Only 29 per cent of executives worldwide are happy with their CRM projects

MyCustomer.com

Less than a third of executives worldwide are satisfied with the quality of their organisations' CRM initiatives, with more than half failing to deliver a return on investment.

These are the findings of a new report, “More than numbers: CRM in the networked organisation”, undertaken by the Economist Intelligence Unit and commissioned by AT&T. The survey of 237 executives also indicated that, despite millions of dollars in investment, the top line gains of many companies are only modest.

This is because they have allowed IT to assume too prominent a role, resulting in systems that fail to meet the needs of users in marketing, sales and customer service departments.

In addition, too few firms have implemented effective tools to measure the status of their customer relationships, even though the majority of executives consider the analysis of customer behaviour to be a priority for improving the quality of these relationships.

Jeff Ace, vice president of business development for AT&T’s global operations, said: “It is clear from the survey results that a thorough review of the business needs for CRM and of how the expected benefits would flow needs to be carried out prior to any investment in process and system implementation.”

Despite this, respondents said they realised that their organisations would have to support a range of new customer contact channels in the near future, with nearly half expecting to use video links and web chat or messaging to contact their customers in two years’ time.

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22nd Dec 2003 12:19

Did the survey ask how many of these executives are planning to resign because they have failed their business and their customers or do the executives consider that CRM is someone else's responsibility? That's probably why they failed in the first place.

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22nd Dec 2003 12:19

Did the survey ask how many of these executives are planning to resign because they have failed their business and their customers or do the executives consider that CRM is someone else's responsibility? That's probably why they failed in the first place.

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17th Dec 2003 14:00

If company decides to implement a SAP system - they normally recruit professionals to do that.
If company decides to build a factory they normally recruit professionals to build it.
If company decides to improve its customer relationship management, they hire a consultant but normally they don't recruit professionals.
Conclusions:
1) CRM projects aren't in the list of very important strategic projects. Very important projects need professionals and if company doesn't have them, it recruits them. (...CRM professionals aren't most wanted professionals in the job advertisement sector...)
2) Is it enough to move the power to marketing + sales from IT in CRM projects if you don't have customer management professionals in your organization? If person is a very product oriented marketing professional can he/she truly change his/her mental models and what he actually does from seller focus into buyer focus? If CRM project is really important (crucial to strategy) shouldn't the company then have professionals to manage and execute it?
3) It also seems that CRM abbreviation itself is so damaged that most of the people have already a very negative image of the project before anything has been done (..."okay another project which develops our processes with the help of IT") that you can only fail.
These were only the first reasons which crossed my mind.

Clarification: Customer management professional is marketing oriented multitalent with competence from the areas of branding, customer (buyer centric) and strategic marketing, partnership creation/development, service channel development, project management, service and product development, marketing research, strategic management, basics of IT and process development - just to name the most important ones.

Regards, Mikko

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avatar
17th Dec 2003 14:00

If company decides to implement a SAP system - they normally recruit professionals to do that.
If company decides to build a factory they normally recruit professionals to build it.
If company decides to improve its customer relationship management, they hire a consultant but normally they don't recruit professionals.
Conclusions:
1) CRM projects aren't in the list of very important strategic projects. Very important projects need professionals and if company doesn't have them, it recruits them. (...CRM professionals aren't most wanted professionals in the job advertisement sector...)
2) Is it enough to move the power to marketing + sales from IT in CRM projects if you don't have customer management professionals in your organization? If person is a very product oriented marketing professional can he/she truly change his/her mental models and what he actually does from seller focus into buyer focus? If CRM project is really important (crucial to strategy) shouldn't the company then have professionals to manage and execute it?
3) It also seems that CRM abbreviation itself is so damaged that most of the people have already a very negative image of the project before anything has been done (..."okay another project which develops our processes with the help of IT") that you can only fail.
These were only the first reasons which crossed my mind.

Clarification: Customer management professional is marketing oriented multitalent with competence from the areas of branding, customer (buyer centric) and strategic marketing, partnership creation/development, service channel development, project management, service and product development, marketing research, strategic management, basics of IT and process development - just to name the most important ones.

Regards, Mikko

Thanks (0)