Study: Enterprises Need Clear CRM Strategies

Share this content:
The lack of clearly designed customer relationship management strategies within an enterprise can reduce the effectiveness of deployment, according to a report released yesterday by Frost & Sullivan, San Jose, CA.


The report, "Frost & Sullivan Global CRM, Interactive CRM, and Mobile CRM Initiatives and Forecasts," reveals that CRM-generated revenue exceeded $11 billion in 2001 and is projected to approach $36 billion by 2008.


But the report said that though many companies have taken the external step of furnishing the technology, CRM solutions are often underused internally.


"While the adoption of CRM software suites is rising at the corporate level, the same cannot be said for employees' adoption," said Katherine Shariq, industry analyst at Frost & Sullivan.


In addition, the study found that many early users viewed CRM as the solution to all of their customer problems. However, this was not the case, as the technology was not combined with a clear, enterprise-wide CRM strategy. To overcome this, industry participants must take a proactive role in seeking new markets and educating end users about the operational strategies they must adopt, the study said.


"Departments that define their objectives at the outset and then put the applications into place become satisfied and successful users in comparison to participants who expect technology to solve their business concerns," Shariq said.


The study also found that while traditional CRM was based on making customer service representatives more efficient on the telephone, today's CRM is designed to make it easier for a customer to do business with a firm -- rather than its competitor -- by providing more online self-service capabilities, knowledge transfer and information sharing. Organizations must provide customers the appropriate tools to foster healthy company-client relationships.


Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here