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The global customer relationship management (CRM) market size was valued at USD 47.79 billion in 2019 and is projected to reach USD 113.46 billion by 2027, exhibiting a CAGR of 11.6% during the forecast period.
The market growth is primarily driven by a constant demand for a platform that equip them to manage business activities, resolve customer issues, and allow organizational growth among businesses across the world.
Recent advancements in cloud infrastructure technologies and increasing adoption of Software as a Service (SaaS) platform are projected to fuel the market growth over the forecast period. Rising customer expectations amid intense competition in the banking and financial services industry applications of CRM and rapid adoption of digital transformation and customer-centric processes is fueling market growth. For instance, in March 2019, National Australia Bank (NAB) based in Melbourne, Australia adopted Salesforce’s cloud-based system to simplify and centralize its customer management and sales management under a single platform.
CRM Solutions being Increasingly Adopted by Organizations Owing to COVID-19 Outbreak
COVID-19 is rising exponentially across the world and disrupting economies and business operations. Despite the lockdowns in several countries, businesses are continuing to seek prospects, deals, and address consumer concerns. With the adoption of work from home (WFH) policies by companies, there is a growing need for businesses to collaborate with clients in the remote working environment. Subsequently, this is projected to increase the demand for customer support solutions.
Customer relationship networks allow communicating with consumers in a meaningful way that can supplement and enhance conventional connections via phone and e-mail. The new market changes and availability of superior technological advancements has provided opportunities for other technologies such as artificial intelligence (AI). Several CRM systems have internal and external AI-built chat bots that can manage a large number of self-service queries, evolve, and allow the overworked workers to concentrate on more complex tasks. During the global pandemic, customer management is expected to develop and flourish in the coming years and help businesses sustain ever-changing market dynamics.
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Artificial Intelligence (AI) Unfolding a Holistic Approach to Deliver Customer-centric Services
The number of consumer service providers and platforms that users utilize to communicate with businesses has grown dramatically in the past decade. Artificial intelligence holds a great potential in optimizing consumer and customer experiences. The function of artificial intelligence is not restricted to workflows such as digital intelligence in corporate communication as revolutionized customer service. Numerous organizations have witnessed impressive returns of growth by actualizing AI in business through computerization and utilizing data analytics.
Similarly, the emergence of big data applications has created a massive opportunity for organizations to access and evaluate the vast volume of data collected by the organization's activities. Information obtained from social networks and digital platforms can be consolidated in customer relationship management software. With the help of this collected customer information AI is prominently being used to identify and interpret insights and deliver practical value for the goals of the organization.
Demand for Enhanced Customer Experience with Efficient Contact Centre Operation Bolstered the Market Growth
In an increasingly competitive market environment, end-to-end consumer service and satisfaction have become a key factor that businesses cannot afford to ignore. It is of utmost significance to deliver quality offerings and enhanced performance, and at the same time aligning with ever-changing consumer preferences and needs. Currently, leading corporations are leveraging both mainstream and digital marketing platforms to deliver value to their customers.
Customer management is utilized by businesses to better monitor communications with their customers. Through leveraging consumer info, purchasing background, and more, companies can adapt their products, marketing, and services as per their client’s preferences. Customer management enables companies to attract clients to become more organized and improve their income. This also strengthens the partnership between businesses and their clients, delivering meaningful consumer interactions.
Emergence of Cloud Technology to Drive the Customer Relationship Management Market Growth
Cloud computing provides a secure access and control environment for data storage over the internet. Several companies are using SaaS-based model due to high convenience, low maintenance or investment, and only involves the use of the application via the Internet.
Cloud allows CRM vendors to acquire a wider customer base to evolve and compete in a global platform, empowers vendors to offer a vibrant, interactive web-based framework that can compete equally with large vendors in the market. Further, the current pandemic situation has led companies to adopt cloud-based customer management solutions to execute their business operations.
Security Concerns Associated with Centralized Data Is a Restraint to Market Growth
Storing a huge amount of data in one place is a matter of several concerns and issues. With strict data-related regulations such as the General Data Protection Regulation (GDPR), businesses face severe consequences in the incident of security breaches. When it comes to applications, protection mechanisms must be set in motion to secure the sensitive details of customers. This can be a burden for a company; however, the costs associated with not having these safeguards in place are far higher. Such stringent government rules and customer data security concerns are projected to limit the adoption of customer management solutions across the world.
CRM Software Segment to Dominate the Market to Manage Customer Relationships and Retain Customers
By component analysis, this market has been bifurcated into software and services.
customer relationship management software helps enhance sales cycles and marketing departments automate and manage the customer lifecycle. These platforms consolidate customer information into a centralized server such that contact center teams can manage and monitor performance and productivity. Customer management software has witnessed unprecedented growth among SMEs mainly attributed to the increased demand to manage customer relationships and retain potential customers. The services segment is expected to witness the highest CAGR during the forecast period.
Cloud CRM Solutions to Account for Maximum Share Owing to Easy Accessibility and Flexibility
By deployment, the customer relationship management market has been categorized into the cloud and on-premises.
Cloud-based software can be accessed from any device, enabling users to view customer details at the same time. By providing quick exposure to real-time data, businesses can simplify vital processes such as qualified leads, close sales deals, and ensure improved customer satisfaction at higher consumer retention rates. The market for cloud-based CRM software is driven by the increased product demand among small and medium-sized businesses as it offers various advantages, such as cost efficiency, accessibility, and virtually no equipment costs.
Adoption of CRM Solutions Among Large Enterprises will be High during Forecast Period
By enterprise size, the market has been categorized into large enterprises and SMEs.
Large enterprises segment accounted for the largest share during recent years. Large businesses have become major investors in customer relationship management systems to monitor their return on investment and increase the overall performance of their delivery cycles. Large enterprises have emerged as the largest business participant due to the high marketing and IT expenditures and the need to handle a tremendous volume of data. Small and medium-sized businesses segment is expected to grow at an exponential CAGR during the forecast period.
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Lead Generation and Customer Retention to Account for Highest Share Owing to Growing Marketing Activities
By application, the market has been segmented into marketing and sales automation, customer management, lead generation and customer retention, customer support and contact center, and others.
The lead generation and customer retention segment is projected to account for a significant Customer Relationship Management (CRM) market share as a result of rising product demand from companies moving their marketing activities to digital platforms. Besides, rising demand for swift and real-time service and comfort is anticipated to help the segment maintain its dominance.
Marketing and sales have changed considerably over the years and have been more nuanced and perplexing than ever before. With sales and marketing automation CRM tools, businesses can streamline marketing efforts, execute successful promotions, improve customer loyalty, and produce high income.
High Adoption of CRM Solutions in BFSI Industry to Analyze Consumer Trends
Based on industry vertical, this market is categorized into banking, financial services, and insurance (BFSI), manufacturing, IT and telecommunications, retail and consumer goods, healthcare, transportation and logistics, others.
Banking, financial services and insurance (BFSI) emerged as the largest shareholder in the global CRM market. With customer management solutions, banks and financial firms are able to build a consolidated archive of customer profiles that helps to analyze consumer trends and track their interaction with the firm. It provides a tremendous opportunity to leverage and manage the existing dysfunctional workings of this industry and to produce more concrete and effective market outcomes.
North America Customer Relationship Management (CRM) Market Size, 2016-2027 (USD Billion)
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Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
The growing adoption of big data solutions to gain insights into consumer behavior and trends is prompting the growth of the customer relationship management market in North America. The combined impact of the cost increase, passive investing, and accumulation of performance in asset acquisition are forcing many businesses to start taking stronger action to expand, function effectively, and engage consumers. Moreover, the need to boost consumer experience by resolving their concerns in real-time is projected to contribute to the strong demand for customer management solutions in North America.
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Europe CRM market is a large market spread across the numerous countries of the region. The market has seen high growth in recent times, and the trend is expected to continue in the coming years. Asia Pacific business industry is outpacing several other regions in the introduction of emerging technologies and the achievement of the performance of customer management applications. The Asia Pacific has emerged as a key market for cloud-based customer management.
Key Market Players to Enhance their Product Offerings and Adopt Partnership Strategies to Achieve Organizational Goals
Market-leading participants such as SAP SE, Salesforce.com, Inc., and Oracle Corporation are launching innovative offerings due to substantial developments in emerging technology. On the other hand, the other players continue to enter into strategic partnerships with several other players in order to strengthen their market position and achieve strong brand advertising. For instance,
Key insights provided in the report are the adoption trends of CRM software and solutions by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.
An Infographic Representation of Customer Relationship Management (CRM) Market
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Value (USD billion)
Component; Deployment; Enterprise Size; Application; Vertical and Geography
By Enterprise Size
Fortune Business Insights says that the global customer relationship management market size was USD 47.79 billion in 2019 and is projected to reach USD 113.46 billion by 2027.
In 2019, the North America market value stood at USD 15.84 billion.
Growing at a CAGR of 11.6%, the market will exhibit steady growth in the forecast period (2020-2027).
The software segment is expected to be the leading segment in this market during the forecast period.
Increasing need for enhanced customer experience with efficient contact centre operation is one of the major factors driving the growth of the market.
HubSpot, Inc., Infor, Inc., Infusion Software, Inc. (Keap), Insightly, Inc., Microsoft Corporation, and Oracle Corporation are some of the major players of the global market.
North America dominated the market share in 2019.
The emergence of cloud technology is expected to drive the adoption in the global market.
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