logo
  • Home
  • COVID-19
  • About Us
  • Products
  • Services
    • Microsoft Dynamics 365 CRM Training
    • Microsoft Dynamics 365 CRM Configuration
    • Microsoft Dynamics 365 CRM Customization
  • Resources
    • Blog
    • White Paper download
    • CRM for SMB
  • Clients
Contact Us 610.355.1978
Blog
50% CRM Failure Rate? Really? And nothing has changed for 3 decades?- Part 1 of 2 
Posted on 11/10/2017

Has nothing really changed for 3 decades?

In the mid 1980s, when CRM as a term did not exist, I remember reading an article on the failure rate of IT projects in the world of the mainframe which stated it was 50%. 

Over the last few months, I’ve been perusing articles on the same topic and it seemed like nothing has changed!  The “failure” rate was still unacceptably high!  Here’s some statistics I found at www.crmsearch.com:  

  • 2001 Gartner Group: 50% Failure Rate  
  • 2002 Butler Group: 70% Failure Rate  
  • 2002 Selling Power, CSO Forum: 69.3% Failure Rate  
  • 2005 AMR Research: 18% Failure Rate  
  • 2006 AMR Research: 31% Failure Rate  
  • 2007 AMR Research: 29% Failure Rate  
  • 2007 Economist Intelligence Unit: 56% Failure Rate  
  • 2009 Forrester Research: 47% Failure Rate 

All these rates are based on surveys of companies that implemented CRM.  On the other hand, consultants operating in this field perceive a much lower failure rate – for example, Barton Goldenberg claims a 90% success rate. 

But Why?

So, is there a huge disconnect in terminology and perception, or are we so dumb that we haven’t figured out how to improve performance?  Here’s an interesting 2004 interview of a Gartner executive who talks about dimensions that I believe are still valid – http://customerthink.com/reports_crm_failure_highly_exaggerated/  

For the company upgrading or implementing a CRM, it is most important to understand the parameters that apply, so that you are setting up yourself for success, not failure.  It is possible.  Like Barton, we’ve been doing this in our IT practice for years.   

However, the IT provider will always take your money, even if the provider knows that the customer refuses to implement recommendations.  After all, providing services for a fee is what puts bread on our table.  But what’s the point in contributing to failure rates, increasing dissonance and unhappiness, and creating more pain for the organization? 

 

Part 2 will be published in my next blog article. 

 

==== ==== ==== 

References 

  • http://searchcrm.techtarget.com/news/769544/Gartner-glum-on-CRM-success-rates-and-costs  
  • https://www.forbes.com/sites/louiscolumbus/2014/05/28/gartner-predicts-by-2015-more-than-50-of-crm-will-be-deployed-as-saas/#1b35f0326748 
  • http://officeoffinance.com/gartner-75-of-all-erp-projects-fail-but-why/  
  • http://www.destinationcrm.com/Articles/Editorial/Magazine-Features/The-Truth-About-CRM-Success-&-Failure-45491.aspx 
  • http://customerthink.com/reports_crm_failure_highly_exaggerated/  
  • http://crmsearch.com/crm-explained-implementation.php 
  • http://runapptivo.apptivo.com/must-know-crm-statistics-2016-12811.html 
  • https://www.cio.com/article/3211485/project-management/why-it-projects-still-fail.html#tk.cioendnote 

 

Categories

  • CRM Implementation
  • Database Applications
  • For Your Information
  • Office 365
Address

EBS, Inc.

1990 Sproul Road,
Second Floor, Suite B

Broomall, PA 19008

Phone

610.355.1978

Fax

610.973.7815

    Site Map Contact Us
    logo

    © 2015-2020, Ebs, Inc.,

    All Rights Reserved

     

    This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.

    Necessary Always Enabled

    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

    Non-necessary

    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.