Tuesday, October 16, 2007

CRM Growth and Competition on the Upswing

Sales Managers, under pressure to do more with the same or less resources are increasingly upgrading existing CRM systems or turning to CRM for the first time to remain competitive according to a recent survey of Sales, Marketing and IT Executives. The study, performed by T.H.G. Sales Automation in partnership with Microsoft Corporation was conducted from June through August by the market research arm of Kensingtonhouse Ltd.

Interviews that targeted a population of over 20,000 large, mid-sized and small firms revealed that 4 out of 10 firms (42%) currently use CRM systems to increase the efficiency and effectiveness of their sales staff. In addition, 13% are either currently in the process of implementing or have recently implemented or upgraded a CRM System.

In terms of market activity, nearly 1 company in 4 indicated that they were either buying or investigating either a new CRM system or an upgrade over the next six to twelve months.

The study showed a large and diverse array of brands competing for the business with over 30 providers mentioned. However, the 80/20 rule was in effect with the top 7 brands controlling 81% of the market.

Historically, convincing the salesforce to actually use a CRM tool has been one of the most serious hurdles in achieving the promise of Return on Investment. The current data however shows a marked increase in adoption rates with 3 out of 4 respondents indicating usage rates in the 75% - 100% range.

When asked about their opinion as to the future direction of how companies will access CRM capability, Web based delivery was the big winner, with over half (55%) of the respondents indicating that On-Demand would be the delivery system of the future. Only 14% picked On-Premise, with the remaining 31% undecided.

The leading Reasons cited for choosing On-Demand were the “General Trend toward Software-As-A-Service (SaaS) and Web Based Delivery” at 31%; “Ease of Access and Flexibility” at 27% with “Lower Cost” coming in at 19%.

The main reasons to choose On-Premise included “IT Control and Ease of Management” at 70%, “Security” at 50% and “Superior Integration Capability” at 20%.

More information can be found at www.CRMindustry.com.

1 comment:

Josh Whiting said...

Luckly enough for sales managers you can now do more for less with a properly integrated CRM Software solution. The only problem as I read in a press release from Salesboom.com titled "Salesboom CRM User Behavior Study Released" is that companies are not doing all they can, they aren't even doing half, the study shows that "Only 39% of sales people fully use CRM to their advantage" With this new knowledge it shows the importance of the initial setup of CRM Software or how well formal training will up adoption by it's users.