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by Leslie Ament, Contributing Editor Posted on Thursday, June 22, 2006 4:07:00 PM   Driven by end-user demand, mid-market CRM applications, such as those offered by Maximizer Software Inc., NetSuite Inc., Sage Software Inc., Salesforce.com and SAP America, are gaining in sophistication. (Click here to read about NetSuite's new release, and here to learn about SAP's on-demand initiaitive.) While virtually all on-demand CRM vendors provide features to support sales force automation, marketing campaign management and/or customer service, providing front-to-back office integration has become a clear differentiator in vendor selection. On-demand CRM solutions have been around since the mid-nineties. In fact, my third CRM implementation, (for a 125-person start-up) was an on-demand application which went out of business in 2002. Since then, acceptance of Software as a Service (SaaS) CRM has reached a point where the delivery model is no longer an issue. Competition for market-share in the mid-market CRM space has sizzled of late, with each vendor articulating their unique business value. In general, on-demand / SaaS delivery models will deliver quick ROI in terms of: - Ease of use
- Rapid deployment
- Simplified configuration & customization tools
- Low cost of entry & ownership
However, these models are at risk of becoming another commodity. End-users quickly realize that business needs of growing organizations cannot be met without significant custom integration services that enable: - Visibility across customers, products, partners & channels
- Front-to-back office integration for operational decision-support
- Multi-channel customer interactions
- Pricing & availability
- Order management & transaction processing
Aberdeen believes early adopters will soon find they have outgrown their sales-focused CRM applications and will require more robust solutions to fully integrate customer data contained in their transactional (ERP) systems. This evolution towards building a culture of customer-centricity is driven by customer expectations for a more personalized purchasing experience. Companies focused on retaining their most profitable customers will be the first to invest in resources, services and technologies that support customer-centric initiatives. Integrating customer data to provide both operational and strategic decision-support to those in customer-facing roles has been shown to positively impact performance in key metrics: annual revenues, customer retention and customer acquisition rates. Where's the Business Value? SAP and Sage CRM solutions both offer hybrid mid-market CRM models, providing customers freedom of choice as well as a clear migration path. End-users that require a rapid initial deployment, and intend to migrate to an on-premise CRM solution to manage the customer lifecycle comprehensively -- from contact to lead to order through delivery -- will find value in this delivery model. Although both companies offer similar migration options, SAP will continue to focus its CRM efforts on the MME and large enterprise markets. Page : 12 ... NEXT |