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There has been considerable hype on CRM solutions, the productivity, the information, the improved customer relationships, you name it. But everything has its flaws, and the seemingly perfect philosophy has its own too, both psychologically and financially.
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- Difficult to work with, complex, needs extra training to work with
- It is hard and time consuming to populate a database. The initial data entry takes a lot of time.
- Many processes involve human touch and dehumanizing such a process reduces its effectiveness.
- CRM systems require continuous maintenance, information updating, and system upgrading which adds to the costs.
- In some cases it might be difficult to integrate with other management information systems this would lead to extra costs or problems due to incompatibility.
- In the companies of smaller size, lack of formalization of the procedures and the lack of the employees’ interest in the importance of CRM may lead to problems.
- Sometimes, too much information is in the CRM system, and it simply frustrates users to find the information that they want.
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Content Courtesy: Abhishek Chauhan, Abhishek Choubey.
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Tags: CRM, Disadvantages, lack of formalization, management information systems, populating a database