Australian Business Directory

5 CRM Mistakes You Must Avoid

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Poor planning tops the list of the most common mistakes in customer relations management.

It goes something like I know I need it, I know I want it, I am too busy to put the time into the decision, I will take the word of this ”expert”, and I had no idea it would cost this much and produce this little return.


Picking the optimal customer relations management plan and provider requires that you know your business. You need an absolute well thought out business plan that includes your expectations of any customer relations management plan whether you get the plan from a vendor or develop it in house.

Know where you are and where you want to go. Do not expect miracle results overnight from any customer relations management program. It just never will happen.

The better you plan, analyze, and budget time, money, and people for your customer relations management program the more likely you are to get the sales results and customer rapport you are expecting.

Choosing Experts

The second most frequent customer relations management mistake is poor vendor choice.

There are literally thousands of customer relations management “experts” available with the “latest and greatest” that will “drive your sales through the roof”.

Do not buy this garbage.

Do your homework.

Check the vendor’s reputation either on line or with companies you know. Social networks and LinkedIn can give you great clues to the right vendor for your company.

Avoid people who have just started in the business of customer relations management. New starts usually think too well of themselves and too little of you – their customer. That attitude will come out in the program they plan for you and the results they do not produce.


Lack of change in a customer relations management is the third worst mistake you can make.

You need a customer relations management program that is adaptable to your business. If you change directions, change target markets, or add new businesses you want your customer relations management program to adapt seamlessly with any change you make.

Research avoids this problem. Try it before you buy it. Once you have narrowed your selection of customer relations management vendors down to three, start checking out the adaptability of their offerings. Will the program allow you to make changes quickly.

Ask your business partners that may be using that vendor or check with social networks about adaptability before you buy. Never take a customer relations management program salesperson’s word for adaptability.

Financial Planning

The forth most common customer relations management mistake is poor financial planning.

I had no idea it would cost this much is a common and frequent lament from businesses that did not consider all costs involved in customer relations management programs.

To avoid this costly error get a firm grip on your finances.

Determine how much you really can afford to spend on a customer relations management program. The variety of cost levels is as great as the variety of vendors and plans.

You must incorporate your present plans and plans for future expansion in a cost analysis of customer relations management programs before you start shopping for one and absolutely before you buy one.

If you do not plan for the costs you will end up with a program you cannot use because you cannot afford the costs.


The number five most common customer relations management goof is lack of security.

If you lose security of your customer’s data through a poorly designed program or a vendor error or even a vendor that planned to take your customer’s information and sell it to a competitor or on the open market you just lost customers and the money you spent on a customer relations management plan.

You want a guarantee of security. Yes, that is a bit much to ask for considering the number of corporate hackers there are out and about but it is possible and realistic.

First, check the reputation of your vendor’s security measures with other users. Usually, older companies have the most experience with security threats and can provide you with the best security.

Never take anyone’s word for security. Verify their claims before you buy.

One way you can verify is to involve the government. You pay taxes for the services so use them. The FBI, FCC, and DOC can all do the security background verification for you.

Customer relations management errors can be avoided with planning and homework.


About the Author: Victor is an experienced business consultant from Australia. He is dedicated to sharing his knowledge and helping small entrepreneurs. He works for an office rental company from Brisbane.

October 20, 2012 |

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