The European e-Business Report The European e ... - empirica

The European E-Business Report 2005
1.4.3 Customer Relationship Management
Customer Relationship Management (CRM) systems are integrated software applications that help
companies to collect and process information about customers. CRM systems can be used in a
strategic, as well as in an operative way to target the right customer in the right way. Basically, CRM is
an instrument to track all forms of contacts with clients and to store this information so that it can be
used on demand; for example to evaluate future demand and business opportunities, or to assess the
success of special marketing activities in a systematic manner.
Exhibit 1.4-6: Companies using a CRM
system (2005)
TOTAL
Micro (1-9)
Small (10-49)
Medium (50-249)
Large (250+)
0 10 20 30 40 50
5
9
15
20
29
Size-bands: In % of firms; EU-7, 10 sectors.
Total: Weighted by employment; EU-7, 10 sectors.
As most advanced software architectures, CRM
systems are predominantly used among larger
enterprises. 20% of medium-sized and 29% of
large firms among the 10 sectors surveyed in
2005 have implemented a CRM software. IT
services and pharmaceutical companies are
prime adopters among the 10 sectors studied.
About 40% of all firms that use CRM report that
the system is "very helpful" for the effectiveness
of their marketing activities, and about 45% say
that it is very helpful for customer service. About
45% (for both application areas) say that CRM
has been "rather helpful".
Exhibit 1.4-7: Perceived value of CRM systems for various business purposes (2005)
0 20 40 60 80 100
For the effectiveness of marketing
41
43
16
For customer service
44
44
12
For the development of new products
21
43
36
Very helpful Rather helpful Not helpful
Base (100%): Firms using a CRM system, excl. "don't know" answers (N ~ 645 per item). In % of firms.
Source: e-Business W@tch (Survey 2005)
Although survey results do not point at a high adoption rate of CRM systems in tourism, CRM
is highly relevant for specific players within this industry. Airline frequent flyer programmes and
hotel frequent guest programmes, for example, are heavily dependant on powerful CRM
applications.
In the pharmaceutical industry, a key objective of marketing is to establish and maintain
excellent contacts to the intermediaries between pharmaceutical companies and end users, for
example pharmacies and doctors. CRM is a very important instrument supporting this objective.
In the IT services sector, CRM solutions are popular even among micro-firms (more than 20%
use CRM). This indicates the great importance of this software application in the sector, in
particular for customer service.
36