Companies invest in a CRM system to increase their efficiency, profits and to streamline the process. In an era of rapidly changing technology, there is an abundance of CRM solutions in the market. Whenever a CRM fails to meet the expectations, businesses often switch to a better system. This decision can help them save critical resources such as time and money.
There are plenty of reasons companies choose to change a CRM, and in this article, we will take a look at the five most important ones.
1) The Business has outgrown the Current CRM
Businesses go on to become successful and expand their operations. But at times, their CRM systems cannot keep up with the growth. Those CRMs may have been a great choice once but now lack features to support a large firm.
Many problems can arise from an outdated CRM that may drastically affect the business. The CRM might fail to accommodate staff into new departments and cause operational issues in the sales and marketing departments. Moreover, integrations in these sectors could become more complex.
Additional operational costs could also push businesses to find an alternative system since there will be more manual work. Whenever CRM’s functionality becomes obsolete, companies tend to explore other options in the market.
2) Overly Complex Platform
Advanced functionality in the CRM may seem like a good option, but this isn’t always the case. Small companies often require only a limited amount of features that are easy to use. A complex and poor interface can cause employees to get confused and overwhelmed. It can even lead to turbulence in the sales and marketing departments.
A CRM’s core use is to smoothen the workflow to let you perform tasks with ease. Whenever a CRM cannot provide a https://www.osmoscloud.com/blog/wp-content/uploads/2022/09/header-cover-1.jpg-friendly platform, it destroys the purpose of implementation. Therefore, companies begin searching elsewhere for a better fit.
3) Low Adoption Rate
If the number of employees who use CRM per month is less than 50%, it could be a problem. Low usage of a CRM may indicate that https://www.osmoscloud.com/blog/wp-content/uploads/2022/09/header-cover-1.jpgs are reluctant to use the CRM. It could be due to a lack of training or the lack of need for a CRM system.
Some CRM vendors are better than others when it comes to onboarding and training employees. The current vendor may have failed to provide adequate training and support, which resulted in low CRM use.
Companies know that their investment in a CRM requires a strong relationship with the vendor. After all, it requires frequent guidance on a long-term basis.
4) Huge Price Increases
The cost of supporting a CRM system may surge over time in terms of the annual fee. Sometimes the renewal contracts may increase by over 20%! Which could be out of the budget for companies.
No business likes to receive a mail informing them about the price increase. But sadly, for some vendors surge in prices is a way to increase their revenue without providing new features.
At this point, companies start to consider whether to go ahead with the renewal or switch altogether. Some firms choose the latter since a 20% increase can be substantial over five to ten years.
Another reason for a price increase could be labor turnover which increases the training cost. If a CRM requires rigid training, a new employee will have to train from scratch.
5) Poor Customer and Support Service
Some CRM vendors fail to meet the support expectations that the company had initially. For instance, the firm needs a qualified person to assist them in technical issues, but the service is late and poor.
This type of service disappoints companies since it causes a loss of time and money. And if the vendor repeatedly falls short on expectations, the firm will inevitably look for other options.
Therefore, CRM providers should respond quickly to support requests and adhere to the contract agreement.
Switching a CRM can be a boost for companies since it can increase efficiency and revenue. Moreover, the right move can reduce operational costs and improve sales and marketing.
Companies rarely switch since the new implementation can be costly and time-consuming. But when they have no options left, they are ready to make a change.