According to gartner.com the usual set of 4 “drivers” involved with CRM are now joined by a fifth equally important “driver” called the “internet of things” (gartner.com).
In her article published in the Market Realist website titled “Salesforce’s growth strategy focuses on the Internet of Customers” Samantha Nielson explains how the CEO of Salesforce Marc Benioff is looking to fit in his marketing startegy to the current US market and benefit from the new “Internet of Things” by pivoting to his customers.
Salesforce 1 technology works as a “custom publisher”. Developers can utilize Salesforce1 to develop next-generation apps, ISVs can use it to distribute those apps, system administrators can utilize it to control Salesforce from many global locations, and end users can access all of this on any device. Salesforce1 has built its API first to help developers build the next generation of social and mobile apps (marketrealist.com).
According to the “Salesforce” company website, the new strategy includes forming a team of industry experts, creating a network of partners and providing solutions to major problems faced by enterprises across each sector.
The company’s “new industries strategy” is focused on increasing growth and revolutionizing the way companies involved with important industries connect with their customers. The New Industry Business unit currently serves six global industries. The six industries currently being served by Salesforce are healthcare, financial, retail, media and communication. The company provides mobile solutions, social solutions and cloud service solutions to its customers. Salesforce strategy also includes raising a team of industry experts, developing a network of chosen partners and providing transformational solutions that use the “Salesforce1 Platform” to tackle challenges faced by each sector (salesforce.com).
An Article published in the Forbs Magazine website by the “Trefis team” says, with the company’s new industry-specific restructuring of its marketing team, Salesforce will be spending money on creating business operations, hiring, and training people to become experts in individual industries. Considering the possibility of uneven growth in enterprise CRM from some industries, Salesforce’s strategy to overlap these groups across its prevalent operating structure is a wise move. The company has already hired executives with industry experience to develop customer solutions for specific industries.
salesforce reported 17 consecutive quarters of diminishing attrition rates from their customers using the Salesforce CRM suite with increased customization using the Salesforce1 platform. The new industry groups should boost further customization with industry-specific solutions which should reduce customer attrition further (forbes.com).
According to “trefis.com”, the company has had a rapid expansion of its market share after the economic crash in years 2008-2009 from 10.6% in 2010 to around 16.3% in 2013. “Trefis” expects it will grow to 26% by the end of the company’s forecasting period. According to “Trefs” Salesforce.com will benefit from the rapid growth of the cloud computing CRM market. According to information published in the “Trefs” website, the speed, ease of implementation and the low cost of ownership are the main factors that have fueled the rapid rise of “Salesforce” market share.
“Trefis says, it is possible for an upside of about 18% to their estimate for Salesforce.com stock In the future if the company’s market share expands at a more rapid rate to reach 30% by the end of Trefis forecast period. Simultaneously, it is also possible for “Salesforce” to have a downside of approximately 19% to Trefis estimate for Salesforce.com stock if Salesforce's market share expands at a slower pace to reach 20% by the end of Trefis forecast period says the article.
References:
Rivera, J. & Meulen, R. (12th February2014). Gartner Says CRM Will Be at the Heart of Digital Initiatives for Years to Come. Gartner. Retrieved from http://www.gartner.com/newsroom/id/2665215
Nielson, S. (6th May 2014). Salesforce’s growth strategy focuses on the Internet of Customers. Market Realist. Retrieved from http://marketrealist.com/2014/05/salesforces-future- growth-strategy-focused-internet-customers/
Salesforce.com Announces New Industries Strategy (2014). Salesforce company website. Retrieved from http://www.salesforce.com/company/news-press/press- releases/2014/04/140402.jsp
Revenue Growth With "New Industries Strategy” (10th April 2014). Forbes Magazine. Retrieved from http://www.forbes.com/sites/greatspeculations/2014/04/10/salesforce- continues-to-target-revenue-growth-with-new-industries-strategy/
