A major court case over the misuse of customer data is "almost
inevitable" since many CRM systems were implemented without proper
data controls, analysts at Gartner warned last week.
Analysts for the group said the management of data is currently
very poor. They advised companies to set up a strategy outlining
what data is needed for what purpose and where it will be obtained.
Unless companies can give a good reason for collecting data they
are in danger of breaking data protection laws.
Jennifer Kirkby, research director at Gartner, said too many
companies have implemented customer relationship management (CRM)
technology without considering how they control the data they then
accumulate.
"The growth in IT and automated contact systems has meant an
increasing number of companies are collecting customer data faster
than they are capable of using it," she said.
"The future of CRM means having good customer knowledge and the
right level of information in the right place at the right time."
Kirkby said companies will increasingly view data as a commercial
asset, sharing knowledge with partners, suppliers and the market.
"This is all subject to data privacy rules, which is why
obtaining loyalty, trust and permission to use the data will be
important," she said. "However, the management of data is currently
very poor and a major court case on its misuse is almost
inevitable."
Companies that can prove they are trustworthy will gain a
competitive edge, Kirkby said. In addition, she said, a data
strategy can help companies to save on data storage costs, which
are set to rise by 17% in the next few years, Gartner estimates.
Meanwhile another division of the group, Gartner Consulting, said
last week that the high cost of CRM software prevents smaller
companies implementing the kind of customer service they want.
The average software budget allocation for CRM contact centre
solutions is £100,000, said Terry Wright, principal analyst at
Gartner. Given that most bespoke CRM solutions are significantly
more expensive than this, there is clearly some disparity between
the needs of the suppliers and the users.
"Our research has shown that although contact centres are being
adopted by larger organisations, smaller organisations are in
danger of being left behind," he said. "Lack of appropriate and
affordable solutions is certainly the principal culprit."