Customer Relationship Management (CRM) Market Overview
Areas such as the U.S. and Western Europe have high market maturity in the global CRM industry. Parts of APAC, such as Australia, China, and India have medium market maturity. Factors like demand for improvement in customer experience, better customer retention and acquisition, lead management, voice of the customer, and field management are the key drivers for the CRM market. APAC and LATAM are the emerging CRM markets, with the focus shifting on segments like SaaS, Mobile CRM, and analytics. Buyers of CRM have a preference for solutions that can seamlessly operate across various business functions, such as sales, marketing, customer support, and various channels, such as mobile and social media.
The CRM industry has a high supplier base ranging from global to regional vendors who can cater to specific business requirements. The report also discusses the various drivers and constraints impacting the global CRM industry, along with Porter's five forces analysis. It also provides a regional market outlook in areas such as North America, Europe, APAC, MEA, and LATAM. It also explores various supplier trends, and provides detailed profiles on prominent suppliers, such as Salesforce, Microsoft, Oracle, and SAP.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Customer Relationship Management (CRM) Market Trends
Category Intelligence on Customer Relationship Management (CRM) covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global CRM Industry Outlook
- The global customer relationship management software market was $28 billion in 2016, and expected to reach about $32 billion by 2017
- The US and Western Europe has high market maturity in CRM. Parts of APAC, such as Australia, China, and India have medium market maturity
- The key drivers for CRM market are demand for increase in customer experience, better customer retention and acquisition
Global CRM Industry Analysis
- APAC and LATAM are emerging markets with shifting focus on SaaS, Mobile CRM, and analytics
CRM Supply Analysis: Supply Market Outlook
Global/Regional Supplier
- Mature and Diversified Market: CRM market is highly matured and key differentiator among CRM vendors is the ability to integrate cross-functional data. E.g., Customer data across sales, marketing, and customer support. In addition, buyers prefer vendors who has integration-ready partnerships and one-stop solutions. E.g., Oracle's Marketing Cloud should connect seamlessly with Salesforce sales cloud
- Increase in SaaS CRM Adoption: There is a rapid shift in the CRM deployment model, as the buyers are moving from on-premise model to SaaS model, due to diversified user base, increased cost savings, and low maintenance
CRM Supplier Perspective: Vertical/Local Supplier
- Experience Across Industries: In CRM, Tier-2 suppliers are also known as vertical specific suppliers. Enterprises are more focused on product capability rather than the supplier strength (revenue/client base, etc.)
- E.g., Veeva and Cegedim are key vendors, who deliver SaaS based sales CRM module specific to pharmaceutical industry
Engagement Trends
- Most Adopted Engagement Model Globally: Multi-vendor sourcing strategy
- No One Size Fits all Solution: No CRM solution is complete and all CRM solutions require custom development or third-party applications to achieve 100 percent efficiency. An enterprise can have more than one CRM solution based on their business requirement, such as marketing, sales, e-Commerce and customer support. Due to constant change in business models/geo location enterprises are seeking better CRM solutions that can keep them ahead of competition and help achieve better customer service
- Contract Length: 2–3 years, with an option of contract extension based on performance linked with SLA's
Key Global CRM Suppliers
Global Supplier List and Service Capabilities
- Salesforce (SFDC) is the leading vendor in CRM market and the key competitors are SAP, Oracle, Microsoft, and IBM. The key factor behind the growth and leadership position of Salesforce is their 100 percent focus on SaaS model
- Key factors that are used in the selection of CRM vendors include, maturity of the buyer, industry, existing business processes, customer segment (B2B or B2C), and budget. Leading CRM vendors have the capability to serve across all the parameters. However, what differentiates them is the depth of capability and ability to integrate with third-party solutions
