Only 50% of top firms will get ROI from social CRM by end-2012

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?For the 50 percent of Fortune 1000 organizations not determining, or even measuring, ROI, ignorance will mean failed projects,? said Adam Sarner, research director at Gartner. ?Among the companies who will not see a worthwhile return, only 20 percent will even have the data to evaluate where their social strategy is falling short. These organizations will be unable to justify future funding.? During the next two years, the success of social CRM will depend on how well companies and social CRM technology providers can make social CRM projects more than just social objectives by tying them to clear and measurable business objectives. Gartner predicts that by the end of 2012 three-quarters of new social CRM initiatives that receive funding will have a business case incorporating measurable ROI. Many organizations have established a form of social presence. However, many also lack a clear business performance objective for social CRM, being at early stage in their measurement of its business outcomes. ?Social data, such as numbers of fan pages and weekly Tweets, is not enough to correlate with the contribution of top business objectives,? said Sarner. ?ROI, measurable business value and budget justification for social projects are becoming unavoidable topics for many organizations.? Gartner analysts said they expect the worldwide market for social CRM software licenses and subscriptions to total $2.1 billion in 2012, up from 850 million in 2011, and that social CRM revenue will represent 10 percent of the overall CRM market. Initially, social CRM was mostly a concern of marketing, but it now affects every discipline, from marketing and sales to customer service and support. Social CRM is increasingly important to lead generation and cross-selling and up-selling capabilities, and to other functions that are key to successful sales organizations. Gartner said that business-to-business applications for sales use will have the fastest growth and will account for 30 percent of social CRM spending by 2015, up from 5 percent in 2011. ]]>

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