Adios Data.com … Hello 2.0 CRM’s

26 Mar

goodbye

In 2010, Salesforce purchased Jigsaw and renamed it Data.com… On May 4th, 2019, they will be calling it quits.

As a recruiter and salesperson, it has been a tool for many years providing phone numbers, email addresses and titles of prospects. Like Wikipedia and LinkedIn, Data.com was good at getting other people to contribute just-in-time information and share it through their platform. That was a novel idea many years ago when we were still collecting business cards and putting them into our Rolodex (or Outlook if you were tech savvy). The mass amount of DATA (primarily free of charge) was wonderful and we dreamed that the site would only benefit from the Salesforce acquisition.

T-Rex_1_grande Salesforce couldn’t make it really work (or didn’t want to make it work) and now Data.com, a once powerful place to acquire and manage CRM records, is a dinosaur. The primary reason for shutting their curtains is that it was full of a bunch of junk – inaccurate records in terms of titles, phone numbers and email addresses. Today, their data is more inaccurate than ever.

So where do we go from here?

There are many options to gravitate to in 2019 and within the universe of CRM’s, they are all a little different from one another. Most of them are going to cost you some money… and I’m going to let the companies battle a little bit before understanding who will be the quality, long term players. They are going to grow (CRM software grew faster than any other software segment in 2018) and gobble one another up – and I don’t see it sorting itself out quickly.

What is a CRM in 2019? The definition is changing every day. A CRM (customer relationship manager) was created to move us past an Excel spreadsheet to organize and manage all of our interactions with customers and prospects. Today, a CRM is certainly focused on doing that, but it is becoming more interactive pulling records from sources outside of your organization.

Recently, SelectHub provided a 2019 snapshot by looking at a sample set of 254 companies (CRM Survey):

  • Outlook is the CRM tool for 29% of these companies
  • Excel is 22% (what?!)
  • Gmail is 14%
  • Salesforce is a mere 6%
  • Mailchimp has 5% of the market
  • The remaining 24% includes HubSpot (3%), Microsoft (2%) & Oracle (2%)

How accurate is this sample set? Admittedly, the list is made up of primarily companies under 1000 employees (84%) and a majority of those are under 500 employees. For small businesses, I’ll assume this is a pretty good snapshot. 

smh260% of these companies are using Outlook, Excel and Gmail as a CRM! It definitely surprised me that Salesforce has captured a mere 6% of the CRM market. It’s no wonder that Salesforce is hiring salespeople like crazy as they are probably drooling over the market potential. I’m reminded of Coca-Cola in this instance… In 2011, Coca-Cola had over 40% of the carbonated beverage worldwide market. At the time, 55 billion beverages were consumed world-wide per day (excluding water) and Coca-Cola sold “only” 1.7 billion beverages per day. With only 3.1% of the beverage market, they have incredible potential!

Here is another take on who owns the market: CRM market share? Salesforce cites that they have 19.6% market share (Oracle, SAP, Microsoft & Adobe making up the next 20%). This article also says that Salesforce is fudging their numbers a bit – part of this is because it’s difficult to completely define WHAT-IS-A-CRM. Even if this is accurate, the top 5 still own less than 40% of the market.

With the removal of Data.com, Salesforce is going to push their product called the Lightning Data Engine. They have a head start because Lightning has partnered with many players (via their AppExchange which has over 5,000 “solutions”) and they’ve become an aggregator of your CRM options which include:

  • Dun & Bradstreet Optimizer as well as D&B Hoovers
  • Equifax (Business Connect)
  • ZoomInfo
  • Bombora
  • HG Data & HG Insights
  • Datafox Orchestrate (Oracle)
  • Clearbit
  • MCH Strategic Data
  • Compass
  • InsideView
  • Owler
  • Business Watch
  • Aberdeen
  • Relationships promised to come include Thomson Reuters and others

Salesforce’s product isn’t great, but they are winning. Their partnerships may be the driver that moves them from good to great. Another reason they are a decent choice for a CRM is because they have been around for 20 years. This doesn’t mean Salesforce is better – but they have become a name brand. This has driven them way beyond expectations to a net worth today of $122 Billion. Also, Salesforce has a reputation of taking good care of their employees – you can’t underestimate the power of a company with a great culture.

Is LinkedIn going to be a player in this universe? Microsoft will claim they already are with their CRM Dynamics 365. I’m disappointed in the results so far but since Microsoft owns LinkedIn, I would imagine that they have a gold mine if they can figure it out as quickly.

boxing

8 Bullets on 13 Players:

  1. Based on history, I’m concerned that Microsoft isn’t moving fast enough.
  2. It feels like Salesforce is trying to think for us by driving its users towards any old CRM tool.
  3. Does Oracle or SAP even care about being a solid CRM for the small business community? Is Adobe going to be a major player?
  4. Is Google’s Copper CRM (formerly ProsperWorks) making a dent in the market?
  5. What about the unified CRM’s like Pega, BPM Online and SugarCRM?
  6. HubSpot, Zoho and Mailchimp have garnered significant growth over the last five years. Are they going to take us to the next level? I think they can push everyone to innovate.
  7. I’ve heard good things about Intelligent CRM by Avtex – which so far hasn’t partnered with Salesforce’s AppExchange.
  8. There are many others that aren’t even on my radar (yet)…

dandelion

I’m disappointed that Data.com didn’t survive… I wish they’d continued with a shared platform and just made it better. The fact that it was free made it pretty cool too. I’m not investing in any of the above at the moment, but I’m curious to see how this plays out and what innovations are to come.

I’m not the expert on this topic. I’m just another user of the products that is trying to understand how it is shifting. Per usual, I’d love to hear your thoughts.

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

https://www.linkedin.com/pulse/adios-datacom-hello-20-crms-drew-schmitz/

 

 

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