CRM is the abbreviation of Customer Relationship Management. It includes all aspect of dealing with clients from sales to after sales service. As there are many different definitions about CRM, experts had agreed on this basic defining: Customer relationship management is business strategies to search, sort, and maintain relationship with clients.
Most businesses in Vietnam are small and average sizes, they are considered potential market for appyling CRM to increase competition in the market. However, indifferent views from enterprises lessen providers’ hope.
The prospect that CRM brought at first was ideal starting from the idea to help enterprise to maintain and develop relationship with their clients- the most important need of any business trading. With a useful CRM, enterprise can make deep analyse on both potential customers and existing customers. Then they can define which value their customers bring to them and sort out groups of customer according to their targets in order to have better service. In other aspects, CRM help enterprises to build marketing stratergies base on customer data system. It also help simplify marketing and sales process.
In Vietnam, the concepts of CRM were import same time with other countries in 1995. The first companies to accept this new technology were foreigners and corporations. TRV (Technology Resource Vietnam) whose majors were selling and consulting software solution, was one of the first companies to use CRM. It was also rare to use up to three software about CRM as an essential part in its business.
At the minute, Vietnam is still considered as a potential market for CRM but it develops at very low speed. This makes experts doubt about its feasibility. There is a wide range of CRM product from professionals outside to local firms and prices are affordable. The reasons for this slow status are culture, manner and manager’s experience which are considered weak in Vietnam. Another reason is CRM decreases staff’s confidence in companies as it requires them to keep updating information to the system. Although many managers determine to change, they still meet big offense from staff.
Market size and usage ratio in Vietnam:
The Vietnamese market remains small, but it has attracted a lot of big service providers, from foreign experienced ones such as: SugarCRM, ZohoCRM, Microsoft Dynamics CRM, Saleforce, SAP CRM, Oracle; to domestic big guys such as: Vtiger, Hitek, Biaki, Vpar, PerfectCRM, 1VS, MisaCRM, NEO CRM. The small market and the presence of numerous service providers both explain why the competition in the market is so stiff.
The biggest obstacle for CRM software suppliers is the lack of attention of Vietnamese businesses to the products. It is estimated that only 10 percent of Vietnamese businesses have used CRM, while the figure is much higher in other countries. It is estimated that the world would spend about 13 billion dollars in 2012 on the works relating to CRM.
Therefore, it’s always very difficult to offer CRM products to Vietnamese enterprises. Vietnamese still do not think that they need to have a tool for customer relation management when they want to develop and expand their business scale. A lot of them, when meeting CRM suppliers, raise a question like “What does CRM software mean? Why do I have to have a CRM product?”
As the market share is too small for all CRM suppliers, a lot of them have to offer cheap products to scramble for customers. The suppliers try to minimize their production costs by using foreign open source codes.
Analysts say that the open source codes would help IT firms cut down expenses when developing a system or a fundamental for analyzing and developing products for a specific market like Vietnam. However, later, during the process of developing products, they would meet some serious errors.
After a period of development, the software products would not be able to satisfy the requirements set up by the users. This would not only make the solution providers lose their customers, but also make other companies fall into disrepute.
Mai Duy Quang, director of Biaki, one of the leading CRM suppliers in Vietnam, has also admitted that the challenges remain too big for CRM firms. While tens of billions of dollars are being spent in the world on the products and services relating to CRM, Vietnamese IT firms still have to meet customers to explain to them the necessity of CRM.
How is the future for Vietnamese CRM market?/ Chances for CRM development in Vietnam:
Generally, Vietnamese market has some hopeful factors that may bring new ideas to CRM provider:
- When a sales or marketer leave the company, they bring with them all the data. After a while trading with clients, enterprises often lack of client’s database. Many of them get tired of this un-authorized management style and want to change to a regulated style. Traditional ways of searching for clients show up disadvantages when customers’ demands get higher and identified. – Applying CRM to business activities of all range from small to big size is quite simle as long as they have right view about CRM.
- Informatics technology is developing fast in Vietnam, computerization in enterprises’ activities are concerned a lot. After the trend of “ISO, CRM, ERP”, the market sank in idle time- long enough for companies to reconsider what are mostly needed for their business.
- With high inflation, companies need to cut down expense, CRM become a suitable solution especially when they are aware of customer relationship mangament in a new concepts, new style.
August 29, 2013