CRM lacking ROI due to poor decisions, says Gartner
Up to the year 2005, three quarters of the CRM projects that don't deliver a measurable return on investment (ROI) will have failed because of poor business executive decision-making, according to business research firm, Gartner.
As companies battle to secure funding for new business ventures, customer relationship management (CRM) initiatives must show a definitive return on investment to be considered successful, according to Gartner's report, Building Business Benefits From CRM: How to Design the Strategy, Processes and Architecture to Succeed.
"In addition to delivering measurable results and value, technology implementations must be aligned with your strategic goals," said Joe Galvin, research director for Gartner. "Alignment of enterprise strategies, business processes, and applications of technology is often missing in CRM initiatives."
Reasons for failures Despite the obvious fact that those engaged in or planning CRM need to understand the critical components of a good CRM strategy, Gartner's research shows that approximately 50% of all CRM projects fail to meet executive management's expectations.
To improve the chances of a CRM project's success, Galvin suggests that a strong focus on ensuring technology implementations are tied to specific business benefits is essential, and that return on investment must be measurable.
Gartner's 354-page CRM report provides guidance, insights, and recommendations concerning the necessary strategy, planning, implementation, and supporting technologies and services needed to launch a successful CRM initiative. It includes six CRM case studies, a glossary of terms, and eight vendor evaluations.