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Five Reasons CRM Stinks

March 16th, 2007 @ 3:40 am

6 Comments

Categories: General, Sales Tips

Tags: Geoffrey James

Don’t get me wrong. I like technology as much as the next guy, but I’ve been writing about – and hearing complaints about – Customer Relationship Management (CRM) for the past five years and have come to the conclusion that this is one technology that's got a lot of problems. For those not yet blessed with the CRM experience, it’s software that’s supposed to help sales reps sell, but in most cases it’s more like a contact manager on steroids. If what I hear from some sales pros is half true, it’s also a giant pain in the behind. The following five complaints keep surfacing:

  1. “If I wanted to be a data entry clerk, I would have applied for that job.” With many CRM implementations, sales pros are expected to spend an hour (or more) after each customer meeting, entering excruciating detail about exactly what took place. Most of the time, the requested data has nothing to do with actually making the sale.
  2. “If I leave the company, they’re going to steal my contacts.” Sales pros often come into a firm with a Rolodex full of contacts, all gathered over a lifetime of sales. With CRM, though, it’s not clear who owns contact data once it’s been entered into the system. In fact, if you enter the contacts that you brought with you when you were hired, and don't keep copies, your new employer might not let you have them back when you leave.
  3. “All this micromanagement is driving me crazy!” Now that CRM has been integrated with the new breed of smart cell phones, some sales managers want to track the hour-by-hour location and activities of sales reps when they’re not in the office. In other words, if you make your quota by mid-afternoon and take the rest of the day off (a time-honored privilege for a sales pro, in my view), you might find yourself called onto the carpet… or given a bigger quota.
  4. “The computer thinks it knows how to sell better than I do.” CRM is supposed to help sales pros follow a sales process – a set of steps that leads a prospect from first contact to writing the order. But many CRM implementations hardwire a sales process that only a programmer could love.  Making a sale can require subverting the system by entering bogus data – just to make sure the customer gets the order.
  5. “Why learn this turkey when we’ll have a different turkey next year?” According to some sources, the average tenure of a sales vice president is about 19 months. A change in management often means that the CRM software that the outgoing manager liked will be replaced as well. So why bother to get proficient?

This is not to say that there aren’t happy CRM users. (I run into them from time to time.) But there’s something fundamentally wrong with a technology that you still have to FORCE people to use. Even today, some CRM vendors tell sales managers to deny commissions to sales pros who don’t do their electronic busywork.

Next post, I’ll let you know what you can to keep CRM from driving you batty – and maybe help your entire team be more productive as well.

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  •  
    1

    chad@...

    03/20/07 | Reported as spam

    Myopia

    Spoken like a true sales hack. If you've made your quota by noon, you should have a higher quota......and the best sales people I know crank even harder right after they've closed a deal.

    Intelligent sales pro's know that once the rolodex is handed over it naturally becomes the property of the company....So they keep a back-up or copy of their contacts/rolodex. I thought this article would have more statistical data to support the argument - instead it seems to have been written by a whiney, mediocre sales amatuer that doesn't understand the merits of technology and how to use technology to their advantage.

    Sure, there is no perfect system and half of the problem is that over 70% of the sales professionals out there have your attitude and thats why there is so much churn. Some of you simply can't hack anything.

    The system is set up for you to have resources at your fingertips and to have a detailed history of each call or customer visit. Stop being so lazy, log some real data and refer to it before your follow-up. It might help you close the next deal. Seriously.

    Former Sales/Marketing/Operations Executive
    Current Technology Consultant - and no I don't sell CRM Systems but I have deployed 2 of them with success

  •  
    2

    gregbd@...

    03/20/07 | Report as spam

    CRM is broken because the approach is flawed

    The traditional approach to sales and sales management is broken and requires a totally new approach. Stop selling and start educating...

  •  
    3

    awake295@...

    03/21/07 | Report as spam

    Successful CRM

    Concerning Five Reason why CRM does not work, everthing said in the article can be TRUE for some companies. They over-react to an expensive CRM implementation. Actually, I am in sales, and I use CRM successfully, but I do not over-write and I enter only information that will really help me in the future. Also, CRM can bring some discipline on follow-up, etc. which many sales people lack.

  •  
    4

    kennethetucker

    03/22/07 | Report as spam

    CRM - Customer Realations MICRO-MANAGEMENT

    CRM - Customer Realations MICRO-MANAGMENT

    Fine for the 80% (order-takers) that are (STILL) only producing the 20% of business.

    A real 'drag' on the 20% (Sales Pros) that (most) ALWAYS are producing 80% of the business.

    There is no (manufactured) substitute for knowledgeable, skilled, well-compensated, and APPRECIATED sales pros.

    Period.

  •  
    5

    karishmak

    04/11/07 | Report as spam

    So what according to you should CRM ?

    So what according to you should CRM that would keep both management and sales pros happy?

  •  
    6

    darwin.com

    11/03/09 | Report as spam

    RE: Five Reasons CRM Stinks

    if you have to force someone to use a tool, then there's something fundamentally wrong with that tool or their need to use it at all.

    If proper needs analysis is performed BEFORE customer relationship management tools are introduced, then a happy ending is more likely.

    Darwin CRM

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