CRM Report Card Kerry Glance, Site editor, SearchCRM.com Jon Panker, News editor, SearchCRM.com

About the survey Conducted via Web form, November, 2002 Invitations sent to SearchCRM.com members on nth name basis 226 surveys completed Results to be published on www.SearchCRM.com

Highlights In 2002, CRM spending was less than planned, projected increase in CRM spending for 2003 Significant interest in marketing automation and business intelligence Planning, ROI and integration still pain CRMers Perception ratings of major CRM vendors indicate satisfaction with product features

Demographics

Who took the survey “Which of the following most closely describes your primary job function?” N=226

“Where is your primary workplace located?” Who took the survey “Where is your primary workplace located?” N=226

Company size -- employees “How many employees are in your entire organization?” Avg. N=226

Company size -- revenue What is your organization’s annual revenue? Avg. N=226

Spending & selection criteria

“Compared to your 2002 budget, has your actual spending on CRM been…” Spending vs. plan, 2002 “Compared to your 2002 budget, has your actual spending on CRM been…” N=226

Growth chart “How will your company's spending on CRM-related products and services change over the next 12 months?” N=226

N=226 Evaluating CRM How important are the following criteria in the selection of CRM technology? # of respondents

*Excludes “don’t know” Deployment status* N=226 *Excludes “don’t know” # of users

*Excludes “don’t know” Deployment status* N=226 # of users *Excludes “don’t know”

How CRM Vendors are perceived We asked: “Rate your perception of the these vendors in the following categories…”

Product features Average perception ratings of major CRM vendors* (1=worse than average, 5=better than average) N=226 # of users *excludes “don’t know”

Cost Average perception ratings of major CRM vendors* (1=worse than average, 5=better than average) N=226 # of users *excludes “don’t know”

Service & Support Average perception ratings of major CRM vendors* (1=worse than average, 5=better than average) N=226 # of users *excludes “don’t know”

Attitudes

“In general, CRM vendors oversell the benefits of their products” Wary of vendor hype Provide your opinion of this statement: “In general, CRM vendors oversell the benefits of their products” Strongly disagree Strongly agree N=226

“CRM will be a meaningful term 5 years from now” “CRM” 5 years from now Provide your opinion of this statement: “CRM will be a meaningful term 5 years from now” Strongly disagree Strongly agree N=226

“I see significant value in using hosted CRM” Provide your opinion of this statement: “I see significant value in using hosted CRM” Strongly disagree Strongly agree N=226

Provide your opinion of this statement: Microsoft Provide your opinion of this statement: “We will seriously consider Microsoft CRM in future CRM product selections” Strongly disagree Strongly agree N=226

CRM Expectations How would you describe the success of your CRM initiatives up to this point compared to your expectations? More than 54% see increase Factor out “don’t knows” and it jumps to 63% Only tiny % see declines N=226

Multiple responses allowed CRM Obstacles Select the most significant obstacles your organization has encountered to the successful completion of CRM projects: More than 54% see increase Factor out “don’t knows” and it jumps to 63% Only tiny % see declines Multiple responses allowed N=226

Do you measure the ROI of CRM projects? N=226

ROI Select the most important ROI criteria you believe should apply to CRM projects… N=226, multiple responses allowed

Commitment to…integration Which CRM initiatives do you expect will receive the greatest commitment from your organization in terms of money and staff in the next year?* Surprising strength of Web-based customer services Second most important is data management related: data mining, BI Leveraging what data we already have * Excludes “other” N=226, multiple responses allowed

Commitments…cont’d Which CRM initiatives do you expect will receive the greatest commitment from your organization in terms of money and staff in the next year?* Surprising strength of Web-based customer services Second most important is data management related: data mining, BI Leveraging what data we already have * Excludes “other” N=226, multiple responses allowed

Questions/comments