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, according to Gartner, Inc. Gartner said 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.
Gartner expects CRM market growth to stay moderate in 2014, 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. In addition, the main drivers behind the hot topics in CRM ó cloud, social, mobile and big data ó are being joined by a fifth driver: the Internet of Things, where sensors connecting things to the Internet create new services previously not thought of.
Survey: Effective Customer Relationship Marketing Drives High-Growth Performance
Merkle Inc., a customer relationship marketing (CRM) firm, announced the results of a survey of 352 senior-level, US-based executives in $1+ billion organizations. The report found high-growth companies more effectively use data to segment consumers, develop insights about people's interests and behaviors and better engage with customers based upon their value than low-growth Fortune 1000 organizations.
There is a clear divide in executive attitudes toward CRM between high-growth and low-growth organizations: low-growth organizations donít see the strategic value of CRM. Conversely, high-growth organizations are 50 percent more likely to see CRM as a "critical way of life", are 3.2X more likely to have top CRM talent and are 2.4X more likely to have top CRM capabilities than low-growth organizations. CRM success rates are still too low as two out of three initiatives (63 percent) fail the organization and/or its leader. Across all organizations, one in two initiatives suffer due to lack of clear organizational ownership of customer insight (53 percent), while two of five suffer due to lack of management bandwidth (43 percent), lack of executive sponsorship (38 percent) or the fact that CRM is not an IT priority (38 percent).