CRM technology spending is growing, although not as rapidly as in years past. Still, while technology continues to improve, companies struggle with the softer side of CRM.



In our 2004 study of CRM projects, strategy and planning topped the list of areas where people said they needed help to be more successful with their CRM programs. In general, as you can see in the chart, top concerns were management-related issues, such as metrics and process design.

Dealing with organization change was the No. 2 issue. Over the past few years, it has consistently been cited (in research by benchmarking firm Insight Technology Group and others) as one of the top three CRM project issues.

These days, the technology issues are not so much about selecting vendors or solution providers but, rather, data and integration. Data quality and cleanup of existing database take longer than planned. Despite the advance of web services and XML to move data between disparate applications, integration continues to be an issue. It's well worth solving, because integration is a core capability of successful cross-enterprise CRM programs.

SMART CRM is Good Business
As you consider how to be successful with CRM, use the acronym SMART to take advantage of what we've learned from studying hundreds of projects.



Putting customers first is good business. If you work at CRM, it can deliver the ROI and differentiated relationships you'll need to succeed in today's competitive marketplace.

About the author:
Bob Thompson is CEO of CustomerThink Corp., an independent customer relationship management (CRM) research and publishing firm, and founder of CRMGuru.com, the world's largest CRM industry portal.

Mr. Thompson specializes in CRM strategic planning and research. Since 1998, Mr. Thompson has researched the leading industry trends, including how CRM concepts can be applied to such business partners in the extended enterprise as distributors, resellers and agents. In January 2000 Mr. Thompson launched CRMGuru.com, which has become the world's largest and fastest-growing CRM industry portal with more than 200,000 members. He is frequently published and quoted in industry publications such as BusinessWeek, InformationWeek and Computerworld and speaks at conferences and seminars worldwide.

Throughout his career, Mr. Thompson has advised companies on the strategic use of information technology to solve business problems and gain a competitive advantage. Before starting his firm, Mr. Thompson had 15 years of experience in the IT industry, including positions as business unit executive and IT strategy consultant at IBM.

For more information, please visit http://www.crmguru.com/ or contact Mr. Thompson by email at bob@crmguru.com.