Gartner reports that CRM software revenue to reach $23.9 billion in 2014
According to Gartner, organizations are leveraging CRM technologies as a major part of their digital initiatives to enhance the customer experience.
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.
Joanne Correia, RVP, Gartner, said, “CRM will be at the heart of digital initiatives in coming years. This is one technology area that will definitely get funding as digital business is crucial to remaining competitive. Hot areas for CRM investment include mobility, social media and technologies, Web analytics and e-commerce.”
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 set to reach 50 percent during 2015.
Ed Thompson, VP and distinguished analyst, Gartner, said, “Unsurprisingly, high-tech, banking, insurance, securities, telecommunications, pharmaceutical, consumer goods, IT manufacturing and IT services vertical industries will continue to be the largest spenders on CRM as they have the widest use of different types of CRM applications and technologies. All these industries are also increasing investment in emerging economies, further driving spend.”