New research from IBM Business Consulting Services finds that just 15% of the companies that embark on CRM programs feel they are reaping the expected rewards.
Most of the companies that today spend thousands of dollars to implement
state-of-the-art CRM programs get little or nothing in return.
That’s according to a new study just published by IBM Business Consulting
Services, called “Doing CRM right: What it takes to be successful with CRM.” The
report found that just 15% of the companies it surveyed -- both small and large
-- felt fully successful with their CRM programs.
“To the chagrin of many companies – from those with double-digit
billion-dollar annual revenues and up to US$100 billion in assets, to small
businesses with less than US$50 million in annual revenue – CRM has yet to
achieve the promised ROI goals that made it so appealing in the first place,”
the report stated. “Furthermore, in many cases, customers have yet to notice a
decisive difference.”
The startling results are a due to the fact that many organizations have
fuzzy goals for their CRM programs and they fail to accurately weigh the
importance of several success factors, IBM said.
For example, applying clear guidelines and what IBM calls “approach
steps” during CRM implementation would bolster CRM success rates from less than
15% to greater than 70 percent, and in some cases up to 80%, the study found,
equating to a significant 55% to 65% greater likelihood of success.
The CRM approach steps having the greatest impact are not the big ticket
items most companies consider, but the human-oriented steps, the study said.
These include such steps as change management and process change – both of which
can afford significant improvement in CRM success for a small incremental spend
relative to the total CRM expenditure, the firm said.
Similarly, focusing on the needs of employees, over those of customers,
also reaps surprising success in CRM programs, the study found. This is because
if employees don’t embrace the strategy and features inherent in the program,
they don’t get used and the company doesn’t realize any benefits.
For more information on the study, or to view the executive summary,
visit IBM Business Consulting Services here.
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