It is a common misconception that a successful CRM implementation relies heavily on the software tool that is used, in fact, it is quite the opposite. In order for companies to maximize their investment and increase their chances of success, they must consider all of the elements of successful CRM.

The approach to CRM should be based on three main areas: people, process and technology, in order to achieve long term results. Below are the highlights of this approach.

People-50% of Success

The most important element for CRM success is people. People are naturally resistant to change. Unless properly planned for, change may be seen as disruptive. To get the users motivated and willing to accept change, companies must keep in mind the following elements:

Proper Training: Sales people must understand how to use it, why to use it, and how CRM can be a tremendous aid for shortening their sales cycles.

Understanding Management's Intent: They must understand that this a tool that will help them be more productive and reduce tasks that they are already preforming, not a big brother management tool.

Upper Management Support: CRM cannot be a if you want to initiative. It must become part of the company?s sales and marketing requirements.

Easy of Use: Any new tool must be easy to use and relevant to a salesperson's job.

Sales & Marketing Driven: CRM should not be an IT initiative. Most IT departments will never use CRM and may lack the understanding of sales and marketing's daily activities.

Process-30% of Success

When implementing the process piece, it is important for the organization to map out and document key internal and external customer-facing processes. Look at each identified key process and determine whether it is optimal or could be improved, including:

Ownership: Does the process have one or more than one owner?

Metrics: Does the process have stated metrics? (e.g., we will increase customer retention by 5% annually)

Interfaces: What other persons or departments are involved in the process?

Procedures: Does the process have clearly stated procedures so that regardless of who is working

with the process, everyone knows how to implement each step of the process?

Integrity: Is the process practiced the same way by everyone in the organization?

Vision: Does the process support the long-term differentiation of the organization?

Technology - 20% of Success

CRM success tends not to be one of technology, but rather the companies readiness to absorb and use the technology. When selecting technology, the following should be taken into account:

Company Viability: Does the software have a proven track record and support structure?

Integration Capability: Can the software seamlessly integrate with other products?

Technology Compliance: Does the software fit with current technical standards?

Long Term Strategy: Does the vendor have a product road map and development strategy?

Support: Does the vendor offer needed implementation sevices and support for their products?