CRM software market is estimated to reach 35 billion by 2023 with a compound annual growth rate of 6%, and North America will be the largest CRM software market.
With increased competition and profits dwindling, it has become a significant challenge for some of the top companies to retain the old customer and acquire new ones. CRM acts as a boon for these companies with a better understanding of customer needs.
Let’s understand the importance of CRM and how it works across all industries for maintaining a good relationship with customers.
What is CRM?
Customer Relationship Management software is a unique software used to maintain the relationship with the existing as well as new customers. The software serves the customers efficiently along with the management of the sales pipeline. With increased globalization and exposure, companies across the world are facing a new challenge of satisfying the customer .Customers nowadays have many options to choose before finalizing the decision to buy a specific product or go for a certain service. CRM acts like an assistant for these organizations in understanding the needs of the customers, and improve the product portfolio, service aligned with their requirements.
Some of the major reasons for CRM growth are:
1. Increased Usage of Mobile CRM: The mobile CRM delivers a full-time customer relationship management experience on tablets, smartphones, and other internet-enabled devices. It helps the marketing team, sales team, and customer executives for managing crucial real-time information. As the internet traffic from mobile grows exponentially, mobile CRM helps the users in accessing the data from anywhere across the world. They can continue with their business without any obstacle and with a more streamlined approach. These solutions have even increased the productivity of the employees.
2. Improved Accessibility: CRM software has become increasingly versatile and can be accessed from multiple devices thus increasing the availability of the software. Increased and easy access has led to high popularity among users.
3. Cloud-based CRM: The increased access of the CRM software from multiple devices and different locations has helped in the increase of the cloud-based solutions. Easy access from anywhere with reduced costs is another major factor for the CRM market growth.
4. Social CRM: Social CRM helps most of the businesses gather rich insights from customer sentiments, specific products, brands, and other related services. This helps in developing the product aligning with the needs of the customers. The CRM which is integrated with the social media channels, reap good business benefits as companies can respond better, act swiftly, and analyze the future customer needs. Social CRM builds up the two-way communication process and even engages the passive audience.
5. Pay Per Use: Most of the CRM software is available on pay per usage model. The initiative is helping all large, small and mid-sized businesses to integrate the CRM software in their business process.
CRM markets in different regions
The U.S. market has been growing steadily for CRM software investment, followed by the West European countries (30%), Japan (4%), Latin America (2%), Asia Pacific (6%), MENA (2%), and Eastern Europe (2%).
Analysis of the CRM market in the US and the top vendors
The North American market had made substantial technology advancements, with the increased adoption of cloud-based technologies in different industries.
CRM industry revenue in the United States from 2013 to 2018
(Image courtesy: Statista)
The top CRM vendors are Microsoft, Salesforce.com, Oracle, SAP. They have generated more than $1billion in software revenue and have largest CRM market share.
Companies now want platforms and technologies to be connected with customer data. With the integration of disruptive technologies such as mobile, social, cloud, and marketing CRM the process has become easier. The CRM technology provides a 360-degree overview of the customer data so that businesses can take the right decision in the development of the product or the improvement of the service. The CRM market will continue to grow in the coming years as businesses are looking to increase customer satisfaction for their survival in the market. The solution will further enhance with the help of AI and machine learning.