The arrival of CRM3.0 era

The history of the rise of CRM market is actually not too long. In a sense, the rise of Xibei CRM represents the rise of CRM market. 1993 Xibei company was established, 1995 Xibei CRM began to sweep the world. In 2000, the market value of Siebel reached 50 billion dollars, and then it began to decline from prosperity. So if that's the case, it's less than 30 years old. The rise of domestic CRM should be around 2000, and the rise of Chuangzhi and Turbo CRM has a history of about 20 years.

Figure 1 Three waves of domestic CRM market

As shown in the above figure, since 2000, the domestic CRM market has experienced three stages.

(A) The first stage: CRM 1.0 era-product-centered market

At that time, the market was small, and it was a market of 100 million yuan, probably from 2000 to 2005. At present, CRM is mainly based on product sales, stand-alone version, enterprise version and so on. At that time, when selling CRM products, it was mainly to demonstrate the product interface and introduce product functions to customers; At the same time, it is better to introduce two-layer structure or n-layer structure; Is CS structure better or BS structure better?

At that time, Siebel was not widely used in China, but domestic manufacturers Chuangzhi and Turbo CRM took the lead. I don't know if anyone remembers Chuangzhi now, but it was really in full swing in the domestic CRM field at that time. It is said that Chuangzhi invested hundreds of millions of yuan in CRM at that time, and recruited experts and developers from various industries on a large scale. Because there are too many people, the workstation can't sit down, and many people work in the corridor. There have been two short stories with Chuangzhi: 1). One is that an internationally renowned consulting company developed a CRM framework and sold it to two customers. One was sold to Siebel and the other to Chuangzhi. 2) Ding Liang, the boss of Chuangzhi, said that the CRM market is huge. At that time, Wang Wenjing, the boss of UFIDA, the most popular software company in China, added that CRM was 10 times larger than the ERP market. Let all CRM people sound like chicken blood.

Another CRM company that has to be mentioned is Turbo CRM. At that time, Turbo CRM was known as the largest CRM manufacturer in China. 200 1, when I was in Xibei Canada, a colleague showed me the introduction materials of Turbo CRM. At that time, they claimed that the annual sales reached about 20 million.

At this market stage, the domestic market is too small and there are basically no profitable manufacturers. At that time, the author also opened a CRM company to develop and sell CRM products: Rongbo customer-friendly stand-alone version, small and medium-sized enterprise version and large enterprise version, which ranked in the top 5 in the sales ranking of management software of federal software, but it did not sell many sets and did not make money.

(b) The second stage: the era of CRM2.0-a market centered on solutions and best practices.

After 2005, with the strong demand of telecommunications, energy, finance, automobile and other industries, large customers like Huawei emerged. One of the IPO fundraising investments of many companies is CRM, which promoted the domestic CRM market to enter a rapid rising channel.

During this period, many projects were promoted by international consulting companies, such as IBM, AC, Capgemini and Big Four. Due to the leading role of large consulting companies with international background, the project scale during this period is also large, and the cost of CRM consultants is also high, which belongs to the stage of being stupid, rich and fast. I remember when I was in charge of the CRM project of bank securities in 2007, the first phase was about 20 million yuan, the most common consulting fee was 3,000 yuan, and the senior consulting fee reported by IBM at that time was15,000 yuan. Moreover, at that time, customers had great respect for CRM vendors and provided a good working environment for consultants.

During this period, competition is basically the best practice and industry solution. Domestic CRM companies have basically missed big customers because of the lack of accumulation in this area and the lack of international consulting companies to help promote it. During this period, the CRM of two companies was basically in PK: Oracle Siebel and SAP CRM.

Therefore, during the CRM boom from 2007 to 20 1 1, many enterprises still got dividends. At this stage, the CRM market may be billions or even billions.

(c) The third stage: CRM3.0 era-a market with commercial value and digital transformation as its core.

In 20 12, when I was in charge of Oracle Siebel solution in IBM GBS, the CRM market was obviously shrinking. First of all, the list is getting smaller and smaller. The original tens of millions of projects have now shrunk to millions, and with more than a dozen orders, mainstream manufacturers and major consulting companies have flocked, and the CRM market has become a battlefield in the Red Sea.

20 19 is a very difficult year for the CRM market, and 2020 may be even more difficult. At present, the shrinking trend of CRM market can be seen from the number of CRM teams in major consulting companies. However, 20 19 is also a year in which the CRM market hopes to emerge suddenly. Internationally, among all software companies' mergers and acquisitions, CRM software companies have the largest number. In China, BAT has been increasing its investment in CRM, and various capitals have been pouring into the 2B market, especially in the fields of digital empowerment and transformation.

It is not that the CRM market is shrinking, but that the traditional CRM field is shrinking, while the new CRM field is rapidly emerging and erupting. The author believes that in the past 10 years, the following reasons have accelerated the shrinkage of the traditional CRM field:

1) lacks commercial value.

In the past 10 years, CRM consulting was based on PPT delivery, and CRM products were based on system online. The charge of the project is not directly related to whether it generates commercial value for customers. This CRM model is increasingly difficult to be accepted by customers. The head enterprises have basically experienced one or even several rounds of CRM products, and the honeymoon period with CRM has passed, from the longing period to the cooling-off period. If you can't impress customers from business value and input and output, then customers are unwilling to invest blindly.

2) the improvement of customers' own ability

Now a large number of experts working in consulting companies have joined Party A, and you will find that the CIO, CTO and CDO of many head enterprises are from IBM, AC and the four major consulting companies. Therefore, the consulting ability and self-development ability of the head enterprise in CRM are not weaker than Party B now, and many projects are solved by Party A itself.

3)CRM cloudization

Today, CRM cloud has gradually become the mainstream. Because it is a leasing method, the annual cost is not high, so it is difficult to start a large CRM project.

4) Economic growth has slowed down.

Now that all industries are not very good, the budget of consulting and informatization projects will naturally decrease.

The new field of CRM broke out in the integration field of CRM, business model, business value and digital technology, which is a new track for CRM competition. The author called it CRM3.0 era. From the market point of view, it is not that there are fewer CRM projects, but that there are fewer CRM projects with no commercial value and no business innovation. For domestic enterprises, the coming 10 year must be a year of digital transformation and digital innovation, and it must also be a trillion-scale market, which is also the biggest opportunity for CRM, that is, how to help enterprises form their core competitiveness through digital mode, digital technology and digital asset accumulation in the fields of marketing, service, customer and channel management, and generate measurable huge commercial value. This piece must be the largest market in the CRM field in the future 10, and it is also a market of 10 billion or even 100 billion. Which CRM enterprise can meet the demand of this wave of market and share this wave of tens of billions of dividends.

Figure 2 CRM3.0 Era-Four Key Capabilities for Success

As shown in the above figure, in order to win this market, I think we must have four key abilities:

In the era of CRM3.0, Microsoft, Salesforce, Tencent and Ali have more advantages. But so far, no market has established its own wide and deep moat in four areas: theoretical system, industry innovation, value evaluation system and charging model innovation. In the digital age, the CRM market calls for the emergence of a new king, and the times make heroes. I believe that in the near future, there will be a leader of CRM in the digital age.