We hear about a lot of Microsoft Dynamics 365 implementations failing and have subsequently helped many businesses rescue their failing CRM project and helped get them back on track. However, its important businesses are able to identify if their Dynamics / CRM project is failing and how they can avoid these pitfalls. In this article, we share the most common reasons for CRM failure and how we can help rescue your failing project.
What is a CRM system?
A Customer Relationship Management system (CRM) is software that helps businesses manage their relationships with customers and prospects. It stores all customer information in one place, making it easy to track interactions, sales, and support.
When implemented successfully, a CRM system should help:
- Bring all your customer information together in one place, giving your team easy access to up-to-date data.
- Automate routine tasks like follow-ups and reminders, freeing up time to focus on building relationships.
- Help your team collaborate by sharing information across departments, so everyone works with the same insights.
- Provide clear reporting and analytics to track performance, spot opportunities, and make better decisions.
- Enable personalised communication with customers, improving engagement and loyalty.
In short, a CRM should simplify how your business manages customers and drive better outcomes through more efficient, informed, and connected ways of working.
Throughout this blog, we have identified key reasons behind why an organisation’s CRM project may be failing:
Poor User Adoption
We’ve written an entire blog post on how to improve CRM user adoption — one of the most common challenges businesses faces, and a key reason why many CRM projects fail. Poor adoption is often the result of several underlying issues: unclear communication of benefits to employees, inadequate training, overly complex technology… the list goes on.
When users begin working outside the CRM and revert to old habits, it’s a clear warning sign that your CRM project is at risk.
Viewing the CRM as just a Technology Solution
One of the main reasons for a CRM to fail is the misconception that technology alone is the solution. A CRM system is simply the enabler and without clearly defined processes and a strong understanding of what works, what doesn’t, and what the ideal future looks like, the project is unlikely to succeed.
This foundational thinking should happen during the scoping and requirements phase. From there, a tailored solution can be developed — but success still depends on user adoption, proper training, and effective change management.
An Unsuccessful Partnership
When it comes to selecting both the product and the partner to implement your chosen solution, thorough research is essential. A common mistake is choosing a solution simply because it’s familiar, perhaps you’ve used it in the past, or someone you know has recommended it. However, every business has unique needs and requirements, so it’s important to evaluate all available options carefully.
If, like Microsoft Dynamics 365, the technology is implemented by a partner then take your time to review partners out there – look at reviews, case studies, social media, meet with them, etc.
We have come across multiple businesses who have implemented Dynamics and say, “Microsoft Dynamics 365 isn’t right for our business”, yet when we have delved deeper, it isn’t that Dynamics is not right, it’s the customisations that have been built on top of the platform by the partner, which are failing to meet the needs of the customer. A good partner will understand your business challenges, processes & goals, and design the system around this.
No Plan for the Future
When designing your CRM solution, it is easy to get caught up in the ‘now’ – what do you need currently, what are your current business goals, etc. Whilst this information is obviously needed and very important, don’t lose sight of the future and consider what your future requirements may be.
It is rare that business needs and requirements remain the same for a long period of time, so scoping out what you might need as your business evolves, will mean you have a system that is fit for your business needs today, and in the future. If you have implemented a plug-and-play solution, this will be trickier to fit around your future requirements.
A Bespoke CRM Solution can be customised over time, with additional functionality being built as required.
Lack of post-implementation support
We often come across the mindset that “the project is complete once the technology has been implemented.”
At Pragmatiq, we take a different view — the real project begins after implementation. This is the point at which businesses not only face some of their greatest challenges but also begin to unlock the true value of their CRM solution.
It’s easy to assume that once the system is live and training has been delivered, everything will run smoothly. However, that’s often not the case. Users are still adjusting to the new technology, learning unfamiliar processes, and overcoming any previous misconceptions they may have had about CRM software.
That’s why maintaining open communication between the partner and the client is so important. A shared understanding of potential obstacles, and how to overcome them, is key to long-term success.
Get in Touch
You may be reading this and recognise that your Microsoft Dynamics 365 / CRM project or implemented system hasn’t gone to plan and you are looking for additional support.
We have a team of Microsoft Dynamics 365 experts on hand to discuss your challenges and how we may be able to assist. Please get in touch by emailing us at info@pragmatiq.co.uk or calling us on 01908 038110. Alternatively, request a callback using the contact form.
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