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What Are the Disadvantages of Customer Relationship Management?

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  • Written By: D. Nelson
  • Edited By: M. C. Hughes
  • Last Modified Date: 13 March 2014
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Some of the main disadvantages of Customer Relationship Management (CRM) occur when professionals do not use software in a way that is beneficial to their organizations. When salespeople neglect to update customer records, for example, the software ends up costing more than it benefits a business. A customer relationship management system that is incorrectly implemented can also cause problems for a business. If an executive decides to implement this kind of system, for instance, but does not include all departments, the information generated by can be inaccurate. Some opponents point to other disadvantages of customer relationship management, such as the depersonalization of sales processes, the difficulties of implementing these systems into preexisting business systems, and the comparatively time consuming tasks associated with retrieving and recording data.

Customer relationship management is a strategy that allows sales and marketing professionals to record, access, and track information related to customers and potential clients. This strategy normally requires use of computer programs that allow users to keep records that can help professionals to determine how to sell and market to new clients and how to satisfy current customers. Proponents of customer relationship management believe that is a more cost effective way for service and retail professionals to increase profitability.

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One of the most commonly cited disadvantages of CRM is that it can lead to dehumanization in sales processes. Instead of learning from firsthand experience which services and products clients prefer, salespeople access information digitally stored in databases. Some professionals believe that selling is most effective when sales professionals are able to appeal to clients at a visceral level.

Some critics point to the the technical disadvantages of customer relationship management. In most cases, these systems are implemented into business systems that may already include a complicated network of software and hardware. Some sales professionals have found that customer relationship management systems may not be compatible with other management systems. This can lead to confusion among users, and inconsistent results.

One of the most commonly cited advantages of customer relationship management is that it helps organizations cut costs and become more efficient. Detractors, however, believe that the opposite is true. The amount of time it can take for professionals to access and record data is thought by some to be greater than the time it takes to use conventional filing methods. Other detractors point to the time and money required to train employees to use new software.

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Discuss this Article

Sunny27
Post 2

@SauteePan - I never thought of that. I also think that using a contact relationship management tool also reminds a new salesperson to contact a customer in order to follow up with them.

With this type of system you can also send cards or special incentives to customers on their birthday or special events. If the computer can keep track of these things it will make the service more efficient and still maintain that personal touch.

I think that these tools can be great as long as everyone uses the system otherwise it will be a waste of time because the information will not be current.

SauteePan
Post 1

I understand how people can think that using customer relationship management tools might depersonalized the sales process, but I think that some documentation is better than no documentation.

This will allow a new sales representative a chance to service the customer appropriately. Sales positions often have a lot of turnover, so I think that leaving documentation in the system will make it easier for the next sales person that takes over the account to service the customer.

I don’t think that there are any short cuts when it comes to forming a customer relationship and taking a few extra minutes will help other people service the same account if they ever need to.

Sometimes people get promoted and this makes the transition easier.

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