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Opinion

Bad Metrics Can Doom Your CRM Project

By David Taber
September 14, 2009 02:56 PM ET

CIO - With the scope and amount of data in modern CRM systems, it's easy to ask for reports and get nice-looking dashboards, and get them in short order. Unfortunately, you could ask for lots of meaningless data on these dashboards, and subordinates aren't likely to say no to your requests. How do you avoid the trap of reports that practically beg the users to game the system?

Step 1: Don't ask users to rig the game

It's easy to ask for weekly indicators that sound meaningful, but aren't. For example, the number of leads produced each week. Leads are like Web site traffic: they are better indicators of visibility and vague interest than they are of a solid pipeline. In another example, activity management indicators (such as "number of dials" or "customer support call volume") are very easy to get, but the numbers are rarely very meaningful. Artificial indicators of activity are easy to fake, and putting a financial reward on these indicators is like sending an engraved invitation to the rank and file to game the system.

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Originally published on www.cio.com. Click here to read the original story.
This story is reprinted from CIO.com, an online resource for information executives. Story Copyright CXO Media Inc., 2010. All rights reserved.
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