The CRM software market was valued at US$55.314 billion in 2019. Customer Relationship Management (CRM) refers to an approach by which the organizations maintain and manage the interaction with the present and potential customers, with an aim to build and keep up the loyalty of the organization towards its customers. CRM solutions or CRM software refer to the data-driven software solutions that enable the organization to enhance its interaction with the customers. These solutions help the organizations to maintain their relationships with the customers and other functions such as pipeline, tracking of sales leads, and further deliver actionable data. These solutions have the ability to streamline the growing complexities of the administrative processes of the business across the marketing, services and the sales divisions of the companies, and further enable the organization to incline the focus towards maintaining its relationships with the customers.
The major factors that are driving the customer relationship management (CRM) software market growth is the rising competition across the businesses falling under the numerous verticals which are leading towards various approaches for by these organizations to increase their business. This software increases the operational efficiency of the companies as it helps to manage the optimum level of interaction with the customers and helps to handle vast information regarding the clients which is also considered to be a key factor positively impacting the CRM software market growth in the next five years.
The recent outbreak of the novel COVID-19 disease throughout the globe is anticipated to be a key factor that is expected to shape up the growth of the CRM software market during the period of next eight to twelve months. The virus outbreak, which has already been declared a pandemic by the WHO, is difficult to contain which is evident from the exponential increase in the number of confirmed cases across the globe. However, governments have already enforced strict social distancing and quarantine measures. Also, the mandatory work from home policies that have been implemented in almost every country of the world has led the organizations to tap the potential of the market and deal with their customers in every possible manner they can be it for closing their sales or resolve the issues. Additionally, the crisis has created an environment where the companies are expected to remotely collaborate with their clients, thus providing an impetus for the market to grow during the short run.
The CRM software market has been segmented on the basis of function, enterprise size, deployment, industry vertical, and geography. On the basis of function, the CRM software market has been segmented into marketing automation, salesforce automation, customer service automation and others. On the basis of enterprise size, the classification of the market has been done into small & medium, and large enterprises. On the basis of deployment, the market has been segmented on the basis of on-premise and cloud. Geographically, the ERP software market has been segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Cloud-based deployment to show a notable growth
On the basis of the deployment model, the cloud-based deployment segment is anticipated to show decent growth throughout the forecast period. The major factors that bolster the growth of this segment include the rapid-growth cloud computing across the numerous industry verticals. Furthermore, the burgeoning adoption of SaaS (Software as Service) across the organizations with low budgets due to the high mobility, low infrastructural investments, and also the flexibility in costs.
The on-premise segment is anticipated to hold a considerable share during the next five years owing to various benefits such as full organization control over the activities coupled with the security and the safety of the company’s crucial data which is also bolstering the growth of this segment during the next five years.
Large enterprise to hold a considerable share
Based on enterprise size, the large enterprises are projected to hold a considerable share throughout the forecast period on account of higher budget capabilities coupled with the growing focus of the organizations falling under this category to achieve a better return on investments and maintain operational efficiency, by focusing more on customer interaction rather than operational tasks.
The small & medium enterprises segment is projected to show a rapid growth on account of the high adoption of these solutions by the organizations falling under this category in order to attain a competitive edge in the business segment they are operating in as these tools automate business processes so that firms can focus more on important tasks and increase their business, thus positively driving the CRM software demand for this segment.
Prominent key market players in the CRM software market include Microsoft Corporation, SAP, Oracle, IBM, and Zoho Corporation among others. These companies hold a noteworthy share in the market on account of their good brand image and product Functions.
Major players in the CRM softwaremarket have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.