Google & CRM

Through the success of Google Apps, Google has emerged as an enterprise apps contender. While their success to date has largely been with SMBs and early cloud adopters, the momentum is evident. Initially, Google targeted personal productivity and collaboration – Gmail, Calendar, Docs, etc. However, we’re wondering how long it will be before Google drives deeper into the enterprise. For example, will Google enter the customer relationship management (CRM) market?

 

The most important aspect of CRM is that middle part – relationships. Some small businesses and start-ups have realized that Google, as a communication platform, is great for managing relationships. Gmail is an excellent resource for email and contact management. You can even use custom fields within each contact to document notes on past interactions or tag the contact as a lead. From there, you can do basic segmentation for an email campaign.

Along the same lines, Google Calendar and Tasks are excellent tools for managing opportunities. And because the Google Apps work together, information logged in one App is tracked in the others. For example, when two Gmail users exchange emails, Google can connect them in Google Reader. This could be useful for companies in learning more about their customers’ interests

Build or buy?

So how would Google go about entering the CRM market? They could develop a CRM system from scratch . Google has plenty of developer talent, and massive infrastructure to support new applications. Without too much trouble, Google could extend its personal productivity apps to target basic CRM opportunities.

However, a more likely route is through acquisition. Google has proven to be highly acquisitive. In 2010 alone, Google acquired 11 social media-related companies. Why is this significant? Because”social” is a highly buzzed-about word in CRM. The addition of a social layer to their existing collaborative apps positions Google well to capitalize on that buzz.

Not So Fast…

Google’s Salesforce partnership appears solid
Many analysts predicted that Google’s partnership with Salesforce in 2007 was setting the stage for a purchase of the CRM vendor. Brent Leary predicted it back in 2006… and again in 2007. But no wallets have been pulled out. Instead, the companies have tightened their integration and continued the partnership. If Google had ambitions to enter the CRM market it seems they would have done so already. Any alternate move Google might make in the CRM space would likely damage their partnership with Salesforce, while failing to bring meaningful market share.

Read full article at Memburn