New Survey by Sedona Corporation Proves Financial
Institutions Underutilize CRM and MCIF Systems
KING OF PRUSSIA, Pa., July
30, 2001 - / Sedona Corp /
- A majority of small and
mid-sized financial institutions are underutilizing their CRM and Marketing
Customer Information File (MCIF) systems, according to a March 2001 survey
sponsored by SEDONA® Corporation.
The survey was conducted by Core Group®, Inc., a national marketing
consulting firm. Results revealed that more than three-quarters (76 percent) of
community banks and credit unions are not employing all of the components of
their CRM or MCIF systems. In addition, nearly two-thirds (62 percent) of
financial institutions did not have their CRM or MCIF systems networked within
the organization, resulting in a limited number of users and decreased
opportunity for integration into more than one department.
Results of the survey indicated that the primary roadblock to
full-system utilization is a lack of trained resources, resulting in nearly 40
percent of financial institutions stating that they are interested in
outsourcing select CRM or MCIF functions. The survey also determined that the
most popular third-party CRM or MCIF services include: planning and mailing
implementation (40 percent); training (38 percent); profitability analysis (23
percent); and database tracking (23 percent).
Almost universally (88
percent), financial institutions with CRM or MCIF systems used those systems
primarily in the marketing department. The most popular CRM or MCIF features
were customer or account profiling (83 percent), improved marketing efficiency
(83 percent), and analytical business intelligence (81 percent).
The
survey consisted of 53 in-depth telephone interviews with small and mid-sized
financial services companies including banks, credit unions, and savings and
loan companies.
CRM Revenues Worldwide Moving On Up; Europe and Asia Pac to
Get Their Piece of the Pie
SCOTTSDALE, Ariz., July
24, 2001 - / In-Stat /
- Cahners
In-Stat Group projects that total CRM
software application revenues will increase from $9.4 billion worldwide by the
end of 2001, to approximately $30.6 billion in 2005. In the first study of a
three part series, the high-tech market research firm finds that while North
America currently represents the majority of operational CRM revenues, Europe
and Asia Pacific are expected to experience significant growth over the next
five years.
Although the global economy continues to struggle and software
spending has slowed, In-Stat believes that long-term, CRM will remain a high
priority for companies.
"The current economic slowdown has led to
modest performance between 2000 and 2001 for CRM application revenues, most
prevalently in the more established operational CRM market. And, although the
growth rates for the smaller markets of analytical and interactive CRM were
strong, they were comparatively lower than in previous years," says Kirsten
Cloninger, Industry Analyst with In-Stat's eBusiness Group. In contrast, In-Stat
believes that the future holds promise. Beginning in 2002, operational CRM
revenues are expected to grow between 30-40% through 2005.
While the revenue potential of CRM worldwide is high, competition is
also fierce. The CRM landscape is expected to remain volatile, with analytical
and operational CRM solutions continuing to overlap. As this trend continues,
In-Stat anticipates that the next twelve months will witness additional
consolidation among analytical and operational vendors. As a result, growth in
analytical CRM revenues will begin to decline, as operational vendors include
analytical capability and increasingly absorb analytical revenues. In-Stat has
also found that:
- The United States is expected to reach roughly $8 billion in operational
CRM revenues by 2005, accounting for roughly 44% of all operational CRM revenues
worldwide. Operational solutions are defined as those that automate and manage
processes associated with customer interactions of sales, marketing, service
through either phone or Web.
- Already sizable markets, Europe and Asia Pacific represent the next huge
growth opportunity for CRM vendors. With e-business development continuing to
expand globally and the concept of CRM growing in popularity, operational CRM
revenues are expected to reach roughly $3.6 billion in Europe, and approximately
$2.7 billion in Asia Pacific by 2005.
- The largest firms in the U.S. represent, and will continue to represent,
the most opportunity for CRM vendors; though other markets, namely mid-sized
businesses, may make attractive growth segments in the future. Large companies
are expected to generate approximately $1.9 billion in operational CRM revenues
by the end of the year, accounting for roughly 78% of the U.S. revenues.
Expected to total $490 million by the end of this year, the mid-market will grow
rapidly, starting next year. As opportunities in the U.S. enterprise market
begin to decrease around 2004, the mid-market is expected to constitute a
greater portion of revenues, as solution providers begin to focus more attention
on them.
IDC Predicts CRM Solutions Will Grow 26% in Europe
July 18, 2001 - /
IDC /
- The CRM solutions market in Europe,
including software and services, will show a healthy yet sustainable growth of
26% over the next five years. IDC expects the
improved focus on strategic planning around entire CRM implementations and
expected technology enhancements to existing application designs and vertical
expertise will contribute to this growth.
Many systems currently in place have proven difficult to implement,
but offer excellent training ground for users and insight into how systems can
be improved in the future. As a result, the critical need for a clear framework
around developing a CRM implementation strategy is becoming easier to identify
and address.
Given that the total market is expected to reach nearly $50 billion by
2005, IDC believes there is significant room for both software vendors and
service providers to increase their business.
"The emphasis lies
in being able to develop strong CRM strategies while clearly defining the
business value proposition for clients. Today, the issue is less about
technology and more about how to optimize and differentiate through process
improvement," said Rasika Versleijen-Pradhan, senior research analyst with
IDC's European eCRM Services research program. The key to success is to balance
the company's internal requirements and develop revenue goals and profit margins
while positioning for competitive growth in the future.
"End
users should expect that the competition is still fierce enough among CRM
software and CRM services suppliers to drive better implementation practices
based on improved technology and strategic planning," Versleijen-Pradhan
said.
IDC analysts identify key CRM drivers as:-
- business pains associated with improving the focus on external
relationships,
- visibility via the Internet, and
These drivers are very important among
companies considering, or in the process of implementing, CRM solutions.
The latest worldwide Internet Monitor conducted by Pro Active
International indicates impressive Internet usage growth in Europe in 2001,
but the US still remains far ahead
Amsterdam
- July 6, 2001- / Pro Active International /
- 30%
of the European Union's population aged over 15 years are actively connected to
the Internet (they were online at least once in the last 14 days). In the USA
that figure has already reached 55 percent. On average, European Internet users
go online once every 2 days and remain online for an average of 41 minutes a
day.
Internet usage This implies that the average European
Internet user is online for 6 minutes each day, while the US Internet users are
online for 15 minutes a day on average! In Europe the highest usage levels are
found in Sweden (12 minutes per day) and the lowest usage levels may be found in
the Iberian Peninsula (2 minutes per day).
Liesbeth Hop, CEO Pro Active International: "We believe that the
length of daily Internet usage will be higher than 10 minutes in the year 2005,
but that it will take at least another 10 years before the European figure will
reach the same level as the US figure, which will then exceed 20 minutes per
day. The time that people spend online will adversely influence the time they
spend watching television/videos and will also decrease the time they spend on
the phone and sleeping!"
In countries where the Internet penetration already exceeds the 50
percent mark, such as the Scandinavian countries and The Netherlands, we can
conclude that the online population more and more resembles the total population
of inhabitants. This is mainly the case for the population group younger than 45
years. In addition, these figures very much resemble the US figures, but among
the age group over 45 years, we still find large differences between gender and
social class/education. Pro Active International expects the Internet
penetration to increase in the above European countries to 75 percent over the
next few years. The Southern European countries are approximately 5 years behind
the Northern European countries and it will take until 2010 before they reach
the Internet penetration level of 75 percent.
E-Commerce is increasing strongly in Europe. Based on the
research data, Pro Active International expect a total of 265 million private
online purchases in the year 2001, which will represent a value of 28 billion
Euro. This would mean an increase in value of 40 percent compared to the year
2000. In the US, however, this figure is still 5 times higher, because in the
US, the percentage of online buyers is 3 times as high. The average amount per
purchase is 50 percent higher and the number of purchases per person are on
average higher than in Europe.
In 2001, 100 million business purchases will be made in Europe,
representing a value of 40 billion Euro. This is an increase of 40 percent in
terms of value. In the US this figure is 3 times higher than in Europe. Based
on value, online private purchases in Europe consist first of all of computer
hardware (18%), travel and books (both 12%). Durable goods represent 11 percent
of the value of all private purchases made online. 80 percent of private
purchases are made through local websites.
The product categories are very different in the US, where travel
comes first and already represents 22 percent of the value of all private
purchases, durable goods are second at 16 percent and books and computer
hardware share the third place at 8 percent each!
Computer hardware holds a strong first position (32%) of the
online business purchases in Europe. Software comes second at 8 percent and
travel is third at 6 percent. 77 percent of business purchases are made through
local websites. In the US, computer hardware takes up a much lower position for
business purchases (18% as compared to 32%). On the contrary durable goods score
much better (13% as compared to 5%). This shows how mature the US market already
is at the current time. In the period 1995-1996 the largest part of the
purchases made online in the US had a direct relation with computers (hardware
and software). Similarly, this was the case in most of the European countries
when the Internet penetration was still below 10 percent.
Although 77 percent of European Internet users know enough English to
understand websites in that language, more than two thirds of Europeans still
would rather if websites were offered in their local language.
Editor's note:- when I started my first web site in 1996, I used
to believe that the UK was about 12 to 18 months behind the US in its use of the
web for B2B. Now, that gap has probably increased to 2 to 3 years. In a small
country like the UK, most people still prefer using the phone and sitting in
traffic jams on their way to and from customer meetings.
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Other news on this page
New
Survey by Sedona Corporation Proves Financial Institutions Underutilize CRM and
MCIF Systems
CRM Revenues Worldwide Moving On Up; Europe and Asia Pac
to Get Their Piece of the Pie
IDC Predicts CRM Solutions Will Grow 26%
in Europe
The latest worldwide Internet Monitor conducted by Pro
Active International indicates impressive Internet usage growth in Europe in
2001,but the US still remains far ahead
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Nibble
Re: Shopping Days Till Christmas
Did you realise
there are less than 160 shopping days till next Christmas?
The reason
I mention this, so early in the year, is that in previous years the seasonal
craze for Playstations, plastic characters from movies like Toy Story, or fads
like Pokemon has meant that demand outstripped supply, and many would-be
purchasers were left empty handed. And you know how embarrassing it can be
explaining why you had to make a last minute subtitution. So, if you've got
your eyes set on a nice tasty storage company to acquire it's better to
get in early before all the best ones have gone.
We notice a lot of
things here at the mouse site,
which are too dull for most of you to worry about, but when we start to see
patterns, we'll try and let you know.
Now here's an interesting
calculation for you, if you're planning to close the year with some more assets
under your corporate belt. I think "assets" sounds so much better
than "scalps" in a mergers and acquisitions context, don't you? At
the time of writing, about 5 storage companies every week are being acquired,
change their name or go out of business. I expect this trend to accelerate,
because the market conditions in the US mean that the whole IT market is a lot
more competitive than it used to be, with everyone chasing after an endangered
species, called "customers". Also banks and venture capitalists have
been feeling the squeeze themselves, and are not so likely to let a company
trade on for another 3 months or so in the hope that "things will get
better". If you also factor into this calculation that around a third of
the venture capital backed storage startups funded since January 2000, will
probably have to be acquired or do IPO's to keep their investors happy, then my
estimate is that over 130 storage companies will have disappeared from the
shopping cart between now and Christmas, so now's the time to start looking at
them, while they're still fresh.
What sort of companies are available?
Well storage software companies, RAID companies and VARS seem to head the list,
based on historic spending patterns. But really the selection is as wide as the
whole industry, and includes semiconductor companies, adapter card companies,
fibre-channel switch makers...
No product category is imune.
Now
the storage market is in a lot better shape than the PC market. You'd have to be
nuts to buy a PC company right now, and we assume that most of them will be left
on the shelf and probably end up being recycled as cheap DVD players or buried
in the ground as landfill.
You may be thinking:- this is not the thing
for you. And who buys all this stuff anyway?
Well companies,
which have bought a lot of storage companies recently include:-
INRANGE Technologies,
LSI Logic and
Sun Microsystems. But even
staid old EMC has bought a
couple. Companies which are profitable and have a lot of cash are the most
likely shoppers. You can't use your credit card for this kind of transaction.
If your company may be on the block shortly, you can take a look at who's been
buying what in our acquired
companies list. Remember they might not want two the same. And if you're
planning a bit of empire building before the recession ends and prices go up
again now's the time to start looking, before the rush.
And for the rest
of us, who are more interested in buying a disk drive than a disk drive company?
It will just have to remain a spectator sport.
But the end result
will be better products from suppliers who will still be around in the long
term. And that benefits everyone.
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