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Watch out - here comes Generation Virtual

CRM must adapt to keep up

Tags: sell, web 2.0, customers, gartner

By Tim Ferguson

Published: 20 February 2008 11:25 GMT

Companies using CRM technology will need to change their approach as traditional ways of selling become less important.

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Consumers are increasingly going online and developing anonymous online personas, meaning selling methods based on demographic information - such as age, social group and geography - will become less relevant, according to analyst house Gartner.

Gartner says the rise of a so-called 'Generation Virtual' - defined by their preference for the use of digital media channels - means companies will need new skills and techniques to engage with consumers.

Gartner analyst Adam Sarner said this new generation is growing in influence, meaning companies need to change their approach to building relationships.

He added CRM-focused companies - and their marketing departments in particular - need to address this by adapting to changing customer needs, and said in future customers' true identities will have less importance, and instead companies will need to understand the role or persona customers are playing at any given time and treat them accordingly.

Gartner suggests customer data, business intelligence and analytic tools will also develop to allow companies to better understand their customers.

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