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Top 10 Enterprise IT Vendors ranked on Customer Loyalty. Two-thirds of customers will evaluate replacements over the next three years according to a newly released study by the InterUnity Group.
The Top 10 Enterprise IT Vendors have three year customer loyalty rates that range from 53% to 71% according to an extensive and independent study by the InterUnity Group. On average 2 out of 3 customers will evaluate replacement products in the next three years from these vendors. The study evaluated the loyalty of 1188 users of 10 leading IT Enterprise vendors including Computer Associates, Dell, EMC, Hewlett Packard, IBM, Microsoft, Oracle, Peoplesoft, SAP, and Sun. While customers may choose to continue to use the existing vendor after evaluating alternatives, pricing pressure is introduced. Vendors who understand the drivers of customer loyalty can reduce customer defections and lower the cost of sales, according to Richard Sneider, a Partner at the InterUnity Group. The Customer Loyalty ICSI is useful to purchasers as an indicator of how well a vendor will meet its needs over the long term.
June 23, 2004 -- The Top 10 Enterprise IT Vendors have three year customer loyalty rates that range from 53% to 71% according to an extensive and independent study by the InterUnity Group. On average 2 out of 3 customers will evaluate replacement products in the next three years from these vendors. The study evaluated the loyalty of 1188 users of 10 leading IT Enterprise vendors including Computer Associates, Dell, EMC, Hewlett Packard, IBM, Microsoft, Oracle, Peoplesoft, SAP, and Sun.
While customers may choose to continue to use the existing vendor after evaluating alternatives, pricing pressure is introduced. Vendors who understand the drivers of customer loyalty can reduce customer defections and lower the cost of sales, according to Richard Sneider, a Partner at the InterUnity Group. The Customer Loyalty ICSI is useful to purchasers as an indicator of how well a vendor will meet its needs over the long term.
In a study of customer loyalty of the ten leading Enterprise IT Vendors, SAP customers were the most loyal, earning an InterUnity Customer Satisfaction Index (ICSI) of 128.
Customer
Loyalty
ICSI
128 SAP
121 Peoplesoft
116 EMC
110 Oracle
106 IBM
106 Sun
84 Microsoft
78 Dell
75 Computer Associates
75 Hewlett Packard
The ICSI Customer Loyalty score is a strictly quantitative score based on the average number of customers who plan to evaluate replacements in each of the next three years. Higher Customer Loyalty ICSI scores indicate more loyal customers. The Customer Loyalty ICSI is unique because it is based on actual plans.
Less than 29% of SAP customers will evaluate replacements in the next three years versus 46% of customers of the lowest scoring vendor. Evaluation and potential replacement rates by year for 2004, 2005, and 2006 varied widely by vendor from 8% to 19%. For customers that have used products for 5 or more years, SAP loyalty rises to an ICSI of 131. For Computer Associates, the lowest ranked vendor 19% of long term customers are evaluating replacements in 2004 alone.
About the InterUnity Group: InterUnity Group, a Concord, Massachusetts based consultancy, (http://www.interunitygroup.com) provides leading companies and vendors with technology intelligence to improve their business performance. InterUnity maintains the InterUnity Technology Knowledgebase and the InterUnity Customer Satisfaction Index.
The InterUnity Technology Knowledgebase (ITK) analyzes the Information Technology decisions of over 2000 companies across 24 industries. The ITK enables companies to rapidly benchmark the value contribution of IT within their company and measure the associated impact of IT on overall corporate performance.
The InterUnity Customer Satisfaction Index (ICSI) measures the performance of vendors though their customers. The ICSI measures the perceptions among IT executives of the quality, customer service, functionality, profitability contribution, and the value of their vendors product and service offerings. The ICSI is a quantitative score where 100 is average.
To purchase a detailed report, which presents and analyzes the findings please visit http://www.interunitygroup.com. Additional information such as replacement plans and market performance are included in the report.
If you would like to speak with Richard Sneider about the implications of this survey or inquire about InterUnity consulting services, please contact him (978) 287-4480 or consulting@interunitygroup.com .
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Company: Interunitygroup
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