Product Blog

Why I’m not worried about the new Salesforce edition, but I am.

Written by Jake on Thursday, September 3rd, 2009 at 9:30 am.

I’m often asked the question: “is Salesforce your biggest competitor to Tactile CRM“? Up until now the answer has always been no. Kind of.

In our target market of 2-10 people organisations/departments you’d traditional be paying between $35-$65/user/month for Salesforce.com. That’s roughly 4-7 times the price of Tactile CRM and could save you up to $6720 per annum. A tidy sum.

And for that reason we don’t see Salesforce as a direct competitor. However on brand awareness we do.

Our users and prospective users are nice people, and we’ve been aware for a while that Salesforce were launching a smaller package (it competes on the same price point as Tactile CRM) as they [our users] have let us know that they have been offered the $9 pricing and there has been some information about it on the site for a while.

Now that is out in the open there are 2 things to note. First of all the $9 pricing is for a cut down version, and only for 1-2 users. Once users start looking above that then we’re back to the old scenario (hence why I’m not worried).

However, I’m betting users don’t think like that.

We’ll either have to start ‘objection handling’ the questions that go along the lines of “ah, but Salesforce have a $9/user/month edition” or help people migrate away once they grow and don’t want the ‘real’ pricing.

Salesforce have a big PR machine/budget/awareness and this new product is already spreading thick and fast. Time will tell what happens but I’m looking forward to increased awareness of CRM amongst SME/SMBs and hope that in the long run it will do us some good too.

2 Responses to “Why I’m not worried about the new Salesforce edition, but I am.”

  1. David says:

    Thanks for the open post and information. You do not have to be worried. The differentiation of tacticle – in my eyes and perception – has never been price (although price obvisouly is a decision factor). Tactile is differentiatiate dby the ease of use and focus on the essential.

    In short, as small business, most of the time you do not need the bells and whistels. You do need a “down to earth” CRM package that does the job well- without going through the 10th level of possible menues.

    Jake, I believe you know this very well, otherwise you would have never stared Tactile ;-) In any way – keep up the good and refreshing work focusing on the essentails. It’s very much appreciated and saves all of us users tons of money by the increased efficiency.

    Cheers,

    David from Belgium

  2. [...] Such a shot across the bows of the nascent CRM startup world was bound to demand a reaction. Here’s what Jake says: First of all the $9 pricing is for a cut down version, and only for 1-2 users. Once users start [...]