God Retain the Queen: New survey offers insight into U.K. CRM attitudes
When it comes to customer relationship management, marketers in the United Kingdom talk a good game, but putting their knowledge into play has proven a bit of a sticky wicket.
A new survey of customer service and marketing managers at 40 of the largest corporations in the United Kingdom reveals that, while they understand the benefits of CRM, their practices lag behind their potential.
Only one firm rates its customer satisfaction levels as “excellent,” while 15% say their operations are poor or need improvement.
Another 40% indicate they feel the measures they take are “satisfactory” – the second-lowest answer. One-third say their customers see their CRM practices as “very good.” The rest do not hazard an opinion.
Seventy percent of respondents readily agree that the quality of a customer’s experience is the most important factor in building a long-term relationship. Almost 73% of total respondents and 90% of marketing executives say they spend at least half their time on building relationships with customers.
Spurring this activity is the belief – held by 65% of those surveyed – that customers want a more personal relationship with marketers. Reactions among those (an additional 25% of the respondents) who did not hold this belief included concerns that these efforts are only valid if marketers are able to treat customers as individuals, and uncertainty about whether CRM efforts are able to address specific customer needs.
The metrics with which U.K. companies measure CRM success, however, call into question the priority companies place on relationship marketing. Only a third say they measure its impact at all, with another 30% indicating they plan to do so.
But when pressed on how they are measuring CRM’s impact, most indicate they focus on immediate profits. Only 22% say they take even rudimentary steps to measure a customer’s lifetime value, share of wallet or level of commitment to the company.
Respondents do acknowledge the Internet’s influence on CRM. Sixty-eight percent say they use it as part of their CRM technology mix, and almost half say that it is integrated into other systems, such as marketing databases or call centers. A further 25% have plans under way to incorporate the online channel into their databases or phone rooms.
When asked to name the one U.K. company that best exemplifies ideal CRM, nearly one in five respondents mention financial services firm First Direct. Tesco, a consumer goods retailer/e-tailer, follows with 7.5%, and entertainment concern Virgin, with 5%, comes in third. A few individuals cite local business ventures, such as beauticians.
The survey was conducted by Cupertino, CA-based Chordiant Software Inc., a customer interaction software supplier, and CMG plc, a European business services firm.
