Accenture reports that 90% of B2B executives site that Customer Experience (CX) is a critical factor in an organization’s success in the age of experience economy. This aligns with the growth forecast of the global CRM software market of $29.77 billion in 2022 reported by Statista.
In 2018, New Zealand organizations spent $220 million on CRM software alone with 13.9% growth according to analyst firm, Gartner.
The global CRM market grew 15.6%, reaching $48.2 billion in 2018. Gartner predicts that CRM will be the single largest revenue area of spending on enterprise software by 2021.
In the age of Experience Economy, businesses are expected to commensurate the customer’s fast-changing needs and preferences with high-value, industry-specific, and next-gen solutions and technology. Organizations now have a better appreciation of how CX can impact their bottom line and that they have to seriously watch out for the latest CRM trends that would further shape CX.
The CRM adoption rate has been on an uptrend as leading vendors continue to streamline their CRM functionalities including the integration of IoT in their existing systems. By 2020, up to 12.86 billion installed IoT bases will be operational in the consumer segment according to Statista.
To further stress how CRM made a noise in 2018, here is a snippet of the CRM statistics from Gartner:
• CRM made up almost a quarter of enterprise application software revenue, amounting to $193.6 billion.
• 40% of the total market is spread across 5 Top vendors such as Salesforce (19.5%); SAP (8.3%); Oracle (5.5%); Adobe (5.1%); Microsoft (2.7 %)
• SaaS took 72.9% of CRM spending and is expected to increase to 75% this year
• Cloud growth remains strong at 20% and is still significantly higher than the growth rate of the market despite its slight drop
• There is 13.7% growth in all sub-segments of the CRM market with marketing as the fastest growing, increasing by 18.8% and customer service and support contributing 35.7% of CRM market revenue.
As the CRM space continues to evolve and with the next-gen trends already rolled out like IoT, Social CRM, and increasing mobile CRM adoption, companies will have to allocate a bigger budget to their CRM departments because consumers have shifted now from products and brand recognition to experience differentiation.
Read up on the NZ government’s SAP Cloud Framework Agreement here.