Markets facing historic productivity crisis can look to CRM for reliefAn overwhelming body of statistics shows that businesses are facing an unprecedented productivity decline but that individual companies have the means to improve their own output rate through effective Customer Relationship Management, as indicated by a new study from CRM solutions provider Maximizer Software. In the report, entitled The Productivity Puzzle, Maximizer analysed statistics from South Africa, the European Union, the United Kingdom, other government organisations, independent research firms, global companies and think tanks. The report noted that productivity in Europe is at a five-year low, while other markets, such as South Africa, face an equally daunting productivity crisis. The situation in the UK is unique in that output is falling while employment levels are at an all-time high. Specific findings include:
The report details the underlying causes of the productivity plunge. Some economists have flagged up 'labour hoarding' as a key factor, noting that many employers are holding onto expertise to see them through the tough times. In its 2012 Labour Market Outlook, the UK's Chartered Institute of Personnel and Development reported that almost a third of businesses maintained higher staff numbers than needed so they could achieve established production levels - and two-thirds of those companies said they were holding onto workers to maintain their organisational skill level. Maximizer also found that, as businesses extend their operations to maintain revenues in the face of an increasingly competitive business environment, they are concentrating their hiring efforts on sales, marketing and customer service in order to retain existing clients and win new prospects. The report demonstrates that a proven way to boost productivity in the customer-facing departments is through the adoption of advanced CRM systems. Maximizer quotes research from AMI Partners in 2007 which showed that companies with CRM systems generated revenues that were 260% higher overall, and 140% higher per employee, than those without. The report outlines ways in which CRM boosts productivity, noting that these systems:
Mike Richardson, Maximizer's managing director, EMEA, comments: "This report makes it clear that productivity is stagnating across Europe and related markets, including the UK where, despite rising employment levels, profitability at many companies remains threatened by falling output rates. This productivity crisis is not just an issue for governments to address, but a problem that individual companies - from global corporations to small and medium enterprises (SMEs) - need to deal with themselves if they plan to remain competitive in a tough, globalised marketplace. Given that the research reveals a concentration of new hiring and expansion of effort in sales, marketing and customer service staff, this is the first place that companies need to work to improve productivity - and CRM is a proven way to do that. An advanced and comprehensive CRM system enables businesses to ensure that their existing customers are well serviced and satisfied, while freeing up sales and marketing people to spend more time upselling and cross-selling." Mark Annett, national manager at Camsoft Solutions, a local Maximizer CRM business partner says that there has been a substantial uptake of cloud-based CRM solutions such as Camsoft's MaxCloud CRM by companies wanting the benefits of sophisticated CRM for their employees but not wanting to have to meet the up-front capital outlay normally associated with on-premise solutions.
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