Study: Chemical Companies Losing Millions From Weak Customer Relations
Jan. 13, 2005
Chemical companies may be missing millions of dollars in profit due to unfocused customer relationship investments, says the recent Andersen Consulting study How Much Are Customer Relationship Management (CRM) Capabilities Really Worth? What Every CEO ...
Chemical companies may be missing millions of dollars in profit due to unfocused customer relationship investments, says the recent Andersen Consulting study How Much Are Customer Relationship Management (CRM) Capabilities Really Worth? What Every CEO Should Know. In fact, the study says, more than 50% of the difference in return on sales between average and superior-performing chemical producers may be due to CRM performance. For instance, a $1 billion chemical company improving its CRM capability from "average" to "superior" could gain as much as $100 million in profit, the study found. The study analyzed 54 capabilities in the areas of customer service, sales, and marketing, and concluded that only five differentiate the strongest performers. They are, in order of importance:
Enabling easier customer contact.
Fairly compensating and rewarding service personnel.
Developing and executing an effective channel strategy.
Building flexibility into information systems and technology.
