Feeds

CRM ‘recovery’ predicted for 2003

Customers? Who needs 'em!

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

ComputerWire: IT Industry Intelligence

2003 will constitute a recovery year for the CRM sector, according to research house Meta Group. However, in the current climate, "recovery" is defined as a year in which spending levels are predicted to remain flat to slightly positive, as opposed to undergoing a further slump.

Despite this gloomy forecast, Meta Group VP international, and senior CRM analyst Ashim Pal said 2003 will not be a dead year for the industry, although it will see a change in the way budgets are spent. "CRM as a spending priority is still high, the issue is translating that spend to a project," he said.

The projects that will attract available budget will be modular projects, projects that can make use of existing implementations, or ones that solve a specific pain point. The focus on processes will continue and will play an important role in helping organizations to calculate performance or revenue-type improvements. Meta Group maintains that although the number of CRM deals within Europe has been maintained, the average cost has declined and currently stands at between 1.4m and 1.7m euros ($1.37m and $1.66m), which it says demonstrates the shift to iterative projects with a defined scope.

Part of the overall problem is that the market is in the middle of a period of disillusionment about CRM projects because many people have not worked out how to do them well. In an evolutionary sense, CRM deployments are still at a primitive dinosaur stage, said Pal; people are interested in learning but are struggling with deployment.

One ongoing problem area is the articulation of the project goals, business case and expected ROI. When it comes to pitching for CRM funds, "the business case is still king," said Pal, but sometimes that is as far as it goes.

He identified one trend whereby CRM project groups present a business case to secure funding, but once the budget has been approved, they cease to make use of the business plan and fail to map the project back to the business case. "You have to be able to measure [the improvement]. People need to be specific, people need to be rigorous about project definitions and measurements," he said. He stressed that as CRM is an iterative process, there is a need to re-evaluate at each stage, starting with the business case.

Other bad practices exhibited by deploying organizations are the "just-do-it" approach to CRM, which is emotionally motivated instead of being grounded in a customer or business pain point; and poor cost measurement where gross measurements are used that cannot be mapped to the CRM project because, for example, they are too big and impacted by non-related events such as currency fluctuations.

Another problem area is the creation of CRM stovepipes. Pal said there is also a tendency for organizations to create customer, employee or support-centric CRM systems where the need is for xRM systems that conform to a pattern, and allow for component reuse, and can therefore integrate all stages of the customer interaction lifecycle.

© ComputerWire

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.