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Top 7 CRM software mistakes to avoid -- the pitfalls of CRM best practices

Companies wanting to use a CRM software solution for retaining, servicing and recruiting customers need to know what CRM software mistakes to avoid. Too often, companies buy software that's not appropriate for their businesses' size or they neglect to train their associates on the new CRM solution.

Gaining a solid return on investment (ROI) from the CRM solution should be the priority goal in most companies' minds, as flexibility should be for growing companies. Developing CRM best practices for large, mid-size and small companies must begin by avoiding the following pitfalls of CRM when implementing and evaluating a CRM software solution.

Top seven pitfalls of CRM

1. Ignoring your overall business strategy -- When companies don't know the key to their competitiveness, or what separates them from similar businesses, then they are set up to lose their CRM software investment. Installing a CRM software system involves time and money and it shouldn't be used in a superfluous way. For if the purpose of the CRM solution is not worth upper management's time for adequate training or for reorganizing the company's organizational structure, then the CRM solution won't work and potential ROI will be lost. CRM relies on customer service teams, sales teams and IT teams knowing how to interpret and process customer data in order to increase sales and revenues. To ensure effectiveness, all of CRM's goals must be clearly defined and measured.
    
2. Choosing an inflexible CRM software solution -- This tip is highly recommended for growing businesses that need a flexible CRM solution that will grow with them and their customers. Finding a scalable CRM solution allows companies to invest a small amount at a time, and a flexible solution lets them see what areas require more attention from the software. When a company is small, they may opt for a hosted solution that is cost-efficient and easy to operate. However, when the company grows, they may want to purchase the CRM software license to host the solution onto their own IT infrastructure since their complexities will directly increase with their need for additional security measures. Although hosted software solutions should be safe, many companies don’t want a third party privy to hundreds, or maybe thousands of confidential customer records.
    
3. Buying hard-to-use CRM software -- If the CRM software is difficult to use, employees won't touch it, and they will revert back to their old ways. However, if the software comes with training modules (see #4 below), or if the software has easy-to-flow icons and windows, then employees will pick up the software's nuances more readily. And in the event of a CRM software upgrade, companies need to make sure that the new software systems don't take away what employees are already familiar with.
    
4. Inadequate training on the CRM software -- Anytime employees don't feel confident using a new system, they will avoid using it. Many CRM software vendors do offer training consultants that visit the company during their rollout phase and for refresher sessions. Although costly and somewhat time-consuming, small companies should also consider this service since adequate training will save them money in the long term. For example, NetSuite offers e-tutorials and live customer support, as well as NetSuite on-site trainers that will give employees positive first impressions of the software.
    
5. Only allowing a few teams to know the CRM solution -- In order for the new CRM solution to be fully implemented, every employee at every level needs to know the purpose for the CRM solution, its benefits and how it really works. This includes senior management to part-time customer service reps who need a detailed plan that communicates the specific CRM benefits to each department and is later coupled with follow-up training. In fact, senior managers are the most influential at supporting CRM because of their ability to cut through department boundaries. Furthermore, if the sales, service and marketing teams don't know the parts they play for achieving the company's objective, then they will be less likely to embrace the new CRM solution.
    
6. Not developing your business requirements -- According to Lance Kyle, managing partner at Acetta, a business process improvement company, "The myriad of products available on the market today makes selecting the best solution both daunting and confusing. CRM systems are different and idiosyncratic, representing their own corporate cultures and product history and not necessarily yours. It is critical that you clearly define your requirements before auditioning solutions." To elaborate, a company needs to select the best CRM software that fits their budget, their customers, and their corporate structure. For instance, a small business with five employees and a hundred customers shouldn't buy an expensive CRM software solution with multiple features they won't use. That kind of system would be best suited for a mid to large-size firm.
    
7. Misunderstanding customer needs -- Unnecessarily taking the customer's time and not giving good service will hurt business. The CRM software needs to respond to customers, and process customers successfully through well-planned interactions. For example, the CRM manager must decide at which points in the CRM process should the customers make contact with the company through easy-to-use access screens that ask for the right information only once. And it's a good idea to ask customers about their expectations regarding CRM processes.

Keep up your best CRM practices

Successful CRM practices rely on knowing your customers and focusing your operations to serve them through all stages of interaction. In addition, each employee of the company needs to be aware of how their own set of skills and talents can best serve customers with CRM software. CRM is a complex system that needs employee support from all levels to work effectively because the very nature of CRM requires it to cross over into other departments' systems and practices. Not spending the money or the time to continuously train employees is a fatal mistake that will cost the company not only the cost of the CRM software, but their once loyal customers.

Also See:  [ Compare CRM Software Solutions & Systems Using BuyerZone.com ]
[ What Does CRM Stand For Anyway? ]
[ Defining CRM and Customer Relationship Management ]

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