Video"If at first you don't succeed, try, try again. Then quit; no use making a fool of yourself."
—W.C. Fields
Deployers of CRM software probably know what Fields was talking about.
It's ironic too, since the concept of customer relationship management software is a simple one. Treat customers well, and you'll always have customers.
There's only one problem with that concept. It's called reality. And the reality is, getting a CRM system right the first time is anything but a sure thing.
The list of companies that implemented CRM systems over the past few years is a long one, with every business manager seemingly wanting what every other one had. But many of those systems are now gathering dust — software converted to shelf-ware — as employees look for simpler ways to do their jobs.
To be fair, CRM rollouts tend to be ambitious projects. Unlike other business programs, customer-care software must often work across several channels, including Web sites, call centers, and retail outlets. Even makers of more robust, mature applications like enterprise resource systems have trouble getting their apps to work in several environments.
Deploying a CRM app the first time often leaves a lasting impression on deployers. Take the case of travel site ByeByeNow.com, which spent $8 million in 2000 on a well-intentioned CRM project intended to meet the needs of travel agents and consumers. Since BBN didn't want to compete against its travel agents, the E-tailer built a customer service infrastructure that allows consumers several ways to make purchases. Customers could buy from the company's Web site, a 24-hour call center, or one of its 250 brick-and-mortar travel agency franchises.
"It was a lofty goal," concedes Wendy Close, research director at technology consultant Gartner Inc. who's studied the ByeByeNow rollout at some length.
The return on ByeByeNow.com's $8 million investment? Roughly one-third of the company's 250 franchise travel agents used the CRM system. Says Close: "Other agents resisted the change."
To fix the problem, ByeByeNow would have had to say bye-bye to more cash. But apparently, BBN's venture capital backers balked at throwing good money after bad. "BBN was forced to shut down its call center," notes Close, "and put the agency franchises on the block."
Hardly a happy ending. But ByeByeNow is not alone. Monster.com, the online job listings company, reportedly spent $1 million in 1998 on a CRM solution to increase sales-force efficiency by providing "immediate" access to information on potential customers.
"Immediate" was a bit optimistic — the system was reputed to be so sluggish that field personnel couldn't download data on their laptops. This monstrous dilemma compelled the company to rebuild its entire CRM system from scratch, at a cost of a few million dollars more.
Won't Touch This
In fact, when it comes to CRM applications, it appears that many corporate managers are inclined to keep trying until they get it right. BMC Software Inc., for instance, launched two CRM initiatives that fizzled before finding its speed with a third CRM system.
"The first two projects were heavily driven by IT," concedes Jay Gardner, vice president and CIO at the Houston-based enterprise systems management company. "They turned out to be purchases of technology for technology's sake."
While the CRM software was made available to the sales force, Gardner says only 25 percent used the stuff. "It became clear that the rest wouldn't touch it unless there was a decisive and strong move on the part of management to require it, and high-level leadership from sales to carry the ball," recalls Gardner. "That was the turning point."
BMC learned the hard way — twice — how to implement a CRM strategy. "The previous efforts had very little involvement from sales management or sales professionals," says Joe Galvin, a Gartner vice president and CRM research director. "With two failed initiatives and skepticism running high, the likelihood of success for a third attempt seemed remote."
Galvin says the buy-in from senior officers, along with improved project management, made the difference. "The third time proved the charm," notes Galvin.
Getting sales in front of the CRM project was also critical to the success of the third endeavor, company CIO Gardner says. "I was at a conference recently," he recalls, "when someone in the audience said, 'What if I can't get my sales executives involved?' I told him to save his money, then."
Metric System
Indeed, experienced CRM deployers point out employees won't use CRM apps unless they feel the software will help them get their jobs done. "And they won't feel that," explains Gardner, "unless they're involved in the project."
Managers at BMC also discovered that it's crucial to change business processes before introducing enabling technology. "We reengineered most of the sales processes and many of the marketing processes prior to relaunching the CRM project," says Mark Meyer, BMC's director of CRM.
One for-instance: BMC completely redesigned its sales lead management process before relaunching its CRM system. Previously, the company didn't have a good way to bring all the leads into one place to funnel them out to the employer who owned the account. "By getting sales involved from the get-go," says Meyer, "we were able to gear technology to their needs."
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