048-057_CRM_v4 10/22/02 10:59 AM Page 48 rescue CRM How to s a rule, CEOs don’t worry much about business software initia- tives. But customer-relationship-management (CRM) software—the systems that panies to plan and analyze marketing campaigns, to identify sales leads, and to manage their customer contacts and call cen- ters—may be a different story. Good CRM software can in?uence how much customers spend and how loyal they remain. panies using CRM programs report double-digit gains in revenues, customer satisfaction, and employee productivity, along with dramatic savings in customer acquisi- tion costs. Across the United States and Europe, nearly 40 percent of panies in high technology, aerospace, retailing, and utilities have invested in CRM systems. Two-thirds of all US operators and half or more of all US ?nancial-services, pharmaceutical, and panies are either implementing or already operating them. 1 CRM has e a senior-management issue because it consumes stagger- ing amounts of money and, notwithstanding the ess stories, has mostly proved a disappointment. Companies around the world spend $ billion a year on CRM software, 2and that is only a fraction of the total expense; implementation, training, and integration outlays can be three to ?ve times 49 Manuel Ebner, Arthur Hu, Daniel Levitt, and Jim McCrory Even dysfunctional CRM systems may be well positioned f
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