80 Percent of Mid-Sized Companies Claim Humongous CRM Software Is Too Much

New Study Demonstrates Changes in CRM Buying Patterns


Vancouver, BC, April 10, 2002 — Pivotal Corporation (Nasdaq: PVTL; TSE: PVT), the leading provider of sensible customer relationship management (CRM) software, today announced the results of a comprehensive study conducted by an independent research company. The study results indicate that about 80 percent of mid-sized companies claim humongous CRM software is too expensive, time-consuming and difficult to implement.

The study results indicate new CRM software buying patterns and preferences -companies are scrutinizing their CRM purchases, demanding pilots and requiring up-front proof that CRM will positively impact their businesses.

“This study clearly demonstrates that mid-sized enterprises are demanding fast, cost-effective and results-driven CRM software,” said Bo Manning, president and CEO, Pivotal. “We’re seeing a shift in CRM buying patterns because mid-sized enterprises believe that ‘humongous’ CRM is over-engineered, too costly and too difficult to implement. These companies are spending more time scrutinizing their CRM purchasing decisions and demanding software that is specifically architected to meet the technology and business requirements of mid-sized enterprises.”

Mid-Sized Enterprises State Opinions

The study, conducted by Advantage Business Research and sponsored by Pivotal, was designed to gain insight into the CRM buying behaviors and preferences of mid-sized enterprises. The quantitative and qualitative findings are based on survey responses from approximately two hundred technology and business professionals from companies or business units in the revenue range of $100 million to $3 billion.

* The findings indicate that CRM decision-makers at mid-sized enterprises have three key criteria for evaluating CRM software: easy customization, cost-effectiveness, and fast integration with back-end and front-end systems.

* More than 96 percent of all study respondents claimed that their company would buy CRM software that is the ‘right technology fit’, rather than buying on brand recognition or vendor size alone.

* The study also indicates that more than 68 percent of mid-sized enterprises believe large enterprise CRM software (such as Siebel, Oracle and SAP) has more features than they will need.

* 94 percent of the respondents stated that given the option, they would choose to test-drive their CRM software before making a purchase.

Purpose-Built for Mid-Sized Enterprises

Since the launch of a new corporate strategy in October 2001, Pivotal has been advocating the unique needs of the mid-sized enterprise market and promoting a complete CRM suite designed specifically for mid-sized companies.

According Manning, “Mid-sized companies have three CRM options - shrink-wrapped CRM, humongous CRM, or Pivotal’s sensible CRM suite that is specifically designed for mid-sized enterprises. Pivotal is the only CRM vendor that understands the unique needs of mid-sized enterprises and is 100 percent committed to fulfilling their technology and business needs. Pivotal offers clear, complete, sensible CRM - with fast and easy integration, a flexible price-point and the option to try before you buy.”

This research is the first of a series of mid-sized enterprise market studies Pivotal will be commissioning. It is another indication of the company’s concerted effort to serve the needs of the mid-sized enterprise market by focusing exclusively their unique needs.

About Advantage Business Research

Advantage Business Research offers a full range of market and media research services. Our charter is to provide cost effective marketing research without sacrificing quality, credibility, or experience. The company has positioned itself as a research partner to marketers throughout the business community that either do not have an internal research staff or unlimited dollars and resources.

For more information visit http://advantageresearch.com/

Pivotal Corporation offers clear, complete and sensible Customer Relationship Management (CRM) software that delivers results for a fraction of the cost of typical CRM software. Pivotal’s customers are companies and business units in the revenue range of $100 million to $3 billion. Pivotal and its partners provide the software, services, and support required to produce significant improvements in marketing, sales, and service effectiveness for mid-sized entrepreneurial enterprise companies. More than 1,400 companies globally use Pivotal including: Hewlett Packard, CIBC, HarperCollins Publishers, Hitachi Telecom Inc., Intrawest Corporation, Vivendi, Royal Bank of Canada, Southern Company, and Ziff Davis Media Inc.

Pivotal's advanced software technology includes powerful capabilities in: CRM, Internet commerce, interactive selling, partner management, and wireless technologies. For more information visit http://www.pivotal.com
This press release contains forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that may cause actual results of events to differ materially from those anticipated in our forward-looking statements. Factors that could cause actual results to differ materially include a number of risks, uncertainties and other factors, such as the need to develop, integrate and deploy applications to meet our customer's requirements, the possibility of development or deployment difficulties or delays, the dependence on our customer's satisfaction with Pivotal’s CRM software, its continued commitment to the deployment of the solution, and the risks involved in developing software solutions and integrating them with third-party software and services. Although we believe that the expectations reflected in our forward-looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy or completeness of forward-looking statements. Leslie Castellani
Pivotal Corporation
Tel: 604/699-8151
Email: lcastellani@pivotal.com