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The Current CRM Market In China: Characteristics, Limitation, Trends And Outlook
CRM Advisor Replies To Member's Question
Mr. Dennis Xue, Board Director&CEO, TurboCRM LTD
www.turbocrm.com
Question:
What are the characteristics of CRM in the current CRM market in China? What are the limitations? What is the developmental trend of CRM? What is the outlook for CRM in China?
Answer: Dennis Xue, Board Director&CEO, TurboCRM LTD
Since the introduction of the CRM concept, which advocates the core ideas of "customer-centred" and "customised interactive sales and services", the development of the CRM system has generally gone through a process starting from the most primitive SFA, and then on to operational CRM, analytical CRM and comprehensive CRM. There has been a very rapid development of the CRM system in China over the last couple of years since its entry on the business scene. The following aspects can show the developmental trends of CRM in China:
1. CRM Becomes The Fastest Growing Segment Amongst Management Software
. In 2002, the Chinese CRM industry has reached a period of rapid development. There are satisfactory developments in the areas of concept introduction, product application and success cases, etc.
. Since CRM is an emerging and fast growing market, professional manufacturers that have a quality brand, a precise business model, a distinctive market position, established products and standardised implementation services will become the mainstream of the market, and therefore gain desirable market returns.
. The business model of "consultation services in application and implementation" has become the core business flow of professional CRM manufacturers.
. The application of CRM has occurred in almost all industries. The significant outcomes of CRM application on customers in typical industries have resulted in the establishment of an industry application model for CRM.
. Professional consultancies and professional service manufacturers have formed a business chain with CRM system suppliers, which is a landmark event in the development of the CRM business.
2. Multi-dimensional Customer Management
. Establish a multi-dimensional customer contact centre: establish a multi-dimensional exchange platform between the company and customers, suppliers, as well as business partners. Implement mobile application through various channels like telephone operators, voice messages, faxes, e-mails, mobile phone short messages and the web, etc.
. Focus on data analysis and data mining: base on the foundation of the acquisition, categorisation and statistics of basic customer management data, strengthen multi-dimensional data analysis and data mining.
. Focus on the effective integration of front-end and back-end businesses: be aware of the co-ordination and consistency of front-end and back-end operations, as well as the effective integration of cash flow, product flow and information flow.
. Implement synchronised and integrated management for diverse locations: a trans-location application will effectively satisfy the needs of corporate enterprises and distribution-oriented enterprises for the information integration between diverse locations and synchronised management.
3. CRM Manufacturers' Diverse Developments Mature
. The adaptability and mature level of general products for all industries: a general application system for multi-industry use has become the mainstream of CRM products. Essential elements of the product include the availability of customised design, user-friendliness, safety, stability, and industry application model.
. Target on industry needs and standardisation: products provided to the industry should be in accordance with the industry's business characteristics and application model, and therefore, the products can satisfy that industry's particular needs. The issue of product and service standardisation has to be addressed.
. Customised products and professionalism: a CRM system that is developed in accordance with an enterprise's application model will have a significant advantage both in terms of meeting expectations and in suitability. The continuous development of customised products is the key point.
4. The Primitive Form Of the CRM Brand Completed
. The above mentioned three types of leading manufacturers will become key manufacturers: leading manufacturers that focus on the general product market, customised product market and industry application market, respectively, will become the key manufacturers in the development of Chinese CRM in the next few years.
. Several key manufacturers together will share more than 50% of the market: some outstanding foreign and domestic professional CRM manufacturers possess remarkable advantages in the areas of third party assessments, product and customer satisfaction levels, and industry application coverage, etc. They will become the key players of the Chinese CRM industry in the coming years.
. The rising market entry level: the product structures and application models of key manufacturers will gradually become the industry standard. Professional manufacturers that wish to make a foray into the CRM industry will face a higher entry level.
5. The Establishment Of The Middle To High End Market
. Mature and precise customer demands: the outcome of market competition will directly cause the most competitive enterprises of the market to re-arrange their market strategies and management methodologies. The enterprises generally have a solid foundation, strong capabilities, a standardised management flow and a good reputation; hence, their demands for customer management will be very precise.
. Profits contribute to industry formation: professional manufacturers that focus on middle to high-end industry application will gain profits from the market. They will also constantly increase their investment in CRM research, product development and market involvement.
. Comprehensive and convincing implementation results: the successes of leading and advanced enterprises in the implementation of the CRM system will boost the confidence of other enterprises in both their own and other industries in this regard.
6. Stable Growth In The Lower End Of The Market
. More focused demands and can easily be satisfied: sales management is the core CRM demand of mainly small to medium sized enterprises. They have relatively simple management flows and precise objectives.
. Huge amount with growth potential: China's small to medium sized enterprises have enormous market potential. With the changes in market environment and the growth potential of small to medium sized enterprises, there will be a vast market space for professional manufacturers that focus on the small to medium scale CRM market.
. Short implementation cycle and obvious partial results: Due to the precise product position and implementation objectives, it is possible to see the implementation results within a short period.
7. The Vertical Development Of Industry Application
. Established industries: due to the business nature and the urgency in needs, there is a more established demand for CRM in industries like banking, securities, insurance, telecommunication and power, etc.
. Rapidly growing industries: the development of industries like high-tech manufacturing, consultation, medicine, electronic communications, vehicle sales, network technology and trading businesses, etc. tends to be rapid.
8. Established Market Application In Key Regions
Due to the difference in the maturity level of regional markets, enterprise density and the application level of information, the development of the CRM market tends to be gradually expanded from the core market:
. Key regions: northern China (centred on Beijing), eastern China (centred on Shanghai), southern China (Guangzhou and Shenzhen as centres)
. Secondary regions: south-west (Cheng-dou and Xi-an as centres) and many other coastal cities.
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