Hello, this is Matsubara, CRM Evangelist.

"We installed a CRM system before, but in the end, nobody used it."

"I paid a lot of money for this, but I've gone back to using Excel."

Stories of failed CRM implementations are frequently heard from small and medium-sized business owners. In fact, it's said that many CRM implementation projects end without achieving the expected results.

However, in most cases, the cause of failure is not a problem with the tool itself, but rather a problem with how to choose or start using it . This article will explain in detail five reasons why small and medium-sized enterprises (SMEs) tend to fail when implementing CRM, and how to address each of them.

Reason for failure ① Too many functions, making it difficult for users to utilize them effectively.

This is the most common pattern of CRM implementation failure among small and medium-sized enterprises.

"If we're going to install something, we might as well get a high-functional one," they thought, and implemented a CRM system designed for large corporations. However, the operation is too complicated, and the sales representatives on the ground are reluctant to use it.

Common comments:

• "I don't know where to enter what."
• "There are too many fields to fill in, so it takes too much time."
• "The previous version of Excel was faster."

Even the best tools are useless if they aren't used in the field. A CRM system that doesn't receive data is just an expensive empty box.

Solution: Prioritize "simplicity that users can easily use without confusion" over the number of features when selecting a system. Start with minimal features and gradually expand them as users become familiar with the system.

Reason for failure #2: Only management made decisions, without involving those on the ground.

"The president decided to implement CRM. We're the ones who will be using it, but they didn't listen to our opinions."

When field sales representatives feel this way, the CRM retention rate drops significantly.

The psychological resistance to tools they weren't involved with is far stronger than one might imagine, and the feeling of "I don't want to use it" often stops them from entering data. Furthermore, usability issues from a practical, on-the-ground perspective are often overlooked, leading to frequent cases where the actual workflow and the tool's design don't align.

Countermeasures: Before implementation, involve sales representatives and managers who will actually be using the system to gather information on "what is inconvenient" and "what kind of information they want to manage." After a small-scale test implementation, roll it out company-wide.

Reason for failure #3: I thought it would all be over once it was implemented.

CRM is not a tool that "works automatically once installed." The success or failure of a CRM depends on the operational design after implementation.

Nevertheless, many companies become complacent once they have "purchased the tool and issued an account," neglecting subsequent follow-up.

Common problems that occur after implementation:

• There are no rules about who enters the data and when.
• The input format is not standardized, and the data is inconsistent.
• There is no one to answer the question, "I don't know how to use it."
• There is no system in place to regularly review the data, so the information becomes outdated.

Countermeasure: Establish "operational rules" at the same time as implementation. Clearly define who inputs what, when, and make it a habit to check weekly for the first month.

Reason for failure #4: Inability to adapt to the company's business workflow.

Many off-the-shelf CRM systems are designed based on a "standard sales process," which may not be compatible with a company's unique workflow.

For example, companies with multiple approval flows from order placement to delivery, companies that want to manage regular maintenance visits, and companies with industry-specific sales processes—standard CRM designs may not be sufficient in these cases.

Trying to force work processes to adapt to the tools often leads to dissatisfaction from the field and inconsistent data entry.

Solution: Make "the ability to customize to your company's workflow" a key criterion when selecting a tool. A CRM that can be customized without coding allows for continuous and flexible adjustments to adapt to changes in business operations.

Reason for failure #5: The benefits did not justify the cost.

Especially when implementing a CRM with high monthly fees, it's easy to fall into a situation where you think, "I'm paying this much money, but I don't see any change."

The effects of CRM are often difficult to see in the short term. However, if it costs tens of thousands of yen or more per month, business owners tend to expect results quickly. It is very common for them to decide that it is "not effective," cancel the service, and conclude that "CRM was just not right for them."

Furthermore, high costs can create pressure on the team to "make sure they use it properly," which can actually make it more difficult to use.

Solution: Start small with low-cost tools and gradually expand while confirming the effectiveness. First, build a small success by "centralizing customer information" and cultivate acceptance among staff.

Three checklists for successful CRM implementation

Based on the reasons for the failure, I've summarized three key points to check before implementation.

Check 1: Is it simple enough for on-site use?

• Can it be used intuitively without instructions?
• Isn't the input process too time-consuming?
• Can the sales representative say, "This is usable"?

Check 2: Can it be adapted to our company's operations?

• Can I freely add and change the items I want to manage?
• Can we set up stages that match our company's sales process?
• Can you flexibly adjust to changes in business operations?

Check 3: Can we start small?

• Is it possible to try it at a low cost (is there a free trial)?
• Can we start with a small area and gradually expand it?
• Is it easy to cancel or switch providers?

Choosing a CRM that meets these three criteria will significantly reduce the risk of implementation failure.

Why EMOROCO CRM Lite is "less likely to fail"

Based on the five reasons for failure mentioned above, let's look at how EMOROCO CRM Lite is designed.

Designed with simplicity as the priority: We've focused on the essential functions needed in small and medium-sized businesses and adopted an interface that anyone can use without hesitation. Its ease of use, requiring no training, encourages its adoption in the workplace.

No-code customization: You can freely configure management items and sales stages to match your company's workflow without any programming. Instead of "adapting your work to the tool," you can "nurture the tool to suit your work."

Small start from ¥1,500 per month: The low cost allows you to gradually expand its use while monitoring its effectiveness. It's an affordable price range that makes it easy to "just give it a try."

Summary

Let's review five reasons why CRM implementations in small and medium-sized enterprises (SMEs) often fail.

1. Too many features, the people on site can't use it properly
2. The decision was made solely by the management.They did not involve those on the scene.
3. Once installed, it's done.I thought so
4. In our company's workflowCould not match
5. Cost-effectivenessI couldn't see it.

In all these cases, the problem lies not so much with the tool itself, but with how you choose and start using it. Starting small with a simple, flexible, and low-cost CRM is the best way to avoid failure.

EMOROCO CRM Lite offers a free trial. Try it out and see if it's right for your company.
EMOROCO CRM Lite Product Page

Next article: [What can you do for 1,500 yen a month? The full scope of business efficiency improvements that can be achieved with EMOROCO CRM Lite]

Previous article: [Salesforce, kintone, EMOROCO: Which CRM is truly right for small and medium-sized businesses? A comparison of cost and ease of use]