Boosting the Value of CRM

While many companies have adopted CRM software, few are using those systems to maximum advantage or achieving the desired ROI.

In today's tough economy, it's not surprising that many companies are focusing IT resources on maximizing customer relationships. But many organizations that have rolled out expensive CRM systems over the past few years have learned the hard way that technology is no guarantee of success. Too often, the return companies achieve on CRM investments falls far short of expectations.

Last July, an Accenture survey of 150 leading business executives revealed that despite a solid track record of delivering value to companies, customer relationship management has not achieved its full potential. Only 19 percent of respondents said their company is using all of its customer data to dramatically drive sales, while 45 percent said such data is being used to some extent. "Too many CRM projects focus on the specific tools and technologies rather than the ultimate goal of increasing the value of the customer relationship," says John Freeland, global managing partner for customer relationship management with Accenture in New York City.

This issue is gaining attention because, for many organizations, a CRM disconnect will affect the bottom line. "Today companies are a lot more sensitive to their customer base and to the revenue value of customers," notes Kevin McManus, a former managing director at KPMG Consulting. "They want to make sure that the systems they have in place are maximizing the relationship and sales. They want to make better business decisions and develop a predictable profitability model."