CRM is key to online success

Successful implementation of customer relationship management (CRM) strategies will see a quarter of European businesses able to complete most of their transactions online by 2006.

A survey of more than 500 directors and senior managers, conducted by market researcher the Survey Shop and commissioned by document specialist Xerox, analysed ebusiness and CRM implementations across European blue chip companies.

Many businesses have been slow to move transactions online, but effective use of CRM will be vital to ebusiness growth.

"It's difficult to re-engineer all your processes to support your customers' activities," explained Olivier Groues, senior vice president of worldwide industrial business at Xerox. "But in five years the majority of businesses will be doing their business online."

While two thirds of companies surveyed do less than 10 per cent of their business online, the same proportion expect 50 per cent of their business to be conducted over the web in five years' time. Up to 25 per cent believe that more than half of all transactions will be electronic by that time.

There is a strong correlation between companies that are successful online and those that take CRM seriously, said Groues. "Key strategies for the successful business are profitability and being customer-centric," he maintained.

The survey found that more than two thirds of European companies use CRM technologies. Spanish and Italian companies lead Europe in implementations, with 77 per cent and 75 per cent respectively. Some 54 per cent of UK companies have CRM strategies, compared with just 38 per cent in France.

But Groues doubts whether businesses are making the most of CRM. "I'm not sure if most companies see it as a tool to create in-depth profiles and to customise marketing campaigns," he said.