New Markets and Leaders Emerge
There’s a lot to absorb in our seventh annual CRM Market Awards issue. Before delving into this year’s highlights, it’s worth noting that the market, as a whole, is still quite healthy. The CRM market grew between 12 percent and 14 percent in 2007, according to published industry reports—marking a fourth consecutive year of industry growth.
AMR Research sized the 2007 market at $14 billion, a 12 percent jump over 2006 revenues. This represents the market’s most significant growth since the dot-com fallout at the turn of the century. While analysts may differ on the market’s exact size and rate of growth, all agree that software-as-a-service (SaaS) is the driving force. And despite some recent macroeconomic volatility, some experts forecast a continued climb for the CRM market. If so, SaaS will likely remain a major factor, but there still will be contributions from emerging niche markets, such as incentive management and open-source CRM. That’s why we’re introducing those categories to this year’s Market Leader Awards.
The first new category, incentive management, is expected to grow 20 percent this year to $300 million in sales, according to our market coverage. These tools are gaining in popularity because they enable sales teams to worry less about tracking compensation and more about increasing it. While open-source CRM, this year’s second new category, reportedly only accounts for less than 1 percent of the CRM market, interest in this market subsegment is in full swing. Check out some of the recent open-source tweets we included in our monthly “CRM on Twitter” box. Plus, take a look at which open-source vendors are leading the way.
There’s also excitement in some of the perennial Market Leader categories. Zoho CRM, for example, catapulted its way onto this year’s Small Business Suite CRM leaderboard with its tempting offering, which is free for up to three users. Because of his ability to keep costs down and innovation high, we’re also singling out Sridhar Vembu, chief executive officer of AdventNet (parent company of Zoho), as a 2008 Influential Leader.
As one chapter begins, another chapter ends—much like Accenture’s five-year reign atop the Consultancies leaderboard. It’s not that Accenture is faltering much (though the firm did slip more than a point in its customer satisfaction score from last year). Actually, we’ve noticed an interesting new market approach. That’s why we’re honoring Kevin Bandy, a partner at the firm, as an Influential Leader for his work in helping companies assess the effectiveness of an organizational restructuring strategy—stuff that isn’t taught even in the best business schools. So who replaces the deposed king in the Consultancies category? Suffice to say that the heir to the throne impressed analysts with its focus on CRM.
There’s also more buzz around wireless CRM tools. We’ve lauded three wireless companies with Rising Star Awards this year for their potential to revolutionize the wireless CRM market. Apple released its more enterprise-ready, 3G-enabled iPhone—already Oracle and Salesforce.com have written applications native to the iPhone. (For more on this, read “CRM Dials Into the iPhone,” by Senior Editor Marshall Lager.) Joining Apple is Ribbit, for its ability to integrate its mobile voice solution with business applications, and Twitter for bringing social media to mobile devices. Rising Star Awards coverage begins here.
I can’t highlight all of the market shifts and trends in this column, but you can get a lot more analysis in our full coverage of the 2008 CRM Market Awards. Congratulations to this year’s winners. And, for our readers, we hope you enjoy our most comprehensive Market Awards issue yet.
Every month, CRM magazine covers the customer relationship management industry and beyond. To subscribe, please visit http://www.destinationcrm.com/subscribe/.
Apple Takes a Bite Into Enterprise CRM
With Salesforce.com's announcement of an iPhone-specific application, will Apple finally tackle the corporate world?
Growth Trend Continues for CRM
A new report from AMR on customer management indicates double-digit market growth is here to stay, though the economy remains a concern.
CRM Market Continues to Soar for a Fourth Straight Year
Gartner sees 23 percent growth in 2007, and also finds social networking becoming a disruptive force in the CRM industry.
CRM Vendors Say Hello to the New iPhone
Apple's 3G update to its popular handheld has early support from big names in the industry, but little meat so far.
CRM Dials into the iPhone
Is the industry ready to turn a consumer craze into a business tool?
The 2008 CRM Market Awards: Table of Contents and Introduction
CRM magazine announces the winners of its 2008 CRM Market Awards.
The 2008 CRM Market Awards: Influential Leaders -- Kevin Bandy
The Rethinker: Kevin Bandy -- partner & manager of directory sales and marketing transformation, Accenture.
The 2008 CRM Market Awards: Influential Leaders -- Sridhar Vembu
The Penny-Pincher: Sridhar Vembu -- chief executive officer, AdventNet, parent company of Zoho.
The 2008 CRM Market Awards: Rising Stars -- Apple
Devising the newest mobile device.
The 2008 CRM Market Awards: Rising Stars -- Ribbit
Rethinking voice in the user interface.
The 2008 CRM Market Awards: Rising Stars -- Twitter
Getting customers all a-twitter.
The 2008 CRM Market Awards: Rising Stars -- Introduction
Eight on the rise in '08.
Makana Solutions Makes Plans
A new sales compensation management tool joins the Makana Motivator family of products.
Xactly Acquires Centive
Analysts say consolidation in the sales performance management market was expected -- but this particular deal comes as a surprise.
CRM and the iPhone
Mobile CRM has been around for years, but Apple's handheld device has upended everything. Now vendors are rewriting applications, companies are rethinking the BlackBerry's seeming stranglehold, and users are wondering what's next. The answer may be nothing less than a CRM revolution, and a chance for Apple to enter the enterprise.
Re:Tooling -- Contact Management: Business-Card Shakedown
New applications allowing the electronic exchange of contact information—Web 2.0's answer to traditional cards, or not?