State of CRM: Study Finds CRM Growth and Competition on the Upswing


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Sept. 26th, 2007…Wilmington, MA… Sales Managers, under pressure to do more with the same or less resources are increasingly upgrading existing CRM systems or turning to CRM for the first time to remain competitive according to a recent survey of Sales, Marketing and IT Executives. The study, performed by T.H.G. Sales Automation in partnership with Microsoft Corporation was conducted from June through August by the market research arm of Kensingtonhouse Ltd.

The CRM Market – 4 Out Of 10 …and Growing

Interviews that targeted a population of over 20,000 large, mid-sized and small firms revealed that 4 out of 10 firms (42%) currently use CRM systems to increase the efficiency and effectiveness of their sales staff. In addition, 13% are either currently in the process of implementing or have recently implemented or upgraded a CRM System.
In terms of market activity, nearly 1 company in 4 indicated that they were either buying or investigating either a new CRM system or an upgrade over the next six to twelve months.

The study showed a large and diverse array of brands competing for the business with over 30 providers mentioned. However, the 80/20 rule was in effect with the top 7 brands controlling 81% of the market.

Adoption Rates Increasing

Historically, convincing the Salesforce to actually use a CRM tool has been one of the most serious hurdles in achieving the promise of Return on Investment. The current data however shows a marked increase in adoption rates with 3 out of 4 respondents indicating usage rates in the 75% – 100% range. This, according to Ryan Plourde, COO of T.H.G. Sales Automation, is attributable to dramatic increases in both the ease of use and increased functionality offered by the new generation of systems that have come on the market in the past year. “Sales people see more real utility and value in terms of helping them access the right information at the right time…and that translates into closing more sales.”

On-Demand vs. On-Premise

When asked about their opinion as to the future direction of how companies will access CRM capability, Web based delivery was the big winner, with over half (55%) of the respondents indicating that On-Demand would be the delivery system of the future. Only 14% picked On-Premise, with the remaining 31% undecided.

The leading Reasons cited for choosing On-Demand were the “General Trend toward Software-As-A-Service (SaaS) and Web Based Delivery” at 31%; “Ease of Access and Flexibility” at 27% with “Lower Cost” coming in at 19%.

The main reasons to choose On-Premise included “IT Control and Ease of Management” at 70%, “Security” at 50% and “Superior Integration Capability” at 20%.

About the Study

Time frame: June 22 – September 9, 2007
Sample Companies: Sales Size – $2.5 Million – $1 Billion

Sample Distribution by Sales Force Size:
o Small Business 25%
o Mid-Market 63%
o Enterprise 12%
Sampling Error: +/- 5%

About T.H.G. Sales Automation

T.H.G. Sales Automation is a recognized industry expert in implementing CRM solutions on a global basis. T.H.G. offers a comprehensive line of products and services including Project Management (needs analysis, requirements gathering, and functional specifications), Design and Development, Implementation, Training, Analytics/Reporting, and Support based on your choice of CRM solutions. T.H.G.’s staff has more than 100 years of combined experience in the CRM industry. They have pooled their expertise to develop a logical approach to designing and implementing CRM solutions that lead to successful outcomes for their clients. T.H.G. Sales Automation makes it their business to improve the way you do business.

About Microsoft Dynamics CRM

Microsoft Dynamics CRM gives every customer-facing employee the information they need to truly impress customers. With Microsoft CRM, you can create a centralized repository of customer data that sits neatly alongside Microsoft Office and Microsoft Office Outlook—the applications your employees probably use every day. From Outlook, employees access Microsoft CRM sales, marketing, and customer service modules to make sales decisions, market products, solve problems, and get strategic views of the business. It’s CRM that works – because it works the way your users already do, works the way your business already does, and works the way technology should.

Tom Moriarty
Kensingtonhouse Ltd.
[email protected]

Ryan Plourde
T.H.G. Sales Automation
[email protected]

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