How to Avoid 5 Common CRM Software Mistakes

How to Avoid 5 Common CRM Software Mistakes

We live in a fast-paced environment. To thrive in the continuously evolving business landscape, you need access to critical business information at a moment’s notice. 

The customer relationship management (CRM) system has revolutionized the way we do business today. With the advent of technology, your employees can easily access information at any time using any device. 

Customer Relationship Management (CRM) acts as a centralized database for all your business-related data. It allows you to retrieve, create, and even edit every information you need and gives you a real-time update of your records. 

In short, the power of CRM software can’t be undermined. 

The Most Common CRM Mistakes and How You Can Avoid Them

Even though CRM has been around for quite a long time, its successful adoption and usage can still be tricky. 

In the 2017 report, CIO magazine stated that around one-third of all CRM projects fail. Why? 

With a wide array of options, features, and prices, choosing the right CRM software can be a total nightmare. 

Whether you are a small business looking for a new CRM installation or an established company looking for a switch, both have their own challenges. CRM plays an important role in your day-to-day operations. That’s why it’s crucial to properly plan for your CRM project implementation to ensure good outcomes. 

1. Jumping In Without a Defined Business Process

The most significant mistake that most companies make is that they fail to create a proper business plan. 

You need to lay down your goals and objectives beforehand so that you can set the system up to accomplish them.

Typically, companies use CRM to store basic contact details. But the main value comes in terms of better sales productivity and making marketing more effective by grouping the customer information and how they relate to each other. 

Defining your priorities can help you manage your work effort. Without a proper roadmap, you will get caught in the whirlwind and never visit your priorities. And when things don’t work out, people usually end up blaming the software or technology. 

2. Lack Of End-User Value

A good CRM install can quickly go down if the end users don’t like the system. 

To succeed with CRM, you need to involve your people and explain to them how using a CRM solution will benefit them, as well as the company to achieve their goals. As an owner or manager, your employees look up to you. You can create a culture that depicts the positive usage of CRM software. 

You can discuss how CRM as a tool can help reduce costs, automate redundant tasks, increase revenue, and save time. If your end users see value in it, they will take ownership and try to create an impact from CRM. 

3. Implementing the System Without Proper Training

The whole process of selecting a CRM software and getting it up running can take more than six months. 

CRM software takes an investment of both time and money. However, even after a deliberate amount of consideration, the current CRM adoption rates are below


This is mainly because employees aren’t trained on how to use the system or why it is essential. And thus, they don’t take the software seriously. 

In fact, training is the most forgotten part of the CRM set up process. People are resistant to change, and if you look at it, 95 percent of the people who will be using the CRM software aren’t made to get involved in the process. 

Training should be adequately incorporated into the installation system. 

4. Overloading CRM With Unnecessary Features

CRM not only manages your contact records, but it can integrate with other systems, including ERP, accounting and invoice software, social media, and more. 

People get lured by the number of features it has to offer. But in reality, you don’t need all of them. 40% of companies use fewer than half the features they have on their CRM platform. 

Don’t try to make your CRM complicated by deploying features that are only going to confuse or intimidate users. It will only lead to more costs and more headaches and eventually become the reason for your failure. 

Rank the features based on value and cost. You can then remove those features that you don’t use or won’t need anymore. This way, you will be able to reap the maximum benefits out of it. 

5. Choosing a Solution That Lacks Scalability

It goes back to what we discussed in the first point — the lack of a defined business plan. 

Many business owners choose CRM software based on their present scenario of the business. They only take into account what seems to be the right fit for the current state. The CRM you choose might be well off for the first few years, but once your organization starts to expand, will it be able to adapt to the scalability? 

While choosing CRM software, you need to know how you can increase user adoption. 


All business segments, including marketing, sales, human resources, finance, and customer service, can benefit from CRM software. 

When you use CRM correctly, it can redefine the way your business operates and help your business grow. Make good use of CRM and watch your business flourish.

Kiran Bajpai

Kiran Bajpai works as a Marketing Associate at SoftwareSuggest. Her expertise lies in CRM Software. Reading books is something that she can never get bored of, especially those related to politics and history.

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