CRM:Customer Relationship Management


At present, small and medium-sized CRM market in China matures, large-scale enterprise CRM market has been saturated. Small and medium-sized users of CRM market has just started, small and medium-sized software market CRM, sales force automation, order management is expected to achieve rapid growth in 2005. The market will be more intense, more and more software developers tend to start to provide the best configuration for small and medium-sized business software system, the CRM providers at home and abroad have been optimistic about the small and medium-sized CRM market, and many of the top-notch SMEs have also indicated that the implementation of CRM to enhance the competitiveness of enterprises, small and medium enterprises in 2005 will set off an upsurge CRM applications. This boom is a matter of course, is the inevitable result of the time is ripe, will be co-driven by many factors, in 2005 small and medium-sized wave of CRM applications.
Continue to consolidate - CRM's overall market environment
As the market changes, market competition has been the focus of competition shifted from brand competition, competition and customer service competition, particularly with clients who can establish and maintain a long-term good relations of cooperation, customers have the resources to win customer confidence, the correct analysis of customer needs, who will be able to work out a scientific enterprise business strategy and marketing strategy, production of marketable products, to provide satisfactory customer service, thereby rapidly increasing market share, maximize profits and increase business core competitiveness.
CRM in China in recent years rapid development has, in addition to foreign providers actively involved in CRM, the domestic software development companies out all of its energy, for the promotion of CRM efforts. As in previous years by leaps and bounds, the current CRM market is already out of high-growth period, at the stage to continue to consolidate. Particularly in the high-end market, the major CRM providers occupy a stable market share.
Warlords disputes - the CRM market environment for small and medium-sized
Relatively high-end market, in the low-end market does not appear absolutely CRM market leader, in a crowded situation disputes.
SME CRM market has its own characteristics:
1) the demand for relatively concentrated and easy to meet. CRM-oriented needs of small and medium enterprises mainly as the core sales management, management process is relatively simple, well-targeted;
2) large quantities, and growth: China's small and medium enterprises have a very huge market potential, along with the changing market environment and high growth potential for market-oriented small and medium-sized professional CRM vendors provide a vast market space;
3) the implementation of short cycle, local effect: As the product positioning and implementation of targeted, so can see the results in a short period of time.
Small and medium-sized information of the current at a low level, just completed the most Invoicing, financial management information for the application of the core infrastructure. With fierce competition in the market, products and services of a high degree of homogeneity, so that small and medium enterprises begin to pay attention to the personalized needs of customers, forcing small and medium enterprises began to appear on demand CRM. SMEs are keen to have a lower cost, high value-added, high-quality advisory services, will be able to use and I used to use on the results, with a possible further expansion of the CRM solution.
Snatch market - CRM for small and medium-sized manufacturers
operations CRM for small and medium-sized to the needs of various companies are actively taking action to snatch the market.
Siebel's response to an alliance with IBM and the introduction of competition CRMOnDemand.com online CRM with SalesForce.com this "software as a service" market. With the CRM white-hot competition in the market, including the Sugar CRM, ERP & CRM open source products, such as function and also the balance between the price to the Onyx, Pivotal and other mid-range market leader head-on blow. Microsoft recently launched in the Asian region for small and medium-sized Microsoft Business Solutions CRM version 1.2 software solutions. In addition, the introduction of Business Contact Manager, the main target is those with 25 or more employees in the small business users, Microsoft CRM and it has some of the basic functions of software. CRM Microsoft CRM to avoid giant dominated the other high-end market-oriented small and medium enterprises.
Not to be outdone - the active participation of domestic manufacturers compete
In addition to the international giants, the domestic A large number of CRM vendors, one category is professional supplier of CRM by the representative of Turbo CRM, Powerise CRM and has been the transfer of the My CRM, and those that UFIDA, Kingdee integrated management software CRM from the ERP vendors to expand the passing. Most domestic manufacturers are positioning in the low-end market, mainly for small and medium-sized.
With the increasing competitive pressures, on the CRM needs of small and medium-sized more strongly. In addition, by promoting domestic and foreign enterprises, China's small and medium-sized application of CRM will set off a wave. With the number of firms in the application of CRM to achieve a certain degree, the marginal effects will begin to be felt, there will be more businesses to participate in the competition to accelerate the maturity of the market, and work together to "CRM" bigger, the prospects are limitless.
2, CRM of the future development of
Depends on the development of CRM and enterprise applications market, two aspects of CRM have an impact on the development of the main factors are: changes in market competition environment; WTO impact on the market; Government reforms and the government in the information technology policy; the internal management of enterprises the maturity of information technology; a competitive level of participation by professional vendors; the perfect product; customer applications have been; the community orientation of public opinion.
In just a few years time, CRM in China's development is very rapid. CRM system through the implementation of successful experience in the business for the CRM industry provides a valuable foundation for the development of reference, can be seen from several aspects of CRM development trends in China:
1) CRM management software has become the fastest-growing industries
CRM in China in 2002 to enter the rapid development of industry critical period, in the concept of import, product applications, such as the successful experiences will be made in several areas of development; as a result of CRM is a new, high-growth market, there are high-quality brand, clear business model, a clear market positioning and mature products, the implementation of norms of professional vendors will become the mainstream of the market and good market returns; Advisory - Application - Implementation - Service business model and become a professional manufacturer of business CRM core processes. CRM applications have covered almost all the industries, a typical client application industry a significant effect of the CRM industry will provide a template; professional advisory bodies, professional services firms with CRM system suppliers constitute the industrial chain. The formation of the industrial chain of CRM industry is an important indicator of development.
2) a full range of customer-oriented product management
The establishment of a full range of customer contact centers: the establishment of enterprises with customers, suppliers, partners the full range of interactive platforms, through artificial telephone, automatic voice, fax, e-mail, SMS, Web and other mobile applications to achieve a variety of ways ; concerned about information analysis, data mining: basic customer management through access to information, classification and statistics on the basis of the emphasis of the multi-dimensional data analysis and data mining; concerned about the prospects for effective integration of back-end business: focus on the coordination of operations before and after the reunification of Taiwan and effective integration of capital flow, logistics and information flow; the realization of remote synchronization and collaborative management: the application of cross-boundary has effectively solved the Group companies in different places and distribution pattern of enterprise information integration and collaboration management needs.
3) CRM vendors are becoming more sophisticated diversification
Generic products industry and the maturity of the application: cross-industry applications for general-purpose CRM system to become mainstream products, the product can be customized settings, ease of use, security, stability, application of templates is essential industries of; the targeted industries and standardization of the market: In view of the characteristics of industry and application of business models, the products can meet the requirements of the industry, how to create a product standardization and implementation of standardized services is the need to address the issue; special custom personalized products and professionalism: the application of business models based on customized CRM system that can be targeted and applied a degree of obvious advantages, the products are customized to focus on sustainable development;
4) CRM shape the pattern of brand
The above three models to become the main leader of the manufacturers: the market for generic products, special customized products market and industry application market will become the leader in CRM over the next few years in the development of China's main manufacturers;
Several major vendors of market share will account for more than 50%: Some domestic and foreign outstanding professional CRM vendors, from third-party assessment, product satisfaction, customer satisfaction and industry applications are faced with several significant advantages, They will become the CRM industry over the next few years the development of China's main force; to raise the threshold for market entry: the framework of the main manufacturers of the products and application model will gradually become the industry standard, intended to enter the CRM industry, professional firms will face a higher threshold.
5) the development of high-end market
mature Customers mature, clear: the result of market competition will directly lead to the most competitive market to start re-planning of the enterprise customer-oriented marketing strategy and management, as enterprises typically have a solid foundation, a strong management norms processes and good customer word-of-mouth, so the requirements of the customer management needs are very clear. The amount of revenue received will promote the formation of industry: high-end enterprise applications for the professional market makers will get a return, and continue to increase the CRM research, product development and market inputs; the results are comprehensive and convincing: is an industry leader and advantages of the successful implementation of enterprise CRM systems have the same industry or other enterprise CRM to build confidence; of low-end market, the influence of large: in the industrial chain to the end of the enormous impact of small and medium-sized customers.
6) low-end market to grow steadily
Demand for relatively concentrated and easy to meet: the demand for small and medium-sized mainly in the CRM as the core sales management, management process is relatively simple, well-targeted; large quantities, and growth: China's small and medium enterprises have a very huge market potential, along with market changes in the environment and high growth potential for market-oriented small and medium-sized professional CRM vendors provide a vast market space; the implementation of short cycle, local effect: As the product positioning and implementation of targeted, it can be implemented in a short period of time to see effect.
7) lead the industry in depth application development
Mature industries: As the industry's business characteristics and differences in their degree of urgency, such as banking, securities, insurance, telecommunications, electric power demand CRM industry has been more mature; high-growth industries: high-tech, consulting services, medical and health, communications, electronic , car sales, network technology, business and trade development of the industry was the rapid upward trend.
8) the application of key regional markets mature
Due to the maturity of regional markets, business and information-intensive applications the difference level, CRM market to develop into the core of the market appeared to gradually spread to the surrounding trends: key areas: North China (in Beijing as the center), East China (with Shanghai as the Center), South China (Guangzhou and Shenzhen as the center); times in key regions: the Southwest (Chengdu, Xi'an as the center) and the majority of coastal cities;
9) the diversification of the development of business models
Based on the target market, product applications and the difference between the characteristics of firms, different vendors use different business processes: the consultation - the application - implementation - services, product sales - implementation - services, product sales - service, single-product sales.
Customer buying behavior has become more sophisticated, the demand for more diversified and personalized. Through various channels customers can easily understand the product information, in particular, Internet applications, customers can find all the necessary product information, free from time and space constraints. Customers do not have a product or a business to maintain absolute blind loyalty, enterprises can not use a single product or service to meet the demand for the purchase of properties and different groups of customers. As the economic globalization process, companies competition and cooperation between the both. Technical Barriers to cooperation in the enterprise, integration and merger of the break quickly. Products "homogenization" trends are becoming evident, a small number of successful products to the industry peers in a short period of time was the rapid follow-up copy. Technical, technological and product strengths have been difficult to have formed the core of corporate competitive advantage. CRM industry in China, will China's accession to the WTO in the growing international competition in the market environment for Chinese enterprises to improve core competitiveness and meet the steady development of enterprises, the achievement of differentiated marketing strategy to help bring effective.
3, CRM competitiveness
CRM is a business with customers aimed at improving the relationship between the new management mechanism, it is the implementation of enterprise marketing, sales, service and technical support and customer-related fields, CRM on the one hand, the goal is to provide a faster and more through considerate services to attract and retain more customers, on the other hand, through the overall management of business processes to reduce the cost of business, CRM is a concept, but is also a management software and technology, the use of CRM systems, businesses can collect, track and analysis of each customer's information to know who they are, what they need and want customers to their hands. CRM can also observe and analyze customer behavior on the impact of corporate income so that business and customer relations and corporate profits have been optimized.
IV, "CRM" market size and structure of
1, "CRM" software market sales
CRM in China is still at the start of the early trends from the development, CRM in our country have a larger room for the development of 3, on the business, experienced by the product-centric to a sales-centric concept of operations and management after the change is currently in the customer-centric change management concepts, how to win customers, and the lasting trust of customers to become the core of many enterprises to consider the issue. CRM software and improve the quality of services to facilitate sales to help businesses find potential customers, management characteristics of current customers, and can help customers achieve effective resource development and utilization. The structure of demand from the market, including telecommunications, banking, securities, insurance and other service industries as a result of the large number of customers, IT infrastructure, applications fairly complete, the excavation for the customer information and decision support and rely heavily on comparison, which will be the CRM application the area of key industries. From the characteristics of industrial applications, CRM market is likely to follow from start to low-end high-end features.
2, "CRM" software structure
(1) vertical market structure
As the CRM market is still immature, the majority of large corporate users of CRM still wait-and-see attitude. CRM sales in the first quarter mainly concentrated in the medium-sized enterprises. According to CCID Consulting on IT Application Market in China, the vertical division of standards, the current sales of CRM software focused on business, government and education sectors, there is no case the application of CRM software. Siebel, SAP, Oracle, etc. The main objective of foreign customers are large enterprises, domestic manufacturers of Turbo CRM market position is also based on large and medium-sized enterprises, such as Albert Lianchenghudong and accessibility of the main objectives of market makers in small and medium-sized enterprises .
(2) the structure of the industry application market
Sales of CRM software focused on high-tech kind of manufacturing, financial industries and services, other retailers have some market share.
(3) the structure of the regional market
The first quarter of CRM software market is still mainly located in North China, East China and the three regions of southern China. Market through more than two years of cultivation, to Beijing, Shanghai and Guangdong as the center of the three major regional users is relatively mature, with high levels of enterprise information, the advanced management concept, receptive to new products, makes these three regions accounted for the Chinese market the vast majority of CRM software market share.
(4) brand
market structure CRM software market in China in its infancy, companies in this field to enter the less the overall total of the market is very small, only 090 million yuan. With Siebel, Oracle, Sap major foreign companies to enter, Turbo CRM,Lianchenghudong domestic manufacturers focus on the growth of CRM software, and UFIDA, Kingdee, Powerise such as increased investment in CRM, CRM software in China market will grow rapidly.
(5) the structure of sales channels
CRM software sales channels including direct sales, agents, OEM / bundling and other types, but mainly in direct marketing-oriented, accounting for 71.5%. Sales of major domestic manufacturers a way to direct the main sales channels in its infancy stage and nurturing, Turbo CRM with Lenovo's "1 for 1" tie-in sales, representing the manufacturers of about 10% of sales; foreign manufacturers and a number of consulting firms, systems integration to co-operate, there is a certain proportion of products and programs through the sales of these agents, but still greater than the proportion of direct sales agents.
3, CRM market supply and demand analysis
CRM for the domestic market, on the one hand, foreign CRM software vendors have stepped up efforts to develop the Chinese market, the domestic software companies have introduced CRM software; On the other hand, domestic enterprises in this area needs more and more strongly, Some enterprises have started the implementation of CRM system.
However, the case of individual or corporate needs first, and some users take the lead in key industries to become the main CRM market, as many domestic enterprises are being discussed in a hot, CRM is not just a product, but a customer-centric and touched on many of the independent sector enterprise business concept, its development is inseparable from the customer's specific needs and a certain application environments, and only in cultivation, driven by demand and the formation of certain market players before they get more and more favor of the enterprise.
In addition, in the long run, the domestic total of 600 ~ 8,000,000 in the small and medium-sized groups will also be in the future become the subject of CRM market. This part is not only large-scale enterprises, and they are mostly private system, a high degree of market-oriented, face more intense competitive environment, in between vendors and end customers at a relatively weak competitive position. Therefore, this part of the desire of small and medium enterprises to use CRM more and more vulnerable to the introduction of a new management model.
CRM will enter the domestic market development period, many domestic enterprises for the implementation of CRM system, the more also stay in gestation. For enterprise users, CRM is not purely theoretical, but practical. They need is to help them improve their performance, to win the competition, methods and tools. No matter how good in theory, CRM, for most enterprises, they are more focused on CRM in the enterprise in the implementation of results, can be a reality for enterprises of income, this is a general business concerns.
Five, "CRM" software market, the main manufacturers
Comments 1, both at home and abroad to develop CRM software imbalance
CRM software vendors products abroad has a strong overall strength, but the imbalance in development. CRM software vendors domestic products relatively poor overall strength, while the development is quite uneven.
"Brand image"
Siebel, SAP and Oracle continue to lead, the three software vendors brand ranked the top three, can not be refuted in order to occupy the leading position of advantage.
2, "the first choice of software vendors"
Through the analysis of software vendors, we can see that the first camp by the foreign software vendors Siebel, SAP, Microsoft CRM and Oracle occupy; second camp there are domestic UFIDA, Kingdee and three Turbo CRM component manufacturers; third camp by the combination of Chinese and foreign Salesforce.com, and SalesLogix Powerise composition, the basic with the software vendors to maintain the same overall brand image.
Siebel continues to lead, the advantages become more pronounced. Significantly increased Siebel with other CRM software, the gap between manufacturers, the advantages of their own leaders, not only with the second and third camp, but also with the other camp to widen the gap and continue to establish its CRM software industry in China's dominant position.
3, "the first choice of software vendors," Analysis
"First choice" for foreign software vendors Analysis
First, the superior brand image and foreign software vendors have a superior brand image, customers are more likely to trust the CRM software vendor's brand image, so very highly of his products, which will be the first choice as a software vendor.
Second, the leading product features, product features is another important reason to choose, the product itself, the use of convenience products, product integration and product design are the choice of the customers have an important impact.
Third, the implementation of a wealth of industry experience, a wealth of industry experience is also a comparison between one of the reasons for value, the customer that the CRM software industry experience in the implementation of very large enterprises will help.
"First choice" for the domestic software manufacturers Analysis
First, localization of the advantages of China, more domestic CRM software vendors a better understanding of China's national conditions and the basic situation of the market, the domestic users to easily communicate with the start of domestic products are more suitable for the actual situation.
Second, cheap, and large software vendors abroad compared to domestic prices of CRM software has a strong advantage.
Third, perfect after-sales service, domestic CRM software vendors to facilitate after-sales service to customers.
VI, "CRM" software market trend analysis
For 2004, the CRM industry in China is an over-stage. Across the pre-2004 to take care of domestic CRM market in 2005 to enter the real competition began in 2005 will be more concerned about the enterprise applications industry best practices, more research institutions and consultants will be covered.
The global CRM market supplier by the operator-based, analytical ability and collaborative applications constitute a suite of CRM to help companies manage and optimize their customer relationships. In particular, CRM suite allows the company to manage customer-related information and data; automation across sales, marketing and services, the front office business processes; optimize customer transactions and interactions; and to understand and respond to customer behavior patterns. CRM market is already out of high-growth period, at the stage to continue to consolidate. While many functional areas of CRM has matured, the current structure and the CRM technology is still in a continuing cycle of years of evolution, and began moving towards Web services supported by service-oriented architecture.
Global CRM software vendors to develop the speed and scale of development and even more than the pace of development of CRM. CRM vendors no matter what "face" the emergence of the picking up of the CRM vendors have tens of thousands of banner. On the domestic, in between two to three years, software vendors such as "springing" emerged as the development of more than 500 now. From now, the Chinese CRM market is not too much. Despite the good development trend, but no competition for many enterprises in terms of characteristics, in order to spend a "fund" this hurdle is not easy. In the enterprise become more rational attitude towards CRM Today, software vendors or adopt a "technology leader" strategy, or a "product differentiation" strategy. "Technical lead" the implementation of the strategy of CRM for small and medium-sized companies more difficult in terms of; However, some companies do better, they can CRM technology in the field of 12 has done very well, so their products in the have some industry-specific applications, such as manufacturers also have a certain "live". As for the implementation of "product differentiation" of the vendors, the CRM product will be targeted in some industries, the realization of some important features, it also has some potential. Because the vast majority of enterprise users, they have "industry solutions" are more interested.
It can be foreseen that the future of CRM software vendors will increasingly fierce competition, when the CRM market to reach maturity when, CRM software makers will be less than the size of the current size, many manufacturers will be eliminated, and finally the remaining number of "technical leading "edge and" difference "of the advantages of the software vendor.
Siebel this year in the field of CRM will continue to maintain the lead position. However, the company's top executives have been aware that they can not ignore the "integration issues." "Customers can use the Siebel Connector for ERP vendors' connect '. But now the question is: how to eliminate the' connect 'produced by the process of cost and subsequent maintenance costs", Siebel CRM, vice president of strategy Peter Mc said, Siebel's Universal Joint Network (UAN) is to adopt a more process-oriented approach to the realization of systems "integration."
SAP attributed the success of September 2001 my SAP CRM 3.0 version of the published version of the software because it is highly "integrated" capacity. Many companies support the development of standards such as J2EE, SOAP and XML, but must be open to further penetrate the "application layer."
Oracle has two major "strengths": First of all, sales, service, finance, the overall procurement process automation, all of which rely on a shared central database. This approach to ERP, CRM and external solutions and often easy to lose sight of the field synthesis; followed by the integration of business intelligence. Enterprises need to improve relationships with customers, which in turn can not provide customers with quality service. Oracle is to help enterprises solve customer problems related to suppliers.