Gartner predicts future of CRM

Enters Gartner - Future of CRM

My previous article Recession Cry & CRM helped me to dive further into the topic & I would certainly like to refer to Gartner Predictions for CRM -

Some snippets from the article -

• The business goals and challenges of customer relationship management (CRM) programmes will remain the same today as they were 10 years ago, and they will continue to predominate during the next 10 years, according to Gartner, Inc.
• CRM remains a major focus for business executives, because the goals of acquiring, developing and retaining customers in a profitable manner are timeless, said Ed Thompson, vice president and distinguished analyst at Gartner. CRM remained a top priority for CIOs in Europe who ranked CRM their No. 5 business priority in 2009.
• CRM application pricing has changed dramatically during the past 10 years, with organisations commonly paying $1,000 to $1,500 per licensed user in 2009 compared with over $3,000 at its peak in 2000. The most common pricing model is still per user, but process-based pricing, fuelled by service-oriented architecture (SOA) and software as a service (SaaS) will become commonplace by 2020, up from less than 1 percent of the time in 2009.
• Since 2000 the biggest change to technology-enabled CRM projects came with offshore external service providers. The shift to using offshore external resources for deploying CRM applications has reduced implementation costs, in most cases. More than 80 percent of CRM application implementations in the US and UK involve some form of offshore resource. Yet, in countries such as France, Germany and Japan, this figure is less than 5 percent. During the next decade, the use of offshore resources for these types of CRM projects will steadily rise as international competitive pressure increases, and the suppliers become more available.
• The worldwide CRM application software market grew at a rate of nearly 90 percent in 2000 then collapsed in 2001 bottoming out in late 2003. Since 2004, the market has grown steadily, at 11 percent to 23 percent per year.It is set for 10 percent growth from 2007 to 2012, despite the recession in2009 and knock-on in 2010. Gartner estimates that total revenue for CRM application software market in 2008 amounted to nearly $9 billion worldwide and will reach $10 billion in 2009, a 7 percent percent year-on-year increase. This includes licenses, maintenance and subscription revenues.
• Over the next decade, organisations are going to experience a shift in CRM applications, with the rise of social CRM. The ratio of operational CRM, analytical CRM and social CRM in packaged applications will shift from 90:9:1 in 2009 to 70:20:10 by the year 2020

Mads@CRM