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IBM Survey Shows Companies Gaining Strategic Value From CRM Initiatives

Thursday 29 April 2004 00:05 CET | News

IBM Business Consulting Services, in a global survey, revealed that the likelihood of Customer Relationship Management (CRM) success can be improved significantly within a company -- from less than 15% to as much as 80% -- by prioritizing and selecting key CRM approaches and business processes.

Surprisingly, the approaches having the greatest impact are not big-ticket items such as technology implementation or data integration -- but rather human-oriented steps that typically require conservative, incremental spend. The global research survey, conducted to understand the attributes and strategies that characterize successful CRM initiatives, found the two approaches most consistently cited as requirements for success were change management such as training employees to use CRM processes, tools and policies; and process change such as involving employees in the process of designing and changing CRM activities. When done correctly, these steps drive commitment to CRM throughout the company, which translates into sustained value. The survey points out key faults which can cause CRM projects to fail or prevent delivery of expected return-on-investment. In most such cases, companies rely too heavily on technology systems as a panacea or organizations down-play the importance of senior management buy-in, which leads to lukewarm adoption by employees. For those companies struggling, study results provide clear guidelines indicating that with the correct focus and commitment companies can significantly improve CRM performance. While the requirements for success seem clear, acting on these steps is no small task, which may explain why many companies have difficulty implementing them. Today, fewer than 15% of global companies believe they are fully succeeding with their CRM initiatives, and another 20-to-30% are having only some success. The survey reveals that a radical redeployment of CRM initiatives is underway. Many companies are looking to CRM to improve their performance and grow their business overall. Over 50% of companies believe that CRM is relevant or highly relevant to improving performance from a shareholder value perspective. Approximately 65-70% are looking to CRM to deliver revenue growth by improving the customer experience and retention, and influencing the development of new products and services. The survey was conducted by the IBM Institute for Business Value, a part of Business Consulting Services. In late 2003 and early 2004, IBM surveyed 373 senior-level or above management decision makers or influencers at a mix of small, medium and large enterprises, to understand how companies attain CRM success and achieve significant return on investment. The findings are available in a detailed report titled The CRM Global Study -- Doing CRM Right and an Executive Guide outlining the five success factors required for companies to alleviate transformation risk and optimize CRM practices.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce