CRM Technology is Yielding Demonstrable Benefits and Notable Investment Returns, According to New Aberdeen Group Report.

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--April 21, 2003

Survey of Siebel Systems Customers Indicates CRM has Delivered Measurable Business Value and Met Expectations

An overwhelming majority of businesses utilizing customer relationship management (CRM) products say the technology has yielded demonstrable benefits and produced notable investment returns for them, according to a new Aberdeen Group report based on the first large-scale quantitative CRM survey of its kind.

To determine and document the benefits and returns experienced by a large population of CRM users, Aberdeen surveyed customers of Siebel Systems - one of the earliest CRM market vendors and the installed base leader in CRM license sales. In addition to providing a sample size large enough to be statistically valid, Siebel's customers were able to provide a longer-term view on CRM value, since many were among the technology's early adopters. More than 325 customers provided detailed responses to the survey.

Aberdeen found that:

-- More than 95% of the survey respondents indicated that they

are satisfied with their CRM investment and will continue to

use Siebel solutions.

-- 73% of the survey respondents said they would add to or

upgrade their CRM system in the next 12 months.

-- Most Siebel customers do not measure ROI in a formal way, but

the differences between customers who formally measure and

those who estimate their ROI are not statistically

significant.

-- Most customers cited specific benefits they receive from their

CRM deployments and most pointed to productivity improvements

in specific areas. Customers reported that, on average, sales

productivity increased 17%, service and contact center

productivity increased 16%, and marketing productivity

increased 12%.

-- Operating costs declined by 10.4% for more than 87% of the

customers surveyed.

-- Greater than 90% of the survey respondents said they would

recommend Siebel to others contemplating a CRM deployment;

-- Only 0.6% of survey respondents said they would discontinue

using their CRM systems all together; 1.5% said they would

change vendors.

"This is the first study to evaluate the efficacy of CRM as a business solution based on a comprehensive sample of users," said Denis Pombriant, Vice President and Managing Director, Customer Relationship Management for Aberdeen Group. "Our research indicates that Siebel customers are getting the value they expect from their CRM investments. Most customers believe that their CRM technology is helping them to compete more effectively and generate larger revenues and profits as well as helping them to cut their overhead in ways that were difficult or impossible to accomplish before the introduction of their systems."

The survey audience consisted of business and technical users of Siebel systems, who are involved in decisions about the purchase, use, and administration of such systems. The survey sample was randomly drawn from the Siebel installed base and reflects the customer demographics of that population.

A free White Paper entitled Does CRM Work? Compelling Evidence from the Siebel Customer Base, which summarizes Aberdeen's research and presents key findings, is available online at CRM Access (http://www.CRMAccess.com), Aberdeen's online community for CRM professionals.

About Aberdeen

Founded in 1988, Aberdeen Group is a leading IT market analysis and positioning services firm that helps Information Technology vendors establish leadership in emerging markets. The firm provides IT market intelligence, positioning, and market acceleration services to established and start-up technology companies.

Aberdeen's consultants provide up-to-the-minute global IT market insights in more than 25 IT market segments. Research practices, including CRM, focus on emerging market opportunities, market growth rates, important industry trends, and customer buying patterns. The firm also helps clients to identify new market opportunities, enter those markets successfully, and accelerate the adoption of new technologies.

Aberdeen's CRM research team provides CRM intelligence, strategies, and advice to enterprises through CRM Access (www.crmaccess.com), the premier online community for sales, marketing, service, and support professionals.

Headquartered in Boston, Massachusetts, Aberdeen has research and consulting divisions in Palo Alto, California, and Fort Collins, Colorado. It is accessible via the Web at www.aberdeen.com.