CRM implementation: how not to be close to failure

Surely many of you have seen on the Internet photo galleries with abandoned shopping centers, huge and once luxurious. An impressive sight, especially for a businessman. But the first thought is not about how much money invested in development is lost. She is about why this happened. Yes, there is a factor in the impact of structural changes in the economy, there are also “wines” of online trading. But the main thing is the inability to restructure, adapt, change the business model in time. And not giving up the existing one, but embedding it in new conditions.
The same story can happen with the CRM implementation project: the system is idle, the company changes the vendor, chooses a more expensive system, which is idle again ... A vicious circle. Meanwhile, the reasons for failure are fairly linear - and in your hands make the implementation of CRM successful. Share experiences like.

That year I have not been able to find statistics on the failures of CRM projects in Russia. They are definitely there, otherwise people would not come to us with a desire to change their system. In addition, some legends about epic failures circulate in our environment. But the personal sampling of one RegionSoft vendor is clearly unrepresentative. But annually published interesting statistics on foreign implementations. Thus, according to a decade of research, from 25 to 60% of CRM-projects did not meet expectations. 91% of companies with more than 11 people use CRM, and among companies with up to 10 people, only 50% of them use these. 78% of buyers are disappointed in the company or do not make a purchase due to poor service. At the same time, CRM improves ROI and offers an average income of $ 5.60 for every $ 1 spent. It is difficult to say how it can be tried on the Russian market - in terms of attitude towards CRM, our user has already overcome the threshold of elitism, but still has not been inspired by the European approach of the urgent need for this software. More and more business representatives recognize the benefits of CRM and are embarking on implementation. As a vendor, we want them to burn as little as possible.

So you decided to implement CRM. At the very beginning it is necessary to realize three main things.

1. CRM is not a program with the button “Increase sales by 250%” in the center of the interface. First of all, it is a tool for CRM strategy, customer relationship management. If your business has been operating in the market for some time, these same relationships already exist and break them or change them radically with the implementation is wrong. Especially if the business is successful, customers are loyal, sales are stable. It is necessary to deploy CRM, adapting it to the existing processes, automate them, but not break them in order to build anew.
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2. A CRM system is not a tool for controlling employees. Yes, for example, in RegionSoft CRM there is a KPI system, there are reports on monitoring the progress of tasks, there are funnels and so on. But these are only management tools, the ultimate goal of which is to organize the work of managers so that the client is satisfied in the end. Which is known to be profitable.
   
   
3. The project implementation of CRM can not be approached one-sided, namely just how to install the software and the appearance of a shortcut on the desktop. This introduction of a serious, powerful tool that, if properly applied, will provide real and tangible savings in labor resources and time, and will allow you to reorient relationships with customers towards intensive growth (for example, due to the point impact on the segments).

Would know where to fall ...

Consider the 10 major errors and one factor that can lead to the failure of the implementation of CRM.

Storage of data in disparate sources. If the company has already formed a client base, there is information on transactions, warehouse, loyalty programs, then, as a rule, this is one of the options.

Each manager has his own data on a convenient medium, the manager receives periodic summary reports on the volume of transactions, sales, sales, balances, etc.

There are several programs that store data. These can be different single-user CRMs (like our free RegionSoft CRM Express), customer accounting systems such as contact managers, and even task management systems in which transaction information is written in a single text field, which means that it is difficult to process.
There is a single Excel file in which managers enter all the information. This is probably the worst case, since file damage, lack of backups, incorrect sorting, deliberate damage, or unauthorized copying have occurred repeatedly.

When implementing CRM, this database must be loaded into the system, since this is the basis of the company's activities. And if import from other systems or Excel is still possible, then information from mobile phones, documents and manager’s notebooks must be entered manually. Most often, this procedure is ignored by both management and employees. As a result, the effectiveness of CRM is markedly reduced, the staff continues to wander from application to application, the workflow is delayed, time is spent searching for where the client is recorded.

Meanwhile, CRM is a reliable analytical base of a company that collects data in a unified form. Based on them, reports and documents are formed, divisions are informed, business processes are functioning. Information from the system serves as the basis for making management decisions. For example, you have a full cycle advertising agency with a wide range of services. 2010 - everyone orders a souvenir, SEO, campaign in Direct. You pay for the tools to work with the promotion, purchase materials and equipment. Suddenly, by 2014, demand is changing and you see that calendars are ordered less, materials for flyers are in dead stock, customers are leaving. You begin to ask managers, they say that there were appeals on SMM, digital, content and media. And it was discovered only after a noticeable recession or a regular inventory. If there was a CRM, you could initially see that demand does not change seasonally, and managers do not just hang up the answer “We do not do this”, but record calls with calls on a new type of service. There is time to restructure, reduce purchases, withdraw from the range of positions with low and zero demand.

To work with clients, it is necessary to build a clear line of analytics, which will form the basis of segmentation for mailings, changing the nomenclature or reorienting the company. This is possible only in one case - if all the information is accumulated in one system and no one ignores this process.

Collecting incomplete, inaccurate and irrelevant information is another reason for the collapse associated with analytics. It is caused by the fact that managers enter information out of time, for example, at the end of the month. From the standpoint of CRM is a dangerous habit, you can lose sight of the essential interactions. We had a lot of requests to control customer interactions - so we even created a separate report in RegionSoft CRM, which graphically displays the dynamics of customer development and its promotion through the sales funnel stages.



Implementation of CRM without integration. There are practically no explanations needed. There is 1C, there is a site, there is a telephony. All these entities must be friends with CRM directly or indirectly, share data with it. Then the full picture of affairs in the company will become clear. We in RegionSoft pay considerable attention to integration. So, in addition to the basic bundles with 1C and Asterisk, we have our own script server RegionSoft Application Server , which works wonders and organizes automated processing that does not require user participation. They can be executed according to a schedule or via an HTTP request. For example, you can customize the creation of an archive copy of the RegionSoft CRM database using the Firebird standard backup, which will be carried out every day at 2:00 am, except Saturday and Sunday. In this case, all the work will be done automatically. It is through the App Server that integration with the site, 1C, other accounting systems can be carried out, questionnaires can be carried out, mailings can be sent, and so on.

Lack of clear goals. In our list, this error is not in the first place, but deserves a grand prix. And that's why. The motive for implementing CRM in a company can be anything: an acute and objective necessity, fashion, introduction from a friend, feedback, investor demand, imposition by a business coach ... But you need to clearly understand the purpose of implementation, which in its macro implementation is embedded in the name: relationship management with clients. And all current goals must somehow be linked to this goal.

Lack of support from management. Very strange mistake, but it has a place to be. If a CRM system is implemented for pro forma, management can, in principle, ignore the process of implementation and launch into operation. And this is where it leads:

• lack of motivation to use the system
• ignoring system
• use of the system as a tool of control by middle managers

and…

... sabotage by employees is a direct consequence of the previous paragraph. Employees may simply refuse to work with the new interface. Management must understand that the implementation of CRM is not a small project and not even a transition to a new operating system. CRM potentially modifies many business processes, adjusts sales strategies, introduces additional performance indicators, and ultimately affects profit. Therefore, management is required to participate in the implementation at all stages, from the technical task to training and start work. Here is what is required from the top manager:

• Do not rush subordinates to go to the new software, and set adequate time and allow to get acquainted with CRM gradually.
  
  
• Explain the importance of implementation.
  
  
• Do not talk about abbreviations or blackmail them. The human resource is invaluable - and the vacant time should be redirected to finding new customers, sales channels or training.
  
  
• To materially and non-materially encourage the use of the system, show that you are invisibly present in it and evaluate the results.
  
  
• To jointly discuss the existing indicators and ways to improve. Involvement in the process is a powerful motivator.

Local automation of one department or one group. Even among vendors' partners, there is a judgment that their own automation system can be used in different departments of the company. In fact, it is expensive, difficult and reduces the performance - because all the data are scattered. The isolation of departments and services is in itself a disease of the organization, and if it is emphasized by a different approach to automation, this is very bad. Let me explain by example. Suppose there is a sales department, there is a warehouse, there is production, there is a marketing department. And they are all automated separately, and the production is generally written with a pen in the accounting journal. The result is that the warehouse and production are not aware of the needs and capabilities of each other - there may be a glut or simple. In the commercial service is also a mess: marketers come up with activity for non-existent segments of buyers, and salespeople do not know what to offer for after-sales. And all together they do not suspect that an order for 10,000 units cannot be accepted, because there are no components in the warehouse, and production is only 2,000 completed. In general, the conditions are ideal for breaking a contract and ruining business reputation.

CRM easily solves such problems. For example, when we make a sale of a name in RegionSoft CRM , the corresponding quantity is immediately deducted from the warehouse, closing documents are formed, an application for production is sent, the availability of components is checked and, if they are not enough, an order is created for the supplier. At the same time, salespeople successfully and accurately put up a sales plan, and marketers open reports and decide which items should be included in the summer sale, and which ones are already going well. This interrelation within the CRM system makes the team's activities interconnected and interdependent, and this is the key to KPI implementation and customer satisfaction.

Separation of business processes and CRM - a critical error. On Habré there were many posts about the process approach, BPMN notation and the importance of following the procedures. And all the arguments reflect the main idea - the processes should be included in the organization's automation system in order to minimize the human factor, manage resources, meet deadlines and do not forget about important levels of management. Business processes are inseparable from modern CRM-systems, since they must also be attached to customers, use these systems and store their information in it. In RegionSoft CRM business processes were included in version 5.0, and almost immediately our native process editor was approved by customers. The business processes built into CRM greatly enhance it, once again link the units and bring personal responsibility to the fore. By the way, there is nothing complicated in setting up business processes - we have stages and parameters set up intuitively, no specific knowledge and skills, no more programming skills, are needed.



The lack of training and internal expertise, if they do not kill the implementation, then significantly reduce its quality and increase the time. Training can occur as follows.

• On their own based on the help system. Each employee allocates time for training and deals with the documentation in his hands. Alas, this is not always possible - sometimes the vendor is limited to a simple navigator and relies on the community. In recent versions, we have solved this issue - in distributions, you can download a detailed user guide and administrator for RegionSoft CRM. Our clients have already managed to call it a textbook for two and a half hundred pages and maximally chewed information.
  
  
• Use the services of a vendor. And here there are also two options - to go through group training offline or online or to train one employee, pumping it to the level of an internal expert. Which option to choose depends on many factors, this is discussed individually. But in general, the hybrid model works: introductory group training and the formation of an internal expert, to whom the staff will be able to contact at any time. Saving on training is definitely not worth it - this is a low share of project costs, and a quick start is still a big advantage.

By the way, they often ask the question of when to implement CRM during the year. The answer is simple: when you have a decline in customer interest. The vast majority of companies is May-August. At this time, you can spend more time on adaptation and come to the sales season already armed to the teeth.

Choosing the wrong CRM system is also a common phenomenon. And again, branching arises for failure reasons, which is the cost overrun or the complete abandonment of software.

• Not that CRM-system on technology deployment and refinement. Companies are tempted to free open source and get insanely expensive implementation, refinement, forced to hire expensive administrators and programmers, pay for connectors, integration, custom reports. A free cheese continues to remain in the mousetrap.
  
  
• Not that CRM-system in functionality. Companies are conducted on sonorous names like SAP or Salesforce and implement their solutions at any cost. First, they get redundant functionality, and then they realize that they lack elementary things like primary documentation and have to pay for it again. The scale of CRM and the scale of business processes simply do not converge. We also had the problem of excesses when the client was a little bit, but he overpaid for something he does not use. We solved the issue in RegionSoft CRM 6.0 - we split up the editors into smaller ones so that everyone could choose the basic configuration almost exactly by themselves.
  
  
• Not that CRM-system for the price. In addition to the overpayment for functionality, there is another unpleasant trap - subscription payments for the rental of the system according to the SaaS model, which for a couple of years substantially outgrow the cost of implementing a one-time project.

Greed factor. This is a fat point in implementation errors. If you choose CRM only on the basis of price, be content with restrictions, refuse to implement professional training, you can not even begin, failure is ensured. Such an approach is acceptable only for companies whose staff is staffed by high-class professionals who are able to independently develop and deploy the system, train and clarify the nuances. This happens. Casuistically.

... straw would spread

A small reminder for those who are going to introduce CRM - how to do it quickly and painlessly.

Collect CRM requirements from all departments, discuss them, identify intersection points. Describe the main and secondary business processes, prioritize.

Choose a CRM system based on an integrated approach to automation and your business requirements. There is no place for fashion in the world of corporate software - the company implements the software that is convenient for it and which will help to work intensively, and not just collect data, chat, or take into account working time.

Calculate the budget for implementation and predict how much it will cost to own the system for 2-3 years. Perhaps the innocent promise of "only 959 rubles per user per month" will result in serious spending already with 10 employees. After two years - 230 160, after three - 345 240, and this is without taking into account indexation. For comparison, the cost of 10 licenses RegionSoft CRM Enterprise (this is our edition with all the bells and whistles, actually ERP) will cost you 149,290 rubles, and the most popular Professional - 111,740 rubles. And this despite the fact that you pay once and licenses are eternal.

Enter the data as carefully and as organized. Use reference books for duplicate data - this is how you can choose a uniform value, avoiding errors and a variety of inputs.

Create custom parameters and reports, use CRM to the fullest. Expand client statuses, designation stage names, task status in the Service Desk. The more detailed the information, the more versatile and useful the analyst is.

Implement CRM gradually, let employees spend time learning and independent work with documentation. Do not feel sorry for the paper - print and fasten the manual for each user.

At the initial stage, select the most important processes and tasks for each of the employees - let them deal with them, gradually expanding their involvement in working with the system.

Consider data and processes together. Their integration and common base create a system that increases the likelihood of meeting the interests of all parties and makes CRM operationally efficient.

Make CRM a universal workplace (especially important for sales managers!). Connect telephony, virtual PBX, integrate CRM with the site, if necessary. The manager should be aware that it is the interface of the system that is his workplace.

Ask your system administrator or internal expert to bypass all employees and customize the look and color scheme of CRM to the wishes of each user - it will be more pleasant to use the system.

Organize several stages of internal training, hold a seminar on the use of the program after a few weeks of use, create a question and answer section on the corporate portal or in a shared folder. By the way, in RegionSoft CRM this can be done in a convenient knowledge base accessible to all. Again, newcomers will be able to learn from their experience, and this reduces the time to adapt.

Motivate. Summing up the month, tell, based on data from CRM, showing graphs, charts and reports in its interface.

The CRM system is the part of automation that is needed “just yesterday.” If you decide to take this step, be sure to think over all the details, pay attention to the pitfalls. In fact, the implementation of the system is a simple project in itself and it is simple to fulfill the listed rules in a company of any scale, from holding to studio. The main thing to remember is that CRM, like no other software, is aimed at working with people: employees, customers, contractors. In general, you need to do everything in a human way. Then it will come out well.