CRM starts to show its worth

Customer relationship management deployments have begun to show positive business benefits, with partner relationship management (PRM) implementations producing the highest return on investment (ROI), according to a Gartner study.

PRM scored the highest for sales deployments, with 66 per cent of the 343 respondents to the analyst's survey indicating that they had received demonstrable ROI.

Incentive compensation management systems received the second highest rating, with 55 per cent of respondents claiming verifiable ROI as a result of rolling out the applications.

"At the heart of businesses efforts that are succeeding in today's increasingly competitive environment is a recognition of the value of PRM," said Robert DeSisto, vice president and research director at Gartner.

"Most businesses that depend on a multi-tier distribution channel with demand-network partners to provide value-added services - such as global distribution, vertical marketing and sales reach, or localised operations and customer support - have come to recognise that those indirect relationships must be properly orchestrated to compete effectively."

According to the survey, respondents said that PRM provided improved effectiveness and efficiency, and lower costs.

"Businesses must evaluate their multi-tiered distribution processes and capabilities with their demand-network partners," said DeSisto.

"The ultimate goal for manufacturers should be to implement technology that will make it easier for partners to do business with them at a lower cost to serve."