Large enterprises have been made to believe they need large CRM solutions - Is this beginning to change?

The top 4 CRM software vendors dominate 75% of the market, so they wield a lot of influence on how it works. That enterprise customers need large and complex "enterprise" CRM solutions to run their businesses, so they don't seriously consider alternatives, or spend much time looking into thinking about how radically CRM technology has advanced in recent years. 

Most enterprise CRM customers have been spending big budgets with the same vendors for years, and spend even more money relying on their advisors who tell them that they need to do things this way because their challenges are large and there don’t seem to be any alternatives.  

Why should we let this cycle continue? 

Large enterprises have been shelling out enormous amounts of money to the large CRM technology vendors for the rights to use their software. 

They spend more money on consultants to scope the projects, re-engineer business processes to meet the requirements of the software, to “implement” the software, to integrate the software with your existing company platforms and make sure it works and then to make sure everybody is trained. 

But it doesn’t stop there. When there are business changes, more money is shelled out to adapt to these changes. 

Then large enterprises then need to pay for maintenance or support and upgrades when the vendors make their product better for them or else the product becomes ‘unsupported’. 

Why has everybody become so accustomed to this business model which has been in play for decades and why has nobody has ever been fired as a result of buying one of the top 4 CRM technologies? 

There is an evolutionary shift in employee behavior, exposed to the relatively simple software of the B2C (Business to Consumer) world, they are now expecting the same sort of experience with B2B (Business to Business) software. Employees have started asking why the software they use at work (such as there CRM) isn’t as easy to use as the software they use at home such as Facebook.

Reliance on CRM is declining as only 20% of a sales rep’s time is spent in CRM, while 60% of their time is spent using sales technology. Worse still, nearly 10 percent of a sales rep’s time is still spent in spreadsheets to help them accomplish what they wish they could do in CRM. CRM has been called out by sales people as the most frustrating technology (Inside Sales).


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