eCRM: Measuring the effectiveness of web channels

Abstract

Since 2000, on-line companies have been haemorrhaging cash in a bid to attract new customers, some spending as much as £46 to get £1 in gross profits. This paper provides evidence of the ineffectiveness of this sales and marketing spend. Of every 12 serious sales leads that are pulled into UK websites, only one is being handled well with the other 11 effectively being wasted. Given that the UK represents a considerable proportion (about 35 per cent) of the spend on CRM in Europe, CRM would be expected to be doing well. This is not so. Far from excelling at managing relationships at all touchpoints, in the UK companies stumble at one of the simplest challenges: how to handle e-mail leads from hot prospects. This paper presents the findings from the third Sistrum survey into on-line service in the UK and examines the implications for six key industry sectors. At a time when real structural differences in the dynamics of US and European economies are being highlighted careful thought nee)