Global market for Customer Relationship Management Software to reach $89 billion by 2025, report
The global market for Customer Relationship Management (CRM) Software is projected to reach $89.9 billion by 2025, driven by the importance of maintaining and creating relationships with customers in running successful businesses according to the latest report by Reportlinker.
Benefits of well implemented CRM include better customer relationships, increased customer loyalty, happy customers are always willing to pay a price premium for superior product experience; customer retention as loyal customers spend over 70% more than new customers; lower customer churn rate; successful brand building and equity; enhanced ability for up-selling and cross-selling; improved revenues, profitability and corporate bottomline.
Additionally, in the current competitive market scenario, customer loyalty is hard to gain since competition and rapid commoditization of products and services make switching to other companies easy. This makes CRM even more important in understanding buyer behavior, expectations, and purchase process so as to be able to align the product`s value proposition to the buyers` need.
It is important for businesses to align CRM with sales, marketing and customer service (feedback and support) departments. CRM software draws information from myriad departments in a company to provide centralized and holistic information valuable in making quick and informed decisions that improve responsiveness of customer-facing departments.
Among the technologies poised to revolutionize CRM are IoT and blockchain. Convergence of IoT & CRM marks the beginning of the era of integrated IoT wherein enterprises increasingly tie IoT to key digital initiatives. Integrating IoT with enterprise systems, applications, processes and workflows is the foundation to drive efficiency & ROI from IoT investments.
Connecting IoT devices to CRM systems can help identify performance glitches in products, setting into motion a new era of proactive customer support. Service ticket, part replacement or field service workers can be scheduled even before customers realize the glitch. For instance, IoT-enabled products can help home appliance manufacturers take proactive customer service decisions.
Companies can therefore perform preventive maintenance in advance of routine maintenance which in turn will drive lifetime customer value. Also, services can be delivered promptly in case of failure to ensure that customer gets the maximum value from products purchased. Higher sales and profitability are positive fallouts when IoT data can detect customer dissatisfaction prompting companies to take timely remedial actions such as offer discounts to retain loyalty.
By enabling complete tractability of data, blockchain is also helping revolutionize CRM. The technology enables companies to secure their back-office applications and corporate data in ways hitherto unimagined.
Few of the benefits of integrating CRM with blockchain include increased CRM data security; provides better understanding of demand patterns and allows for improvement in resources deployment; better management of customer experiences, an important benefits in a market environment where the only real differentiator of value is customer experience; securely validate customer engagement in rewards programs; effective management of multiple membership programs; loyalty programs can be made more usable and of value to customers; stronger relationship between companies and their customers, among others.
The United States and Europe represent large markets worldwide with a combined share of 76.3% of the market. China ranks as the fastest growing market with a CAGR of 16.2% over the analysis period supported by the changing landscape of consumerism in the country and ensuing emergence of a business culture that is customer-focused.
