions. Incorporate an internal PR campaign
to highlight the improvements.