More than 70 per cent of companies working on in-house customer relationship management (CRM) initiatives could face problems if they fail to set clear goals for achieving return on investment (ROI).
Once ROI goals are set, measurement planning and performance monitoring are key activities to help CRM initiatives meet anticipated results, according to a study by BearingPoint (formerly KPMG Consulting).
"Right now companies are re-evaluating CRM initiatives due to their inability to meet business performance expectations, not because of the downturn in the economy," said Bruce Culbert, senior vice president at BearingPoint's CRM practice.
"In order to meet their goals, companies need to establish appropriate metrics and a specific ROI.
"When a company monitors and measures the effectiveness of its CRM strategy against desired targets, tangible ROI can result, driving sales and enhancing competitiveness and market position."
Only six per cent of companies surveyed set specific ROI targets early in their CRM initiatives.
And, while a significant number of companies are re-evaluating their CRM initiatives, the weak economy was the cause of less than 22 per cent of these re-evaluations.
BearingPoint interviewed 167 companies, representing 14 industries including automotive, banking, energy, telecoms, travel and healthcare, with more than $1bn in annual revenues.
Overall, the vast majority of respondents considered CRM very important, but few had achieved the expected value from their CRM initiatives.
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