Increasing Product and Marketing Focus on the Small to Mid-Market Niche

Anecdotal evidence along with recent studies (e.g., a recent D&B [formerly Dun & Bradstreet] study) point to a steady stream of CRM software adoption by small and mid-sized businesses in the near term. In contrast, larger companies are scaling back their IT purchases for the short term due to the current economic downturn. The opportunities within the small and mid-sized business niche are therefore increasing, leading to additional CRM products that target the small to mid-market niche. Recently, PeopleSoft introduced the PeopleSoft Accelerated CRM product, a fixed-price CRM package aimed at companies with less than $500 million in revenue. Oracle and J.D. Edwards also have announced their intent to target this niche in their future marketing efforts. Sage purchased Interact Commerce to secure its place in the small to mid-size market segment.

Likely impact of this trend: Better CRM software offerings in tune with the needs of small to mid-sized companies.