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ASPs turn to customer relationship management

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At the eCRM show taking place in the shadow of Internet World this week, customer relationship management is emerging as the latest area of business to be taken on by application service providers (ASP).

Several companies introduced hosted services that use the Internet to help businesses manage their relationships with customers across sales, marketing and support divisions. Other companies have retooled existing software offerings to make them available in a hosted form.

"The point of all these tools is to take a large corporation and make it look like a mom and pop store," said Blaine Ballard, a systems manager in the customer services division of regional carrier US West, who was at the show looking at new CRM software from Xchange.

CRM software lets businesses offer customers an improved, more personal level of service, which in turn helps retain customer loyalty and maximize a company's profitability, Ballard said.

Using a hosted CRM service helps businesses save money because it frees them from the capital costs of installing hardware and software in-house and providing technical support for it, said Nathan Malone, a business analyst with Ineto, an Austin, Texas company that provides hosted communications services for businesses. He was at the show checking out a hosted CRM service from Neteos.

Hosted services also leave smaller companies free to focus on their core competences, and provide them with greater flexibility to switch to a different provider if a better CRM solution comes along, Malone said.

The following are just a few of the products and services announced at eCRM this week.

  • Start-up company Neteos launched a hosted CRM service called eRMNow. The service is designed to offer both traditional employee-side CRM functions, as well as direct interaction with customers and partners over the Web, officials here said.

    Features include a proprietary Neteos technology that allows the company to quickly customize its service to match the "look and feel" of its customer's Web site, according to Dave McNamara, vice president of sales and marketing with Neteos.

    ERMNow expects its product to do well among companies with revenue of between $10 million and $350 million. "Smaller companies could probably get away with using ACT or Goldmine," McNamara said. The service is offered at a per-seat monthly subscription fee ranging from $50 to $150 depending on the breadth of the service suite, the company said in a statement.

    Neteos, in Burlington, Mass., is at +1-781-270-7900, and www.neteos.com/.

  • Xchange (formerly Exchange Applications) launched a packaged CRM suite called Xchange 4.0 which will be offered as a software and hosted solution. Officials here claimed the product is the first to include all the essential elements of CRM - campaign management, analytics, e-mail marketing and Web personalization. The hosted service for Xchange 4.0 starts at $3,000 per month for a basic e-mail component, while the complete suite on CD is priced at $250,000, Xchange officials said.

    Xchange, in Boston, is at +1-617-737-2244, and www.xchange.com/.

  • Quiq announced its formation as an ASP that will offer hosted CRM services, primarily for Internet destination sites and companies with a strong Web presence. The firm said its service lets customers create Internet communities by offering forums for exchanging questions and answers, collaborative knowledge management, self-service customer support and discussion boards.

    Quiq, in San Mateo, Calif., is at +1-650-655-4777, and at www.quiq.com/.

  • Touchtone announced the release of Wintouch eCRM, which it described as a Java-based product that large businesses or ASPs can use for customer care, sales force automation and marketing automation applications. Touchtone makes software for IBM's AS/400. Pricing and shipping details weren't immediately available.

    Touchtone is based in Costa Mesa, Calif., and can be reached at 714-755-2810 and at www.touchtonecorp.com/.

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