CHAPTER 2 A Review of CRM Failures What Went Wrong with CRM CRM Contributes to a Scary Halloween for Hershey Why CRM Projects Fail. RM is expected to remain an important part of the commercial and government landscape, with projections of 9 percent CAGR between 2003 and 2007. | CHAPTER 2 A Review of CRM Failures What Went Wrong with CRM 26 CRM Contributes to a Scary Halloween for Hershey 30 Why CRM Projects Fail 33 Key Points 49 CRM is expected to remain an important part of the commercial and government landscape with projections of 9 percent CAGR between 2003 and In addition government agencies are rapidly adopting and adapting commercial CRM ideas. The entire annual CRM market is expected to reach billion in 2007 compared to billion in As an executive at a large insurer put it CRM is a very important business solution. Our customers want better tools and capabilities and product options and they re driving us into this space. But there s a heavy risk involved. How you connect CRM to the back office and bring customers on board makes all the you stumble the very credibility of your company is at Indeed while CRM is expected to grow shortfalls in returns are expected to continue. Recent industry research shows that only 16 percent of CRM projects provide real reportable business return on investment ROI .4 In a related study of the 43 percent of respondents who claimed to have achieved success in their CRM projects only half of this group was able to cite solid details about returns. An estimated 12 percent of projects fail to go live at .
