Study: Execs Not Setting Clear ROI Goals For CRM

ByJohn S. McClenahen More than 70% of executives directing CRM (customer relationship management) programs have not set clear and specific goals for ROI, indicates a study from BearingPoint Inc., a McLean, Va.-based business consulting firm. The study also shows that once ROI goals are set, measurement planning and performance monitoring are key elements in helping to ensure CRM initiatives meet their goals. "Right now, companies are re-evaluating their CRM initiatives due to their inability to meet business performance expectations, not because of the downturn in the economy," says Bruce Culbert, senior vice president in BearingPoint's CRM practice. "When a company monitors and measures the effectiveness of its CRM strategy against desired targets, tangible ROI can result, driving sales and enhancing competitiveness and market position." Some 167 businesses having more than $1 billion in annual revenue and representing the auto, energy, telecommunications and 11 other industries participated in the study.