Social networking, ROI, pricing among '09 CRM trends
Big changes are coming to the CRM (customer relationship management) application market this year, with significant financial, strategic and technical implications for customers, say analysts who track the space.
Large vendors like SAP and Oracle are "pushing hard" for customers to upgrade their CRM applications this year, said Forrester Research analyst William Band. "This is forcing a lot of organizations to make a decision."
Customers who do wish to proceed with an upgrade will have a tougher time getting approval than in the past, given the chill the economy has placed on all IT spending.
Therefore, customers must prepare a more stringent business case for CRM -- something that didn't necessarily happen much in the market's earlier days, according to Band.
"In the late 90s, early 2000s, the CRM space was very buoyant. A lot of people bought into the Tom Siebel vision," Band said, referring to the former CEO and chairman of Siebel Systems, which has since been acquired by Oracle. "They invested in more of a promise than some really good due diligence."
Companies may also need to work on other technical fronts this year to gain the most benefit from their CRM implementation, Band wrote in a recent report.
"Due to multiple instances of software, disparate enterprise resource planning (ERP) systems, and poor data integration," CRM applications can end up providing "a fragmented view of the customer," he wrote. Forrester expects that this year, "CRM professionals will continue to focus intently on how enterprises collect, distribute, and use data."
In terms of CRM product functionality, look for last year's trend toward "social CRM" -- marked by collaboration tools like wikis and blogs within the CRM experience -- to morph into "cloud CRM," wherein CRM applications connect to external social-networking sites like Facebook or LinkedIn, as well as other Web sources, according to 451 Group analyst China Martens.
CRM vendors will also try to boost customer retention by adding new features, Martens said. This need is pressing in the CRM space, where products' core capabilities don't vary much. Salesforce has already made this type of move, introducing a product for content management, for instance.
CRM applications will also become more modular, according to Martens.
"Oracle has started down this path already and many of its peers are looking to emulate its example," she said, referring to last year's release of three Oracle SaaS CRM products -- Sales Prospector, Sales Campaigns and Sales Library -- as well as its CRM Gadgets.
Martens is expecting that customers will demand more clarity on pricing from vendors, especially ones with SaaS (software as a service) products. Vendors will also experiment with unique pricing models, such as connecting the application's cost with a customer's profitability, and more companies may go with open-source products like SugarCRM in an effort to reduce costs, she predicted.
Price cuts could also be on order from the likes of NetSuite and Salesforce, but expect a number of skirmishes among rivals, rather than "an all-out pricing war," she said.
IDG News Service
Sign up for ITworld's Daily newsletter
Follow ITworld on Twitter @IT_world
On Twitter now
crm
Powered by Twitter
jfruh
Apple syncing patent can't come soon enough
pasmith
New Twitter features borrow from 3rd party clients
Esther Schindler
Open Source Changes the Software Acquisition Process
mikelgan
How to set up continuous podcast play on the new iTunes
David Strom
Five important Windows 7 mobility features
sjvn
Guard your Wi-Fi for your own sake
Sandra Henry-Stocker
Grepping on Whole Words
Sidekick: The Good News & the Bad News
Either way you look at it Microsoft Data Center management did not follow standards or best practices in this failure. In which case it makes me wonder more about the outsourcing of corporate data much less personal data.
- mburton325
Join the conversation here
Quick, practical advice for IT pros. Made fresh daily.
Want to cash in on your IT savvy? Send your tip to tips@itworld.com. If we post it, we'll send you a $25 Amazon e-gift card.
Social networking is the
Social networking is the grouping of individuals into specific groups, like small rural communities or a neighborhood subdivision. When it comes to online social networking, websites are commonly used. These websites are known as social sites. Social networking websites function like an online community of internet users. Depending on the website in question, many of these online community members share a common interest such as hobbies, religion, or politics. The websites without a main focus are often referred to as "traditional" social networking websites and usually have open memberships. This means that anyone can become a member, no matter what their hobbies, beliefs, or views are. However, once you are inside this online community, you can begin to create your own network of friends and eliminate members that do not share common interests or goals. no fax payday loanOh! What a cool points and
Oh! What a cool points and the cold weather, the winter is coming, I’d like to share the UGG Boots tips to keep your feet warm.. there’s few series UGGS for you to see the winter out, such as classic tall ugg boots, classic short ugg boots, claasic cardy ugg boots and so on, the cute boots not only show you the warm, but also the fashion style. Well, seems too much words, see you next time~ugg boots
Good day! Thx for your great post and Im thinking about how to introduce my ugg boots to you cos Im not sure if u like this. Many people who live in the cold area like the ugg boots, especially the north-europe. Our uggshare.co.uk supply the cheapest classic cardy ugg boots, class tall ugg boots, classic short ugg boots and other series of uggs, hope my words didn’t trouble u, cy!