CRM Startups-Traditional CRMs step aside – it’s all about geospatial CRMs built for field sales reps now. Matthew Sniff, founder and CEO of Map My Customers explains why sales-driven organizations need to care about the impact these location-based CRMs will have on their sales outcomes.
The importance of the relationship between a company and its customers cannot be overstated. Customer Relationship Management (CRM) has emerged as one of the most significant software sectors, because of its ability to help companies gauge (and engage) their customers and turn complex user behavior into simple metrics. And despite the fact that CRM software’s existence isn’t entirely new, the market is expected to reach more than $80 billion in revenues by 2025. That’s in part because of a new group of emerging successful startups taking on gaps left by CRM giants, such as Salesforce.
Salesforce has enjoyed a virtual monopoly in the space, accounting for about 20% of the global CRM market. Following last month’s $15.7 billion acquisition of Tableau Software, Salesforce appeared primed to continue to dominate the industry, bolstering the company’s new focus on data visualization and business intelligence to understand their users. Salesforce’s blockbuster acquisition though may be an admission that they are starting to feel the squeeze to its market share. Especially as these growing sales tech startups are solving the end-users major pain points that CRM providers have long ignored.
Interestingly, Salesforce shares fell as much as 5 percent following the announcement, shedding light on the fact that the large CRM providers are, in fact, losing ground to alternative CRM startups.
We are seeing this shift in the CRM market for three main reasons: CRMs fail to provide actionable data, they are designed for executives – not the end-user, and CRMs prices make them unattainable for the average business.
Inaccurate and Unactionable Data
While CRM data helps managers understand the who and what of their customers they are missing the most important piece – the why. Most sales managers have little idea why some of their salespeople are consistently hitting their quotas or why certain territories outperform others. CRMs are unable to answer these questions because they often are filled with stale and incomplete data. Most sales and marketing professionals will even admit that a fair portion of their CRM data is stale. To solve these problems, CRMs need to be layered with actionable data, such as specific notes about key accounts or geospatial information.