SMEs won't pay CRM prices, warns Aberdeen Group

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With Microsoft poised to make its entry, a new report from Aberdeen Group has confirmed that the small and medium enterprise (SME) space is the set to be the fastest growing in the CRM market. But vendors are set to discover that customers in this sector are unlikely to be willing to pay as much.

"Unlike the larger enterprise market, the value of Customer Relationship Management (CRM) software in the midsize enterprise market has not been fully recognized," said Denis Pombriant, Vice President and Managing Director of Aberdeen's CRM practice. "If CRM suppliers are to engage smaller enterprises, they need to streamline their production and implementation strategies as well as better educate users on the value of the CRM suite."

Whether this situation will change as SMEs become accustomed to sourcing CRM applications remains to be seen, but Aberdeen believes it is most likely that the SME market will tend towards the most cost-efficient options, such as hosted applications which 30 per cent of respondents in an Aberdeen study highlighted as a consideration.

Aberdeen also surveyed respondents about Microsoft's plans to introduce a CRM application later this year with only ten per cent expressing an interest in evaluating or implementing the vendor’s product.

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By admin
12th Jun 2002 11:37

It is highly unlikely that vendors and VARs will look to sell and implement in the same way as is done for enterprise organisations.

Whatever happens, I think that you can be sure that Microsoft et al will seriously invest in educating the marketplace (and VARs) and providing a completely different sales infrastructure.

This could be the catalyst that we are all looking for!

Thanks (0)
avatar
By admin
11th Jun 2002 21:48

CRM vendors will come to earth with a bump.
There will be little hope of enticing this sector to pay exorbitant implementation fees that should have been included in the devlopment costs.
$500 per seat please not $5,000!

Thanks (0)
avatar
By admin
12th Jun 2002 11:37

It is highly unlikely that vendors and VARs will look to sell and implement in the same way as is done for enterprise organisations.

Whatever happens, I think that you can be sure that Microsoft et al will seriously invest in educating the marketplace (and VARs) and providing a completely different sales infrastructure.

This could be the catalyst that we are all looking for!

Thanks (0)
avatar
By admin
11th Jun 2002 21:48

CRM vendors will come to earth with a bump.
There will be little hope of enticing this sector to pay exorbitant implementation fees that should have been included in the devlopment costs.
$500 per seat please not $5,000!

Thanks (0)