The report found that 26% of U.S. businesses will spend $500,000 or more on CRM tools in the next 24 months.
Jupiter predicts that CRM spending will increase to $16.5 billion in 2006, up from $9.7 billion in 2001, as corporations strive to improve customer satisfaction.
Financial services companies will be the biggest CRM spenders. A survey of executives in this sector found that 25% budgeted more than $1.5 million for CRM infrastructure in the next 24 months. Jupiter forecasts that financial services companies' spending on CRM tools will increase to $5.4 billion in 2006, up from $3.1 billion last year.
Jupiter analysts -- like most relationship marketing experts -- caution, however, that technology alone is not the cure-all. Organizations must restructure themselves with senior-level CRM leaders to ensure that companies leverage their technology investments successfully, according to Jupiter.
Yet the majority of executives, 58%, said they have difficulty justifying the return on investment of CRM systems to the rest of their organizations.