The lack of clearly designed customer relationship management strategies within an enterprise reduces the effectiveness of deployment, according to US research firm Frost & Sullivan.
The report concludes that while though many companies have taken the first step of actually buying CRM technology, the software is then often underused internally. Many early users viewed CRM as the solution to all of their customer problems and were then let down when these overly high expectations were not met.
The main reason for failure to meet expectations was cited as being situations where the technology was not combined with a clear, enterprise-wide CRM strategy. Frost and Sullivan urges end users and vendors to communicate more and for training and education to play a larger part.
The study also found thatCRM has evolved from its original goal of making customer service representatives more efficient on the telephone, to making it easier for a customer to do business with a firm by providing more online self-service capabilities, knowledge transfer and information sharing.