Gartner Says More than 50 Percent of CRM Implementations Considered Failures from Customer's Point of View
Gartner Analysts Discuss Industry's Outlook during CRM Summit
ORLANDO, Fla., September 10, 2001 - Through 2006, more than 50 percent of all CRM implementations will be viewed as failures from a customer's point of view, according to Gartner, Inc. (NYSE: IT and ITB). These failures will be due to a combination of inability to link channels, lack of process redesign or failure to provide any real customer benefits. Gartner analysts provided their detailed analysis on the future of CRM today during Gartner's CRM Summit Fall 2001, which is being held through Wednesday, September 12 at the Hyatt Regency Grand Cypress in Orlando.

Many enterprises are beginning to become more customer-centric. Leaders will push their enterprises to become mostly customer-centric and, in turn, to establish collaborative "real-time" relationships with individual customers.

"These enterprises will not only enable themselves to provide greater value to customers, but they will be able to serve these customers faster and more accurately that any competitor, "said Scott Nelson, vice president and research director for Gartner. "The rewards of greater customer centricity are significant, and that is why many enterprises are turning to the business strategy of CRM, which clearly places the customer at the heart of an enterprise's strategy."

Adopting a customer-centric CRM cycle occurs in two key areas. The first is a focus on understanding the client's relationship to the enterprise. This attitude is reflected not only in more responsive technology and marketing process, but also in a willingness to integrate the client more fully into the enterprise. This can be achieved by integrating the multiple channels that marketing uses to deal with the client.

The second area for development is to extend the customer's understanding beyond the marketing organization to other groups within the enterprise, such as the supply chain for mass customization or customer service for cross-selling opportunities.

Gartner analysts said there are three key areas that enterprises must implement to effectively use a CRM business strategy. To emerge as a market leader, the company needs to excel in at least one of the following three areas, and it needs to be as good as the competition in each of the others.
  • Product Leaders - they drive the market on the strength of their products, giving customers a unique product or service offering.
  • Operationally Excellent - their back-office, operational systems and processes are so good that they have a cost advantage.
  • Customer-Intimate - they are so close to the customer and establish such a strong relationship that the customer has no desire to buy elsewhere.
"All enterprises tend to pursue some combination of these traits; none can master all three disciplines unless it has unlimited resources. In the Internet economy, enterprises that have differentiated themselves only in customer intimacy are most vulnerable to new, more intimate relationships created by dot-com e-businesses," Nelson said.

Gartner analysts said that while becoming more customer-centric, enterprises need to be aware that future CRM will be about supporting all the pieces in CRM, not just the customer. By 2006, the focus in CRM will be less on customers and prospects, and more on employees, partners and influencers.

Gartner analysts will provide further analysis on this issue during the Gartner Symposium/ITxpo 2001, October 8-12 in Orlando, Florida. Attendees will be able to choose from more than 250 in-depth, analyst-led sessions that explore IT inside and out. Gartner analysts will show how companies can align and manage their IT strategies and investments for bottom line advantage. More information on Gartner Symposium/ITxpo 2001 is available on the Gartner Web site at www.gartner.com/symposium/us. Members of the media can register by contacting Lisette Kwong at 212-320-2330 or at lkwong@tsicomm.com.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $859 million. For more information, visit www.gartner.com.
Contact:
Christy Pettey
Gartner
408-468-8312
christy.pettey@gartner.com