CRM failing business due to lack of focus

Customer relationship management (CRM) is failing to deliver business value, according to a study from the National Computer Centre (NCC).

The study showed nearly a third of organisations (32%) view their CRM systems as being only partially successful and delivering only limited benefits, while 8% see them as unsuccessful with no major benefits.

According to the study, commissioned by the Evaluation Centre, 30% of organisations said that while some business benefits have been achieved, they have fallen short in a number of areas. The NCC said there is a lack of direction, even though the majority of respondents (72%) consider having an effective customer management strategy much more important than they did three years ago.

Half of the organisations that took part in the survey make use of social network sites, while 48% offer online feedback for customers to express their views. Online communities have been created by 41%, and 38% use blogs to provide information and comment. Business network sites are being used by 34%, SMS messaging by 22%, while just 2% have user forums.

"CRM needs to represent a business strategy that ultimately commits the business to being driven by the customer and to becoming a fully customer-centric organisation," said Steve Fox, NCC managing director. "That way CRM technology becomes an enabler to deliver profitable value to customers through the understanding and anticipation of their needs."

• The full survey can be downloaded here