Study Finds Siebel Customers Not Getting ROI

 
 
By Dennis Callaghan  |  Posted 2002-09-24 Print this article Print
 
 
 
 
 
 
 

Nucleus Research reports that 61 percent of the customers it surveyed did not believe they had achieved a positive ROI from their Siebel investment.

An independent study by market research firm Nucleus Research Inc. concluded that a disproportionate number of Siebel Systems Inc. reference customers are not getting a return on investment from their Siebel CRM implementations. Nucleus Research, a Wellesley, Mass.-based firm specializing in research on the return on investment companies get from deploying various IT systems, contacted 66 customers referenced on Siebels Web site. It spoke to 23 of the customers, with an additional 12 declining to be interviewed. The rest did not respond to the companys survey. Nucleus reported that 61 percent of the customers it surveyed did not believe they had achieved a positive ROI from their Siebel investment. In addition, 78 percent of the surveyed customers said the product was not user-friendly, and 65 percent derided Siebels customization capabilities and performance.
Most of the customers interviewed by Nucleus conducted large-scale deployments of the market-leading customer relationship management software, with the average cost of a three-year deployment at $6.59 million, including software, consulting services and support personnel. That cost works out to about $18,000 per user, according to the study.
Ian Campbell, chief research officer at Nucleus, said the research firm set out to find best practices for Siebel implementations to share with its clients, many of whom are looking to deploy CRM systems. What it found instead was that even those customers lauded as success stories on Siebels Web site have had a great deal of difficulty deploying the software. "We found so many reference customers who were disappointed with their [Siebel] implementations," said Campbell. "It was a little shocking." A Siebel spokeswoman dismissed the Nucleus survey as "statistically insignificant," since it did not take a large enough sample of the companys customer base. "We dont believe that 23 customers are statistically relevant," the spokeswoman said.


 
 
 
 
 
 
 
 
 
 
 

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