Statistics is an important part of the business world in London, UK. So many agencies will make statistics for any kind of data you can provide to them. Numbers and percent became inseparable from digital marketing or even web development. Unfortunately, there will always be some figures that will strike you so hard that you will remember it for a long time.
For example, this one: almost 70% of CRM implementations usually fail. However, striking facts should be at least checked and some of them even ignored.
Before using any kind of statistics you should check the quoted report (if it exists) and only than run with it.
UK CRM consultants usually love to quote statistics like that to impress their customers. However, the number given in this quote is far away from truth. From the view of the psychology, 70% is a good number to get customer’s attention.
According to Winter 2015 report from VB Insight in the process of analyzing the data they came to the conclusion that failure rates are much lower than it is usually quoted in news or London CRM consultants reports.
The author of the report claims that the number of CRM implementation failures is just 3.6% (the number of respondents was 2.119). Moreover, so-called failure or zero payback from the technology investment could happen because of different reasons. Sometimes it can be because of the wrong strategy, or CRM programmers did not implement it properly. Sometimes there is no payback just because it was implemented recently and it is just too soon to talk about results.
Instead of saying that 70% of CRM implementations fail, be ready to say something more realistic. For example, between 1.5% and 6% of marketing software implementations fail in providing return on investments over 3.5 year life cycle. It sounds not as cool as that quote with 70%, but it sounds like truth.
It is up to you to decide who and what to believe. Next time, while reading statistic reports be aware and always check the quoted numbers before using them.