Sister CRM Technologies Slow Start
CRM's promise of retaining customers and boosting the top line plays well in today's tough economy. But the same isn't true for CRM-related technology such as partner relationship-management (PRM) and employee relationship-management (ERM) software, according to London-based market researcher Datamonitor.
In the short-term, the market opportunity is limited because companies don't see PRM and ERM as 'must-have' products. But vendors continue to push these solutions, hoping to find new revenue streams. CRM software, on the other hand, continues to outpace all other management software technologies.
"In tough times, companies need to focus on actively managing all enterprise relationships to drive down cost and increase revenue -- but this is not the time for CRM vendors to diversify beyond their means," warned Andreas Kolind, analyst at Datamonitor, in a statement. "Vendors should therefore admit that best-of-breed implementation is a reality and focus on developing technologies where they have a proven track record."
And this means central CRM technology targeting sales force automation, marketing management and customer service. CRM sales dwarf peripheral management software sales, accounting for 80 percent of the management software market. Datamonitor predicts that the global market for xRM software (which includes CRM, PRM, ERM and even supplier-focused SRM) will reach $14.8 billion in 2006, with CRM license revenues alone accounting for $11.8 billion.
Tom Kaneshige also writes for Line56.com