IT companies are failing to connect with their customers

Senior management in financial services companies turn to external influencers to make IT decisions

London, U.K.—29 October, 2003— Recent research with European financial services organisations has revealed that despite technology being named as the number one issue facing senior business and IT management, technology companies are failing to connect with their European customers. The research, conducted by the IT Services Marketing Association (ITSMA) and Tiger Lily, the leading independent European analyst relations specialists, identifies the impact of marketing techniques in the sector, and the role of key influencers in the decision to purchase technology solutions and services.

Interviews were conducted with 90 senior business and IT managers, representing financial services organisations in the UK, Germany, and France. The research revealed that a fundamental mismatch exists between the methods used by IT companies to define and explore the issues facing their customers, and the actual impact these methods have on buyers’ decisions to work with these IT companies. For example, 84% of financial services companies are significantly influenced by a company that conducts a personalised audit or analysis of their issues and the impact on their business. However, only 48% of IT companies currently provide this type of service. In contrast, IT companies continue to invest in conferences, email campaigns and directing customers to websites, even though business and IT managers find these methods have less impact.

One result of this failure to successfully engage customers is a confused marketplace. Asked to name those IT companies they consider to be ‘thought leaders’ in defining and exploring their technology and business issues, there was largely either little agreement from customers or no response.

Instead, the heads of financial service companies continue to turn to and be influenced by a variety of other sources of information. Senior managers look to their peers and use one-to-one conversations with industry analysts to find out about IT suppliers.

Independent consultants are used at each stage of the IT decision making process, as are the industry analysts, albeit to a lesser extent. Management’s rationale for using these sources is revealing: it views consultants as unbiased experts who save it time and money, and value industry analysts for their deep knowledge and real independence.

At headline levels, the view of financial service businesses in France, Germany and the UK is remarkably similar. However, at a more detailed level, significant cultural differences begin to emerge.

• German management considers itself the most innovative in adopting IT (33.3% of German management); dislikes being directed to websites for more information; and perceives consultancy and professional services organisations to be thought leaders.
• French management considers itself the most average in adopting IT (73.3% of French management); likes case studies; and perceives consultancy firms to be thought leaders.
• British management considers itself the most conservative in adopting IT (36.7% of UK management); is generally most open to all IT marketing activities; and perceives market leading technology companies to be thought leaders.

"These findings are a real wake up call for many in the IT industry. At a time when it is popular to question the value IT solutions really add to businesses, suppliers clearly need to get closer to their customers and provide the information and analysis they need to make an informed choice – in the way they prefer to receive it,” commented Bev Burgess, Managing Director, ITSMA Europe. "The good news is that our research reveals the marketing processes and activities that can remedy the situation. It highlights the need for IT companies to use their marketing resources more effectively and become truly customer centric.”

"It is clear that very few IT companies today have mastered the complexities of the dialogue required by customers in their decision making process. The fact that no one company has achieved consistent thought leadership in their geographic and solution markets proves the difficulty, but represents a real opportunity” explained Gerry Davies, Director, Tiger Lily. ‘Our research suggests two clear policies – listen to the customer and demonstrate understanding of their issues; and secondly target key influencer communities with appropriate messages and market positioning programs.’

For further information or to arrange an interview with ITSMA or Tiger Lily, please contact Adam Wurf on 07812 450 398 or by email at awurf@itsma.com.

About ITSMA
ITSMA specializes in helping companies market and sell services and solutions more effectively. As a membership organization, we work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA members include business leaders such as Accenture, BT, Cisco, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing ^SM, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.

About Tiger Lily
Tiger Lily is a unique organisation focused on helping companies to cultivate key analyst and influencer communities by designing and delivering impactful marketing programs to maximise mind share, accelerate the sales cycle and improve market success. Tiger Lily is based in Windsor, Berkshire. See http://www.tigerlily.uk.com.