CRM- can it be a misconception?

In the past decade, international markets have witnessed an increasing shift towards client focus. Analysts are of the opinion that this trend emerged due to multiple reasons such as reforms in the political arena, which opened a series for options for the client choices fueling the growth of the middle class along with availability of the massive wealth, revolution in the digital space which gave power to the clients to access information.

In the current era, it is possible to say that the clients have a very important role in the development of strategies, processes and also the varied activities in a company. When the economy is client driven, maintaining details of the clients holds relevance for attaining profitability. This is also one of the reasons for the existence of CRM for acquiring these client details.

Many experts have stated that CRM is a comprehensive business and marketing strategy that has the potential to integrate process, technology and relevant business activities around the client. CRM software has proven to be fruitful when it is implemented in the right way. According to a study by Gartner, the international expenditure of CRM keeps on rising with every passing year. This year, it successfully attained the $20-billion mark and it is likely to touch $36 billion by 2017. Despite the success rate, often CRMs have to face failures as well.

According to a study by Krigsman, the failure rate of CRM stood at a shocking 50% in the last decade. It is believed that with nearly 50% failure rate, the CRM expenditure keeps on rising with every passing year. No, the question which arises why does this happen?

One of the major reasons has been the lack of ability to develop a consensus definition of CRM, which has been responsible for creating confusion among the firms as to what is the actual role of a CRM, hence causing problems in implementation. 

It has become evident that there are varied organizations which have little understanding of CRM and treating CRM as a mere tool. CRM software tools are essential since they are in a position to offer better and improved insights, but the software deliverables should be understood first in depth. Moreover, a CRM strategy is not likely to function without the help of a platform/software but at the same time, CRM is not a software tool only.

In fact, more businesses need to understand that it is a wider business/ marketing strategy that aim for integrating with the complete firm for attaining a better relationship with the client. The CRM software is considered as the technology that has been pushing the strategy forward. It is believed that approaching the CRM as a just tool does not help in attaining a holistic approach towards the clients. It also hampers the firm from enjoying a cross functionality of client details flow between varied departments within the firm, which will enhance the failure risk by many count.

Different interpretations of CRM have been pushing companies to develop better expectations about the CRM as compared to the actual deliverables that it can provide. It is believed that the technology approach towards the CRM proves helpful in the implementation without strategizing and also enhancing the failure chances.

It is not a good option for companies to rush into CRM implementation. It is believed that a holistic approach will help the clients ie. strategic planning of the implementation that is beneficial for companies.

The article is also available at http://www.basearticles.com/Article/30455/CRM--can-it-be-a-misconception.html