Published On: 07-Jul-2020


The outlook of Global CRM Industry Reports-

Customer Relationship Management (CRM) is defined as an approach that manages a company’s interaction with potential as well as existing customers. It uses analytics and modern-day software to conduct data analysis about customer’s buying behavior, history with particular company and frequency of buying the product to improve relationship with customers in terms of business. CRM approach is a system which collects data from various communication channels such as websites, telephone, email, marketing materials, social media etc. the collected data are mainly categorized into information overall purchase history, personal info, and even purchasing behavior patterns. CRM is mainly used to understand the demand and need of customers to mould the product according to the customer’s desire, in turn driving the growth of the company.

Global CRM Industry Market is valued at USD 36.629 billion in 2019 and expected to reach USD 90.648 billion by 2026 with the CAGR of 13.82% over the forecast period.

Global CRM Industry Dynamics

The increasing need of CRM in competitive business environment, the positive results in the growth of business, ease of data collection, growing adoption of mobile CRM and increase in cloud-based CRM solution are the driving factors for the growth of CRM industry. The prevalence use of CRM can be known from the fact that about 91% of businesses with 10 or more employees use CRM software for customer retention, due to the facts that it is almost impossible to remain competitive in this data driven business world using a CRM solution to automate processes, improve synchronization between teams, streamline data storage, and form better customer relationships. Additionally, increasing need of providing services to as many as customers, devices and locations possible, have resulted in rise of using cloud-based CRM solutions. For instance, the businesses who were using CRM, only 12% had used cloud-based CRM in 2008 which have now increased to 87%, helping significantly in CRM industry growth. Other than that, quality CRMs offers sales enablement tools, process automation, CRM reporting, access to loads of personal customer data and built in project management abilities which greatly increases sales and productivity, for example, businesses that uses CRM software have experienced 29% increase in sales and 34% increase in sales productivity along with 42% increase in sales forecast accuracy. The high sales turn over factor has helped in the increasing demand of CRM industry. According to a recent survey by Capterra, 47% respondents say that CRM usage has significant effect on customer retention and customer satisfaction. As the business is becoming more competitive day by day, such advantages of CRM is propelling the organizations in CRM software to be remained as competitive in the market which have positively affected the CRM industry.

Recent Development- introduced Customer 360 Truth at its annual customer conference.

22 November 2019 CEO Marc Benioff at the company’s Dreamforce 2019 conference in San Francisco revealed new services such as Customer 360 truth for customer data and a voice assistant for the enterprise

The main aim of Customer 360 Truth is to link all the data a business holds on a customer with a single Salesforce ID, connecting website visits, order history, email address and device ID.

The main component is Customer 360 Data Manager, which will permit admins to link data sources and reconcile customer profiles. Other features are a customer data platform (CDP) component, Customer 360 Audiences, for generating segmented audiences from the amalgamated data, a Privacy and Data Governance tool for simplifying compliance with the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), and a single sign-on service that allows customers to log in to all of a company’s web properties based on their Salesforce ID.

Recent Trends in CRM Industry-

  1. Merge of CRM with Big Data:

CRM industry trends in 2020 are going towards the ability of big data and customer data platform software to collect and analyze customer data from many channels, such as contact centers, marketing campaigns, sales, and social media. The advanced CRM software has advanced to make a connection between big data and strategies. These CRM tools are soon expected to deliver companies with data-driven insights of their customers. This development will result in marketing and customer retention strategies that can be powered by accurate customer data, which will propel the growth of CRM industry.

  1. Artificial Intelligence:

Another demanding technology for companies will be CRM platforms that employ artificial intelligence for analytics in CRM industry in 2020. This technology drives predictive analytics, which improve the capabilities of the CRM software to provide forecasts from the data collected. With the help of AI-powered analytics, CRM software are able to provide real-time insights on customer behavior. The AI based analytics can recognize buying patterns that can be transformed into conversion opportunities.

In recent future AI will be able to create ‘personalized agents’ through the help of machine learning, that recognize the primary needs and wants of sellers for automated assistance. One of the main advantages of AI is its capability to take over monotonous, time-consuming manual tasks, which drives many vendors to integrate AI in their software which strengthens the marketing perspective of CRM industry.

  1. One-Channel Instead of Multichannel:

Omnichannel approach is expected be the trend among many vendors of CMR industry in 2020. According to CRM experts, many CRM vendors are trying to include all the possible communication channels into a single software that has the ability to manage all the channels. The biggest advantage of this approach would be for sales and customer service agents, as they do not have to switch between multiple channels while communicating with customers.


  1. CRM and the Internet of Things:

Internet of Things is expected to make CRM industry more effective in 2020. It is predicted that IoT devices will reach approximately 39 billion in 2025. In present market, advanced CRM are leveraging the abundance of IoT devices by integrating connections to IoT feeds from devices. For instance, by leveraging advanced communication offered by smart phones, companies can utilize the collected insights to deliver better customer services through the help of CRM software.

  1. Mobile and Social CRM:

The advancement in mobile technology and the constant need for connectivity with the internet by the customers are also affecting the CRM industry in 2020. Experts estimate that more CRM systems will try to deliver a full experience in devices that have an internet connection, like tablets and smartphones through the help of apps. Simultaneously, these systems would not compromise the security of user data, even though they are offering complete functionality.

  1. Integrations Will Make CRM More Powerful:

Integration of new technologies into CRM system is expected to be trendy in 2020 for CRM industry. CRM companies such as Zoho are continuously adding significant integrations for updated functionality in businesses, which augment productivity along with better customer services. It is expected that CRM platforms will have more innovative integrations with different data sources and other third-party software to provide even more customer information and an extension of platform functionality. The incorporation with other business systems and data sources such as marketing automation and analytics software will enable CRM platforms to track external interactions with customers. This will result in more efficient view of customer behavior through many perspectives which will help the company to construct effective strategies.