CRM Spending Slowly Grows
Research firm IDC recently released its predictions
for the future state of the CRM-services space,
with a positive, yet cautious, outlook. As the
current economic climate continues to restrain
growth in the near term, IDC forecasts that
combined worldwide CRM and customer-care services
revenue will reach $101 billion in 2007, with
a 2002-2007 compound annual growth rate of 11.3
percent. This is in line with estimates from
META Group, which predicts a growth of 8 to
10 percent by 2005.
In "Worldwide and U.S. CRM Services Forecast
and Analysis, 2002-2007," IDC advises companies
to get the most out of each customer-based engagement
by making cost savings a priority, stressing
performance as the measure of success and focusing
on delivering value to clients. "Being
attuned to cost containment, ROI and business-process
optimization must be the mantra if service providers
plan to survive and thrive," says Brian
J. Bingham, program manager for CRM and customer
care services research at IDC.
On a positive note, the company predicts that
CRM operations will be the IT area most likely
to provide growth opportunity in the U.S. over
the next five years. But investment in CRM technology
is only one slice of the customer-centric pie.
Combined with a strong strategy, implementations
will have an even better chance for success.