Economic Outlook: Customer Relationships Management (Market Focus)

• Discusses the key trends impacting the current state of the customer relationship management market.
• Analyzes which market segments and industries are driving investments in the customer relationship management market.
• Discusses changing market conditions and vendor go-to-market strategies.
• Provides a market forecast of expenditure for the forthcoming five years.

• Understand the primary market trends behind the customer relationship management application market.
• Identify market segments which are driving growth in order to position your solutions adequately.
• Align your go-to-market strategies with the current market opportunities and the long-term trends in the CRM application market.

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

Market definition

Enterprise applications support CRM methodologies

Second wave of CRM?

Market development

CRM penetration and investment are related to the enterprise size

Market trends

Market conditions

Nurturing relationships, not capturing transactions

The public sector: citizens or constituents can be served using CRM methodologies

CRM market trends: drivers and inhibitors to CRM adoption

The market is still apprehensive following early CRM implementations

Business process issues can block deployment of CRM

Total cost of ownership can be high and return on investment (ROI) unclear

Transaction-focused CRM can not capture the complexity of customer relationships

CRM is converging with communication technologies

Basic CRM functionality is improving

Vendors are streamlining user interfaces

Enterprise application suites drive CRM adoption

On-demand CRM

Subscription-based licenses and hosted architecture can address certain inhibitors to CRM adoption

Lack of robust functionality and service availability are perceived as obstacles to adoption

The on-demand CRM market is increasingly competitive

Market trends favor hybrid on-demand / on-premise solutions

CRM go-to-market strategies

Optimal vertical strategy depends on vendor positioning

On-demand CRM emerges as a cornerstone of SME go-to-market strategy

Market size

The CRM market will continue to expand during the next five years

SMEs will drive CRM adoption but large enterprises will still account for the majority of the revenues

The rate of growth within the Telecommunications, Public Sector and Healthcare sectors will accelerate

SUMMARY

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Which of the following technologies do you currently have or use, and which would you have in six months and 24 months time?

Table 2: Which of the following technologies do you currently have or use, and which would you have in six months and 24 months time? - CRM responses only by enterprise size (no. of employees)

Table 3: How important are the following criteria when selecting CRM solutions? Please rate on scale from 1 to 4 (where 4 = extremely important, and 1 = not important at all

Table 4: Datamonitor's CRM revenue model ($ millions, product license and maintenance revenues)

Table 5: Datamonitor's CRM revenue model ($ millions, product license revenues only) - by enterprise size

List of Figures

Figure 1: Customer relationship management (CRM) process cycle

Figure 2: CRM application stack and adjacent modules

Figure 3: Despite high penetration rate, many enterprises are planning to invest in CRM in the next two years

Figure 4: CRM investment and penetration levels are related to the enterprise size

Figure 5: IT decision makers believe vertical specialization is the least important factor in solution selection

Figure 6: The CRM market is set for significant growth over the next five years

Figure 7: Small and medium enterprises will be of increasing importance