CRM Metrics and the Myth of Benchmarks: How Smart
Banks Measure Success
Reference # V39:12R
• Most banks did not have metrics for their pre-CRM implementation status. The banks did not
have a stake in the ground to start from and they failed to set realistic goals. With an
ill-defined starting point and no defined end, success was elusive.
• The Research Note also addresses the difficulties that banks have had in building a CRM
business case and the appropriate role of return on investment (ROI) measurements within
the business case.
• This Research Note investigates the current state of CRM metrics in leading commercial
banks around the globe, including the use of balanced scorecards and the challenges
inherent in competitive benchmarking.
• What goes up must sooner or later come crashing down. In the past few years, trade
publications have trumpeted with great fanfare the failure rates for customer relationship
management (CRM) implementations in financial institutions.
• As the talk of CRM failures accelerated into 2002, it quickly became apparent that the
"problem" with CRM was one of poor planning and lack of metrics. At many banks, CRM
implementations derailed when it came to defining and measuring success.
What goes up must sooner or later come crashing down. In the past few years, trade publications
have trumpeted with great fanfare the failure rates for customer relationship management
implementations in financial institutions. In some cases the Schadenfreude was so thick it could be
cut with a knife. Although CRM had been considered the great salvation of the financial services
industry in the late 1990s, by the middle of 2001, the concept was being dismissed by many as
overblown hype that could not and did not have the ability to transform the way business was
conducted. In retrospect, the inflation and subsequent de