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Results of Research:
Trends & Directions in Customer Relationship Management

Conducted August 2001 by crmindustry.com and supportindustry.com 

survey technology provided by CustomerSat.com


Survey Background:
In August 2001, crmindustry.com and supportindustry.com conducted a study to gather important data on trends and directions in Customer Relationship Management. The research was conducted using technology from CustomerSat.com and received nearly 100 responses from high level service and support executives. The data provides valuable insight into what support organizations are doing to handle the daily challenges of Customer Relationship Management.

Email invitations to participate in the survey were sent to crmindustry.com and supportindustry.com members. Participants were primarily VP/Director/Manager of Customer Care and VP/Director of Marketing.

Key survey results included:

  • 63.2% do not have a formal training program in place to help gain employee acceptance and usage of CRM applications, but only 11.8% of companies reported this as their biggest internal challenge.

  • 74% reported that the current rate of mergers and acquisitions among CRM vendors did not affect their decision to purchase CRM in the past year.

  • 55.7% have not seen a measurable return on investment from implementing CRM, and 23.5% have not achieved any cost savings in the past year.

  • When asked which internal department was the primary champion of implementing CRM, support received 20.3% of the vote, with sales, marketing and executive management evenly split, each receiving 15.9% of the vote.

  • 40.3% currently support wireless users.


Full Graphs and Partcipating Companies

Size of Company
Choice Number
Of Responses		 Percent Graph
Small (0-999 employees)
61
  72.6%
 
Medium (1000-9999 employees)
11
  13.1%
Large (10,000+ employees)
12
  14.3%

Total Responses:
84
 100%  
 

What marketplace is your company in?
Choice Number
Of Responses		 Percent Graph
Business to Business
62
  74.7%
 
Business to Consumer
15
  18.1%
 
Government
6
  7.2%
 
Total Responses:
83
 100%  

 

Do you currently have CRM implemented in your organization or plan to do so in the next 12 months?
Choice Number
Of Responses		 Percent Graph
Yes
63
  75.9%
 
No
20
  24.1%
Total Responses:
83
 100%  
 

What percent of your IT budget is devoted to purchasing or adding CRM technology in the next year?
Choice Number
Of Responses		 Percent Graph
None
7
  10.1%
 
1 - 5%
15
  21.7%
 
5-10%
21
  30.4%
 
10-15%
12
  17.4%
 
15-20%
6
  8.7%
 
over 20%
8
  11.6%
Total Responses:
69
 100%  

 
Do you have a formalized CRM business plan in place that allows you to measure the success if your implementation?
Choice Number
Of Responses		 Percent Graph
Yes
31
  44.3%
 
No
39
  55.7%
 
Total Responses:
70
 100%  

What are the primary goals you are looking to achieve by implementing CRM? (check all that apply)
Choice Number
Of Responses		 Percent Graph
Increase Customer Loyalty
49
  23.3%
 
Reduce Costs
32
  15.2%
 
Increase Sales
38
  18.1%
 
Streamline Internal Operations
44
  21%
 
Increase Employee Productivity
39
  18.6%
 
Other
8
  3.8%
 
Total Responses:
210
 100%  

 
Has your organization seen a measurable return on investment from implementing CRM?
Choice Number
Of Responses		 Percent Graph
Yes
31
  44.3%
 
No
39
  55.7%
 
Total Responses:
70
 100%  

 
Has your organization seen a reduction in staffing levels as a result of implementing CRM?
Choice Number
Of Responses		 Percent Graph
Yes
13
  18.8%
No
56
  81.2%
 
Total Responses:
69
 100%  

When evaluating your CRM solution, did you decide to:

Choice Number
Of Responses		 Percent Graph
Purchase a full featured solution from one vendor
22
  32.4%
Purchase a partial solution and integrate it with existing technology in place
30
  44.1%
Develop a home grown solution
6
  8.8%
 
Outsource a portion of CRM solution to complement existing technology in house
3
  4.4%
 
Other
7
  10.3%
 
Total Responses:
68
 100%  


What cost savings have you achieved from implementing CRM in the past year?
Choice Number
Of Responses		 Percent Graph
None
16
  23.5%
 
1-5%
8
  11.8%
 
6-10%
10
  14.7%
11-15%
1
  1.5%
 
over 15%
3
4.4%
Don't Know
30
  44.1%
 
Total Responses:
68
 100%  

 
Do your currently, or in the next 12 months, plan to outsource any part of your CRM function?
Choice Number
Of Responses		 Percent Graph
Yes
16
  23.5%
No
52
  76.5%
 
Total Responses:
68
 100%  


How do you promote your CRM solution to your external customers? (check all that apply)

Choice Number
Of Responses		 Percent Graph
Sending e.mail to customers
35
  34.3%
Sending direct mail to customers
18
  17.6%
User conferences/Group Meetings
27
  26.5%
Providing incentives and rewards as a result of trying new technology
3
  2.9%
 
Other
19
  18.6%
 
Total Responses:
102
100%
  

 

What department is the primary champion of implementing CRM in your company?

Choice Number
Of Responses		 Percent Graph
Sales
11
  15.9%
 
Marketing
11
  15.9%
 
Support
14
  20.3%
Executive Management
11
  15.9%
 
Other
5
7.2%
Combination of above
17
  24.6%
Total Responses:
69
100%
  

 

Do you have a formal training and incentive program in place to help gain employee acceptance and usage of your CRM application?

Choice Number
Of Responses		 Percent Graph
Yes
25
  36.8%
No
43
  63.2%
 
Total Responses:
68
100%
  

 

Have you done any internal reorganization to help facilitate the success of your CRM implementation?

Choice Number
Of Responses		 Percent Graph
Yes
30
  44.8%
No
37
  55.2%
 
Total Responses:
67
100%
  

 


What has been the biggest internal challenge in implementing CRM in your organization?

Choice Number
Of Responses		 Percent Graph
Getting Executive Commitment
7
  10.3%
 
Budget Constraints
18
  26.5%

Lack of Employee Acceptance
8
  11.8%
Implementation time frame longer than expected
12
  17.6%
 
Problems with technology vendor
12
17.6%
other
11
  16.2%
Total Responses:
68
100%
  

 


Do you currently, or in the next 12 months, plan to support wireless users?

Choice Number
Of Responses		 Percent Graph
Yes
27
  40.3%
No
40
  59.7%
 
Total Responses:
67
100%
  

 

If you do not have plans to implement CRM in your company in the next year, what is the primary reason?

Choice Number
Of Responses		 Percent Graph
Lack of Executive Commitment
3
  12%
 
Budget Constraints
12
  48%

No cohesive support across departments
4
  16%
Problems with technology vendor(s)
0
  0%
 NA
other
6
  24%
Total Responses:
25
100%
  

 

Has the current rate of mergers and acquistions among CRM vendors affected your decision to purchase CRM technology in the last year?

Choice Number
Of Responses		 Percent Graph
Yes
20
  26%
No
57
  74%
 
Total Responses:
77
100%
  

 

Participating Companies

2ndWave
Action Instruments
Aether Systems, Inc.
Aloric Inc.
Americasmart.com
Baltimore Technologies
BCBSNC
Beyond Access
BlueCross BlueShield Assoc.
Broadvision
BWise
CableNet Convergence Ltd.
Calico Commerce
Call Center Consulting Group
Charles River Consultants
Ciena
CNA Life Insurance
CNH
Computer Associates
Datatrac Information Services
Delta Systems
DHL
DynCorp
eAssist Global Solutions
EDS
Envision Telephony
Etisalat
Exceedia Inc.
Expertcity .
Federal Emergency Management Agency
FRS
Fuzz Technologies
Gap, Inc.
Gate42
Genesys Telecommunications Laboratories, Inc.
Geosoft Inc.
HEALTHvision
home computing
ids
InfoADV
Ipswitch, Inc.
ITSMA
Iverson Computer Associates
JetForm Corporation
Knowledge Management Software
KnowX.com
LMCO ESD
Long Beach Unified School District
MAARS
MACESS Corp.
Marsellus Casket Co.
McQuerter
Microsoft
News International LTD
Novient, Inc.
NSCC
Oblix
Optima Technologies
Plante & Moran
RightNow Technologies
RSKempco
Say What? Consulting
Seneca Corporation
Service Resources Group, Inc.
Sichun Consulting
Softscape, Inc
supportindustry
Syncata
Talis Information Ltd
Tersol & Associates
The 401(k) Company
The CBORD Group
Think Service, Inc
Thomson Financial
TightLink
Transversal Ltd
Turnaround Consulting Ltd
Voyant Tech
Waggener Edstrom
Webhelp Inc
YOUcentric

 

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