Why CRM fails and how to fix it

GROUP 6

◦ Piyush Yadav (19125027)

◦ Prakhar Dikshit (19125028)
◦ Pranab Roy (19125029)
◦ Puja Kumari Sinha (19125030)
◦ Reuben Joseph (19125031)
What is CRM ?
CRM = Customer Relationship Management Tool

1. CRM is the information system meant to strengthen and track

customer relationships
2. Built around complex software package, it helps companies stay
connected to customers, streamline processes and improve
profitability
Why CRM failed in many cases
◦ The marketing and sales functions typically sponsor investment in new CRM technology
and write the business case. This case then becomes a technology project whose focus is
selecting and deploying new technology.
◦ Limits marketers in learning new technology, rather than helping marketers carry out new
and different activities to understand customers and changes in their attitudes and
behaviors.
◦ The human resources function focuses on skills development of individual marketers,
rather than addressing how the organization develops new marketing capabilities.
◦ Companies continued running their business as they always had and assumed customer
would value results of their investment.
◦ Assumption that investment in CRM will naturally build more enduring and loyal
customer
CRM modules and different CRM tools
available
Modules Tools Available
1) Zoho CRM

2) MS Dynamics
CRM

1) Salesforce

2) FreshDesk
 Implications of CRM?
1) Capabilities are the precursor of CRM investment and
not vice versa

◦ Generating marketing capabilities are very important, to generate return from investment in CRM.
◦ Once the company acquires significant new CRM resources, it should have in place a team of skilled and
knowledgeable people ready to make the best use of them.
◦ Do companies invest in CRM or enhance their existing products and systems?
◦ Deferring the very large investments in big CRM solutions until the business case is clearly understood and
the CRM team’s marketing capabilities are evolved.
2) The rate at which capabilities develop varies between
companies

◦ The rate of organizational learning, rather than the size of the company’s CRM budget, determines how
rapidly companies can change the way they relate to a consumer.
◦ Managers should be realistic about both the level of return and the time it will take to develop new
capabilities.
◦ CRM programs are all too often designed to meet a short-term horizon. CRM becomes no more than
technology enabled sales promotion
3) CRM cannot always be driven top-down

◦ Every customer has different requirements.

◦ The understanding of CRM capabilities and the ability to develop them are emergent rather than immediately
obvious
◦ Using agile methodology in projects will allow a team to capture the changing customer needs and get
feedback at an early stage in the project development.
◦ These teams can then come back to top management when they need further investment to support further
learning and development of their CRM programs.
◦ An organizational culture that tolerates experimentation will be more successful at building new CRM
capabilities.
4) Hard work and commitment are what it takes to develop
marketing capabilities

◦ Marketing capabilities linked to CRM are far from being a black box and can be developed through
conscious, goal-directed learning
◦ Flutter did not merely know about consumer behavior — they knew their consumers. BMW (UK)
traditionally relied upon survey data to know about consumers, rather than knowing their consumers.
◦ It realized that in order to develop its one-to-one marketing capabilities, it would first need to take consumer
relationships and their interaction in-house in order to start “talking” to individual consumers and to learn
from the experience.
Who can benefit from CRM?
1) Small businesses looking to grow.
◦ CRM can take the burden of IT management off your employees by automating your business processes so
you can focus on what's important: leading your business to succeed.
◦ Cloud based CRM solutions can help them centralize their data and offer insight on the strategies.

2) Industry leaders wanting large-scale solutions

◦ Sales leads can now be tracked more efficiently.
◦ Use artificial intelligence (AI) to guide your business decisions and drive innovation
Examples where CRM failed

◦ During the mass migration of data, customer information and other data were unavailable which stalled
operations. Customers call in were unable to be helped and Cigna employees were essentially useless as they
could not access anything they needed to.
◦ The result was devastating. Not only did their reputation and image take a hit, there were tangible affects.
Membership fell from 13.3 million to 12.5 million
◦ The net losses were $398 million in revenue alone.