Re: Salesforce.com: Why the model is working

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Posted on the March 1st, 2008 under Business Risk, SaaS by Gregory Yankelovich

This post title written by Larry Dignan does not sport a question mark, I think is begged for. I do not question superiority of on-demand (SaaS) model or quality of Salesforce.com service offering. What I really want to learn is HOW does this model work for their customers in terms of return on their investment? Did they realize improvements in their sales effectiveness, if that what they expected from this investment? In other words WHAT are the Salesforce.com (CRM) customers expectations and how do they measure their success or failure? I wait for a day when we stop evaluating tool vendors on the basis of their sales achievements and start to look at success ratio of their customers achieving expected returns on their investments. This is not a reflection on Salesforce.com specifically, but on IT industry value system in general.

Chef of the very respectable restaurant in South Hampton (Silvers), once reacted to McDonald’ board boasting “Served 5 million customers” with this interpretation - “Eat shit - a gazillion flies can’t be wrong”.