The customer relationship management (CRM) market has been forecast to increase at a compound annual growth rate (CAGR) of 36.5% over the next five years, rising from a valuation of $1.91 billion in 2013, to hit a market value of $9.08 billion in 2018.
CRM is a model for managing a company's interactions with current and future customers. It involves using technology to organise, automate, and synchronise sales, marketing, customer service, and technical support.
With the boom of social media, enterprises are adopting social integration with CRM software as well, thus making way for social CRM as a new channel now days. Social CRM solutions combine traditional CRM solutions with social media for improving the customer engagement for enterprises
The solution provides a social platform for evolving businesses CRM needs, while also offering flexibility, in terms of reach, deployment, and administration. Social CRM incorporates the customer decisions into the planning mix and the feedback loop so as to engage customers with the enterprises.
Some CRMs coordinate with social media sites like Twitter, LinkedIn, Facebook and Google Plus to track and communicate with customers who share opinions and experiences about their company, products and services. Once a company has identified trends through social media a business can make more accurate decisions on what products to supply to the society.
Oracle, Salesforce.com, SAP and Microsoft are the 'Big four' of the CRM software market, and the only enterprise software vendors to exceed $1 billion in CRM software revenues. SAP is the top CRM software market share leader with 18.9% market share, followed by Salesforce.com at 16.5% and Oracle at 13.9%.
The competitive landscape for the worldwide CRM applications market is becoming decidedly more interesting. The top vendors are inching closer together with just one or two percentage points separating the leaders. One area of differentiation among the leaders is the geography where market shares are built. While Oracle holds the lead in Asia/Pacific (excluding Japan), Salesforce.com is very strong in North America and Japan. SAP is the established leader in EMEA and Latin America.
Investments in social CRM will increase across geographies and verticals, with the need for more business specific solutions for enterprises. These solutions will put together customer data from all sources. It is expected that these solutions will move beyond marketing and sales functions into customer facing departments, improving brand value through better communications and seamless connectivity across all departments.
For more information on the customer relationship management market, see the latest research: Customer Relationship Management Market
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