Dutch SaaS CRM Opportunity

In this piece we look at the size of the total addressable market (TAM) for SaaS CRM in The Netherlands. We analyze the pricing and offerings of nine SaaS CRM vendors. We size the number of sales & marketing professionals and segment in company size and vertical market.

Table of Contents

Bottom Line

  • There are close to 600 thousand sales and marketing roles in the Netherlands today
  • If every role would have a SaaS CRM subscription the total opportunity for SaaS CRM would be €300 million per year.
  • The total opportunity equals €400 million per year if we include professionals other than sales & marketing that need to have access to customer data.
  • The average role is likely to spend Euro €43 per month on a CRM SaaS subscription. This includes not only the software subscription but also compute and store capability. In companies with more than 250 employees the average role spends €64 per month, between 5-250 employees €39 per month, and companies with less than 5 employees spend on average €11 per month.
  • Companies with more than 250 employees represent 39% of the sales and marketing roles but 59% of the SaaS CRM opportunity
  • Within the financial services sector, companies with more than 250 employees represent 75%  of the SaaS CRM opportunity

The Connected Worker View

Our Connected Worker theme sets out to capture the characteristics of the emerging digital workforce; its size, composition, requirements, drive and style, the tasks, roles and activities they undertake in the digital century. As part of this program we are maintaining a worker and business demographic model that allows us to look at the ICT market in a different way. Traditional ICT research looks at CIO IT budgets and company spend. We have started to look  at the connected worker ICT spend. In addition our research efforts concentrate on public cloud spend and the changing partner ecosystem within the public cloud. This first piece of research that we are publishing in this respect relates to sizing a fast growing segment of public cloud spend: SaaS CRM. We still use the traditional vertical and company size split in our sizing, but our unit of measurement is now becoming the € per user per month unit. We are not looking at current penetration or take-up but purely at the total addressable market.


We estimate there are approximately 600 thousand sales and marketing (S&M) professionals in the Netherlands today. This is 8% of the total workforce of about 7.4 million workers. Our CRM vendor pricing analysis together with our modeling of business and worker demographics tells us that the potential average spend on a SaaS CRM subscription would be €43 per S&M professional per month. If all sales and marketing professionals would subscribe, the annual spend on SaaS CRM would equal €300M. This is what we call the total addressable market (TAM). But there is also an extended TAM. On top of the 600 thousand S&M professionals there are an additional 400 thousand workers from other skills and knowledge related professions such as IT, accounting, HR and so forth that are eligible for the TAM. These workers also need access to CRM records, but do not need the same level of functionality that S&M professionals need. If all 400 thousand professionals would subscribe for half the functionality and price of a S&M professional, an additional €100M can be added to the basic €300M making the extended TAM worth €400M per year.

Editions And Pricing

We analyzed the pricing and offerings of nine SaaS CRM vendors. These nine vendors included Salesforce, Capsule, PerfectView, Microsoft Dynamics CRM, Sugar CRM, vTiger, HighRise, AccountView and ZoHo CRM. In our analysis we looked at the functionality and the target markets of all the offerings. CRM vendors have different plans depending on the number of users, storage size, number of contacts, number of deals, functionality, etc. For example, the Salesforce price list includes contact, group, professional, enterprise, and unlimited editions. We grouped the editions of all nine SaaS CRM vendors into 12 different categories by mapping low, medium and high functionality groups to SoHo, small, medium and large company size classes. The resulting prices averaged from €10 for low functionality offerings targeted at SoHo users to €101 for high functionality offerings targeted at large enterprise. These prices are averages. If you want you can get a low functionality SaaS CRM subscription for free, or you can spend €270 for an unlimited Salesforce edition.

Connected Worker Spend by Vertical and Size Class

Next, we expanded our pricing model across a wider range of 14 company size classes, maintaining the low, medium and high functionality buckets. We then matched these buckets to differerent vertical markets. In our connected worker demographic database we have split several worker categories (S&M professionals is only one of them) across vertical market (250 branches) and size class (14 size classes). We then calculated a higher or lower average SaaS CRM price depending on the proportion of S&M professionals in the vertical market. This gave us a measure of sales intensity per vertical. This modeling exercise provided the above graph, which provides low, medium, and high average spend per size class (SoHo, SMB, and Large) and vertical. Those verticals with a higher proportion of S&M professionals, such as IT, Media, Telecoms and Financial Services have a higher average spend.

SaaS CRM TAM by Vertical and Size Class

Next, we multiplied the number of S&M professionals in each vertical market and size class with the average spend. The result is the potential SaaS CRM TAM by vertical market and by size class. The largest potential vertical for SaaS CRM is the business services market with 26% of the TAM. The smallest potential market is the public sector with 7% of the TAM. The smallest size class is the SoHo segment with 6% of the TAM, even though 22% of S&M professional work for SoHo companies. The largest size class is the large segment with 59% of the TAM, even though only 39% of S&M professional work for large companies.

SaaS CRM Ecosystem: Going Beyond The TAM

SaaS vendors can grow in several ways. For the core SaaS offering they can increase the number of customers. They can increase the number of SaaS subscriptions within a customer. They can migrate subscribers to a more expensive SaaS subscription. Or they can increase the average price.

But there is more. They can leverage what we call the SaaS ecosystem.

Using a real life example, it becomes clear how this works. How does the salesforce.com ecosystem look if we take the above figure as a blueprint? The core SaaS offerings of Salesforce are the sales cloud, the service cloud, and now also database.com (although some might say database.com is a PaaS offering).

Salesforce delivers their own industry specific versions of their SaaS offerings for the communications, financial services, healthcare and life sciences, high tech, public sector and retail segments.

Salesforce delivers their own small business and mobile versions of their SaaS offerings.

Salesforce delivers their own horizontal social communications (Chatter) software, and is also moving into offering business solutions (Jigsaw, offering sales leads).

The AppExchange is the salesforce.com marketplace.

Force.com is the salesforce.com PaaS offering.

More information

We maintain a model with 14 size classes, 250 vertical markets and a growing number of connected work classifications. For more information on the model and custom TAM analysis please contact one of our analysts. Looking forward to talk to you!

Share and Enjoy:
  • Facebook
  • Twitter
  • Google Bookmarks
  • email
  • LinkedIn
  • RSS

About Pim Bilderbeek