CRM to Be a $96.4 Billion Business by 2027
Allied Market Research expects the worldwide CRM market to reach $96.4 billion by 2027, expanding at a compound annual growth rate of 11.1 percent. It valued the market at $41.9 billion in 2019.
The firm cites a number of factors for the growth, including the following:
- Growing demand for customer retention and loyalty.
- Increasing adoption of cloud-based CRM, which AMR says offers “easy accessibility, scalability, and affordability.”
- Emergence of social CRM to interact with customers, monitor brand reputation, and gather customer feedback.
- Integration with AI to automate repetitive tasks, personalize interactions, and gain insights from customer data.
- Need for omnichannel customer experience, including phone, email, social media, and chat.
At the same time, the firm cites high implementation costs; issues integrating CRM systems with other business applications, leading to data inconsistencies and errors; data privacy concerns; resistance to change; and complexity as key factors that will continue to hinder further growth.
But in general, the market is flourishing as organizations shift their focus to improving customer experiences, AMR notes. “Organizations are increasingly focused on providing exceptional customer experiences, which has led to the adoption of CRM solutions that enable organizations to provide a personalized and seamless experience across all touchpoints,” it states.
Priorities moving forward for the CRM industry will include mobility, as companies look to enable their employees to access customer information and perform tasks on the go; data analytics; personalization; virtual and augmented reality; and subscription-based pricing models that enable organizations to pay for CRM solutions on a monthly or annual basis rather than making large upfront investments, AMR says.