Jupiter Study: Companies Will Spend More on CRM This YearSeventy-four percent of businesses will spend more money on customer relationship management infrastructure in 2001 than they did in 2000, with most committing to increasing their spending by as much as 25 percent to 50 percent, according to a Jupiter Media Metrix report released yesterday.
Jupiter analysts said businesses are wise to make these investments, despite the current economic downturn, because the number of individuals seeking online customer service will jump from 33 million in 2001 to 67 million in 2005.
The analysts warn, however, that companies investing in online-only solutions will fail to advance customer satisfaction because they will not build a consistent customer experience across all channels.
"Although the current state of the economy is causing companies to cut costs in many areas of their businesses, customers still expect the same level of service," said Jupiter analyst David Daniels. "Customer satisfaction has always been a key metric for positive financial results. Businesses must not make CRM investments only to keep pace with the growth. They should view their CRM spending as a strategic benefit that will bring higher levels of customer satisfaction and retention."