Customer Relationship Management Market Assessment 2006: Industry Report

Customer Relationship Management Market Assessment 2006

Product Type: Market Research Report
Published by: Key Note Publications Ltd
Published: August 2006
Product Code: R310-1348

Description

In 2005, there was a resurgence of interest in customer relationship management (CRM), with commentators, as they had in the late 1990s, reiterating that CRM is about more than technology — it is about putting the customer at the heart of the business. However, a new phrase has entered the CRM lexicon — customer experience management (CEM) — in order to describe the strategy, as opposed to the technology that facilitates the execution of the strategy.

This Market Assessment report is concerned with the technology; technology providers have moved on, have been developing their products to embrace the demands of the marketplace. Those demands include: technology that can link the core CRM applications of customer service, sales and marketing with other applications at play in the organisation; technology that can reduce costs; and technology that can be accessed over the Internet.

The largest surge has been towards the technology that can be accessed via the Internet, with pioneers in this field, such as salesforce.com, being joined by other major vendors (such as Siebel and SAP) taking advantage of the wider availability of broadband, with their own online offerings. The terminology has changed in the past few years too, from application service provider (ASP), which referred to systems hosted on vendors’ own servers rather than those installed within the client company, to Software as a Service (SaaS), or hosted solutions, which means the same thing.

Hosted solutions are ideal for smaller companies; rather than incurring enormous set-up, installation, training and maintenance costs — as well as having to pay licence fees for each user — they simply pay for access to a system designed for them but hosted elsewhere.

These advances mean that the profile of the marketplace has changed. The distinctions between those offering enterprise resource planning (ERP) applications and those offering CRM applications have blurred, as developers in each field have extended their offerings. With all major vendors also making forays into the hosted arena, the distinctions are continually made less clear.

There are fewer competitors in the market than previously. Barriers to entry are high and, of the plethora of CRM vendors that emerged in the early part of the century, many have either been swallowed up by larger players or have gone into administration.

The market is consolidating: Siebel Systems — for so long the CRM touchstone — was acquired by Oracle early in 2006; other major vendors have also lost their independence to global corporations.

The emergence of new markets — in China especially — is one of the key drivers of the mergers discussed in this report. Consolidation strengthens the market, and merged companies can perform better in a global market.

Table of Contents

Executive Summary
1. Introduction: OVERVIEW; DEFINITION; REPORT OBJECTIVES; PROBLEMS ENCOUNTERED; RESEARCH
2. Strategic Overview: MARKET DYNAMICS; CRM Slowdown.; CRM Failure; Resurgence of Interest — Key Drivers; MARKET SECTORS; TOTAL INDUSTRY VALUE AND GROWTH; Value; Table 1: Key Note’s Previous Forecast Worldwide Market; for CRM Applications ($bn), 2002-2007; Table 2: Estimated CRM Applications Market Size; Based on Applications Revenues ($m), 2003-2005; Growth; Market Share; DISTRIBUTION; COMPETITIVE STRUCTURE; Market Leaders; Microsoft Inc; Oracle Corp; SAP AG; SSA Global; Sage Group PLC; salesforce.com; NetSuite Inc; FORTUNE Corporation Rankings; Table 3: FORTUNE Top Ten Computer Software Corporations; by Top 1,000 Rank by Revenue and Profit ($m), 2005; ADVERTISING AND MARKETING; Table 4: Main Media Advertising Expenditure on UK Software; Business Solutions (£000), Year Ending March 2006; INDUSTRY AWARDS; CRM Guru Awards; ISM Top 15 CRM Enterprise Winners; CRM Enterprise; CRM SMB; CRM Magazine 2005 CRM Leader Awards; Influential Leaders; Hall of Fame Entrant; Category Winners; THE CONSUMER; Table 5: Customer Buying Influences by Dimension Factor (% of ratings),; Table 6: Organisations’ and Customers’ Perspectives of CRM; MARKET FORECASTS; Table 7: The Forecast Worldwide Market for CRM Applications ($bn), 2006-2010
3. Market Leaders: BACKGROUND; MAJOR PLAYERS; Table 8: Top 14 Global Software Organisations’ Market Share; by CRM Licence Revenue ($m), Year Ending December 2005; CRM Specialists; InvisibleCRM; SugarCRM Inc; Communispace Corporation; THE MID-MARKET; INDUSTRY TRENDS; Software-on-Demand; Salesnet Inc; RightNow Technologies Inc; Other Players; Google Searches CRM Market; Wireless CRM; Antenna Software Inc; Maximizer Software Inc; salesforce.com Inc; Saratoga Systems Inc — Apresta; Vettro Corp; Consolidation; CRM EXHIBITIONS; UK Events; The European Conference on Customer Management; Customer: Strategy & Management; CRM in the Public Sector; Customer Relationship Management Growth Strategies 2006; US Events
4. CRM Support Services: BACKGROUND; DATA MANAGEMENT; Factors to Consider; Understanding; Improving; Protecting; Data Management Agencies; Datanomic Ltd; Informatica Corporation; Softlab Ltd; ANALYTICS; Analytics Leaders; SAS Institute Inc; SPSS Inc; Teradata; ThinkAnalytics Ltd; CALL-CENTRE TECHNOLOGY; Key Call-Centre Software Developers; Avaya Inc; What Is the Difference Between IP Telephony and VoIP?; Evoxus Ltd; FrontRange Solutions USA Inc; Interactive Intelligence Inc; Kana Software Inc; CRM SUPPORT EXHIBITIONS; UK Events; Call Centre Expo 2006; Customer Relationship Management Growth Strategies 2006
5. An International Perspective: ECONOMIC OUTLOOK; CHINA; Economy; Market Growth; Market; Table 9: China CRM Software Vendors’ Evaluation — Survey Perspective, 2005; Hosted Soluti; 2008 Beijing Olympic Games; China CRM; Leading Chinese CRM Vendors; Powerise Information Technology Co Ltd; Kingdee International Software Group Company Ltd; UFIDA Software Co Ltd; RUSSIA; CONSUMER BEHAVIOUR
6. PEST Analysis: POLITICAL FACTORS; ECONOMIC FACTORS; SOCIAL FACTORS; ECONOMIC FACTORS; SOCIAL FACTORS; TECHNOLOGICAL FACTORS
7. CRM Roundtable: ROUNDTABLE DISCUSSION; Interviewees; Kevin Broome, Marketing Manager, South West Trains; Adrian Mutti, Sales and Marketing Director/Co-Founder, Romtronics; Grahame Newell, CRM Project Manager, An Post; Steve Roberts, Business Director, Essex Medical + Forensic Services; Questions and Answers; What Are The Three Most Important Issues To Consider When; Implementing A CRM System?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts; What Has Proved To Be The Single Most Important Benefit Of Your CRM Strategy?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts; Have You Been Able To Measure How Much Customer Satisfaction; Has Improved? If So, Can You Indicate How This Area Has Improved?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts; Have You Been Able To Measure How Much Employee Satisfaction; Has Improved? If So, Can You Indicate How This Area Has Improved?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts; Have You Been Able To Measure How Sales Have Improved?; If So, Can You Indicate How This Area Has Improved?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts; Are All Of Your Organisation’s Functions Linked To Your CRM System?; Adrian Mutti; Grahame Newell; Steve Roberts; If Not, Do You Run Separate Systems For Other Functions? Which Functions?; Adrian Mutti; Grahame Newell; Steve Roberts; Which CRM System Are You Currently Using?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts; Is It An Installed System, Web-Based System Or A Mixture Of Both?; Adrian Mutti; Grahame Newell; Steve Roberts; What Are Your Plans For Upgrading/Rolling Out Your CRM System In The Future?; Kevin Broome; Adrian Mutti; Grahame Newell; Steve Roberts
8. Company Profiles: AMDOCS LTD; Corporate Information; Strengths and Weaknesses; Products; New Product Development; Brand Development; Innovations; Advertising; Distribution; Profitability; Future Company Developments; FRONTRANGE SOLUTIONS USA INC; Corporate Information; Strengths and Weaknesses; Products; HEAT Product Suite; GoldMine Product Suite; New Product Development; Brand Development; Innovations; Advertising; Distribution; Profitability; Future Company Developments; INFOR GLOBAL SOLUTIONS; Corporate Information; Strengths and Weaknesses; Products; Brand Development; Innovations; Advertising; Distribution; Profitability; Future Company Developments; ORACLE CORPORATION; Corporate Information; Strengths and Weaknesses; Products; New Product Development; Brand Development; Advertising/Marketing/Sales; Distribution; Profitability; Future Company Developments; SALESFORCE.COM; Corporate Information; Strengths and Weaknesses; Products; Applications; New Product Development; January — Winter ‘06 and The Business Web; March — Unlimited Edition; April — AppExchange Mobile; Brand Development; Innovations; Advertising/Sales/Marketing; Distribution; Profitability; Future Company Developments; SAP AG; Corporate Information; Strengths and Weaknesses; Products; New Product Development; Brand Development; Innovations; Advertising; Distribution; Profitability; Future Company Developments
9. The Future: PRODUCT DEVELOPMENT; Wireless Technologies; Hosted Applications; Open-Source Software; MARKET DEVELOPMENTS; MARKET SHARE; MARKET FORECASTS; Table 10: The Forecast Worldwide Market for CRM Applications ($bn), 2006-2010
10. Consumer Confidence: METHODOLOGY; KEY FINDINGS THIS QUARTER; THE WILLINGNESS TO BORROW; Confidence Declines Again; Table A: The Average Amount Consumers Are Willing to Borrow in Order; to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May; Signs That the Decline Could be Bottoming Out; Table B: The Number of Adults Willing to Borrow in Order to Purchase; Expensive Items (000 and %), May 2005, August 2005, November 2005,; February 2006 and May; THE WILLINGNESS TO SPEND FROM SAVINGS; Sharp Decline in Spending from Savings; Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order; to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May; Table D: The Proportion of Adults Without Any Savings (%), May 2005, August 2005, November 2005, February 2006 and May 2006; Borrowing Grows in Relative Importance; Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005, August 2005, November 2005, February 2006 and May 2006
11. Further Sources: Associations; Publications; General Sources; Other Sources; Bisnode Sources; Key Note Research; The Key Note Range of Reports

Ordering and More Information

Price and Delivery Options

MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence.