Logo
BodyBGTop
Third-Party Power: The Rise of the B2B App Store
How software development partners are shaping the future of CRM
For the rest of the November 2015 issue of CRM magazine please click here
Page 1 of 2 next »

With cloud and mobile adoption growing by the day, users are accustomed to having the ability to adjust technology to their liking. Not surprisingly, those expectations have begun to carry over from people's personal lives and into their working lives.

Users have come to expect a certain amount of flexibility from their devices and applications, and CRM systems are no exception. Increasingly, people want the systems they log in to and live in for eight hours a day to fulfill their needs just as their consumer products do. This means that they'd like to get the tools they need at a moment's notice, without having to jump through too many hoops in the process. And if they can't get such tools straight out of the box, at the very least they expect to be able to easily readjust their core systems with the right functionality.

It's not just functionality that is in high demand. Having a broad selection is vital as well.

As more employees use their own portable devices for work, mobile apps are becoming an essential component. It's no secret by now that professionals often wish to work directly from their smartphones. Field sales reps, for example, are frequently miles away from their computers, closing deals in person, and marketers can't always anticipate when inspiration will hit regarding their latest creative campaign. These professionals need malleable tools at their disposal to aid these efforts—tools that they're comfortable using.

But it's almost impossible for a CRM vendor to provide every client with exactly what it's looking for. Many companies encounter problems getting a solution that addresses the particulars of their circumstances. A company's industry, size, and location are all factors that can determine its specific CRM needs, says Ray Wang, founder of Constellation Research.

"CRM itself is a transactional app," Wang says. "It allows companies to look at an opportunity, run a marketing campaign, or handle a customer service request." The tricky part, however, is doing more with those transactions. "A lot of vendors don't have the bandwidth, nor do they have the expertise to take that and expand upon it, or apply it to different verticals," Wang says.

That's where third-party apps come in.

Roughly 10 years ago, Salesforce.com introduced its AppExchange, a network of partners that design their applications specifically for Salesforce.com's platform. This model took the company’s traditional CRM platform, for which many independent software vendors (ISVs) were already making add-ons, and made it more accessible to developers and more convenient for ISVs to work with. These integrated third-party apps enabled users to supplement core CRM functionality with extra components that went beyond the out-of-package offerings.

The idea of building a third-party ecosystem has caught on, and many companies have followed suit with similar models. Now, many core vendors that cater to companies of all sizes have created their own partner networks for add-on applications. Infusionsoft, a CRM vendor that typically caters to smaller businesses with 100 or fewer employees, offers its own version of an app store. Netsuite, whose solutions are best suited for medium-size companies, calls its marketplace SuiteApp; it is equipped with a directory that gives customers the opportunity to browse reviews, test various solutions, and purchase apps that integrate with and bolster their configurations. And key players such as Salesforce.com, Oracle, SAP, SugarCRM, and Microsoft Dynamics CRM all feature add-on apps from partners as part of their standard offerings.

This is to say that many major CRM vendors have begun to incorporate third-party apps into their plans, and "those that haven't are going to have to in order to stay competitive," says Michael Fauscette, group vice president of software business solutions at IDC.

CLIENT BENEFITS

In the absence of a third-party ecosystem, it can be hard for ISVs to find an audience. An ISV could create the perfect app, but organizations might be reluctant to purchase it anyway, especially one built by a small, unknown software company. However, participating in a trusted vendor's partner network serves to legitimize these ISVs. According to Neeracha Taychakhoonavudh, senior vice president of partner programs at Salesforce.com, every app that makes it onto the AppExchange is vetted by Salesforce.com's trust organization. This is significant because it reassures client organizations that they are investing in products that are safe, reliable, and have been approved by experts who deemed them worthy of showcasing in an esteemed ecosystem.

The partnerships also help to ensure that third-party applications remain relevant to platform customers. Taychakhoonavudh says that Salesforce.com is vigilant about checking up on customer requests for upgrades. It seeks feedback from customers regularly and distribute the results to partner companies in the ecosystem. "We run a biannual customer survey and ask customers what kinds of tools they are looking for," Taychakhoonavudh says. "We share it with our partner base; it's an ongoing process."

Additionally, clients can be assured that a company that develops primarily on one platform is in a position to always stay up to date on that platform, and remain compatible with it. This way, the company knows how to design its product so that it integrates with the central technology most of its customers are using.

Page 1 of 2 next »
To contact the editors, please email editor@destinationCRM.com
Every month, CRM magazine covers the customer relationship management industry and beyond. To subscribe, please visit http://www.destinationCRM.com/subscribe/.
Learn more about the companies mentioned in this article in the destinationCRM Buyer's Guide:
{0}
Related Articles
How to transform selling through coaching, collaboration technology, and sales analytics.
Whether it's your first solution or your fourth, these tips will help make the vendor selection process easier.
The company intends to meet the needs of larger businesses.
The new features aim to improve businesses' management and experience abroad.
The updates promise to equip sales managers with insights that help them bring reps up to speed.
The CRM executive reflects on the company's recent developments, plans for 2016, and the economy.
The company prominently featured the Apttus Intelligent Cloud and Apttus E-Commerce solution.
The enhancements enable managers to coach their sales reps in alignment with company goals, and adjust compensation plans according to industry best practices.
The new "Max" bot brings conversational elements to Apttus's user interface.
The Marketplace aims to help businesses customize their help desks with apps they can find "under one roof."
The software combines artificial intelligence with online learning tools to "empower the sales rep of the future."
 
Search
Popular Articles
 

BodyBGRight
Home | Get CRM Magazine | CRM eWeekly | CRM Topic Centers | CRM Industry Solutions | CRM News | Viewpoints | Web Events | Events Calendar
DestinationCRM.com RSS Feeds RSS Feeds | About destinationCRM | Advertise | Getting Covered | Report Problems | Contact Us