Free Encyclopedia of Ecommerce » Free Encyclopedia of Ecommerce » Customer Relationship Management (CRM) - Crm Components And Vendors, Market For Crm, Crm Costs And Deployment, Crm Must Meet Higher Consumer Expectations

Customer Relationship Management (CRM) - Crm Costs And Deployment

percent companies web software

At the end of 2000 many companies were still in the early stages of deploying CRM systems. A late 2000 survey of more than 1,500 global companies by the Data Warehousing Institute found that only 7 percent of the respondents had achieved full deployment of their CRM systems. Some 38 percent were in the planning phase of their CRM programs, while 9 percent said they had no plans to implement a CRM solution. The early adopters of CRM were typically large companies with sales of more than $10 billion and were in highly competitive industries such as financial services or telecommunications. According to eMarketer, the Data Warehousing Institute study put the average budget for CRM projects at $4.1 million, a figure that was somewhat high because of the large size of the companies involved. Two-thirds of the respondents said they were spending less than $1 million on CRM deployment, while half were spending less than $500,000. The results suggested that many companies were taking an incremental approach to deploying their CRM solutions.

An online survey of chief technology officers (CTOs) conducted in mid-2001 by InfoWorld asked them how they would implement CRM. Some 60 percent said they would integrate a packaged software solution with their existing Web infrastructure, while 27 percent said they would integrate an outsourced CRM application from an external provider with their existing Web infrastructure. Only 7 percent said they would create a custom, in-house application, while another 3 percent planned to outsource CRM functions along with all of their Web operations. InfoWorld reported that worldwide revenue from CRM outsourcing would increase from $32 billion in 2000 to more than $66 billion in 2004, according to IDC estimates from May 2001.

According to a late 2000 study by the Gartner Group, CRM software made up less than one-third the cost of a CRM system. The highest costs were associated with related services, including consulting, integration, and maintenance. RealMarket Research estimated that for every $1 spent on CRM software, $2 to $5 was spent on consulting and implementation costs.

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