CRM software revenue reached the $12 billion mark in 2011, according to an by the research firm Gartner. That is a revenue boost of 13.5 percent, making CRM number 8 on the technology priority list for businesses, up from number 18.
The numbers only reveal part of the story. To understand why CRM purchases increased so dramatically last year, Gartner asked chief executives of numerous companies to shed some light on the CRM boom. CEO respondents revealed that CRM is their most important investment for improving their companies over the next five years.
One could argue that this surge in CRM interest is long overdue. After all, CRM (customer relationship management) is all about relating to customers, and many enterprises have failed to adequately understand and relate to their customers, particularly during these tough economic times.
One way in which businesses can change that trend is by incorporating more social media elements, says Gartner. By 2014, the research firm predicts that the inability or refusal of a company to communicate with customers through social media will be as harmful as ignoring their emails or phone calls. It is, therefore, no surprise that CRM vendors have begun to integrate social media into their software, and is a prime example of that transition.
"The focus on the customer is increasingly important for business leaders, despite times of continued economic uncertainty and government austerity," said Jim Davies, research director at Gartner.
Cloud computing will also play an important role, as business employees become increasingly more mobile and need to be connected to their business apps wherever they go. Microsoft in particular is leading the way in providing software-plus-service, both on-premise business management applications and innovative cloud computing technology.
Want to see how Microsoft Dynamics CRM can improve your business in the next 5 years? Read some and .
By PDG Consultants,
