Social networks to be a major trend in 2009
In 2009 customer relationship management projects will be all about business value, which includes adding social networks to the mix, according to a report from analyst Forrester Research.
An increased emphasis on business value will see enterprises focusing on customer retention and creating dynamic solutions to support customer facing processes. ”During this economic downturn, customers tell us they need bulletproof financial arguments to get funding for their projects,” said William Band, Forrester VP and principal analyst. It is not enough to ensure business value in new projects; enterprises will begin focusing on customer retention instead of customer acquisition to stay afloat, Forrester predicts.
“During an economic recession, sustaining revenue growth – or forestalling revenue erosion – becomes even more critical,” the company said. But customers are getting harder to win and keep, Forrester said, and the solution is improved customer experience.
“Good customer experience is highly correlated to customer loyalty,” Forrester said. To improve the customer experience, enterprises will integrate CRM functionalities better with their back end enterprise resource planning (ERP) and supply chain management (SCM) systems, Forrester said. They will focus more on agile and usable solutions tapping these back end systems to support customer-facing applications.
Smaller vendors will take the lead with targeted offerings, while larger vendors like Microsoft, Oracle, SAP and IBM will focus on cross-functional applications with more flexible process definitions, Forrester predicts.
Another way to improve customer experience will be to incorporate social networking capabilities in CRM applications, and Forrester predicts that enterprises will begin doing this in 2009. The report says that CRM professionals must build a sound business case for projects. They must answer questions about the project’s business benefits, its impact on IT or project costs, whether it increases or decreases future flexibility, and how risks will be mitigated.
Getting business value includes reducing the risk of implementing CRM projects, and Forrester predicts that risk proofing will be near the top of the list of priorities for CRM professionals in 2009. Following a recent survey of technology, business and IT leaders at 133 organizations, Forrester identified 27 risk areas that could impact CRM projects. That focus on business value will trickle down to hit vendors.
Enterprises will demand that their CRM vendors provide clear and specific data about the business value their solutions deliver, Forrester predicts.
In 2009, CRM professionals will continue to focus on how enterprises collect, distribute and use data to create value, Forrester predicts. “CRM professionals tell us that poor customer data management is one of the biggest barriers to getting value from their CRM programs,” the report said.