Nearly every business is dependent on customers, and therefore it’s essential to maintain proper customer relations for an ideal business flow. Customer Relationship Management (CRM) is a process for strategically maintaining and enhancing company relationships and interactions with existing and potential customers, thereby boosting profitability. Apart from sales, CRM is also used as a marketing tool, in customer services, human resources management, and in supply chain management.
By employing a CRM software system, businesses can get a comprehensive overview of customers, translating the vast data collected on them into a usable format. Businesses can track the previous history with their customers, offer easy customization and also track their social media activity to identify further potential businesses. The CRM market is growing at a steady pace which is expected to continue till 2021.
According to the global CRM market forecast, the U.S. and Western Europe have high market maturity while Australia, China, and India have a medium level of market maturity. LATAM and other areas of APAC have emerging markets for CRM.
There are several factors driving the market for Customer Relationship Management, including:
Improved Customer Experience: At a time of immense competition across industries, an effective CRM system reduces administrative time and provides an improved and seamless experience for the customer. In addition, with customer services forming a part of CRM, any problems customers may face can be solved in a speedy manner.
Better Customer Retention: One of the major problems businesses face is high customer attrition rates, which can be addressed successfully with a CRM system. By providing customers with prompt service before, during and after purchase, customers are likely to be more satisfied, resulting in better customer retention.
Lead Management and Generation: Apart from keeping existing customers happy, it’s important for businesses to expand their customer base by generating and subsequently converting suitable leads. Use of CRM systems helps businesses in examining their customer base, identifying possible leads and analyzing the needs of specific customers, so that businesses can convert leads at a faster pace.
A few of the key market trends driving the market are:
Versatile Applications: Although CRM has typically been used in sales and marketing, there are other business functions which can also benefit from using CRM, such as HR, supply-chain management and partner management. CRM can be used by sales teams to understand sales pipeline better while marketing can use CRM for more accurate forecasting. Supply-chain, partner management and procurement divisions can use CRM to better manage relationships and HR teams can use it to speed up the recruitment process and track employee performance. CRM can also operate across a variety of channels, such as social media and mobile devices.
Customized Solutions: Every business is unique and their needs are unique as well. As CRM systems serve a range of functions, buyers opt for vendors that offer one-stop CRM solutions that can be customized to their needs. The CRM solutions can be customized in a variety of ways, including on the basis of industry, functional market, revenue type, customer size, channel, and product, with more than one solution based on their specific needs.
Global Suppliers: As companies expand on a global level, it becomes necessary to strike a balance between regional knowledge of the domestic crowd, while utilizing the best technology available. Global vendors for CRM systems are growing in popularity as they offer efficient one-stop solutions. To maintain a regional edge, global vendors often incorporate regional talent to boost the offerings.
By 2021, the global customer relationship management market is expected to strengthen further, becoming an important part of enterprise software. CRM software significantly boosts sales and marketing, simplifying the process while maximizing efficiency. Apart from sales, there are several other business functions of CRM systems, which are expected to drive the growth of the market further.