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.