Introduction

Plexipave for a failed CRM implementation

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Table of Contents

Introduction. 3

Reason for CRM implementation failure. 3

Conclusion. 6

Reference list 7

Introduction

This topic is intended to describe several reasons that have contributed to the failure of CRM. The main objective of this topic is to analyse the management of customer relations in connection with the implementation of Plexipave. This particular topic will dive deep in order to determine the CRM and its relation with the organisational systems and the main reason that led to the failure of Plexipave’s strategy. Plexipave is a United Kingdom-based company that produces acrylic surfacing for sports. These product surfaces have already been established in agency tournaments, commercial locations and residential purposes that involve Indian Wells, Tennis Asis and David Cup.

Reason for CRM implementation failure

The CRM project that was implemented by Plexipave failed due to a variety of reasons. Some of the reasons have been discussed below:

Ineffective user adaptation: One of the main reasons for the failure of the CRM strategy that was implemented by Plexipave is mainly due to low rates of user adaptation. This often takes place when the employees and the users of CRM do not participate in learning the key elements and essentials of the management system (Farhan, Abed & Abd Ellatif, 2018). The CRM of Plexipave is not well integrated into connection to its existing processes and workflow. Also when the systems are very complicated and confusing, it often leads to the failure of CRM strategies

Figure 1: Effective CRM strategies

Source: (Apogaeis, 2022)

Poor planning: The implementation of a CRM strategy is a very tough task. All the key elements have to be kept in mind while implementing a CRM strategy. Many companies fail to incorporate the most appropriate method for CRM strategy and that is the reason why most of the CRM systems fail. This process of implementation is a multi-step process and a general outline has to be identified for initiating clear workflow, user testing, software, employee training and data curation. Each and every step has to be examined and investigated so that it can prevent customers from getting frustrated and confused.

Creep scope: Every CRM project or strategy will have to continue to improve the management of its sales pipeline so that it can give utmost customer satisfaction.it must be decided what should be done and what should be avoided (Abd Ellatif, Farhan & Abed, 2018). But in the case of Plexipave, they failed to determine the correct process which will help them in improving their relations with their customers. The scope and purpose of a project keep on evolving and therefore the processes should be improved based on the current scope and requirements of the customers. Failure to do this leads to the failure of the entire CRM implementation.

Wrong software selection: The way it is important to choose the correct partner, it is similarly important to choose the correct software for the success of a CRM strategy. Plexipave chose the right partner but they terribly failed to choose the most effective software (Januszewski & Krupcała, 2021). Many companies consider purchasing software that is cheap in price but the customization of the software so that it will best suit the company will be a very expensive and tough task to do. Therefore it is very important to buy software that will be effective in the company’s CRM implementation strategy. The software should be chosen with the intention that using the software will make the tasks easier.

Visions: In order to successfully implement a CRM strategy, the vision of the company should be understood. Many companies effectively choose the correct software but fail to set clear goals and objectives that they want to achieve. Lack of vision is also one of the key reasons that lead to the failure of CRM projects. A similar thing happened with Plexip[ave when the company failed to set clear goals and objectives that they wanted to achieve in the CRM strategy. It is very important to analyse the failings and faults in CRM of a company and the visions of the company should be to enhance and improve their CRM strategies.

Figure 2: Reasons for the failure of CRM strategies

Source: (customerthink, 2022)

Non-evolving: Many companies adopt CRM strategies that will help the company in fulfilling its current needs. Companies fail to understand that with the change in time, the business will also evolve and change and therefore the company’s wants and needs will also change from time to time (Susanto & Winarno, 2021). A company will have to keep on evolving and adapting new strategies whenever they create a new product or a service because the customers will have different queries and questions that need to be solved on that particular product or service. This process will include identifying the problems and finding the most effective solutions to those problems.

Overloading activities: The main problem that Plexipave faced in the implementation of its CRM strategy is that the company took loads of tasks and activities and failed to fulfil them. CRM projects usually fail due to the massive overload of activities (Pashaie et al., 2020). The companies fail to understand that while they are working on a particular thing or trying to address a particular issue, they must focus on that thing and should not try to multitask. This often leads to a delay in fulfilling all the activities and addressing each issue in the due time. This creates a bad reputation of the company on the customer’s mind and also adds to the failure of the CRM strategy.

Conclusion

It can hence be concluded that although Plexipave is a thriving company in the sports sector, it failed to systematically implement its CRM strategy. The company failed to set its goals and objectives clearly which made the employees confused about what they needed to do and what not. The company also failed to evolve and change with the change in time and demands of the people. Also, the company focused more on multitasking and failed to set its priorities straight. Plexipave’s CRM strategy failed due to the fact that they failed to understand what their customers wanted from them and this led to poor customer feedback. All these factors are the key elements as to why CRM strategies fail and companies will have to find effective solutions so that they can prevent the mishaps that often take place in the implementation of a CRM strategy.

Reference list

Abd Ellatif, M., Farhan, M. S., & Abed, A. H. (2018). A systematic review for the determination and classification of the CRM critical success factors supporting with their metrics. Future Computing and Informatics Journal, 3(2), 24. Retrieved from: https://digitalcommons.aaru.edu.jo/cgi/viewcontent.cgi?article=1076&context=fcij

Apogaeis. (2022). Why Most of the CRM Project Fail?. Apogaeis. Retrieved 20 January 2022, from https://www.apogaeis.com/blog/why-most-of-the-crm-project-fail/.

customerthink. (2022). Retrieved 20 January 2022, from https://customerthink.com/the-top-reasons-crm-fails/.

Farhan, M. S., Abed, A. H., & Abd Ellatif, M. (2018). A systematic review for the determination and classification of the CRM critical success factors supporting with their metrics. Future Computing and Informatics Journal, 3(2), 398-416. Retrieved from: https://www.sciencedirect.com/science/article/pii/S2314728817300168

Januszewski, A., & Krupcała, K. (2021). Impact of the CRM System and Time Management on Organizational Effectiveness and Performance: Case Study of an E-Commerce Micro Enterprise. European Research Studies, 24(1), 1157-1172. Retrieved from: https://www.researchgate.net/profile/Kinga-Krupcala/publication/349652920_Impact_of_the_CRM_System_and_Time_Management_on_Organizational_Effectiveness_and_Performance_Case_Study_of_an_E-Commerce_Micro_Enterprise/links/603dfe9d4585154e8c6e2204/Impact-of-the-CRM-System-and-Time-Management-on-Organizational-Effectiveness-and-Performance-Case-Study-of-an-E-Commerce-Micro-Enterprise.pdf

Pashaie, S., Abdavi, F., Badriazarin, Y., Cincimino, S., & Fişne, M. (2020). The Model of Creation of Customer Relationship Management (CRM) Technology in Sports Services Section. Journal of advanced sport technology, 4(2), 38-48. Retrieved from: http://jast.uma.ac.ir/article_951_dcc4475cae5cdae58435a51290dedb6f.pdf

Susanto, Y. B., & Winarno, P. M. (2021). Leadership Effect as a Moderating Variable to the Performance of CRM (UMN Case Study). DOI: 10.4108/eai.1-10-2020.2305644