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U Luv CRM
A recent analysis of Customer Relationship Management (CRM) spending conducted by International Data Corporation revealed:
Turns out Mass Customization is just what it sounds like – companies now have the capability to produce massive quantities of product but in small, personalized batches. Huge brands like Lands End, Adidas & Levis now offer customized versions of their mass-produced products.
Then there’s personalization, which is one-on-one interaction with customers. But, not surprisingly, any company in the business of mass customization needs a highly personalized service to be successful and build close relationships with their customers. Thus, personalized, one-to-one marketing communications is the trend.
If your organization is considering mass customization or personalization, keep these principles in mind:
- CRM industry spending will increase at a compound annual growth rate of 25 percent, from $61 billion in 2001 to $148 billion in 2005.
- The forecasted growth surpasses the expected budgets of the overall IT services market, which is predicted to show 12 percent growth from 2000 to 2005.
- The bulk of spending on CRM will be associated with outsourcing/operations management, which accounted for $32 billion in revenue in 2000.
- Spending on outsourcing is expected to increase to $82 billion in 2005.
- CRM training is also expected to exceed $2.9 billion in 2000 and growing to $11 billion by 2005.
Jocelyn Young, manager of IDC’s CRM Services research program, said "CRM's solid performance despite a weakening economy can be attributed to the business benefits and cost savings it generates for customers,". "As companies need to justify their e-business investment, they will look to CRM solutions as a key means to increase e-business return on investment."
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