The 3 Biggest Disasters in CRM History

biggest disasters in CRM

It can help turn leads into sales, encourage repeat purchases, and help with branding strategy. Many companies also find their CRM systems vital for dealing with customer complaints efficiently.

However, CRM needs to be selected and implemented correctly to be effective. Poor use of CRM can lead to public relations nightmares and even the biggest disasters in CRM history. In the worst cases, these calamities can completely bankrupt firms. It is therefore vital to get your CRM strategy as watertight as possible.

Hershey's Bitter Experience In The Sweets Market

American chocolate manufacturer Hershey faced competition from all sides. Seeing its market share eroding, it naturally reached out to ERP and CRM providers to shape its client relations and boost its profits. However, things didn't go entirely to plan.

Hershey is a big company and believed they needed a large-scale solution. So they purchased a $112 million (£75 million) CRM system from Siebel. Unfortunately, this system proved too cumbersome and complex for Hershey's suppliers and production line. The stream of sweet treats halted, resulting in a frozen factory and thousands of disappointed customers.

Alongside a poor choice of a CRM system, Hershey also made a rookie timing error. Instead of working out a low-risk time of year to make wholesale changes, they timed their CRM implementation just before Halloween. Being one of the year's biggest chocolate binges, this made Hershey's CRM nightmare even more disastrous for the company.

Blackberry's Communications Breakdown

What happened to Blackberry is another of the biggest disasters in CRM history. Once upon a time, everyone had a Blackberry device to stay in touch with friends and colleagues. Nowadays, a Blackberry is merely a collector's item. One major factor in the firm's demise was a bad CRM implementation. In 2011, Blackberry experienced issues with its email services, resulting in freezes for users in some regions.

However, a localised crisis became a company-wide fiasco when users sought answers from Blackberry's help services. Instead of using CRM to send clear messages about what was wrong and what they were doing, Blackberry relied on Facebook, failing to realise how many customers were affected. That was the beginning of the end, and customers have abandoned Blackberry ever since.

British Airways' Twitter Fails

British Airways are well known for quality in-flight services and lousy customer service. One of the main reasons for this dodgy reputation is their long history of CRM failures. British Airways are infamous for their inability to use Twitter to connect with disgruntled customers. Every day, people take to their Twitter feed to broadcast their conversations with honest and automated British Airways support staff.

These Twitter broadcasts are rarely positive. One of the biggest problems with firms like British Airways is that they promise a great deal (24 hours a day customer service), yet often fail to deliver. They routinely take over 6 hours to respond to customer queries. Customers do what they do best and tweet about poor service. Before British Airways can do anything about it, news of their poor service has gone viral.

How to Avoid These Biggest Disasters In CRM

Hershey's expensive solution, Blackberry's confusing messaging, and British Airways' slow-moving customer help team - not the way you want to go. Avoid these biggest disasters in CRM: talk to Flowbird and develop a winning CRM strategy that is cost-effective and efficient.

Reasons Why Your Sales People Won't Use a CRM?

Your guide to overcoming sales staff aversion and increasing CRM adoption rates

Let’s get real: your CRM system was expensive. You invested time and money into researching, purchasing, rolling it out and renewing it. Thus, staff CRM adoption is not an option. It is a mandate. Your CRM is your portal into your company’s operations, and sales data and your sales team agreement are required to meet its full potential. Yet CRM avoidance is a real thing, and crafting a plan to manage reps who shirk your system is something you’ll have to do.

Most CRM systems are not doing enough to help in the sales process. Salespeople avoid it because it doesn’t advance their interests.

So what features should you shop for to get engagement from your salespeople?

Unless, of course, you roll out a CRM application your salespeople will want to use.

This free e-series provides valuable insight into the minds and preferences of salespeople and highlights the features your CRM must have to encourage use.

Our free e-series will help you:

  • Understand the difference between a bulky CRM and a workable one
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Find out why your salespeople won’t use a CRM today and start improving adoption today.

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5 Reasons Why Your Sales People Won't Use a CRM