March 24, 2023
ERP consulting firms specialise in providing solutions and support to businesses that require software to manage and integrate their core business processes. These consulting firms are experts at understanding a company’s needs, customising ERP solutions to meet those needs, and providing ongoing support to ensure the solutions meet the changing needs of the company. Not all ERP consulting firms, however, are successful in converting new customer deals. We will look at the top five reasons why ERP consulting firms fail to convert new customer deals in this blog post.
1. Inadequate Industry Knowledge and Experience
One of the most common reasons ERP consulting firms fail to convert new customer deals is a lack of industry knowledge and expertise. Every industry has its own set of requirements and challenges, and businesses need an ERP solution that can meet those demands. ERP consulting firms that lack industry knowledge and expertise may struggle to understand a company’s needs and may be unable to provide customised solutions that meet those needs.
An ERP consulting firm that specialises in providing solutions for the healthcare industry, for example, may struggle to convert new customer deals in the manufacturing industry. This is due to the fact that the manufacturing industry has different requirements and challenges than the healthcare industry, and ERP solutions that work well in healthcare may not work well in manufacturing.
2. Inadequate Customization and Flexibility
ERP solutions must be customised to meet the unique needs of each business. ERP consulting firms that lack customization and flexibility may struggle to provide customised solutions that meet each business’s unique requirements. This can make converting new customer deals difficult, as businesses may be hesitant to invest in a solution that does not meet their specific needs.
ERP consulting firms must be adaptable and flexible when it comes to solution customization. This can include offering modular solutions that can be tailored to specific needs, as well as having a strong understanding of the unique needs of each industry and business.
3. Expensive licence
The high cost of licences is one of the most significant barriers to entry for many businesses when it comes to ERP systems. ERP systems are complex and necessitate significant technological investment. Because of the high licence cost of ERP systems, many ERP consulting firms struggle to convert new customer deals.
ERP consulting firms can avoid this problem by being upfront about the cost of licences. They can assist customers in comprehending the value of the investment and how it will benefit their company in the long run. Offering financing options or leasing agreements can also help customers manage the cost of licences.
4. Expensive and time-consuming implementation
Another significant barrier to entry for many businesses is the cost of implementing an ERP system. Implementation can take months, if not years, and cost hundreds of thousands of dollars. ERP consulting firms that fail to provide accurate implementation timeline and cost estimates risk losing potential customers.
To avoid this problem, ERP consulting firms should be open about the cost and timeline for implementation. A solid project management plan should also be in place to ensure that the implementation process stays on track. Providing regular updates on the implementation’s progress can help to build trust and keep customers engaged throughout the process.
5. Inadequate product alternatives
ERP consulting firms with a limited product offering may struggle to convert new customer deals. Businesses have distinct needs and requirements, and a one-size-fits-all solution may not be appropriate for all. ERP consulting firms that do not offer alternative product options risk losing customers who are looking for a more customised solution.
ERP consulting firms can avoid this problem by providing a variety of product options that meet the specific needs of their customers. They should be able to assess the needs of their customers and recommend the best product for their company. Offering customizations and integrations can also help to tailor the product to the specific needs of the customer.