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The CRM Software Guide

Week 9
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Entries for week 9 of 2008

From 3/1/2008 to 3/7/2008


WED
5
MAR

Salesboom Hits Salesforce.com Where it Hurts

By Tom Greenberg | no comments

Salesboom Hits Salesforce.com Where it Hurts

no-salesforce-crm

 

 

The CRM wars are beginning again! Today, Salesboom.com a leading provider of software-as-a-service CRM launched an enticement program that rewards customers deserting Salesforce.com CRM for Salesboom CRM softwareOpen in a new window solutions with a $5000 signup bonus and free data migration services.

 

Historically, Salesforce.com bullied its rival Salesboom.com on numerous occasions starting with a battle over the proprietary Salesboom brand nameOpen in a new window in 2003. Salesboom.com in turn has accused Salesforce.com employees of maliciously accessing the Salesboom proprietary technology, sales and marketing materials.

 

It is nice to know that there are other alternatives for Salesforce.com and in the case of Salesboom.com a better solution for considerably less money.

 

Salesboom also provided a marketing document titled Top 9 reasons Why You Should Switch from Salesforce to SalesboomOpen in a new window which hits Salesforce.com customers right between their eyes! One interesting reason being Salesboom.com the first to offer real time support via online chat right from within the application instead of calling and waiting for untimely responses from Salesforce.com

 

You can find the release here, in which the President of Salesboom.com, Rami Hamodah had something very interesting and bold to say:

 

“The relationship between Salesboom.com and Salesforce.com is a one way street. Salesforce.com customers embark on their journey along this one way street and find themselves at our door. This one way street analogy sums up our relationship with Salesforce.com, we should be thankful to them, after all they are our largest source of new clients!”

 

 

Two weeks ago rumors had it that Salesforce.com has shopped itself to the big daddy of all business software , Oracle, and representatives from both companies refused to comment which leads me to believe this could actually happen. If Oracle acquires Salesforce.com, the Salesboom.com people will be happy-go-lucky and here is why:

 

Salesforce.com success is mainly based on smaller businesses; evident by their average licenses per customer which is setting at 21 currently. This means that most Salesforce.com customers have 20 sales staff or less and this is small business.

 

Oracle is used to selling it’s enterprise solutions to large enterprises with tens of thousands of licenses each and to even think that they will be happy to service Salesforce.com customers is frankly absurd! These customers if they have to deal with Oracle they will be in for shock for the pricing and above all the treatment.

 

 

There is already a trend of customers leaving Salesforce.com which has an attrition rate of less than 60% which means 40% of their 40,000 customers leave them every year and switch to other providers, such as Salesboom.com. That’s over 16,000 unhappy defunct Salesforce.com customers every year!

 

What is really funny about the Salesboom CRM Enticement ProgramOpen in a new window is that it takes a page from the Salesforce.com marketing book by touting the No Salesforce.com Logo!

 

Let’s watch and see the outcome of this battle.

 

 

 

 



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