To complement its existing business management solution framework and offer local companies tangible customer-related information, Sage has brought the weight of its international acquisition of US-based CRM provider, Interact Commerce Corporation, to bear on the South African market.
The move sees Interact's flagship mid-market CRM solution, SalesLogix, brought into the Sage fold under the Sage CRM Solutions brand; Interact's small business solution, ACT!, is also part of the acquisition.
It's important to note, however, that while the acquisition brings Interact and its products under Sage's wing, the products will still be sold and branded as separate items.
"The CRM marketplace is highly-specialised - it requires some specific focus and attention. Add to that the fact that SalesLogix is a strong brand and product and it's clear why we've chosen to manage it separately from our BMS suites," an international statement said.
While separate, the CRM products still enable Sage and its local network of authorised resellers to offer new and existing customers an integrated solution for managing all kinds of business information.
"The CRM software products are designed to work with [the] Line 500 [high end business management solution]," explains Ashley Ellington, divisional director for Africa at Sage.
"Line 500 already stores and processes customer data relating to financial, warehousing, distribution and operational activities, as well as contact management information.
"Integrating this data with the SalesLogix solution enables a company to create a single unified view of their customers. They can see the credit history, buying history and the status of corresponding stock in the warehouse at a glance. And as a result they can streamline the process of managing customer accounts and, of course, communicating with those companies in more effective ways."
Alongside security, global connectivity standards and computing mobility, CRM is still one of the most hotly-contested topics in terms of usability and return on investment. Some segments of the IT vendor and end-user community see it as the panacea for understanding customers; others see it simply as over-hyped technology.
"Back office ERP systems are generally well entrenched in SA ... front office CRM solutions are clearly the next step," notes John Rundle, regional manager at Sage CRM Solutions Africa.
"We therefore see CRM on a solid growth path, especially in the finance, insurance, distribution and service industries. And we expect this to continue as awareness and demand increases."
Rundle also points out that CRM solutions often offer a differentiator among competitors - one that technology alone cannot provide. That's just one of the reasons that Interact and Sage tied up.
"As far as the acquisition is concerned, it makes perfect sense," he says. "Our international research has shown that among existing customers, less than 20% have a CRM solution; many plan to buy one within the next three years; 75% want one that integrates with their Sage system; and 80% want to buy a CRM solution from Sage."
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