Customer relationship management (CRM) software such as Dynamics 365 is a vital tool for businesses that want to better serve and sell to their clients. It can track customer interactions so that customer service staff don’t have to hunt for information about a customer. CRM can also analyze customer preferences, buying patterns, and behavior to help businesses create more targeted marketing campaigns.
However, these advantages don’t always materialize smoothly. While CRM solutions are meant to enhance operations, businesses often face numerous challenges with the software. In this article, we’ll discuss the top eight CRM problems that businesses may encounter and how to overcome them.
Low user adoption
Poor user adoption is a significant hurdle for many businesses, especially those stuck in their ways when it comes to marketing and sales. Employees may resist the new technology, finding it unnecessary or too complicated to integrate into their daily routines. If employees don’t take advantage of a CRM system, it will be practically useless.
To prevent this, businesses must make adoption a priority from day one. Investing in comprehensive training sessions is crucial, but beyond that, organizations should focus on making the CRM system a core part of business operations. Show your team how it simplifies their workload by automating routine tasks such as scheduling follow-ups or tracking customer touchpoints. Early adopters or champions within the company can be invaluable in encouraging others to embrace the CRM software as well. They can share success stories of how the tool has helped them achieve their goals and offer hands-on support to their peers.
Difficult-to-use features
Many CRM systems come loaded with too many features, many of which might be overly complex or irrelevant for your business. The more complicated the system is, the more it overwhelms users, leading to frustration, lower productivity, and ultimately, avoidance.
Start with a basic version of a CRM platform that includes only essential tools for your business, such as contact management and sales pipeline tracking. As your business and team become more comfortable and capable, you can introduce more features over time.
Additionally, look into providing ongoing training and creating user guides for frequently used functions. Simplifying workflows within the CRM and cutting down on unnecessary features will make it more user-friendly, and in turn, increase adoption and productivity.
Poor data quality
Accurate data is what makes a CRM system powerful. If the data is inconsistent, incomplete, or outdated, it can lead to inaccurate reporting, missed opportunities, and poor decision-making.
To ensure the data in your CRM is accurate and reliable, you need a structured approach to data management. Manual data entry is often a major culprit for errors, so consider automating data entry where possible, such as using integrated web forms or syncing databases with other customer touchpoints. Regularly review and clean up old or irrelevant data, and make sure all team members follow consistent data entry procedures to maintain CRM data integrity. At the very least, forms should have must-enter fields to keep the data as consistent as possible.
Integration issues
CRM data and systems function best when they work in tandem with other enterprise software. Your CRM should be able to pull data from your website, email marketing platform, social media channels, and customer support software. However, integration issues can arise when different systems use different formats or when there is a lack of communication between them.
That’s why businesses should carefully consider their existing tech stack and check if it is compatible with the CRM system they are considering. Alternatively, if your existing tools aren’t compatible, try using third-party connectors or APIs that allow data to flow between systems. To truly ensure that data syncs properly across all platforms and centralizes all customer data in one place, collaborate with IT professionals specializing in CRM projects and implementation.
Lack of customization
If your CRM doesn’t offer enough customization, your team may struggle to adapt it to your specific workflows and fail to maximize the technology’s potential. Finding a CRM that allows for flexibility is therefore crucial. For example, your sales team might need custom reports that track leads based on specific criteria, while your customer service team might want to prioritize ticket response times. The better your CRM fits your business processes, the more valuable it will become in day-to-day operations and nurturing customer relationships.
Limited reporting and analytics
One of the biggest advantages of using a CRM tool is having access to robust reporting and analytics. However, some CRM systems fall short in this area, offering only basic reporting features that don’t provide enough insights for informed decision-making. Without the ability to analyze customer behavior and sales trends, businesses fly blind.
It’s therefore important to look for a CRM platform that offers advanced reporting features such as customizable reports, real-time analytics, and the ability to track key performance indicators. Your CRM should allow you to build reports that reflect your unique sales process and funnel, customer segments, leads, and conversions.
Data security issues
CRM platforms contain a wealth of sensitive customer data, such as contact details, purchasing history, and communication records. If your CRM system has weak security protocols, you can be an easy target of devastating breaches that could ruin your reputation and bottom line.
When using a CRM, set up features such as data encryption, user permissions and access controls, two-factor authentication, and regular backups. Limit access to sensitive data only to those who need it, and regularly update passwords and security protocols. Also, make sure your CRM vendor has proper data protection measures in place and is compliant with relevant regulations such as PCI DSS.
Cost concerns with CRM software
For many small and medium-sized businesses, CRM subscription costs can quickly add up, especially when factoring in hidden costs such as training, integrations, and extra features. While extremely helpful, an expensive system may become unsustainable in the long run, cutting into your bottom line.
Research the pricing structure of any CRM system you’re considering. Opt for a pricing plan that allows for scalability, starting with basic features and upgrading as your business grows. What’s more, consider the cost of training and user adoption. Naturally, the more feature-rich CRM systems will require more time and resources to learn. Look for CRMs that offer intuitive interfaces and plenty of support materials, including guides and tutorials, to minimize training costs without sacrificing functionality.
Dealing with CRM challenges can be overwhelming, but understanding and addressing these common issues will help you make the most out of your investment. Dynamic Solutions Group is a managed IT services provider with a proven track record of helping businesses find and implement the right CRM solution for their unique needs. Call us now.
