CRM suffers due to user 'short-termism'

By Tony Hallett
22 August 2002 03:30 PM
Tags: software, professional, crm, it, customer, management, relationship, kpmg
More and more companies are shelling out for customer relationship management (CRM) systems, yet few are bothering to see if their investments have been worthwhile.

Atos KPMG Consulting asked Mori to interview directors with CRM or marketing responsibility and found that out of the 70 per cent of companies investing in CRM, 80 per cent declare their initiatives a success but only six per cent are doing so after measuring effectiveness.

Celia Gaffney, MD of Atos KPMG Consulting, said the problem is because of CRM being used as a short-term tactical response instead of strategically.

The good news is that most organisations are now becoming more customer-focused and realise CRM is about cultural change within as much as installing software.

Mori interviewed 163 directors during March this year in sectors defined as retail/wholesale/distribution, financial services and media/IT.

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