FOR IMMEDIATE RELEASE
Media Contact Only:
Chet Dalzell
(212) 520-3232
chet_dalzell@harte-hanks.com
-Harte-Hanks research examines CRM ROI, data access, customer view & systems development approaches across many types of companies-
LA JOLLA, CA - June 17, 2002 - A new Harte-Hanks (NYSE:HHS) survey
of 464 North American companies and their implementation of customer
relationship management (CRM) solutions reveals that companies are
expanding internal access to customer data and the content of those
data is more focused on revenue history than in a similar survey the
previous year.
A team of Harte-Hanks researchers conducted interviews in April and
May 2002, using a sample of companies drawn from the CI Technology
Database of Harte-Hanks. The survey comes one year following a
similar survey conducted among 300 companies.
One surprising finding of the CRM survey is the absence of return on
investment (ROI) measures at many implementations - 44 percent
reported no such measures in 2002, compared to 32 percent in 2001.
However, between 37 percent and 52 percent of respondents indicated
use of at least one customer-based ROI-type metric in 2002 - metrics
such as improved customer service ratings, improved client retention
rates, and improved profitability tracking by customer. Reported use
of such customer metrics grew by 17 percent between 2001 and 2002.
"The future of CRM investment is dependent on how successful
companies document and measure returns today," said Gary Skidmore,
president, CRM, Harte-Hanks. "To justify the expense of CRM
projects, even in phases, a variety of metrics will be important to
ensure continuation of CRM programs, engage users, and determine
overall success."
Corporate users of CRM systems and data are extensive, and expanding
when compared to the 2001 survey. Marketing departments (both
marketing communications, 76 percent, and product marketing, at 62
percent) recorded the largest gains over 2001, while inside sales
was the most often cited department for such usage for the second
consecutive year, this year at 86 percent.
Among other findings in the CRM Status Report 2002 study:
Enterprise-wide - External sales forces continue to have more
restricted access than inside sales (64 percent have access in
2002) - an indication that legacy sales force automation
solutions may not be replaced everywhere a CRM solution is
developed. Channel partners have access to customer data in
just 16 percent of CRM solutions, but this figure jumps to one
in five solutions among those respondents that are planning to
implement a CRM solution within the next 12 months.
A more limited "full" customer view - The array of content
provided for in CRM solutions appears to be more focused on
client revenue sales/history (68 percent in 2002). Just 19
percent include product purchase history, and 13 percent
include tech support and/or customer service history.
One in five solutions are in-house - Twenty percent of CRM
programs are in-house-developed solutions, with no commercial
CRM software packages, and very limited, if any, outsourced
programming. Among others, 76 percent said they are relying on
a commercial CRM package that is being implemented by either
in-house or outsourced development resources.
The data silo challenge - The most significant challenge
related to implementing a CRM solution is the presence of data
silos within corporations. The survey reveals that 42 percent
said integrating different data sources into a single data
system is the top challenge, followed by training users to use
the solution effectively (37 percent), and participation of
different departments within a company (30 percent).
A corporate initiative - In nearly eight of 10
implementations, CRM is a corporate, rather than a divisional
or local initiative. The department most often given the
primary responsibility for setting ongoing CRM development and
enhancements priorities is information technology (44
percent), with sales (16 percent), senior management (15
percent), marketing (11 percent) and other departments (14
percent) cited. Among departments charged with developing a
CRM management budget, this frequently is an information
technology-funded initiative (54 percent). However, among
those planning a CRM solution within the next 12 months,
senior management is the most oft-cited financer, in 45
percent of the planned solutions.
With a cross-functional management team - A cross-functional
team is the most prevalent method for managing CRM projects,
at 42 percent. Thirty-five percent utilize an individual
product team, while 23 percent use a designated team inside a
specific document.
Web and wireless access still down the road - The ability to
access customer data via wireless and Web media appears to be
limited. Fifty-two percent of solutions provide zero users
with Web access to CRM data. Just 17 percent enable Web access
to more than 75 percent of the corporate user base. Still, 44
percent of those planning a CRM solution within the next 12
months plan to provide 50 percent or more of their corporate
users with Web access to customer data, most often an
XML-based solution. Wireless access is even more limited, with
just 5 percent of respondents giving more than 50 percent or
more of their corporate users wireless access to CRM information.
Among respondents, 59 percent of the companies included facilities
with 100 or more employees. Eighty-nine percent reported a CRM
solution now in place, 6 percent were planning a CRM solution within
the next six months, and 5 percent were currently building a CRM
solution. In addition, 34 percent surveyed were manufacturers, 29
percent were in the services industry, 15 percent were retailers or
wholesalers, 10 percent were financial or insurance companies, and 4
percent were in the transportation or utilities industries. The
balance was spread among several other industries.
A full report of the CRM implementations, The CRM Status Report
2002, is available from Harte-Hanks Market Intelligence for $495.
Full access to the CRM Database of the CI Technology Database for
one year is also available separately. For purchase information,
contact (800) 854-8409, ext. 7205.
The market intelligence unit of Harte-Hanks, based In La Jolla, CA,
is a leading provider of database products and solutions to the
high-tech and communications industries in North America and Europe.
Founded in 1969, the unit was known as Computer Intelligence and ZD
Market Intelligence before being purchased by Harte-Hanks in 1999.
Harte-Hanks, Inc. (NYSE:HHS), San Antonio, TX, is a worldwide,
direct and interactive services company that provides end-to-end
customer relationship management (CRM) and related marketing service
solutions for a host of consumer and business-to-business marketers.
Harte-Hanks and its CRM integrated solutions use technology as the
enabler to capture, to analyze and to disseminate customer and
prospect data at all points of contact. Its customer-centric models
allow the company to be the overall solutions provider for driving
traffic to a Web site, call/contact center, or brick-and-mortar
location. Visit the Harte-Hanks Web site at
http://www.harte-hanks.com or call (800) 456-9748.
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