In the past five years, the CRM pendulum has swung from mindless hype to doom and gloom. Software vendors claim 100% satisfaction while analysts say 60-80% of projects fail. What’s the truth about why CRM projects succeed and fail, minus the self-serving spin?
That’s what is set out to learn earlier this year, with a statistically rigorous study that analyzed hundreds of CRM projects. Done in partnership with Caribou Lake and Mangen Research Associates, this new CRMGuru research revealed that:
- Customer-centric business strategies, including the effective use of customer satisfaction and churn data, is the leading predictor of success.
- The CRM project failure rate is only 35% (and unlike other industry studies, we do actually define what is a “failure”).
- About 50% of projects are getting a payback within 18 months.
- The brand of CRM software and implementation methodology is not a driver of success (or failure, for that matter).