Although CRM consultants are expecting to see double digit business growth over the next six months, four out of ten projects are still failing to deliver expected benefits.
These are the findings of a study undertaken by market researchers Sourceforconsulting.com, which revealed that the key causes behind underperforming initiatives remained a lack of clear strategy and inadequate defining of requirements.
But the main reasons that organisations were currently embarking on such projects now was to improve the customer experience, boost retention rates and reduce churn as well as enhance customer profitability.
Moreover, although sales departments were the most likely to be behind the introduction of CRM projects, customer services and marketing functions were the most likely to benefit from them.
Ed Haigh, Sourceforconsulting’s head of content and marketing, said: "More than anything else, CRM initiatives are still born out of a desire to improve customer experience and to increase retention rates amongst existing customers. Consulting firms are already reporting considerable demand from organisations, particularly in financial services, anxious to reconnect with their customers as confidence returns post-recession."
The study also found that CRM projects and helping organisations to think through how they can segment, engage with and retain customers now accounted for a third of all thought leadership-based consulting engagements. Although CRM has played less of a role here in recent years, the last few months of the recession saw the trend reversed.
The top three firms considered to offer the best quality thought leadership in the CRM space were Booz, IBM and McKinsey, while those that provided the most in terms of quantity were McKinsey, Accenture and Bain.