For small businesses that are looking forward to growing big, the most important thing to achieving this goal is usually the customers. Customer relation determines whether a business will succeed or not. For a better relationship with their customers, businesses use CRM.

Keeping a record of all the customers is very difficult, that is why businesses use CRM software to help solve this problem. Customer relationship management software keeps a history of all of the business’s potential customers. The data collected and stored by CRM include the number of times the customer has interacted with the company, their spending habits, and buying preferences.

Even though CRM can make a business prosper, there are still some drawbacks that are associated with its use. The following are the most common challenges of CRM systems.

1. CRM systems are expensive

The implementation of CRM is very costly. There are, however, many options that a business can choose from. Each comes with its price range for the businesses to choose the most affordable one for them. It is, therefore, better if they calculate the total cost of ownership to determine the most suitable one for them. The things to consider include the following.

  • The IT resources that are required
  • Cost of customization
  • The software and hardware requirements
  • Training and learning or relevant skills
  • Upgrade to premium
  • Purchasing and subscription fees.

The total cost of implementing CRM may also be affected by factors like quality and migration of data and conversion of business activities. To avoid such, they should plan properly and asses any possible hidden costs to set a more realistic budget.

2. Meager communication

To make sure that the CRM functions as intended, the information needed and how it is to be used must be well known by all the business’s relevant people. Integration needs should be communicated ahead of time, so if cooperation between teams is required for the implementation.

3. Poor or lack of leadership

Having poor leadership can harm the process of implementing CRM. For every project, customer focus should be pushed by the management. The customers should accept the proposed plan, of which if they do not, then another plan of implementation should be created by the team.

4. Resistance to cultural exchange

There may be no commitment from the business employees or resistance to adopting the new change in the business brought about by the CRM, which can lead to major business problems. Implementing the CRM may prove to be difficult because of this leading to a breakdown of the already existing customer relations due to loss in revenue. Everyone in the business has to view the activities from the customer’s perspective.

5. Record loss

To function, some CRMs use remote internet connections to collect and store records of customers. CRM applications that are provided through internet connections in the business domain have disadvantages. The disadvantage is that the business does not have control over the data, and in case of a shutdown of the remote CRM, then the business or company will not be able to recover the records. An unstable CRM can, therefore, lead to a loss of revenue in thousands of dollars for the company. To avoid such losses, the business should use local backups if using a CRM application hosted by a different company.

From their purchase, implementation, and use, it can be concluded that CRMs need to be chosen appropriately by every business or company, and some precautions need to be taken to avoid unnecessary challenges while using them.


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