CRM or Customer Relationship Management refers to a set of software, processes, and business strategies that help organizations build long-lasting relationships with their customers. CRM software is currently the largest software market in the world and the growth is expected to increase even more in the coming years. Industry experts forecast CRM revenues to hit more than $80 billion by 2025.

According to statistics, between 18% and 69% of all CRM projects fail. The reasons for failure are many- technology limitations, budget constraints, data integrity issues, and many more.

However, careful planning of CRM implementation right from the start can ensure the successful implementation of the CRM software.

What factors affect CRM implementation?

Implementing CRM is a challenge for many organizations because it involves all employees and changes at every level of the organization.

Here are a few factors that affect CRM implementation:

Cost

Without proper planning, CRM implementation can be a costly affair. Hence, it is crucial that you identify the objectives of why your business needs CRM. Doing so can help you determine the right type of CRM and the implementation technique for your organization. Once you have determined the type of CRM, you can set a budget accordingly.

Define clear objectives

Setting clear objectives about what your organization intends to achieve is a major factor behind successful CRM implementation. The objectives you define must also be measurable metrics. Without this, it will not be possible for your organization to evaluate the benefits or ROI of the system.

Deployment type

Do you want an on-premise CRM or a cloud CRM? There are several factors that you must consider before deciding on how you want your CRM to be deployed. You should include ownership costs, resources required, infrastructure, and upgrades when determining your budget. The CRM deployment type will also depend on the type of industry your business operates in and your business preferences.

Training

Poor user adoption is one of the primary reasons for CRM implementation failure. CRM implementation requires organization-wide training of your employees. Involving all potential users in the decision-making process is a wise idea. A few key employees can be trained on the CRM from each department, who in turn, can take up the responsibility of training others in the organization.

Choose the right CRM provider

Selecting the right CRM service provider is crucial for successful implementation. Wherever possible, you should choose a service provider that offers both implementation and pre-implementation strategies. Your provider should also be able to provide details of all implementation risks before you sign the contract.

When implemented smartly, CRM software can be your core business strength. 74% of businesses report improved customer relationships with the implementation of CRM.