A recent survey of 119 end-user organisations in Europe conducted by Gartner, Inc. found that 48 per cent will increase their budget for customer relationship management (CRM) initiatives in 2013. Only 5 per cent will decrease their CRM budget this year, down from 9 per cent in 2012.
The survey, conducted in the fourth quarter of 2012, investigated the 2013 CRM plans of organisations that together represented over 20 industries and 33 countries in Europe.
"The upward trend we are witnessing confirms organisations' commitment to improving the management of their customer relationships, despite the volatile economic environment across Europe," said Jim Davies, research director at Gartner.
Gartner predicts that CRM software revenue in Europe will total $3 billion in 2013, up 7 per cent from last year. "In 2013, investments in CRM will continue to focus on technologies that help drive loyalty, satisfaction and revenue growth. As a result, investment in technologies that drive sales and marketing performance, such as lead management software and digital marketing, will be complemented by technologies that can help deliver, and understand, a consistent cross-channel customer experience," said Mr Davies.
The survey respondents reported on the primary objectives of their CRM initiatives in 2013. For the third consecutive year, increasing customer satisfaction was the No. 1 objective. The survey also uncovered some changes in the top half of the rankings, with objectives linked to cutting costs associated with sales, marketing and customer service disappearing from this half. This reinforces the emphasis that will be placed on customer strategy during 2013.
While the desire to create a "single view of the customer" was ranked the No. 3 objective in 2013, customer data and information, which is paramount to a comprehensive and accurate understanding of the customer, has increased in importance and become the biggest challenge in 2013.
Having a single view of the customer is fundamental to an organisation's ability to understand customers' needs, perspectives and aspirations. It is also essential for optimising sales, marketing and support functions. "Obtaining this single view is, however, complex and requires a master data management strategy that encompasses an increasingly diverse set of data formats and sources, including feedback from customers themselves," said Mr Davies.
More detailed analysis is available in the report "Survey Analysis: European Organizations Crave a Single View of the Customer in 2013," available on Gartner's web site at http://www.gartner.com/resId=2272217.
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