• by Jack Loechner , Staff Writer @mp_research, March 1, 2003

More Spending on CRM, But No More Satisfaction

The latest findings from Jupiter Research reveal that companies are failing to meet basic consumer expectations for service via e-mail which is resulting in shoppers turning to the telephone for customer service. While 88% of consumers surveyed expect a response to e-mail inquiries within 24 hours, only 54% of companies sampled in Jupiter Research's latest Customer Service Webtrack met these expectations, the same percentage as in 2001, despite the fact that CRM spending continues to rise. Jupiter Research reports that CRM spending will continue to grow at a rapid rate through 2008, according to its latest Market Forecast Report.

Jupiter Research Senior Analyst David Daniels says, "Companies that fail to get serious about their management of customer service e-mail now, will pay the price with higher customer service costs and lost revenues down the line. This issue will be compounded as customer service e-mail inquiries will rise from 1.0 billion in 2001 to 3.3 billion in 2008. Inadequate service in the online channel only accelerates the rate at which customers turn to their telephone companies.”

Also reporting in its Jupiter Market Forecast Report "CRM Through 2008", online CRM technology spending will grow from $2.3 billion in 2003 to $4.7 billion in 2008, accounting for 25% of the $18.9 billion of overall CRM spending. Financial services companies will be the largest spenders on CRM, as their expenditures will increase from $3.4 billion in 2003 to $5.9 billion in 2008, accounting for 31% of the overall spending on CRM at that time.

You can find out more here.