Early on at ProjectVRM, we had a community meeting in at Oracle headquarters in Silicon Valley, where some VRM-friendly Oracle employees had kindly found us some space. During the meeting we got a surprise visit from Anthony Lye, then the Senior VP of Oracle CRM and later VP of Cloud Applications there. (He has since moved on.) We had a good conversation, after which one of the employees who hosted us disclosed that Anthony had earlier said “Whoever wins at VRM wins at CRM.” It was encouraging to hear, but I never got the quote confirmed, so I don’t know if he said it or not. But I still believe it’s true, because CRM needs VRM for the same reason that companies need customers: the market is a dance floor and it takes two to tango.
As CRM companies go, I count Oracle as clueful, mostly because they provided extraordinarily helpful grist for the VRM mill in the form of this graphic here…
… which puts at the heart of CRM two verbs — BUY and OWN — that are the customer’s and not the company’s.* It also helps us sort VRM tools and services into two main concerns:
- BUY — Intentcasting
- OWN — Personal clouds, plus personal data stores, vaults, lockers and services, including privacy protection
Other VRM development categories (e.g. code bases, trust frameworks, infrastructures, consortia) lie underneath those two, or blur across them.
Still, friendly as Oracle seems, I don’t hear them asking to dance with anybody doing VRM yet.
So I’m looking now at this Louis Columbus piece in Forbes, reporting on this Gartner report (sorry, ya gotta pay), saying, among other things, that the CRM market (all B2B) reached at $18 billion/year in 2012, with a 12.5% growth rate over 2011. The top six companies, in order, are:
- Salesforce, 14%
- SAP, 12.5%
- Oracle, 11.1%
- Microsoft, 6.3%
- IBM, 3.6%
- Adobe, 3.1%
- Nice Systems, 2.5%
- Verint Systems, 2.4%
- Amdocs, 2.3%
- SAS, 2.2%
“Others” are 39.7%.
Worldwide CRM software spending by subsegment shows Customer Service and Support leading all categories with 36.8% of all spending in 2012 ($6.6B), followed by CRM Sales (26.3%, $4.7B), Marketing (includes marketing automation) (20%, $3.6B) and e-commerce (16.9%, $3B)…
Ten fastest growing CRM vendors as measured in revenue Annual Growth Rate (AGR) in 2012 include Zoho (81.2%), Hybris (78.6%), Teradata (70.4%), Bazaarvoice (56.2%), Marketo (54.3%), Kana (44.2%), Demandware (43.9%), IBM (39.4%), Technology One (37.1%) and Neolane (36%).
Communications, media and IT services were the biggest spenders on CRM in 2012 due to their call center requirements. Manufacturing including Consumer Packaged Goods (CPG) was second, and banking & securities were third.
Looking at these, I see a few that might like to dance with VRM. Teradata is big on data warehousing (potentially for personal clouds). Bazaarvoice is into “genuine online conversations.” Zoho does collaboration apps. Neolane does “conversational marketing.” TechnologyOne considers customers “stakeholders.”
If anybody from any of those companies (or the bigger CRM companies on the list above) wants to come out here on the floor (or sit at the table), let us know. We’re patient, and we know you’re coming.
* The original source of the graphic, Ray Wang points out in the comments below, is Esteban Kolsky. And, as I say in my comment below Ray’s, I did hear that from my friend Nitin Badjatia at Oracle (and formerly of Right Now), but didn’t remember it when I wrote this piece and the one before it yesterday. Again, it is the verbs — BUY and OWN — that make the image especially useful for VRM, because they are the customer’s. I don’t yet know if those verbs are Esteban’s or Right Now/Oracle’s. Let me know and I’ll give credit where due.