Essay: Reasons for the Success and Failure of CRM Strategies

Sample Essay

Countless heavily funded CRM applications have failed in the most experienced of companies. A reason that is commonly attributed and is generally accepted to be the cause of these failures is the occurrence of error in the data used in the designing of the CRM strategy. More than often data that is derived from one source proves to be an insufficient determinant of the required information and measures taken on plans incorporating the patterns of the faulty data patterns therefore fail.

It is necessary to understand here that the value of information that data can provide is in direct proportionality to the cross-analysis of data of the same nature derived from multiple sources. Many organizations make the mistake of forming plans and CRM strategies on the basis of data that is of a preliminary nature, whereas modern day strategy development requires that an extensive cross analysis of the data is performed before it can be considered to be a source of knowledge. A modern day solution to this example can be seen in the purchasing of data through third party sources (Dyché 2002).

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