15 Practical Challenges In CRM Implementation

Challenges in CRM Implementation can be broadly categorized into People Challenges, Technology Challenges, Business Process Challenges, and Other Challenges.

​People-Related Challenges

#1 Lack of Senior Management Sponsorship

CRM initiatives solely driven by IT teams without management buy-in; business users unclear on benefits; management unwilling to commit to enforcing CRM adoption. Mitigation: Having an internal CRM champion from executive management.

#2 Expecting Too Much, Too Soon — Boiling the Ocean

Trying to accomplish all CRM objectives in the initial launch; adopting a Waterfall methodology instead of Agile; underestimating end-user transition by giving a full-featured, complex CRM from the get-go. Mitigation: Adopt the "Think Big, Start Small, Move Fast" strategy for CRM.

#3 Lack of Scope Clarity & Budget Overruns

Not committing adequate time and budget to requirement discovery; underestimating integration effort, data migration complexity, end-user resistance, training costs, and infrastructure costs. Mitigation: Detailed requirement discovery workshops using Agile project methodology.

#4 Underestimating Change Management

Active resistance due to perceived threat from CRM; passive resistance due to inertia; CRM interface slow or unintuitive; CRM viewed as "something that benefits management only." Mitigation: Make end-users aware of what benefits they get. Incentivize adoption. Ensure an intuitive, easy-to-use, fast CRM system. Plan adequate training exercises.

#5 Changes in Key Stakeholders Mid-Project

Internal CRM champions leaving; arrival of new IT or Business Heads with different visions; changes in key CRM vendor personnel. Mitigation: Adequate documentation of CRM project objectives and intermediate progress sign-offs. Enlist more than one internal CRM champion for redundancy.

#6 Lack of CRM Vendor Expertise

Vendor does not have enough experience with the CRM product; lacks technology or process maturity for delivering projects of similar scale; ill-prepared to anticipate implementation challenges. Mitigation: Adequate due diligence at vendor selection stage to assess vendor maturity and expertise.

​Technology-Related Challenges

#7 Lack of CRM Product Fit

Product cannot support multiple deployment options (Cloud, On-Premise, Private Cloud); not flexible enough for deeper customizations; not keeping pace with current CRM trends (Global, Social, Mobile); not intuitive or user-friendly. Mitigation: Due diligence at product selection for both current and future business needs.

#8 Integration-Related Issues

Existing legacy systems don't support modern web-services based integration; lack of support from other vendors; data integrity issues and uncertainty over "single source of truth." Mitigation: Identify what data needs to be pulled from where, involve existing systems' vendors early, develop prototypes where needed.

#9 Infrastructure-Related Issues

On-Premise: inadequately sized hardware, underestimating high-availability setup budget. On-Cloud: underestimating scaling costs, lack of complete data control, compliance/regulatory issues. Mitigation: Plan carefully upfront. Best, choose a CRM that supports both models.

​Process-Related Challenges

#10 Data Migration Gotcha!

Data fragmented and siloed in various applications; data integrity issues in migrated data; incorrect assumptions about data quality. Mitigation: Know your data — clarity about how much, how good, and where it is, is mandatory.

#11 Impact on Existing Business Processes

Considering CRM as just a technology instead of a business transformation tool; inflexibility to change existing ways of doing things; implementation that is overly disruptive. Mitigation: Recognize the transformative power of CRM, be flexible to adopt best practices. Enlist an executive management sponsor early on.

​Other Challenges Unique to Large Organizations

• #12 Difficulty in deploying a single CRM across multiple geographic regions due to differences in business practices and required localization
• #13 Artificial time pressures created by end-of-contract situations with existing vendors that can derail change management efforts
• #14 Changes in business priorities mid-implementation — reallocation of CRM budget, mergers & acquisitions, regulatory changes
• #15 Complexities in information security due to differing encryption standards, government data access requirements, and industrial espionage risks in certain regions