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Price Compression Number One Threat to Businesses in 2007
2007 Aberdeen Report Reveals Price Compression, Market Share Erosion, and Employee Retention Represent Top Three Business Challenges for 2007
| Source: Aberdeen Group, a Harte-Hanks Company
BOSTON, MA -- (MARKET WIRE) -- March 22, 2007 -- According to the 2007 Aberdeen Report the chief
threat businesses face this year is price compression. Sixty-three percent
(63%) of the survey's 3,170 respondents named price compression as one of
their primary competitive threats (#1 threat for 35%), with 18 percent
identifying market share erosion as the predominant issue, and 17 percent
naming employee retention as the key challenge. Those identifying pricing
pressures (58%) or market share issues (55%) as challenges responded
unanimously with the same planned counter-strike, namely investment in
sales and marketing. Meanwhile, companies primarily concerned about
employee retention plan to mitigate their risk by investing in additional
staffing, a top two budget item for 60 percent of this group.
European companies are slightly more concerned than their North American
counterparts about price compression (39 percent to 35 percent) and people
retention (18 percent to 16 percent), but are less worried about market
share erosion (15 percent to 18 percent). Regardless of geography, price
compression is a more pressing factor for small businesses (under $50M
U.S.) with 63 percent citing it as their primary problem versus 16% of
companies with revenues over $250M U.S.
The destructive tendencies of the top three 2007 competitive threats can be
mitigated, in part, by strategic investments in customer and employee
facing technology, explains Alan Hubbard, SVP, Sales & Marketing Group,
Aberdeen Research. "Investments in the areas of personalization and
analytics can have a pronounced impact on business deterrents and
profitable growth. These technologies shape the customer experience and
provide invaluable insight into market dynamics. Better information and
real-time insight into customers and consumers are key components to
managing price pressures and market share issues. In the end better
business also means happier employees leading to improved retention."
The data points referenced herein are part of the 2007 Aberdeen Report,
scheduled for release next month (April 2007). Spanning five years, two
million respondents, and over 644,000 organizations, the Aberdeen Report is
one of the deepest available research documents on the state of technology
and business. The first in a series of annual reports by the Aberdeen
Group, the research looks at industry, geography, organizational size, and
role across various business drivers and outcomes. The $1,995 report will
be made available free of charge to the first 2500 registrants. End users
may pre-register for their complimentary copy at http://www.aberdeen.com/2-0/pre_registration.asp
About Aberdeen Group, a Harte-Hanks Company
Aberdeen is a leading provider of fact-based research and market
intelligence that delivers demonstrable results. Having benchmarked more
than 30,000 companies in the past two years, Aberdeen is uniquely
positioned to educate users to action: driving market awareness, creating
demand, enabling sales, and delivering meaningful return-on-investment
analysis. As the trusted advisor to the global technology markets,
corporations turn to Aberdeen for insights that drive decisions.
As a Harte-Hanks Company, Aberdeen plays a key role of putting content in
context for the global direct and targeted marketing company. Aberdeen's
analytical and independent view of the "customer optimization" process of
Harte-Hanks (Information - Opportunity - Insight - Engagement -
Interaction) extends the client value and accentuates the strategic role
Harte-Hanks brings to the market. For additional information, visit
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about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.