6 Disadvantages of CRM Software: Why It Fails and What to Do

Business software can sometimes feel like a bandwagon. Everyone’s using it, so skipping out is like missing a golden opportunity. But that isn’t always the case. In fact, there are times when not buying software is the best choice.

Here, we’ll explore some of the common disadvantages of CRMs and how you can avoid them by choosing the right CRM for you (or not choosing one at all). We'll also give tips on when it makes sense to use customer relationship management (CRM) software.

What Problems Is a CRM Supposed to Solve?

CRMs are designed to solve some of the most common problems businesses face when managing customer relationships. These include:

• Scattered Customer Data: A CRM centralizes contacts, conversations, and purchase history so teams can access everything in one place.
• Missed Follow-Ups or Lost Leads: It tracks deal progress, sets reminders, and automates outreach to help sales reps stay on top of opportunities.
• Poor Internal Communication: With a shared system, marketing, sales, and support teams can stay aligned on who the customer is and what they need.
• Lack of Insight Into Customer Behavior: CRMs capture activity (like email opens or purchases), providing valuable data to guide engagement.
• Customer Churn Due to Neglect: Automated check-ins and segmentation help maintain relationships and reduce drop-off.

In short, a CRM is supposed to make it easier to track leads, manage follow-ups, close deals, and build lasting customer relationships. But as you’ll see next, the tool that's meant to solve these problems can sometimes create new ones.

Here's a quick overview of a CRMs key advantages and disadvantages. As you can see, they're quite closely connected!

6 Disadvantages of CRM Software

CRMs hold a lot of potential, but that doesn't mean they don't come without pitfalls. If you want any chance of avoiding these pitfalls, you need to understand the them before diving in to CRM adoption.

High Cost and Budget Overruns

The most obvious disadvantage of implementing a CRM system is the cost. This is a significant business expense that will most likely have to be factored into your budget and finances.

According to data gathered by Creatio, small businesses typically pay $10-$30 per user/month for a CRM, medium-sized business pay $40-$100, and larger businesses shell out $150-$1,000.

This might not seem so steep at first, but that's not necessarily the only cost to consider. There are other costs associated with a CRM, including:

• Implementation: This includes moving your data to the new system, customizing it to fit your needs, and making sure it works properly.
• Onboarding: This cost can be calculated in training price or time lost to learning how to use a new CRM.
• Additional features: Some CRMs offer extra features at an added cost. These might include advanced reporting or connecting with other software you use.

Solution

While you can't avoid paying entirely, there are ways to reduce the amount you spend on a CRM.

First, you must be honest about your needs. If you're a smaller business, you might not need all the bells and whistles that a larger company would require. Once you've narrowed down the features you need, it's all about finding the solution that checks all those boxes and has the lowest price.

Consider using a tool like Softailed's Comparison Tool for CRMs to help you find the right option that meets your needs without breaking the bank. We even have a list of the best free CRMs that may be adequate for smaller businesses.

Complexity and Cost of Maintenance

According to Hubspot's 2021 State of Marketing Report, 40% of sales professionals were still using spreadsheets and email to store customer data. This suggests that many marketers may not have experience in CRM software, and may not be equipped to handle a complex workflow. This can lead to increased maintenance costs and potential downtime.

For example, say you purchase a top-of-the-line CRM with dozens of advanced features. If your sales team only uses the basic contact management and email tracking tools, you're paying for features that sit unused. Plus, you’re saddling your team with a more complicated interface than they need.

For many companies, a simpler system with all the necessary features can be more effective. It’ll make implementation and training easier. It will be less expensive as well!

Solution

Forget bells and whistles and zero in on your team's specific needs. By identifying these needs, you can make an informed decision about which features are necessary - and which ones are not.

It's also a good idea to have a clear roadmap for implementing new features to avoid adding unnecessary complexity. Start with the basics and slowly add more features as your team gets comfortable with the system.

Need more help? Read our piece on how to compare software to get a step-by-step breakdown of how to tackle big software decisions. Or, check out our CRM Software Finder Tool. After a short questionnaire, it will provide a list of CRMs that match your specific needs.

User Adoption and Training Issues

Research shows only 40% of CRMs achieve company-wide adoption, so this may be your biggest hurdle to using a CRM.

This can happen for a few reasons. If a CRM platform is too complicated, user adoption tends to plummet. Employees may get discouraged and refuse to learn it, leading to poor productivity and efficiency within the company.

In other cases, you might find yourself with a team that is used to the old way of doing things and exhibits reluctance to adapt to the new platform.

Even if your team is both capable and willing to learn, they will still need proper training and support to succeed. This includes time in the schedule for learning, or available mentors to guide them through the learning process.

Solution

A good onboarding and training process are the only ways to reduce user adoption issues and demonstrate the benefits of implementing a CRM.

Prioritize hands-on, interactive training rather than dull videos or texts. As a business, you also have to be flexible and allow for some trial and error as employees get used to the new system.

Integration Difficulties

Research shows that 65% of SMBs adopt a CRM within their first five years. But unless you adopt it from day one, you'll deal with some integration challenges.

Adopting a CRM means integrating it into your existing workflows, processes, and tools. The average organization uses more than 1,000 applications, so your CRM will need to integrate with all the most important ones.

This integration process can be more challenging for those who don't have a dedicated IT team or resources. Here are some potential difficulties you might face:

• Data Migration: Moving your existing customer data to the new system can be time-consuming and risky.
• Compatibility Issues: Your current tools might not work well with the new CRM.
• Workflow Disruption: Changing systems often means changing how your team works.
• Technical Knowledge Gaps: Without IT expertise, integration can be confusing.
• Maintenance Challenges: Keeping all systems working together requires ongoing attention.

Solution

The best-case scenario would be to find a CRM that integrates natively with all your favorite tools. The best CRM software for integrations come with hundreds of native connections and allow you to have API access to create your own.

Solutions like Zapier and Make are worth looking into as well. These platforms allow you to connect various apps and automate workflows.

Finally, be sure to thoroughly plan and test everything before implementing a new CRM system. This should help you isolate and minimize integration difficulties.

Data Quality and Accuracy Issues

Why do so many CRM programs fail? Because they're fed bad, incomplete, or inaccurate data.

Starting with bad data leads to misguided decision-making. A Gartner study found that every year, poor data quality costs organizations an average of $12.9 million.

For example, if your sales team enters incorrect contact information or fails to update deal statuses, your reports will show inaccurate forecasts. This could lead your company to make poor inventory decisions or misallocate resources.

Solution

The solution to this is pretty straightforward: you need to regularly clean your data and make sure it's accurate and up-to-date. Here's how you can achieve proper data hygiene:

• Implement Data Validation Processes: Create standardized forms and input fields that automatically check for errors, missing information, or duplicate entries before data enters your CRM.
• Schedule Regular Data Audits: Set up monthly or quarterly reviews of your CRM data. Use the opportunity to identify and correct inaccuracies, remove outdated information, and fill in missing details.
• Use Automation Tools: Deploy data cleaning software and automated workflows. These programs and tools can identify and fix common data issues without manual intervention. You'll save time and reduce the risk of human error.
• Establish Clear Data Governance Policies: Create documented guidelines for how data should be entered, formatted, and maintained, then train all CRM users to follow these standards consistently.

Over-Reliance on Data

A CRM is meant to provide you with data. Tons and tons of data. But while these numbers are important and can provide valuable insights, they shouldn't be the sole basis for decision-making. In fact, over-reliance on data can lead to neglecting other factors, such as customer feedback, touchpoint interactions, and industry trends.

The danger comes from overlooking the human element in customer relationships. If you get tunnel vision for metrics like conversion rates or ticket resolution times, you'll miss the qualitative aspects of customer interactions. Numbers tell you what happened, but they rarely explain why it happened or how customers felt about their experience.

Solution

Balance is key when using CRM data. Make sure to combine data analysis with personal customer interactions and feedback. Train your team to use the CRM as a tool to enhance relationships, not replace them. Also, regularly review your CRM goals and metrics to ensure they align with your overall business objectives and customer needs.

Final Thoughts

As you can see, CRMs are only as good as the people using them. Yes, adopting a CRM will involve costs and complexity. But these are challenges that can be overcome with the right approach.

In the end, it comes down to carefully choosing the right CRM to help reduce the likelihood of problems.

Softailed's list of best CRM software is a good place to start. You can also filter our top picks for various criteria like pricing, features, integrations, and more. When it comes time to choose between two or more options, you can use our Comparison tool to compare CRM software side by side, so that you get the best fit for your business.