With Economic Slowdown, eMarketer Finds CRM Implementations
Are Already Benefiting Companies
New York, NY/May 8, 2001 - A new report reveals that spending on Customer Relationship Management (CRM) will grow to $10.4 billion by the end of this year, a 167% increase from the $3.9 billion spent in 2000. The CRM Report, released today by eMarketer, cites data from numerous research organizations and consultancies, capturing insight, statistics and the leading trends in this software space. The above referenced data is from an IDC 2000 study.
The report reveals that during the current uncertain economic times, the adoption of Customer Relationship Management solutions is moving ahead at an aggressive pace as organizations are spending targeted time, effort and money to retain and leverage their existing customer base.
"Much of the survey data from late 2000 indicated that more than 80% of businesses were placing a high priority on CRM initiatives going into 2001," said Steve Butler, senior analyst at eMarketer. "With 52% of Siebel Systems` sales coming from new clients during the first quarter of 2001, it is clear that companies are following through on their CRM implementations, despite the economic slowdown. It makes sense from a financial standpoint as the cost of acquiring a new customer can be as much as 5 times the cost of holding on to an old customer."
The CRM Report also shows that businesses are focusing upon the integration of telephony and internet-based customer service channels as their top CRM priority. Marketing and analytical CRM applications are expected to be used by more businesses as well, with Accenture finding that 83% of Global 2000 companies plan to improve customer service by collecting and maintaining customer information.
Key findings from eMarketer`s CRM Report:
· The worldwide market for CRM applications is dominated by the US and Europe, which together will account for more than 75% of CRM industry software and services revenues in 2003
· For every $1 that a business spends on CRM software, it also spends between $2 - $5 on implementation and maintenance over the lifetime of the product
· 9 out of every 10 interactions that a company has with a customer are not transactions; instead, they are some form of communication
· Companies can increase profits by more than 25% if they simply reduce customer defections by just 5%
The CRM Report (115 pages with 160 charts and graphs) assembles statistics and information from the most respected research firms to provide readers with a broad, numbers-based overview of the customer relationship management space. The report covers all the major regions in the world, surveys implementation by industry and sector and examines the competitive landscape with details on vendors and costs.
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Contact:
Gary Galati
212.677.6300 x201
917-417-2229 (24 hr. cell)
ggalati@emarketer.com
Craig Sender
212.677.6300 x292
csender@emarketer.com
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