After graduating from Rensselaer Institute of Technology, Zhi Li went to General Electric Company and Oracle Bone Inscriptions Company to do software research and development, and then worked in MTG management consulting company for two years. MTG mainly serves the IT industry, which makes Zhi Li gradually understand the whole industry. In early 2004, Zhi Li returned to China to participate in the management software activities of Oracle Bone Inscriptions Company. At that time, the domestic SaaS (software as a service) market was still blank. SaaS translates as "software as a service", that is, users don't need to buy their own servers or a whole set of software CDs. They only need to rent modules from SaaS companies according to their management needs and pay monthly. "It's a bit like a corporate mailbox, but with more services and more complex technologies." Zhi Li explained. In the United States, there are many companies with SaaS concept headed by Salesforce. Zhi Li thought this business model was feasible and the cost should not be high, so he and several old colleagues started their business. They named the company "800 customers", and the start-up capital was $500,000 each.
The day after the company announced, Salesforce of the United States announced its listing. This makes Zhi Li, who is still a little uncertain, see hope. He led the R&D team to develop the product for half a year. They imitated Salesforce and started with CRM (Customer Management Software). In Zhi Li's view, CRM software is more suitable for online operation. Information such as order generation, execution and after-sales service of an enterprise can be updated through the online function module, and managers with different permissions can know the latest customers and sales through the system. At the same time, the service of 800 customers is charged by customers, and each customer has a monthly 60 yuan. An enterprise should buy at least four customers.
The research and development of products is not a problem for Li Zhi, a technical background. What is more difficult is sales. In foreign countries, many enterprises have their own CRM teams, and Salesforce has no problems in the education market when selling its products. However, for the domestic market, most enterprises simply do not know what CRM is. Zhi Li spent most of his time explaining and training. He will participate in some industry activities to introduce products and write introduction articles in relevant media. However, most companies are cautious about such a new thing. What they ask most is data security. At first, the sales team in Zhi Li will look for some enterprises with relative monopoly advantages, which are not sensitive to the security of data. Six months later, 800 customers had the first customer to sign the bill.
Even now, Zhi Li has not found a very feasible sales method, and it seems that every one is effective. In addition to search engines, visiting customers and conference marketing, 800 customers will also cooperate with some companies that provide management consulting or online telephone services to find every opportunity to sell products.
Before starting a business, Zhi Li thought about the problems of his competitors. In his view, it is impossible for traditional software companies to vigorously promote SaaS software, because SaaS is bound to weaken the original superior products. In terms of sales, the traditional method of software vendors selling software through channels and agents also doesn't work. Compared with traditional CD-ROM software, a set of SaaS software can provide very limited sales commission. Zhi Li believes that 800 passengers are enchanted.
But what Zhi Li didn't expect was that in 2005, big companies like China Telecom also joined the market. Zhi Li was a little depressed and resentful. "What's so interesting about them?" At that time, China Telecom launched the "Business Pilot" business, hoping to attract other software vendors to sell their products on it through the platform model. Wait and see or cooperate, Zhi Li chose the latter. 800 customers found China Telecom in Shanghai. However, after putting the software on the platform, a big company like China Telecom always asks them to repeatedly train personnel and discuss the details of the contract, but they refuse to pay. Zhi Li didn't want to be dragged down. After half a year of cooperation, he decisively canceled the contract. In addition to unexpected competitors, Zhi Li also faces financial pressure, which leads to a high turnover rate. The sales director and marketing director have been poached by others. Zhi Li is also quite helpless.
In 2007, at a forum, Zhi Li met the current investor Yin Donghai. Yin Donghai was originally a foreign CRM company and was familiar with this industry. In 2008, he returned to China to do venture capital, and the first project found Zhi Li. This is the first external financing since the establishment of 800 customers. The financial difficulties have been solved, and Zhi Li dares to spend more money to educate the market. Due to the introduction of venture capital, 800 customers are more standardized in corporate structure and management process.
In 2009, the SaaS market began to be lively, and Ali Software, a subsidiary of Alibaba, began to enter the market. This is another competitor that surprised Zhi Li. Alibaba Software is backed by Alibaba's strong financial support, and tens of thousands of online business resources can bring many customers to Alibaba Software. Zhi Li knows very well that apart from technology, Ali Software meets the requirements of capital and market. Because the news of online merchants is public, Zhi Li's team called them one by one and asked them what they needed for online management software. The final result of the survey is that there is not much demand. Zhi Li was relieved. For Alibaba's online merchants, mainly foreign trade and manufacturing, the current business may only need a few Excel reports.
Large companies always swear when they first enter this market, and may give up this project after they can't see the profit hope or development potential in a short time, so those unexpected competitors don't bring too much threat to 800 customers. For other small companies that are equally dedicated, 800 customers have a certain first-Mover advantage.
Software outsourcing plays an increasingly important role in the current business of 800 customers. Zhi Li's team designed the process of management software for enterprises, implemented customized programs and trained employees. In addition to the client fees still charged, a certain consulting fee will be charged. Although the client charging model is more scalable, once it reaches the quantity, the previous R&D and management expenses are diluted, but for China enterprises, customized services have more market, and this income is also increasing. "This may be a benefit of China enterprises without CRM. They have no baggage and directly enter the era of online management. "