Gartner CRM Summit: Why Implement CRM?

In the key note speech Scott Nelson mentioned four reasons why you would implement CRM. It's become very apparent over this week that 2006 marks the year where we undergo a major shift in the reason for CRM implementation.

Nelson cited these four reasons:

• Extend customer breadth and depth of relationship (Grow Business)
• Minimize transaction barriers and reduce costs (Save Money)
• Use and enhance brand equity
• Focus on customer value and satisfaction

Most companies say they want to do all four with their implementation, and to a certain extent they can, but companies must choose one to focus on above all others. This will drive your implementation.

"The reality is that you are working on one or more of these at a time." Nelson said. "But which is most important? It matters."

When CRM first became popular in the early 90's businesses focused on growing their business through CRM. They wanted to be able to automate process to sell more, faster. They hoped to tap current customers for further growth through up selling and cross selling.

When the recession hit in the early 2000's companies driving forces moved to cost optimization. They hoped by automating internal processes they could save money.

Now as we turn an economic corner and many businesses are optimistic, Gartner states that business growth is again driving CRM implementation.

"We are seeing businesses being aggressive again and beginning to focus on growth." Analyst Sharon Mertz said. "This is a fundamental change from the early part of the decade which focused on cost optimization."

Throughout the conference, Gartner has been optimistic about the future of the economy and the market for CRM. Companies focusing on growing their business is a good sign for everyone.