Gartner presents five CRM strategies to generate positive results

26 May 2009

Mumbai:  Companies that fail to invest in CRM strategies because of the tough economic climate will delay perceived benefits by at least 12 months once the economy recovers, giving rivals an advantage in the market, according to Gartner Inc. 

Gartner analysts said that lesson learned from previous downturns indicate that 40 per cent of companies will use the current economic slump as an opportunity to generate post-recovery growth via effective use of CRM strategies.

''Just because times are tough and budgets are being cut, companies should not think that means no CRM investment,'' said Scott Nelson, managing vice president at Gartner. ''Companies need to think in terms of spending smarter, not spending less. There are zero, or low-cost strategies that can be implemented now that can make all the difference, generate competitive differentiation and not draw the attention of the CFO.''

Nelson said in reality there is no such thing as true "zero-cost strategy" - as money has often already been spent on CRM systems and there are ongoing care and maintenance expenses - CRM success can be secured without spending more money on technology. Many organisations have large investments in call centers, Web sites, marketing systems and sales force automation. With these pieces in place, companies can wrap effective strategies around these tools and generate real success from a customer standpoint.

''CRM is a journey, not just a one-time and done strategy,'' said Nelson. ''If the right strategies are employed now, then companies will get a 'sling shot' effect going into the eventual recovery, putting them well ahead of the rivals who chose to wait and who equate CRM success with spending more money on technology.''

Gartner has identified five strategies that companies can undertake now that cost very little or nothing, but which will generate positive results from a CRM strategy point of view.