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Blog: Claudia Imhoff« And a Good Time Was Had by All at TDWI... | Main | Microsoft Wants to Keep Track of Your Packages » Disloyalty Amongst the CRM Vendors' CustomersHere's one for ya -- vendors that supply CRM software to US companies wishing to improve their customers' loyalty have the lowest percentage of loyalty amongst those very companies when compared to other software segments. Ouch! So says a new report from Walker Information... According to an article from destinationCRM, only 52% of US customers stated that they wanted to continue the relationship with their CRM software providers. Compare this to enterprise software providers who had the highest loyalty percentage of 59%. US CRM software providers scored high in another area (not good either) -- they had the highest percentage (22%) of high-risk customers. These are customers who have a low commitment and low intention of furthering the relationship with their current vendors. Twenty-one percent of customers surveyed felt "trapped". Look out, CRM providers -- if given a viable alternative, your customers will likely defect. Why, you ask? Well, here are just a few of the factors contributing to these dismal statistics: -- Total cost of ownership Among the CRM software providers examined, Microsoft came out the only winner have earned the loyalty leader distinction in the US. Sixty-three percent of its US customers are truly loyal - congratulations to them! By comparison, SAP only had 48% of its customers deemed truly loyal. According to Phillip Bounsall, EVP at Walker, "The line of thinking is -- If you were more customer friendly and you were more focused on me, you would be making products that are more what I want, that are easier for me to use, and that are reliable for me". Gee, isn't this the very selling line from the CRM software vendors to their customers on why THEY should buy their CRM applications? Maybe these providers should use their own software to understand their customers better...
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Comments
No kidding. I wonder how Oracle CRM rated.
Posted by: Faisal Laljee | August 27, 2005 5:10 PM
Hi Claudia,
This report does not surprise me at all. Most so-called CRM systems provide automation of key front-office business processes, but fall woefully short of the oft-promised "360 degree view of the customer". This is where the value of BI can really leverage the investment in CRM software and actually add value to an organization. By being able to slice customer attributes by key metrics and key dimensions, it is possible to capture in one place a total "scorecard" of the health of one's relationship with a customer.
More importantly, however, CRM is not about software packages. Software deployments that are not accompanied by process changes result in failures. In fact, the process changes are what drive the value of the CRM implementation. The data captured in the automation is merely an added bonus.
Regards,
Nenshad
Posted by: Nenshad Bardoliwalla | August 28, 2005 12:38 AM
Thanks for your comments. I wrote a note to Walker to see if I could get information on how Oracle ranked in the CRM loyalty survey. Here is the answer that I got from Michael DeSanto, Vice President, Marketing Communications, Walker Information: "The short answer to your question is Oracle was named a Loyalty Leader for their performance in the enterprise software and infrastructure software sectors." I can only assume that they did not get mentioned in the CRM area. I hope this helps.
Posted by: Claudia Imhoff | August 30, 2005 2:43 PM