Post on 23-Dec-2014
description
MARKET POTENTIAL FOR SALESFORCE CRM
Deepthi sree
Market Potential :
• Determine a customer profile and the geographic size of the market is the general market potential.
• Knowing the number and strength of your competitors will give you the Specific market potential.
Salesforce CRM :
• Salesforce.com provides enterprise cloud computing applications such as customer relationship management (CRM).
• CRM applications is to record, track, manage, and analyze data concerning sales, customer service and support the marketing operations.
• Its completely SAAS based application.(no hardware, no software).
Contin’d:
• Its consist of multiple functionality and flexible data sharing
• One of the unique feature about Salesforce CRM is AppExchange
• Application programming interface (API) is a protocol intended to be used as interface by software components to communicate with each other.
Contin’d:
• It will give 360 degree visibility on the sales process based upon reports and dash boards that generated
APPLICATIONS:• Sales cloud• Service cloud• Chatter
Research process:
Formulating hypothesis
Planning the research design
Selecting research method
Selecting sampling procedure
Data collection
Evaluating data
Preparing and presenting the research reports
Formulating hypothesis :
Marketability- If your product or service will appeal to consumers of the target marketPotential Analysis- How many customers would buy your product or service at what priceMarket Position- What markets volume you can count on
Planning the research design:
It provides a specific details regarding the process to be followed in conducting the research.
The research design factors are • Data resource-www.fondoodata.com• Time-2months15 days• Sampling process-random sampling
Selecting research method:
• Identifying the research design for conducting marketing research is main aspect.
• Finding the market potential for Saleforce CRM, the methodology that I selected for this market research was Descriptive research .
Based upon the following factors:• Company type- B to B• Availability of data• Convenience of company• Availability of other resource
Contn’d
• The research is carried out by choosing open and closed ended questions for Effective observations.
• The mode of survey is telephonic.• The observation is based upon personal,
content.
Selecting sampling procedure:
• The samples to conduct this survey collected from fundoodata.com
• Its under random sampling: equal chances of anyone being picked.
selected industries are:• Construction/ Infrastructure• Manufacturing• Logistics
SurveyTarget Audience:• Population: 346 Bangalore Companies• Sample Size: 80 Companies (Responses)Construction/infrastructure• Population:200• Sample Size:30 Manufacturing• Population :90• Sample Size:32Logistics• Population:56• Sample Size:18
Data collection:
• In this survey method the data collection is fill out the questionnaire administrated to them.
• In observation technique we just has to observe the respondents
• Final objective is collect the data with out errors
• The valid data can be obtained by following the below steps
Contn,d
Validation- detecting the fraud data
Editing-checking mistakes
Coding-allocating numbers to answers
Data entry
Data cleaning-final error checking process
Tabulation& analysis
Evaluating data
• The most commonly used technique is one way frequency table
• In that the relation between all observed variables should be linear.
• Based upon sample size from Construction Industry respondents were 30
• Manufacturing respondents were 32• Logistics Respondents were 18
CRM Market in Bangalore :
• Most of the companies are exploring the best marketing medium such as online seminars, online demos, blog to drive the volume of inquiries and leads.
• The demand for CRM solutions in India is likely to be driven by both the large organizations and SMEs
On-Demand CRM is gaining ground in India
• The On Demand CRM market in India is extremely nascent.
• Salesfoce CRM having high market share in India as per Zinnov market Consulting results
45%
4%9%
11%
31%
On-demand
Salesforce.com
Sage CRM
Netsite
Rightnow
others
SurveyTarget Audience: 346 Bangalore Companies
Construction/Infrastructure
Manufacturing
Logistics
Current Pain Points
• Poor IT adoption: IT adoption remains to be dismal in Indian SMB landscape.
• Perception around CRM: Indian SMBs place CRM solutions on really low priority.
Current Scenario
• Methods in practice• Challenge • Technology adoption
Future potential• Changing value perception• Cloud awareness
Distribution of Sample Survey
15.00%
35.50%
32.14%
Sample size
Construction/Infra-structureManufacturingLogistics
Distribution by number of Employees
Survey was focused on gaining insights around CRM adoption in Bangalore,majority of the respondents were SMBs
up to100 100-500 500-1000 above 10000.00%
10.00%20.00%30.00%40.00%50.00%60.00%70.00%
57.50%32.50%
6.25% 3.75%
Employees
Employees
For most Indian SMB’s , IT adoption means Basic Solutions• As high as 57% of Bangalore mid sized businesses
(100 to 500 employees) have not adopted CRM solutions.
• Communication (e-mail, chat, conferencing ) and collaboration (Documentation, Spreadsheet, etc.) are the only solutions adopted by Indian companies.
• Majority of non-users believe that they don’t need CRM solutions since they are self sufficient in managing their relationships on E-mails/ mail clients, Spreadsheets, etc.
CRM Users
26.25%
73.75%
Usage
CRM usersCRM non users
Basic Solution
Comunication Colabration Finace/Accounting0%
10%
20%
30%
40%
50%
60%
70%
80%
75%
25%
0%
Solution
Solution
Findings:
• Key reason cited for adoption of CRM tool is that it helps in streamlining and managing the processes in a better manner
• Logistics have understood the importance of CRM technology as customer retention is of prime importance hence adoption is significantly higher as compared to Construction and Manufacturing Industries.
CRM adoption across verticals
Construction/In-frastructuer
Manufactuering logistics0%5%
10%15%20%25%30%35%40%45%
20%25%
39%
adoption rate
adoption rate
Findings:
• Companies find maximum beneficial impact of CRM in marketing and lead management, customer service and maintaining customer accounts
• Half of the CRM users cited that demand from sales and marketing team led them to adopt CRM solutions
• All CRM users believed that CRM helps them increase the overall effectiveness of the team
The Companies having the sales team size more than 12 prefer to adopt CRM
lessthan 2 3 to 5 6 to 12 above 120
5
10
15
20
25
CRM usersCRM non Users
• Existing CRM users see value around Totality (360 deg view) and highly usable solutions which provides easy access of information
• Affordability of the product surprisingly does not play a major role according to both the users as well as non- users of CRM technology
• Almost all of CRM users cited Totality as a decision criterion for finalizing the CRM solution.
Value perception of CRMAffordability
Usability
Reliability
Accessibility
Credibility
Flexibility
Totality
Scalability
2968
65
69
1931
70
20 highmediumlow
Brand preference for software solutions:
SAP and Microsoft for a higher brand recall among the non-users of CRM solutions
Prefer to use known/tested brands
Ready to try new brands0.00%
20.00%40.00%60.00%80.00%
100.00%
77.50%
22.50%
prefferd
prefferd
CRM Usage in Bangalore
SAP
microso
ftOrac
le
Salesfo
rce CRM
Suga
r CRM
Zoho CRM
Others
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
27.70%
16.60%
5.55%
16.60%22.22%
16.60%11.11%
Usage
Usage
Awareness of Cloud Computing TechnologyCloud computing/SaaS is still a new terminology for majority of users and non users
32.50%
67.50%
Cloud Computing
YesNo
IT heads are key influencers for CRM adoption
CTO VP sales Directors CFO0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
62.50%
16.25% 17.50%3.75%
Influencer
Influencer
Source of Awareness
Word
of moouth
s
Events/
Seminar/
workshops
Internet S
urfing
Sugg
ested by c
ustomers
0%
20%
40%
60%
65.00%
18.75% 8.75% 3.75% 3.75%
Source of Information Regrading Current Solution
Source of Information Regrading Current Solu-tion
Market Potential for Salesforce CRM
31.25%
68.75%
Market potential
YesNo
Market potential Across Verticals
30.00%
28.13%
33.33%
Market Potential
Construction/In-frastructuerManufacturingLogistics
Findings:
• Digital / Online marketing channels are less effective among SMBs due to very low Internet penetration
• Word of mouth/peer references are highly effective marketing techniques
• Companies are leveraging existing social networks like Facebook, LinkedIn etc. to create online communities for branding
Conclusion
• The market potential for Salesforce CRM as per the Research is 31.25%.
• Logistics having high market potential of 33.3%• Construction having the market potential of
30%• Manufacturing having market potential of
28.125%
Recommendations:
Know your Customer:• Majority of the CRM users firms have size of
about 100-500 employees• Non-users of CRM have very little preference
for brand therefore cloud vendors have a huge opportunity to sell their solutions
Create Awareness
• Vendors need to create awareness around how CRM can help firms build relationship with their repeat customers
• Showcase few case studies of firms that have found CRM being effective in improving their processes
Sell Right:
• Awareness around utility and advantages of CRM tool needs to be created among Sales and Marketing team in firms since they are the end users of the CRM solution.
• IT heads are the key influencers in decision making about IT deployment and therefore need to be targeted effectively for selling the CRM tool
THANK YOU