Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Customer Relationship Management market.
Trusted Business Insights presents an updated and Latest Study on Customer Relationship Management Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Customer Relationship Management market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Customer Relationship Management Market
The global customer relationship management market size was valued at USD 39.1 billion in 2020 and is expected to expand at a CAGR of 13.1% from 2021 to 2027. The industry is driven by growing demand for Software as a Service (SaaS) in the deployment of customer relationship management (CRM) suites and solutions. Mature customer service, automated engagement, improved customer experience, and increasing scope of digital operations are a few factors fueling the demand for CRM solutions across various industry verticals. Moreover, the development of cloud computing technology and the availability of various service models such as SaaS, Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) is also expected to drive the market growth over the forecast period 2021-2027.
As per the industry estimates, around 91% of companies with over 10 employees have deployed a customer relationship management system in their organization. Currently, organizational departments, such as customer services and support, and sales and marketing have started working together toward a common end of providing better customer experience and increasing profitability. As per the CRM Cloud Survey Report conducted by SoftClouds, around 82% of enterprises use customer relationship management systems for sales reporting and sales process automation. The senior executives in various organizations are seeking the availability of customer data, actionable insights on unstructured datasets, and efficient tools to handle them. The industry-wide effort to deliver better content and the shift from push marketing to pull marketing strategy is likely to boost market growth over the forecast period.
A recent survey on consumer behavior depicts that 67 percent of users interact with businesses on social media platform. Social CRM is expected to become the next most sought-after functionality in the market after cloud-based SaaS delivery owing to changing customer dynamics. As per the Salesforce.com, more than 60% of the global GDP will be digitized, owing to growth in every industry driven by digitally-enhanced operations, offerings, and relationships. Moreover, development of communication technology in the IT industry, mobile CRM, automated customer conversations, and robotic process automation would shape the future of customer relations in the market.
Manual data entry and lack of integration of customer relationship management software is the fundamental challenge faced by enterprises across various industry verticals. Thus, deployment of customer relationship management as a separate solution can bring little value to the customers and hamper CRM adoption. However, pre-emptive planning of customer relationship management integration ahead of implementation will help in curbing major installation problems. The technological advancements in embedded analytics, business intelligence, and its implementation in customer relationship management solutions are likely to promote product enhancement among CRM vendors. In 2017, Cobalt, a CRM solution provider, built an Augmented Reality (AR) application that can be integrated with a CRM.
The industry is expected to witness an ongoing tussle between large and traditional vendors and the new emerging solution vendors. The marketplace would also be affected by the convergence of different platforms and the streamlining of routine tasks will gain priority. Moreover, the CRM vendors are working and investing in Independent Software Vendors (ISV) and strategic System Integrators (SIs) to expand their reach in new markets and industries. Though the industry growth may be affected by data privacy and security concerns of organizations, the ongoing price trends, deployment ease, and business-critical applications of customer relations are anticipated to boost the customer relationship management growth in the coming years.
COVID19 Impact Insights: Customer Relationship Management Market
The recent outbreak of COVID-19 (Coronavirus), a pandemic declared by the World Health Organization (WHO), has pushed organizations to undertake all necessary steps to ensure the safety of their employees and the community. Despite the crisis, the companies need to strive for pursuing opportunities, closing the sales, and resolving the issues of the customers. Following the mandate of Work from Home (WFH), there is an increasing need for the companies to collaborate with the clients in the remote working environment. This is subsequently anticipated to generate the demand for customer service CRM solutions.
Following the COVID 19 outbreak, customer relationship management solutions are being increasingly adopted and are utilized to their complete potential across industries. The enterprises are able to leverage most of the customer relationship management features to pursue sales, serve customers, and increase the productivity of employees. To reiterate the fact, in March 2020, Veeva Systems Inc., a cloud computing company serving the healthcare sector, asserted that the company experienced ten times more usage of their customer relationship management products in the wake of the pandemic. Moreover, Zoom Video Communications Inc, which provides tools for Veeva Engage, has also witnessed a rise in customers during the pandemic alongside other companies such as Microsoft Corporation and Slack Technologies Inc. Considering the pandemic crisis across the globe, the value of leveraging technology such as CRM is likely to grow and thrive in the years to come.
Solution Insights: Customer Relationship Management Market
Based on solution, the market is segmented into customer service, customer experience management, CRM analytics, marketing automation, salesforce automation, social media monitoring, and other solutions. The customer experience management segment is expected to garner a substantial market share owing to increasing demand from companies shifting their marketing efforts to digital channels. In addition, the growing demand for speedy and real-time service and convenience are expected to help the segment retain its dominant position. As an increasing number of firms focus on building customer loyalty and long-term retention, experience management solutions are playing a crucial role. This is especially true for emerging avenues such as IT, telecom, and retail.
CRM analytics segment is anticipated to gain traction in the coming years and is expected to register a considerable growth rate. The growing integration of big data, analytics, and business intelligence are driving the inclusion of these solutions in customer relationship management software usage. Furthermore, increasing the accumulation of unstructured and structured data with the use of digital channels will aid this growth. As numerous systems continue being integrated and disparate data sources come together, models such as predictive analytics, profitability analysis, and web analytics are expected to gain increasing importance.
Deployment Insights: Customer Relationship Management Market
Based on deployment, the market is segmented into on-premise and cloud deployment. Cloud-based solutions have become the norm in the industry, which can be attributed to the increasing demand for solutions that help the sales and marketing teams on the go. The demand for SaaS is fueled by large and small enterprises alike as it provides numerous benefits such as cost flexibility, mobility, and almost no hardware cost. Concerns regarding security and privacy are the major hindrances observed in cloud deployment. However, as these concerns are being tackled, the cloud adoption is set to increase even further in the coming years.
As per the CRM buyer survey conducted by SelectHub, majority of the enterprises preferred cloud deployment to on-premise. While 43% of the respondents equally considered on-premise customer relationship management solutions as a popular choice, it was due to the presence of large businesses with ample staff and IT resources, which allowed them to retain the complex infrastructure of on-premises customer relationship management. Moreover, the buyers trend suggests that customers are likely to invest in CRM systems based on new deployment capabilities and features that are expected to substitute their existing legacy systems. Thus, replacements and competitive upgrades are likely to influence the market share of various competitors in near future.
Enterprise Size Insights: Customer Relationship Management Market
Based on enterprise size, the market is bifurcated into large enterprises and Small and Medium Enterprises (SMEs). Large enterprises have been the major adopters of CRM suites, as these solutions help them track their return on investments and improve the overall efficiency of their sales cycles. The large enterprises segment emerged as the largest market shareholder owing to the vast marketing and IT budgets at their disposal and the need for handling huge amount of data. Moreover, the application of big data with the utility of artificial intelligence aided by machine learning is also expected to enhance customer relationship management solutions across various industry verticals.
As per the FinancesOnline, SaaS/B2B software reviewer, the Return on Investment (RoI) of CRM implementation range from USD 2.5 to USD 5.6 for every dollar spent. According to surveyors records, a company offering consultancy and training services for IT professionals achieved an RoI of 1,556% during three years after switching to new customer relationship management solution. The rise in RoI was attributed to the increase in number of sales leads by 300% and 100% rise in number of closed deals. Such impressive returns of growth on CRM implementations are likely to boost its utility by Small and Medium Enterprise in near future.
End-use Insights: Customer Relationship Management Market
Based on end use, the customer relationship management market is segmented into BFSI, retail, healthcare, IT and Telecom, discrete manufacturing, government and education, and others. Though it is perceived that B2B businesses are the largest users of customer relationship management, the demand for these solutions is quite high in B2C businesses. This is evident from the fact that retail and BFSI emerged as the largest shareholders in the global customer relationship management solutions industry. Other than vertical industries, the CRM providers are also instrumental in offering solutions in horizontal markets such as commerce, analytics, IoT, and integration.
The IT and telecom segment is expected to be the fastest growing segment over the forecast period. CRM in telecom offers distribution channels, brand equity, customer exclusivity, post-purchase service, and support, which is driving the enterprises to stay ahead of their competitors in highly concentrated telecom market. Moreover, the rapid adoption of customer-centric processes and digital transformation is driving the growth of CRM adoption within discrete manufacturing segment after IT and telecom segments. Various product features such as customer buying psychology, meeting the complexity of sector, and provision of insights regarding competitors, are likely to boost the growth of the discrete manufacturing segment.
Regional Insights: Customer Relationship Management Market
North America, especially the U.S., exhibited the largest share in the market owing to the presence of numerous solution vendors, both big and small, in the region. While North America is anticipated to continue to dominate the market, Europe region showed a rather sluggish growth. It can be attributed to the gloomy economic conditions including Brexit ordeal and rising public debt that have affected the marketing and IT budgets of the organizations in the region.
The Asia Pacific region is estimated to expand at the highest CAGR over the forecast period, owing to the growing demand from emerging countries, such as China and India. The development of e-commerce industry in these economies is anticipated to generate the demand for customer relationship management solutions in the region in coming years. The growing scope of business, a large customer base, and an optimistic growth prediction are a few factors driving the growth of the market in the Asia Pacific region. For instance, Salesforce.com scaled up its operations in June 2019 with investment of around USD 100 Billion in Japanese startups.
Customer Relationship Management Market Share Insights: Customer Relationship Management Market
The market is led by big five companies,
Salesforce.com is an undisputed leader in the industry, which can be attributed to the cloud-delivered CRM suites of the company that offers elemental functionalities to benefit large and small enterprises alike. Microsoft has also shown considerable growth in the last couple of years. The industry is also marked by frequent merger and acquisition activities of smaller firms by well-established firms in the market. An important characteristic of the market is the growing popularity of niche players that cater to specific industries across different verticals.
In November 2019, Salesforce and Amazon Web Services, Inc. (AWS) expanded its global strategic partnership. Through this partnership, Salesforce aimed at integrating its cloud offering Service Cloud Voice with Amazon Connect, which will help reduce call resolution times and help service organizations to smoothen operations while providing superior customer service. The deployment of powerful AI and voice technologies by mutual technological exchanges will boost the market dominance of Salesforce.com in the customer relationship management software market in near future.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this report, Trusted Business Insights has segmented the global customer relationship management market report based on solution, deployment, enterprise size, end use, and region:
Solution Outlook (Revenue, USD Billion, 2016 – 2027)
- Customer Service
- Customer Experience Management
- CRM Analytics
- Marketing Automation
- Salesforce Automation
- Social Media Monitoring
Deployment Outlook (Revenue, USD Billion, 2016 – 2027)
Enterprise Size Outlook (Revenue, USD Billion, 2016 – 2027)
- Large Enterprises
- Small & Medium Enterprise
End Use Outlook (Revenue, USD Billion, 2016 – 2027)
- IT & Telecom
- Discrete Manufacturing
- Government & Education
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