Survey: Effective Customer Relationship Marketing Drives High-Growth Performance
Merkle Inc., a customer relationship marketing (CRM) firm, announced the results of a survey of 352 senior-level, US-based executives in $1+ billion organizations. The report found high-growth companies more effectively use data to segment consumers, develop insights about people's interests and behaviors and better engage with customers based upon their value than low-growth Fortune 1000 organizations.
There is a clear divide in executive attitudes toward CRM between high-growth and low-growth organizations: low-growth organizations don’t see the strategic value of CRM. Conversely, high-growth organizations are 50 percent more likely to see CRM as a "critical way of life", are 3.2X more likely to have top CRM talent and are 2.4X more likely to have top CRM capabilities than low-growth organizations. CRM success rates are still too low as two out of three initiatives (63 percent) fail the organization and/or its leader. Across all organizations, one in two initiatives suffer due to lack of clear organizational ownership of customer insight (53 percent), while two of five suffer due to lack of management bandwidth (43 percent), lack of executive sponsorship (38 percent) or the fact that CRM is not an IT priority (38 percent).
Worldwide Customer Relationship Management Software Market Grew 12.5 Percent in 2012
Salesforce.com passed SAP as the lead vendor in the worldwide customer relationship management (CRM) software market in 2012, according to Gartner, Inc. Total worldwide CRM software revenue totaled $18 billion in 2012, up 12.5 percent from $16 billion in 2011. Vendors benefited from strong demand for software as a service (SaaS), which represented nearly 40 percent of CRM total software revenue in 2012, as organizations of all sizes sought easier-to-deploy alternatives to replace legacy systems.
North America and Western Europe remained the largest regions for CRM, accounting for more than 80 percent of total software revenue, but all regions saw growth. Western Europe's growth was less than one percent, due in part to the strong dollar, which made overall comparisons with prior years difficult. Overall spending in the IT market in Western Europe has been muted because of economic reasons. Areas of growth continued to be in Eastern Europe, Eurasia, and the Middle East and Africa, which saw IT spending for the modernization of countries' infrastructure (utilities, telecommunications, banking and government).