Setting Clear ROI Goals Is Vital For Successful CRM ImplementationSetting Clear ROI Goals Is Vital For Successful CRM Implementation

More than 70% of executives heading customer-relationship management initiatives at their companies haven't set clear and specific goals for achieving returns on their investment in such initiatives, according to a study of 167 businesses with at least $1 billion in revenue and across 14 industries conducted by consulting firm BearingPoint, formerly KPMG. Not having clear ROI goals is a key reason why many implementations are considered unsuccessful.

The majority of businesses are starting to look twice at their CRM plans because the initiatives haven't met their business performance expectations, the study says. At the same time, only 6% of companies surveyed set specific ROI targets early in the implementation stage. Instead, most companies used only metrics for measuring customer, transaction, and productivity data, without understanding the cross-functional impact and without the ability to gauge and translate such data into ROI. When a company monitors and measures the effectiveness of its CRM strategy against preset targets, tangible ROI can result, says BearingPoint senior VP Bruce Culbert.

The study also maintains that while CRM's importance to overall E-business strategies has increased, there are substantial barriers to overcome, including budget constraints, lengthy implementations, and organizational buy-in.