According to the published findings of a new report from Gartner, CRM will be at the heart of digital initiatives for years to come.
Organizations are leveraging CRM technologies as a major part of their digital initiatives to enhance the customer experience, the research giants report, adding that demand for modern technology customer relationships is driving refreshed or expanded integration and usage of all areas of CRM software.
The outlook continues to be positive for CRM as buyers focus on technologies that enable more-targeted customer interactions in multichannel environments.
“This is one technology area that will definitely get funding as digital business is crucial to remaining competitive,” projects Joanne Correia, research vice president at Gartner. “Hot areas for CRM investment include mobility, social media and technologies, Web analytics and e-commerce.”
This year, Gartner expects CRM market growth to stay moderate, following three strong years of investment.
CRM software revenue is forecast to reach $23.9 billion in 2014, with cloud revenue accounting for 49 percent. SaaS- or cloud-based CRM deployments currently represent more than 40 percent of all CRM deployments, and look set to reach 50 percent during 2015.
“Unsurprisingly, high-tech, banking, insurance, securities, telecommunications, pharmaceutical, consumer goods, IT manufacturing and IT services vertical industries will continue to be the largest spenders on CRM as they have the widest use of different types of CRM applications and technologies,” adds Ed Thompson, vice president and distinguished analyst at Gartner. “All these industries are also increasing investment in emerging economies, further driving spend.”