Description:

The fast-growing market for Customer Relationship Management (CRM) services has attracted competitors from virtually every corner of the IT industry. The motivation is simple: companies everywhere are investing heavily in CRM technology, and effective implementations require a wide range of services, including business strategy and planning, integration with legacy systems, and education and training of CRM users and managers.

If the revenue and profit potentials from CRM services are great, however, the risks are also quite substantial. Expensive CRM systems often produce underwhelming results, due especially to inappropriate expectations, ineffective integrations, and inadequate training. Growing competition among service providers is pressuring project timelines and margins, even as the slowing economy means that clients are waiting longer to get started in the first place.

This Update provides an overview of the market, new data on CRM services marketing strategies and tactics, and best practice recommendations. The data and recommendations are drawn from a recent survey of ITSMA members, as well as interviews with marketing executives and managers from top CRM services providers.