'Blind faith' in CRM

Customer Relationship Management (CRM) schemes are proving a popular business tool, even though just one in 20 businesses (six percent) are measuring their effectiveness.

Customer Relationship Management (CRM) schemes are proving a popular business tool, even though just one in 20 businesses (six percent) are measuring their effectiveness.

More than two thirds (70%) of businesses in key sectors of the UK economy are investing in CRM initiatives to achieve their business goals. A survey by MORI -- commissioned by Atos KPMG Consulting -- also reveals that, despite this lack of measurement, over four in five declare their CRM initiatives a success.

Is CRM Delivering Value to Shareholders?* highlights this paradox and reveals the significant gap between what UK businesses think and what they actually do in managing their customer relationships. The research reveals that:

  • More than four in five (83%) feel their CRM initiatives are successful
  • 86% believe the need for CRM has increased over the past three years;
  • Almost three in five (57%) support this by increasing CRM investment
  • Over two thirds of businesses fail to provide different services or service levels to customer groups with different needs or to customer groups of different value to the business
  • Customer satisfaction is the primary or secondary goal for three quarters of CRM programmes, but only four in 10 businesses measure customer satisfaction
  • Profitability is the primary or secondary goal for more than two thirds (71%) of businesses
  • The single most important goal of CRM initiatives is culture change, identified by 29% of respondents
  • The use of new media channels (such as web, email and SMS) as CRM vehicles developing more slowly than expected

Atos KPMG Consulting is not connected with the accountancy firm KPMG or with KPMG Consulting Inc.

Notes

* Is CRM delivering value to shareholders?

Technical details

The findings are based on telephone research conducted by MORI between 6-28 March 2002 with 163 directors with customer management and/or marketing responsibilities across the following sectors: retail / wholesale / distribution (37%), financial services (37%) and telecommunications / high-tech / IT / communications and content / media (26%). The annual turnover of the companies' UK operations is from 16350 million to over 1635 billion. Only two per cent had a turnover of 16350 million -- 163100 million per annum.

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