Sep 3, 2010

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Why Is The CRM Market "Cool And Quiet"? (1)
Interaction Between Advisors And Members




Mrs. Gabrielle Chou, CEO, ChinaLOOP

www.g-cem.org


Question : The CRM market seems to have high potential, and enterprises are looking forward for that, CRM practitioners are also enthusiastic, but in reality the CRM market is "cool and quiet". In your opinion, what are the reasons / problems behind?

Yes, Currently The CRM Market In China Is Small

I am just coming back from thee US from one of the largest exhibition about CRM in the world . There was 15,000 people attending a 5 days CRM conference and exhibition. It is true that in comparison the Chinese market seems tiny. In China, there are much less players both in the terms of clients and suppliers. However, this is market which is growing. More and more companies are considering some form of CRM, regardless of there size, regardless of their market. From the small Beauty salon to the large Paper mill company, from the law firm to the FMCG in the food sector, they all have the same issue; " Can I get more customers? Can I keep them longer without wasting money?" So yes, currently the CRM market in China is small, what makes the buzz is the prospect for the future. Now how fast the future can happen, this is the question.

There is a discussions going around CRM in China, it does yet necessarily means that every company has made budget or using CRM tools. Yet, many companies are considering it. Some companies have made the first steeps 2 or 3 years ago. The one that have implemented CRM effectively remains very quiet by fear of their competitors adopting the same models. The ones that had difficulties are more outspoken. It is difficult to judge what is the size of the market of CRM in China, the number of players, the number of companies concerned, how fast is the market moving. Why it is it difficult? In China is that there are not many media for professional information in the marketing industry, in the business strategy. In China, companies are also extremely discreet about their strategy. Apart from the companies that are listed in the region, most of the companies can remain very elusive about their strategy in China. You will have to knock at many doors and gain the confidence of many CEO to really appreciate the size of the CRM market in China.



The Main Reason Is Still The Market








Mier Ai, Operations Director, Shanghai Bertelsmann Culture Industry Co., Ltd

I think the answer is within the question. The main reason is still the market. Personally I think the domestic market is far away from a matured customer oriented market. Most of the local enterprises still needs to be educated or to learn about their own needs before coming up with a clear demand for the CRM products. The market is very enthusiastic about CRM because they have noticed the successful cases of implementing CRM projects, but still wondering where to go as case studies normally can not be applied to each company's real situation.

Any prosperious market needs both demand and supply, we have sufficient supplies of CRM related pruducts from the international market, but it takes time before China market realizes what it really demands.

An Opposite View







Henry Winter, Chief Executive Officer, Groove / SmartClub

I disagree!

The CRM market is definitely NOT "cool and quiet". An increasing number of clients are now not only aware that they should "do something" about CRM, they actually know what they want to do! Perhaps 2-3 years ago, the market was driven by suppliers, who created a tremendous hype around the term "CRM". They successfully influenced CEOs to send memos to their staff to "make CRM happen in our organization". Those memos created great stress not only for client staff, but also for suppliers who had to make many pitches to companies who had no idea what they were looking for.

It's a whole new world now. CRM is not just for banks and telcos. Brands and retailers now "get it" about CRM, and are holding competitive pitches now for year-long CRM agency contracts for 2004. These pitches are not open invitations to agencies to come teach the client about "What is CRM?". Instead the clients are providing detailed briefs of what they want, and agencies must demonstrate their capabilities in these areas to win the business. It's just like the relationships between regular advertising agencies and their clients. In fact, it's just like the relationship between suppliers and clients in ANY business.

So I'm not sure where you heard the market is "cool and quiet" - it's never been hotter and louder.

It's Just A Methodology To Manage Your Business








Bowell Shuai, Senior Consultant of GCCRM, 3C Method Certified Consultant

I got the same questions from different service providers.Fortunately, people are working on CRMs these days.

The biggest problem is that CRM is regarded as a software! Whereas it is more than a software, penetrating to any room where it could do.

Further more, it depends on how to define a CRM.
Let me tell you a story:
One day, one of my colleagues came to me with a pretty good designed spread sheet. He told me he was using this well to manage his customers. I told him that this was a small CRM project.

-He proposed his requirement to himself.
-Consulted himself on business process
-Implemented it into a spread sheet (Excel)
-Rolled out by sharing with other colleagues
-then, Find more requirement, implement more functions..... life cycle consulting then.

This happens every day around you . Couldn't you say that it isn't CRM.

ASA you regardless CRM is a software, you will soon find CRM is anywhere any time to help you promote your business, and your relationship with your partners.

CRM is not Sieble, is not Onyx, is not Oracle, is not TurboCRM, is not Dendrite, is not......but a methodology to manage your business.


The Unsuccesssfull Implementation Of CRM Solutions







Mr. Sanford Law, Senior Consultant, G-CEM

The reason for a CRM market being "cool and quiet" is because there has been too many not very successsful implementation of CRM solutions.

To implement CRM solutions, it is necessary to introduce new and different business processes which comes with a CRM solution. In many cases, insufficient effort and time is put into business process reengineering to ensure people buy in the process and feel comfortable with the change. As a result, people are relunctant to use the CRM solution and companies do not see the benefits.

So I think the key is implementation which is NOT a trivial task.

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