Potential

Implementation
Problems in CRM
By:Kiran
Kumari
Implementation of CRM
Components of CRM Implementation
Potential Implementation Problems
 Failure to Provide proper project focus:
◦ Lack of clear definition and purpose of CRM and its
components
◦ The project scope too large
◦ No sponsor or champion
◦ Fail to understand the expectations of key constituent groups in
using CRM system
 Failure to develop the system in the proper way:
o Lack the required technical knowledge and skills
o Failure in defining all of the risks
o Begin by selecting development tools rather than by defining
functional requirements and system objectives.
o Failure in recognizing the importance of quality.
o Failure in following a phased development
methodology(incorporate both prototype and RAD)
o Overlook the importance of privacy and security
o Fail to perform a post-implementation evaluation

Three major issues
 Resistance from employees

 Motivation and training

 Availability of information
Hurdles in Adoption of CRM

 Implementation cost
 Lack in formalization of procedures: Affects the adaptability of
employees towards CRM
 Considering CRM as a complex practice: Employees still want to
use their contact books and schedule lists as it easy to maintain.
Keeping the complete track of potential customer is troublesome
 Dose not pay at once: 75% of project fail due to high expectation of
ROI
Problems with CRM Implementation
 Exorbitant Costs
 Inadequate Focus on Objectives
 Insufficient Resources
 Complex Systems
 Business Needs Most Important
 No Customer Focus
 Slow Returns
 Data quality and availability

OTHERS …
 CRM system not connected directly to the operational systems:
Not possible to access the operational and legacy data about
clients and products through the CRM, and users must access
simultaneously other systems, resulting in double entries.
 Connection is not complete and transparent: In this case it is
possible to access the operational system not only through the
CRM but also directly, circumventing the CRM and rendering its

use optional.
 Missing Client database: contains low quality data or with data that
is missing altogether
 Poor performance: CRM system is connected to a large number of
systems and often interacts with various technologies, many of
them legacy systems. If the transition to CRM does not include the
upgrading of the technology of legacy systems, performance is
degraded.

Key guidelines to follow
before you implement CRM
 Develop corporate wide CRM engagement from key stakeholders.

 Envision the company's CRM strategy.

 Determine and prioritise CRM drivers and requirements.

 Develop a CRM roadmap


Critical Success Factors of
CRM Implementation
 Strategic Planning:Setting project goals, identifying high level business
requirements, establishing project teams and high level project estimates,
setting the priority of modules to be implemented incrementally
 Architectural Design:Integrating CRM with other enterprise software
applications
 Phased Approach:Pilot programs and short-term milestones
 Data Requirements of CRM Projects
 Data Gathering
 Organization Commitment:Understanding the benefits of CMR
 Pre-planning
 Technical evaluation of the data available: This evaluation is
critical to determine the level of effort needed to integrate
this data
 Human aspect of the implementation
 Pre-implementation checklist: A checklist can help ensure
any potential problems are identified early in the process.
 Use of CRM hybrid model which is modular in design:
Generates flexibility and provides more recovery
benefits,easy to deploy and cost effective.
 Complete CRM project can cost a lot more but hybrid model
CRM can cost much less and effectively solve problem of
customer acquisition, retention with cost effective service.


 CRM's a whole business, whole brain thing: needs understanding,
commitment, energy and passion,business-wide transformation
requiring change in every aspect of a corporation
 Getting rid of the inhibitors: wholly customer-driven, requires
radical change, experimentation, courage and faith
q Command and Control Cultures (upside-down values)
q Centralized Marketing Decision-Making (Marketing, advertising
and selling
q Lack of desire to re-engineer sales and marketing(corporate-
wide acceptance of the significance of customer loyalty, customer
development
 List of Enhancers and Enablers :

 Culture Issue
 Speed Issue
 Communications Issue
 Prioritization Issue
 Motivation Issue
 Resource Issue
 Project Overload Issue
 People Issue
 CEO Issue - two elements: Gaining Support
Personal Power and Leadership Skills


 'the sign of a good leader is that the people

believe they did it themselves.' 


EXAMPLE
 Patni's domain expertise, proven methodologies and extensive technical
knowledge help customers build integrated solutions for sales force
automation, marketing, customer contact centers and service
deployment.
 CRM implementation methodology is designed to ensure maximum returns
on CRM investments, while minimizing risk.
 Patni's CRM implementation practice can support projects of every size -
from limited CRM implementations like a customized lead management
solution to full-cycle projects such as implementing a consumer response
center.

Airtel - case study
 Bharti started in 1995,whole system was manual
 Only 40% of customers issues getting resolved
 Were not meeting customers’ expectation and customer loyalty was a
major problem
 Subscriber base grew @ 15-20% and crossed 1 million mark in 2002

Growth obstacles :
 Not able to recharge amounts anywhere in India, had to carry scratch
card
 Not able to pay bills anywhere in India
 Low customer retention
 Hutch(now Vodafone) was rated far superior
 System: Individual module for each of the process as order
processing, billing etc.
CRM IMPLEMENTATION



Issues faced during implementation
 Employees acceptance
 Users forced to work harder to create processes and reengineer
systems around the new implementation
 CRM training for all related employees
 Integration of services across all 23 circles and upgrading the
organization to provide newer services as selling of relevant
schemes etc.
 Maintaining the service level at the same time enabling transition to
CRM implementation
 Many independent systems need to be integrated
 Porting data from each system which totally went to terabytes
 Had to design proper workflow autoation
E - CRM intiative of Airtel :
 Implementation partner is IBM
 Provide a host of services as:
 Online customer support
 Customer profiling
 Web interface
 Sales management for vendor and partner

Ex - CRM Agro
 CRM Agro is an application that will help all those who are
associated with agriculture industry to systematically build
farmers database, analyze the data to generate timely market
intelligence reports.
 Apart from agri-input companies, banks,government
agencies, agriculture extension department and agricultural
universities can use this software to track farmers' package of
practice and help them to be more productive.
 simplified the whole process and now collecting agro market
intelligence is as simple as sending SMS.
 Data can be as varied as farmer profile information, retailer
information, sales information or can be customised for your
needs.
  Crop protection Chemical Companies:
 Bayer Crop Sciences and BASF India Ltd.
 Use of SAP for:
 Sales related issues and
 Customers’ complaint management
Thank
you