With the rising complexities of the modern-day business environment, it has become difficult for companies to focus on retaining their existing customers while continuing to look for newer ones. When the scale of operations of business expands beyond a certain level, it is no longer possible to manage everything manually. This is where the importance of a useful Customer Relationship Management software comes to the fore.
What is Customer Relationship Management software and what does it do?
Customer Relationship Management software, better known as CRM software, is a software used by businesses to manage their interactions with existing as well as prospective clients. The major objective of CRM software is to serve the customers in a better manner while managing the sales pipeline. With the evolving business needs, CRM software has also evolved and can now perform various crucial organizational functions.
With the rising popularity of cloud-based software and mobile compatible software, the CRM market is also witnessing some significant changes. Companies are now adopting cloud and mobile-based CRM solutions and are enjoying greater acceptability by all stakeholders.
Size of the Global CRM Market
Big corporations have used CRM software in recent times, but with the rising popularity of pay-per-use SaaS models, now even small companies can afford complicated CRM software. This has led to unprecedented growth in the CRM market which now stands at appx US $40 billion and is expected to cross annual revenue of US $80 billion by 2025.
In the year 2018, the CRM market overtook database management systems to become the biggest software market globally. With such amazing growth prospects, the CRM industry is the fastest growing software market in the world, with no signs of slowing down.
Reasons for the incredible growth of CRM Software Market
The growth exhibited by CRM software in the last few years is not without any reason. With growing competition across all industries and rising complexities of operations, businesses cannot afford to ignore their customers. In addition to prospecting for new customers, it is also important to keep the existing customers satisfied. Additionally, following factors can be attributed as the reasons behind the growth of the CRM software market globally: –
Pay per use model
All major CRM software are now available on pay-per-use model. This development has democratized the CRM industry and made it accessible for businesses of all sizes to integrate CRM software with their business.
With the rising trend of cloud computing, businesses now no longer need to install expensive systems for implementing CRM software. This has not only helped in reducing the costs involved but has also offered true freedom of working from anywhere. As per the reports, while only 12 percent of businesses used cloud CRM in 2008, this figure has now crossed 87 percent.
Rise of Mobile CRM
One of the biggest hurdles faced by businesses concerning CRM has been the reluctance of employees. Now with the rising popularity of mobile CRM, companies are witnessing improved adoption rate with employees. Mobile CRM solutions have not only increased the use of CRM software but has also enhanced the productivity of the employees.
CRM software has become extremely versatile and can now be accessed from multiple devices. There is no need to have an expensive system in place; users can now access the software from their mobiles and tablets as well. As per a report, 81 percent of users are now accessing CRM software from multiple devices.
Biggest players in the CRM Software Market
With the future looking bright for the CRM market, the opportunities are ripe for the CRM software providers. The CRM market can be divided into two categories, i.e. Big corporations and smaller companies offering specialized solutions.
Salesforce is the biggest name in the CRM market and is responsible for introducing the concept of cloud CRM. Sales Cloud, the cloud-based CRM from Salesforce, accounted for revenue of US $ 3.5 billion, the highest in the industry.
Microsoft has been a leading name in the CRM market for the last two decades and has established its stronghold in the market with Microsoft Dynamics CRM. The ability of integration with Microsoft Office tools makes its CRM one of the widely used solutions across the industry.
SAP has been a strong player in the CRM industry for many years. With the amazing success that it has achieved in the last few years, the company is investing heavily in offering cloud CRM as SaaS.
Ever since its entry in the CRM market in 1998, Oracle has gone on to establish its presence in over 150 countries. Oracle is on an acquisition spree to establish its stronghold in the market.
Adobe Marketing Cloud
Backed by its expertise in delivering high-quality enterprise software, Adobe has been able to establish its presence in the CRM market since its entry in the year 2012. The compatibility of its CRM solutions with other Adobe software offers it a unique advantage.
Apart from the above-mentioned big corporations, there are several noteworthy specialized CRM providers that are making CRM more affordable for businesses. Some of the leading names being Zoho CRM, Hubspot, Nimble, and Sugar CRM.
The CRM market has covered a long distance since its inception and with help of technological tools like cloud solutions and mobile integration it has witnessed incredible penetration. It is expected that the industry will continue to evolve and will leverage artificial intelligence (AI) and machine learning technologies to further enhance the efficiency of CRM software. The future holds exciting prospects for the CRM industry, and it is expected to stay strong for many years to come.