Horizontal CRM solutions — as mature as they are (and they have been around for 20+ years) — don’t always do a good job at supporting industry-specific business processes. Consider these examples: CRM users in manufacturing need capabilities to track projects, schedules, time sheets, labor efficiencies, and equipment inventory in addition to core CRM attributes. Alternatively, a real estate professional would like to use CRM to track not only client contact information but also additional data elements such as properties, lease/sales comps, and stacking plans, which illustrate how healthy a property is in terms of tenants and leases.
So, over the years, CRM vendors have built vertical market software applications from the ground up for specific industries. Historic, heavyweight on-premises applications — like Oracle Siebel, with 21 built-on industry verticals — are giving way to newer, more agile software-as-a-service vertical offerings that offer scripted best practices. And other vendors have taken a different tactic and developed lighter-weight systems of engagement to consolidate and visualize data from disparate systems to drive better decision-making. This leaves a CRM buyer with three options to choose from:
|Horizontal CRM||Offers broad CRM capabilities across all industries||– Natively supports capabilities required for a particular vertical (ex policy automation, channel management)
– Can be customized and integrated with other applications to meet exact business requirements and drive adoption
|– Customizations can be costly and difficult to manage over time
– User experience is hampered by superfluous features
|Lightweight vertical CRM||Includes UI templates, common process flows that do not script the end-to-end process, data model extensions, and UI labels||– Offers core common standardized, industry-specific process flows.
– Shields clients from technical obsolescence with solutions built on top of a well supported CRM platforms like Oracle, Salesforce, and or Microsoft.
|– Vertical solutions may not be robust enough for an industry
– Demands further technology management investment for customization to exact business requirements
|Deeply vertical CRM||Provides end-to-end scripted industry processes||– Support for industry processes drive higher adoption rates
– Includes compliance to industry standards and regulations
|– Fully scripted processes can be “over-verticalized” with little ability to customize to business requirements
– Vendors often lack large market – and revenue – to support the level of continuous innovation compared to horizontal CRM vendors
This article was originally posted on Forrester.com.
By Kate Leggett
The Demand For Industry-Specific CRM Explodes