What Factors Can Cause CRM Controls to Lose Effectiveness?

What factors in CRM can cause the controls that have been established and implemented for a prolonged period to lose their effectiveness?

a) Lack of employee training and awareness

b) Technological advancements

c) Changes in customer behavior and preferences

d) Inadequate budget allocation for CRM maintenance

Final answer:

The effectiveness of CRM systems can decrease due to lack of employee training and awareness, technological advancements, changes in customer behavior and preferences, and inadequate budget allocation for CRM maintenance.

There are several factors in Customer Relationship Management (CRM) that can cause the controls that have been established and implemented for a prolonged period to lose their effectiveness:

When the personnel who directly handle CRM don't have the necessary skills or understanding, they may not be able to optimally use or maintain the CRM system, thus reducing its effectiveness.

Technological changes are frequent and rapid. If CRM systems are not updated according to these advancements, they may no longer meet organizational or customer expectations and hence, lose their effectiveness.

Customer preferences and behaviors change over time. If CRM systems are not updated to reflect these changes, they will not be effective.

Without enough budget allocation for CRM maintenance, the CRM system may not be periodically updated or upgraded, which in turn could lead to lower efficiency or effectiveness.