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If conditions worsen within the company, organizations start lessening their budgets for the current phase. When funds are less, budgets strained, the necessary costs required for CRM success are not employed. As a result CRM starts failing midway.

Business Needs

Companies gain the technology needed and then apply it to the business problems find that it isn't solving any of them. Instead they need to analyze their business problems first and then find the appropriate CRM solution for it.

Returns

Organizations find themselves waiting for years before they are able to see actual returns on their investment. Most experts view the low ROI as a major problem with CRM but fail to see that the long wait is just as difficult. Waiting for years to see their investments show results, tests patience and leads to both employees and management slackening their efforts in the implementation.

Commitment

Company Adapting to a customer-focused approach may require a cultural change. There is a danger that relationships with customers will break unless everyone in the business is committed to viewing their operations from the customers' perspective.

Communication

In order to make CRM work, all the relevant people in your business must know what information you need and how to use it. The onus is on management to lead by example and push for a customer focus on every project.

Review of CRM Failures

CRM failures have been costly, disruptive, and embarrassing. Red ink, shareholder losses, upset customers, lost market share, lawsuits, and career setbacks are all typical outcomes of CRM failures. Several such failures have been publicly documented as companies have cited CRM problems for performance shortfalls during earnings announcements. Obviously, few companies are willing to detail failed initiatives but the information available provides strong indications of patterns of failure. The cost of CRM failure is dramatic and can take its toll in many areas of the business like financial performance, market share, return on investments, budget overruns, customer service quality, customer confusion, service levels, brand perception, sales effectiveness, sales force productivity sales force turnover, cultural impacts and so on.

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Dr. L. Lakshmi qualification includes M.Com, M.Phil, Ph.D., M.B.A & is pursuing M.C.A. She has 22 years of Teaching Experience. Currently she is Associate professor in commerce in Sri Sarada College for Women, Salem.