Steve Downton, Downton Service Management Consultants Ltd, Noventum Group
Is the hype around CRM initially key in generating interest now stifling interest?
A recent end-user survey of 405 European organizations showed that although half of the respondents rate CRM as critical for their business, as many as a third of European businesses are uninterested by CRM software.
In contrast to this basic assumption and downbeat scenario, a recent report released by IDC predicts European demand for CRM services will grow from $13 billion in 2000 to $43 billion by 2005, with approximately 57 percent generated by eCRM services. IDC also predicts that over the next five-years, emarketplaces will establish ground in Europe, leading to the emergence of marketing services offering an array of CRM analytical capabilities.
The report notes that the complexity and maturity of these market places will require new forms of approaches and delivery models, and a careful balance between marketing and customer privacy.
The basic assumption in assessing this market size is that CRM and knowledge management systems for capturing and managing customer information must be treated as a fundamental and essential building block of a firm's business model. Whether the secondary research result has come about through apathy, ignorance or by design appears to depend upon the perspective adopted.
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