Confusion in the hottest high-end market CRM has b

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Confusion in the high-end market, CRM has been half paralyzed

many people have high expectations for China's CRM market, but in the three years from 2001 to 2003, China's CRM software market did not meet people's expectations. Why? The author draws some conclusions through a series of research, which may be useful for readers to think about

why CRM can't be helped up

compared with ERP with good development, the CRM market in China is still in the starting stage. In 2003, the scale of China's CRM software market was 178 million yuan, with a year-on-year increase of 21.9%. If it is a mature product market, such as PC market, the growth rate of more than 20% is not low. However, as a growing market, the growth rate of CRM software market is somewhat disappointing

the author believes that the market environment fundamentally determines that CRM software cannot have explosive growth in the Chinese market in the short term. China has just begun to implement a complete market economy, and the regional economic development is extremely uneven. The whole economy is in an extensive operation state, and there are many market opportunities. As long as we look at the opportunities, many enterprises, especially some private enterprises in the East and even family enterprises, can obtain considerable benefits without refined operation. In this environment, it is difficult to persuade enterprises to implement CRM system. Because CRM itself represents the idea of intensive management

reviewing the unrealistic upsurge of CRM market in China in 2001 and 2002, it was driven by some foreign research institutions and purposeful manufacturers. As a result, hundreds of software manufacturers participated without thinking. Most Chinese manufacturers have not been used to the real market competition, nor have they learned to evaluate a market with rational methods. Therefore, after the reshuffle in 2003, few manufacturers can continue to survive in this market and focus on it. These few manufacturers still have opportunities and have gradually learned to look at this market rationally

in the process of research, the author found that it is clear to divide the CRM software market into high-end and low-end markets. The defined standard is the amount of CRM projects (including products and implementation services). Those with a project amount of more than 500000 yuan are high-end markets, and those with a project amount of less than 500000 yuan are low-end markets

confusion in the high-end market

high end CRM products usually include marketing management, sales management and service management. They are all-round customer relationship management and the trinity of market, sales and service. In the front end of sales and service, it may be the information returned by marketing personnel, sales personnel and service personnel, or it may involve the call center or station

many colleagues in the industry have been arguing whether the status of call centers is parallel or attached to CRM software. A considerable number of high-end users have potential demand for call centers while considering the implementation of CRM software. Different users may have different needs for the capacity, scalability, performance and other aspects of the call center, and some industry system integrators are more professional for the call center products

in addition, although the recognition of CRM in the eyes of Chinese users is constantly improving, it is still a long process from cognition to purchase. In the high-end market, there is no obvious large-scale purchase demand in the manufacturing and circulation industries. In telecommunications, banking, insurance, power and other major industries, due to various reasons, it is difficult for general-purpose CRM software manufacturers to improve the strength of core basic industries

opportunities in the low-end market

the low-end market seems to be more difficult to ponder than the high-end market. It is generally felt that the low-end market has relatively low requirements for products and services. Although the mechanical properties of a single PLLA transaction decline within 6 months, the amount is low, but it is easier to form a scale effect. But in fact, manufacturers in the low-end market have more confusion

we can often find some free or low-end CRM software products (ranging from hundreds to thousands of yuan), especially on the Internet. At first glance, these products are perfect: they have complete functions and can at least involve the management of the whole sales process - which may be what most CRM software users need, and the price is low. But the actual situation is that the sales of these products are not ideal

the author reached an agreement with a senior person on "why the low-end market did not flourish". There are several possible reasons:

first, the low-end market does not have potential at present. Many data show that Chinese enterprises are small in scale, short in life, and lack the funds needed for it procurement, so it is difficult to consider CRM software

second, as mentioned above, all sliding surfaces and dovetail grooves should be kept clean, some successful small and medium-sized enterprises in the East are highly speculative and succeed in a short time through some opportunities. They can succeed through extensive management, and it is difficult to persuade them to choose CRM software that represents the concept of standard and fine management

third, the lack of prosperity in the low-end market and environmental protection is related to the survival and development of Anyang industry, which may be because manufacturers do not really understand this market

from the successful experience of financial software, excluding the factors of policy environment and users' actual income, from the perspective of the software itself, the experience that financial software brings to the operation of low-end software market is to form fully standardized products, establish a perfect channel system through brand advantages, and sell products to end users through channels. The key point of this operation mode is that the products must be fully standardized, and the channel providers only need simple training and installation services when facing users

when products cannot be fully standardized, have high technical content and need value-added services, it is difficult to sell through channels with low technical ability. Looking back at the low-end CRM software products on the market now, although many functions are unavailable, they have large and comprehensive functions, which can at least cover the sales process management, and seem to provide users with value-added products. But if you think about it carefully, CRM software products involving sales process management certainly need to set up different sales process nodes and different processes, which certainly cannot achieve complete standardization. Such products, manufacturers and distributors need to invest considerable manpower to do secondary development, configuration and other services with high technical content, and the result is naturally not worth the loss

so there is a saying: small customers, big business. Small customers need more sophisticated and up-to-date services. Due to lack of funds, small customers tend to be more demanding on products, and more hope that products are customized for them, hoping that products are worth their money. For manufacturers, if small customers are the service target, there are three difficult issues: how to identify profitable customers; How to win these customers with the principle of cost-effectiveness; How to reduce service costs

therefore, the author suggests that the middle and low-end CRM software products should be fully standardized, and it is best to position sales information management rather than sales process management. (end)

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