US medium businesses push for CRM solutions - $1 billion this year

US medium businesses (100-999 employees) will spend over $1 billion this year on customer relationship management (CRM) solutions, as they increasingly recognize the need to improve and extend their CRM capabilities, according to a new report, “Mid-Market CRM: Vendor Strategies for a New Frontier” from AMI Partners. The US medium business market is still under-penetrated in terms of CRM adoption, with just 35% of these businesses currently using CRM solutions. However, their spending on CRM is set to grow at a 9% CAGR over the next five years.


Most MBs look first to brand name market leaders, such as salesforce.com, Microsoft CRM, Sage and RightNow, who are all enjoying strong growth. However, challengers, including Entellium, Maximizer, NetSuite and SugarCRM, often provide customers with very attractive alternatives, offering more aggressive pricing, extra services or other value-added differentiators to entice customers to their solutions.

The study examines U.S. MB market dynamics, based on data from our 2005-2006 Medium Business Survey and most recent Global Model forecasts. Assesses eight CRM vendors (Entellium, Maximizer, Microsoft, NetSuite, RightNow, Sage, salesforce.com and SugarCRM) mid-market strategies. Compares core product offerings and trends; delivery models; packaging and pricing; service and support; integration, mobility and industry-specific offerings; and marketing and channel strategies.

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