Gartner Survey Shows Retailers Identify CRM as Their Top Strategic Initiative for 2001
Survey Results Show Retailers are Confused as to how They Will Implement Their CRM Strategy
STAMFORD, Conn., June 18, 2001 — Retailers consider customer relationship management (CRM) to be a critical business initiative in 2001, but few retailers will implement these strategies, according to a recent survey by Gartner, Inc. (NYSE: IT and ITB).

Gartner surveyed 56 retailers in December 2000 and asked them their business priorities for 2001. A total of 52 percent of the respondents rated CRM as their highest business priority. A total of 43 percent of the retailers saw CRM as a moderate business priority, and 5 percent of the retailers rated CRM as a low priority. While most retailers consider CRM to be an important business strategy, only 34 percent of the respondents acknowledge deploying a CRM initiative.

"CRM initiatives, in a short period of time, have gained significant mindshare because they offer to fill two of retailers' most critical needs - understanding customer buying behavior and providing better customer information throughout the organization," said Carol Ferrara-Zarb, research director for Gartner's CRM research group. "But CRM technology is still very immature. This level of immaturity in the short-term will hinder retailer's efforts to reap benefits. While sponsorship at the executive level is paramount, it's necessary to drive the CRM vision down to the execution level and foster cross-channel and cross-functional efforts."

CRM refers to the concept of moving ownership of the customer up to the enterprise level and away from individual departments and channels. These departments are responsible for customer interactions, but the enterprise is responsible for the customer. To accomplish CRM, the enterprise brings automation to each customer touch point, such as initiatives in sales automation, the Internet, the point of sale and call centers. Gartner analysts said implementing technologies is not the key to success in CRM.

"Retailers that fall into the trap of thinking they can accomplish CRM based solely on technology will fail," Ferrara-Zarb said. "Retailers that succeed in CRM will be those that evaluate their processes in light of customer expectations, honestly assessing their strengths and weaknesses, then rebuild them based on what their customers want." Gartner has identified five key initiatives that CRM-focused market leaders in the retail industry will do through 2004. They include the following:
  • Promote merchandising, marketing, servicing and selling across channels.
  • Provide a consistent face to the consumer across all points of contact.
  • Capture and leverage knowledge across channels at a granular level.
  • Identify, target and differentiate valuable consumers.
  • Recognize the lifetime value and profitability of consumers.
Gartner analysts will provide additional insight into CRM during its upcoming event, "CRM Summit Fall 2001 Customer Loyalty - The Key to Profitable Growth," which will be held September 10-12 at the Hyatt Regency Grand Cypress in Orlando, Florida. This Summit identifies both the business and IT imperatives necessary to enable more profitable customer relationships. It deals not only with the technology, but also with the strategies and processes that technology enables. More details on this Summit are available at www.gartner.com/crm.usa, and at 800-778-1997 or 203-316-6757.

Additional information on CRM is available to subscribers of Gartner's programs. To subscribe to these services, please call 408-468-8000. Additional analysis on this market is also available at www.gartner.com, and then go to the Focus Area "Customer Relationship Management."

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $859 million. For more information, visit www.gartner.com.
CONTACT:
Tom McCall
Gartner
408-468-8312
tom.mccall@gartner.com