The CRM Imperative

Lack of organizational cooperation and coordination remains a major impediment to the success of customer relationship management (CRM) initiatives; 79 percent of companies that report a negative return on their CRM investments cite cultural issues within the enterprise as the cause. The continued growth of the online medium, and online commerce in particular, will boost customer service contacts that will drive CRM spending from $9.7 billion in 2001 to $16.5 billion in 2006. To execute a CRM strategy effectively, businesses must appoint a senior-level CRM guru who coordinates all CRM activities and reports to the CEO.