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CRM Spending and Trends

Product Type: Market Research Report
Published by: eMarketer
Published: August 2005
Product Code: R203-233
Description

This report focuses on business adoption of customer relationship management software, or CRM, applications aimed at improving companies’ ability to communicate and serve customers through a variety of channels.The potential market is huge, as illustrated by Siebel Systems’ bold prediction that worldwide spending on customer-facing technology solutions over the next 10 years will be nearly five times larger than the total for the preceding quarter century. But growth never comes easy: Siebel itself, which pioneered the CRM space, has seen software sales tumble this year.

Table of Contents

Impetus


Cumulative Spending on Customer Facing Solutions
Worldwide, 1980-2014 (in billions)


Issues & Questions


Overview


The eMarketer View


A. CRM Spending


CRM License Revenues in North America, by Application,
2003-2008 (in millions)


CRM Revenue Share, by Application Type, 2004


Leading Vendors


E-Business Profile: Number of Siebel Systems CRM
Users, 1999-2005 (in millions)


E-Business Profile: Siebel Systems' Top 10 CRM
Deployments, Ranked by Number of Users, 2005


E-Business Profile: SAP's Annual CRM Software
Revenues, 2002-2004 (in millions)


E-Business Profile: Approximate Number of Customers
and Paying Subscribers to Salesforce.com's CRM
Solutions, 2003-2005


E-Business Profile: Salesforce.com's Annual
Subscription and Support Revenues, 2004 & 2005 (in
millions)



B. Trends in Business Use of CRM


Worldwide Companies' Leading IT Spending Priorities,
2005 (as a % of respondents)


Average Increase in Customer Relationship Management
Budgets by Global Companies, 2005 & 2006


Global Companies' Planned Changes to Their CRM
Budgets, by Size, 2005 & 2006 (as a % of respondents)


Potential Benefits of a CRM Application Cited by US IT
Executives, by Business Size, 2004 (as a % of respondents)


Change in the Channels that Companies in North America
Will Use to Interact with Customers over the Next Two
Years, 2005 (as a % of respondents)


Change in Customer Experience Activities Spending by
Companies in North America, 2005 (as a % of
respondents)


US Companies' Use of CRM Systems, by Business Size,
2004 (as a % of respondents)


Mean Number of Years that US Companies Have Had an
Operational CRM System, 2004


US Companies' Current and Planned Use of CRM Software,
by Module, 2004 (as a % of respondents)


Companies that Plan to Purchase Customer Service
Software during 2005 (as a % of respondents)


Companies that Plan to Purchase Sales Force Automation
Software during 2005 (as a % of respondents)


Companies that Plan to Purchase Marketing Automation
Software during 2005 (as a % of respondents)


US Companies' Plans to Deploy Wireless CRM
Capabilities, by Business Size, 2004 (as a % of
respondents)


Most Critical Factor in Choosing a CRM Vendor
according to US Companies*, 2004


US Companies' Planned Spending on the Deployment of
Their Licensed CRM Applications Initiative, by Business
Size, 2004 (in millions)


SMBs and CRM


Top Business Priorities according to US SMBs, 2005 (as
a % of respondents)


Top Business Challenges according to US Small
Businesses, March 2005 (as a % of respondents)


US SMBs' Deployment of Enterprise Software, by
Application, 2004 (as a % of respondents)


US SMBs' Planned Spending on Customer Relationship
Management (CRM) Applications over the Next 2 Years,
2004 (as a % of respondents)


US SMBs that Plan to Deploy CRM/SFA Solutions, 2004 &
2005 (as a % of respondents)


Technologies that US Small Businesses Plan to
Implement within the Next Year, March 2005 (as a % of
respondents)


Software Applications that Are Most in Demand among US
SMBs, 2005 (as a % of respondents)


Primary Vendor of US SMBs' Customer Relationship
Management (CRM) Applications, 2004 (as a % of
respondents)


Leading Software Vendors that US SMBs Will Consider
for Sales Force Automation (SFA) Applications, 2005 (as
a % of respondents)


Hosted CRM


US SMBs' Planned Spending on Hosted Software Solutions
over the Next 12-18 Months, June 2004 (as a % of
respondents)


US SMBs that Seriously Consider Hosted Applications
When Purchasing Software, by Business Size, 2005 (as a
% of respondents)



Global Companies' Planned Deployment of Hosted
Applications over the Next 12 Months, by Size, May 2005
(as a % of respondents)


Types of Network and User Applications that Are
Outsourced according to Senior Executives at
Multinational Corporations, 2004 (as a % of
respondents)


Type of CRM Application Used by Companies in the US,
2004 (as a % of respondents)


Global Companies' that Plan to Be Using Hosted SFA
Software within the Next 12 Months, by Size, May 2005
(as a % of respondents)


Hosted Software Solutions that US SMBs Are Planning to
Implement, 2005 (as a % of respondents)


US Businesses' Current and Planned Use of Hosted CRM
Solutions, by Application, 2004 (as a % of respondents)


Leading Reasons that US SMBs Do Not Consider Hosted
Applications, 2005 (as a % of respondents)


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