MKT415
interoffice memorandum to: salesforce.com from: subject:
Creating a Blue ocean date: The traditional CRM software is used to manage business interactions with customers in all areas. This is an application that makes communication and other elements much easier in the business world- at a hefty price of $350,000, which was only about 25% of the total implementation cost. There were several different types of potential customers (“noncustomers”) that the traditional CRM software suppliers were not serving with existing products. The three tiers in specific were individual customers and small and medium-sized companies. These customers were not buying traditional CRM for various reasons, with the major factor being cost. At the lower end of the market, many of the small businesses did not have funding to pay for the cost of basic CRM applications. These companies used more simple methods such as database programs; excel spreadsheets, Rolodex or even a basic filing cabinet. Individuals, or companies with few people could not afford to use the CRM, or simply didn’t have acSalesforce.com really eliminated the extensive cost for acquiring CRM software licenses and maintenance. Instead of the extensive cost that the traditional CRM software suppliers enforced, customers instead paid a monthly subscription fee (per user) to access the applications online. They raised the accessibility for their customers, being able to log on to use CRM applications via a simple web site (eliminating the need to purchase a software license), dramatically reducing the time spent on it as well. Along with being faster to use, it also reduces the time spent to train people on how to navigate the software. Not only was it easier, it was more efficient due to the fact that no client software was required to be installed. This allowed users to access CRM applications so long as you had Internet access.
With new competition entering the marker, Salesforce.com was forced to create
Creating a Blue ocean date: The traditional CRM software is used to manage business interactions with customers in all areas. This is an application that makes communication and other elements much easier in the business world- at a hefty price of $350,000, which was only about 25% of the total implementation cost. There were several different types of potential customers (“noncustomers”) that the traditional CRM software suppliers were not serving with existing products. The three tiers in specific were individual customers and small and medium-sized companies. These customers were not buying traditional CRM for various reasons, with the major factor being cost. At the lower end of the market, many of the small businesses did not have funding to pay for the cost of basic CRM applications. These companies used more simple methods such as database programs; excel spreadsheets, Rolodex or even a basic filing cabinet. Individuals, or companies with few people could not afford to use the CRM, or simply didn’t have acSalesforce.com really eliminated the extensive cost for acquiring CRM software licenses and maintenance. Instead of the extensive cost that the traditional CRM software suppliers enforced, customers instead paid a monthly subscription fee (per user) to access the applications online. They raised the accessibility for their customers, being able to log on to use CRM applications via a simple web site (eliminating the need to purchase a software license), dramatically reducing the time spent on it as well. Along with being faster to use, it also reduces the time spent to train people on how to navigate the software. Not only was it easier, it was more efficient due to the fact that no client software was required to be installed. This allowed users to access CRM applications so long as you had Internet access.
With new competition entering the marker, Salesforce.com was forced to create