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.
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.
