Critical Success Factors for Customer Relationship Management Implementations

The growing forces of increasing global competition, continuing customer demands, and the significant revolution in Commercial Off The Shelf (COTS) solutions, especially Customer Relationship Management (CRM) applications, have together put pressure upon many organisations to implement CRM solutions and to switch their organisational processes from being product-centric to being customer-centric. A CRM initiative is not only technology; it is a business strategy supported by technology which automates and enhances the processes associated with managing customer relationships. By the end of 2010, it is predicted that companies will be spending almost $11 billion yearly on CRM solutions. However, studies have found that 70% of CRM projects have failed. Understanding the factors that enable success of CRM is vital. There is very few existing specific research into Critical Success Factors (CSFs) of CRM implementations, and there is no comprehensive view that captures all the aspects for successful CRM implementation and their inter-relationships. Therefore, the aim of this paper is to explore the current literature base of CSFs for CRM implementations and proposes a taxonomy for them. Future research work will continue to investigate in depth these factors by exploring the complex system links between CSFs using systems thinking techniques such as causal maps to investigate the complex, systemic networks of CSFs in organisations which result in emergent effects which themselves influence the failure or success of a CRM.