Traditional CRM is Not Delivering Desired Customer Experience Transformation

CAMBRIDGE, MA, February
9, 2010:

Customer experience transformation is rapidly becoming a key business
differentiator in the battle to retain customers and grow revenues and wallet
share.  But many businesses have yet to rise
to this challenge, due to constraints imposed by their legacy Customer
Relationship Management (CRM) platforms. As a result, they continue to focus on
routine operational savings rather than dramatically improving their customers’
experience and net promoter scores. These are among the main findings of a major
global survey
of international businesses across the UK, mainland Europe
and the U.S. undertaken by Pegasystems (NASDAQ:PEGA), the industry leader in business
process-driven customer experience transformation.

“Overall,
62% of respondents saw differentiating their value proposition by customer
service rather than by product as essential or very important,” says Amy Bethke, senior director of customer
process management solutions at Pegasystems.  “And this was reinforced by the fact that, as
customers or consumers, an overwhelming 74% were very likely or likely to buy
more from a company as a result of service excellence that goes beyond
expectations.”

“But
this does not mean that they have been able to achieve these goals within their
own business,” Bethke adds.  “While they
aspire to transform their customers’ experience, they often prioritize
reductions in operational spend (seen to be the main challenge by 34% of
respondents) over improvements to the customer experience. And only just more
than half of the businesses questioned have a CRM solution that actually
extends beyond the contact center and even fewer – just 43% – provide a
consistent customer experience across all delivery channels.  Perhaps most tellingly of all, only two in
five have customer service represented at the board level.  Clearly, traditional CRM approaches are not
enough to enable these critical business goals.”     

An intent-driven
approach

As
the broader economy shows signs of an upturn and spending plans on CRM increases,
the survey also reflects businesses continuing to achieve ‘more with
less’.  In addition, respondents
typically believed that their existing CRM systems could perform better and do
more.  This reflects the fact that for
most call centers the goal is limited by the technology approach to building up
as much customer data as possible.

“However,
all the data in the world can’t help you at the point of call resolution,” says
Bethke.  “It is becoming clear that
customer data by itself is not enough As soon as the customer requires
something, you typically need to involve other departments and systems beyond
the call center.  It is here that an
intelligent, intent-driven CRM approach, exemplified by Pegasystems, takes
customer service one critical step further – by allowing the business to actually
look across the whole organization as part of a fully joined-up, end-to-end
process, in dealing seamlessly with the customer’s issue.”

“This
can be achieved as both an enterprise transformation approach, or
incrementally, by adopting a ‘wrap and renew’ strategy, complementing existing
systems and breaking down silos between existing technologies. Either approach
delivers substantial operational and customer service benefits, quickly and
cost-effectively,” Bethke concludes.

The need for
flexibility

The
survey found major differences within the individual geographies.  For example:

  • Compared
    to European counterparts, a higher proportion of U.S. respondents (28% vs. 10%)
    see existing systems as hindering rather than helping to improve customer
    service.
  • In
    identifying the challenges companies face in achieving their objectives, UK
    respondents see the need to improve CRM systems as especially important (27%,
    compared the average of 19%).  At the
    same time, in France an overwhelming 50% of respondents put the need to reduce
    operational spend far ahead of any other concern.
  • In
    France and Spain, the highest number of respondents (35% and 34% respectively)
    identified revenue/profit growth as the top business objective, compared to
    just 19% in Germany.
  • Germany
    was the only country to confirm reducing customer churn (31%) as more important
    than revenue/profit growth, which fell to fourth most important, behind
    recruiting new customers (26%) and growing existing accounts (23%).      

“A
wide variation in responses within countries with similar economies has
profound implications on selecting the most appropriate CRM solution for a
multi-national business,” says Eric Deitert, director of customer experience
transformation marketing at Pegasystems. 
“Traditional, monolithic, code-based and data-centric CRM systems simply
do not have the flexibility to adapt to these differing requirements, and cannot
deliver uniformly high-quality customer response across disparate geographies.  By contrast, Pegasystems’ process-driven
Customer Process Manager adopts a highly agile, situational approach.  Because it is built on the Pegasystems’
award-winning SmartBPM platform, it is in fact an easy-to-customize framework
that can dynamically adapt to individual local requirements.”

Supporting Materials:

Pegasystems
International CRM Survey Report

Pegasystems
Customer Process Manager - CRM Solutions Page

About Pegasystems

Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.

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The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.

 

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