CRM failures: A review of problems and horror stories

Excerpted with permission from "CRM Unplugged: Releasing CRM'S Strategic Value," by Philip Bligh. Published by John Wiley & Sons, Inc., April 2004, ISBN 0471483045. For more information about this book and similar titles, please visit www.wiley.com.

A 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. In this chapter, we have collected some of these stories. Obviously, few companies are willing to detail failed initiatives but the information available provides strong indications of patterns of failure. In addition, the authors have personally seen the aftermath of many situations where initiatives had gone awry and these experiences, together with the documented failures, provide an eye-opening dossier of reasons for failure. Ultimately, the mistakes of the past will help to set the proper expectations and goals for the future.

The cost of CRM failure is dramatic and can take its toll in many areas of the business. The following summarizes the typical impacts by category:

Financial Performance