Steve Ballmer PC World Article on the Economy with Microsoft Dynamics CRM as a Bright Spot

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I came across this PC World article with some performance results and Steve Ballmer quotes. 

Of the few things noted as a bright spot, one of them was Microsoft Dynamics CRM which saw double-digit growth last quarter. http://www.pcworld.com/article/158156/ballmer_provides_grim_outlook_as_economy_resets.html

 ”Among the bright spots for Microsoft in an overall disappointing quarter were double-digit growth in revenue from its Office SharePoint and Communications Server products, as well as its Microsoft CRM (customer relationship management) enterprise software.”

Why would CRM be experiencing such growth during a time when consumers and companies are cutting way back on spending? Probably because companies are having to do more with less. If people and businesses are spending less, companies are faced with doing a better job of finding the few buyers who are spending money. And most companies can’t afford to lose too many existing customers so they need to do a better job of retaining them and finding new revenue opportunities. And many companies must do all of this with fewer employees or without adding any new employees.

I’m starting to see a shift in what companies are planning to use CRM for. In 2006 and 2007 most companies I’d worked with wanted to deploy CRM to manage and analyze customer data better and give the sales team tools to sell more. They also mentioned better productivity and efficiency but data and sales were the top priorities. Around mid-2008 the conversations seemed to shift more toward efficiency.

  • How can we minimize redundant and manual processes?
  • How can we provide customers with self-service capabilities?
  • How can we automate tasks such as new customer “welcome” emails?
  • How can we more quickly capture, respond to, and qualify leads?

A thinning of the business herd is already happening. Buyers are more sensitive than ever to price and service. Companies that can see trends and adjust to optimize the customer experience will be in a better position to survive the current conditions and thrive when conditions improve. Companies that continue with dysfunctional processes and poor customer experience will face major hurdles.

More companies now seem to be looking toward CRM as strategic business tool rather than costly tactical software. And this is probably one reason CRM has moved up higher on the priority list for many companies and become a bright spot in this economy.

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