CRM SOFTWARECustomer relationship management software (CRM) helps businesses track and manage sales interactions in a single system of record. A CRM will record interactions between business, prospects, and existing customers.
CRM solutions are gaining pace in the current enterprise ecosystem. With the boom of social media, enterprises are adopting social integration with CRM software as well, thus making way for social CRM as a new channel nowadays. Social CRM solutions combine traditional CRM solutions with social media for improving customer engagement for enterprises. The solution provides a social platform for evolving businesses CRM needs, while also offering flexibility, in terms of reach, deployment, and administration. Social CRM incorporates the customer decisions into the planning mix and the feedback loop so as to engage customers with the enterprises.
Customer Relationship Management has become a vital part for various functions across global enterprises. Advancements in Social CRM have made it faster, reachable and have also brought in vital information on business analytics. Enterprises are adopting social CRM as an additional channel in the overall CRM software solutions. Social CRM refers to a social layer on top of tradition CRM software solutions; these solutions provide enterprises with several advantages including increased transparency, better communication of business ideas and information, flexibility and performance. Social CRM helps companies to establish customer engagements and increase their brand presence among customers. Social CRM focuses on capturing the customers need and creating value for them in a transparent business environment.
Major forces driving this market are the rising focus on customer engagement, emerging SMEs, social platforms and the recognition of sharing ideas on a real time basis. Enterprises are coming up with solutions for Social Monitoring, Social Listening, Social Middleware, Social Management and Social Measurement for providing the best in class customer experience to the customers. Today, Customer Relationship Management market is not limited only for increasing sales and improving marketing activities, but to bring in more customer engagement with the enterprises.
The market is segmented on the basis of application, end-user and geography. The largest markets for CRM software include North America and Western Europe while China and Latin America project a dynamic growth in the CRM software market.
One of the key factors behind the growth of CRM is accessibility. Companies want access to customer data in real-time, with mobile and cloud solutions leading the way.
From customer service and email marketing to personalization, companies now expect to be able to connect platforms and technologies with customer data, in order to provide a more personalized experience.
COMPETITIVE LEADERSHIP MAPPING TERMINOLOGY
25 companies offering CRM Software were analyzed, shortlisted and categorized on a quadrant under Visionary Leaders, Innovators, Dynamic Differentiators, and Emerging Companies to identified best CRM Software providers.
Salesforce, Hubspot Inc, Freshworks, Zoho Corporation, Pipedrive Microsoft Corporation, Zendesk, Nimble and Insightly have been identified as visionary leaders as they have established product portfolios and a robust market presence and business strategy. These companies are best CRM Software providers.
Oracle Corporation, SAP SE, Bitrix24, Apptivo and Pegasystems have been identified as innovators as these vendors have a very focused product portfolio. However, they do not have very strong growth strategies for their overall business.
Adobe Systems, QSOFT, Verint Systems, Norada Corporation, Infusion Software and Vtiger CRM have been identified as emerging companies. They do not have very strong business strategies as compared to other established vendors. They might be new entrants and require some more time before gaining significant traction in the market.
Pipelinedeals, Pipelinersales, Nice Systems, Agile CRM, Nutshell and Zestia Ltd have been recognized as dynamic differentiators.
The competitive leadership mapping (Quadrant) showcased below provides information for 25 major players offering CRM Software. Vendor evaluations are based on two broad categories: product offering and business strategy. Each category carries various criteria, based on which vendors have been evaluated. The evaluation criteria considered under product offerings include breadth of offering, delivery (based on industries that the vendors cater to, deployment models, and subscriptions), features/functionality, delivery, product quality and reliability, and product differentiation. The evaluation criteria considered under business strategy include geographic footprint (on the basis of geographic presence), channel strategy and fit, vision alignment, and effectiveness of growth (on the basis of innovations, partnerships, collaborations, and acquisitions).
Vendors who fall into this category generally receive high scores for most of the evaluation criteria. They have a robust and established product portfolio and very strong market presence. Moreover, these vendors also have strong business strategies. This category includes vendors such as Salesforce, Hubspot Inc, Freshworks, Zoho Corporation, Pipedrive Microsoft Corporation, Zendesk, Nimble and Insightly.
Innovators are vendors who have demonstrated substantial product innovations as compared to their competitors. They have a focused product portfolio. However, they do not have very strong growth strategies for their overall business. Ths category includes vendors such as Oracle Corporation, SAP SE, Bitrix24, Apptivo and Pegasystems.
The dynamic differentiators category includes established vendors with very strong business strategies.However, they are low in product portfolio. Ths category includes vendors such as Pipelinedeals, Pipelinersales, Nice Systems, Agile CRM, Nutshell and Zestia Ltd.
Emerging companies’ category comprises vendors with niche product offerings, who are starting to gain their position in the market. They do not have very strong business strategies as compared to other established vendors. They might be new entrants in the market and require some more time before getting significant traction. This category includes vendors such as Adobe Systems, QSOFT, Verint Systems, Norada Corporation, Infusion Software and Vtiger CRM.
Apart from the major applications, there are some emerging applications where CRM and social CRM software are being utilized such as innovations, enterprise collaboration, extended collaboration, and customer experiences. These applications will grow to be a major part of the overall market along with the emergence of the social CRM channel.
CRM SOFTWARE MARKET SEGMENTATION
The market is segmented on the basis of Application, End-user, and Geography.
MARKET BY APPLICATIONOn the basis of application CRM Software market is segmented into: Customer service, Distribution, Manufacturing, Marketing, Sales, Social networking, Supply chain and Vertical industries
MARKET BY END USEROn the basis of end user CRM Software market is segmented into: Small & Mid-sized Enterprises and Large Enterprises
MARKET BY GEOGRAPHYOn the basis of regions CRM Software market is segmented into: North America, Europe, Asia Pacific, Latin America and Middle East & Africa
Use Case #1. CRM for improved sales administration
CRM tools allow to automate sales workflows so as to add stability and speed up sales activities. Additionally, a CRM system can be used by sales managers to set sales goals and track their fulfilment, as well as to visualize progress for assignees to keep them motivated. CRM data can help sales managers to:
- Indicate top and weak performers
- Spot specific sales performance problems and their reasons
- Identify poor and strong strategies across the sales cycle
Use Case #2. CRM for shield against rivals
Customer loyalty is put to the test every time a competitor launches an aggressive marketing campaign. Strong customer relationships are the best shield against attacks on a company’s market share. According to Rockefeller, 82% of customers switch brands because they don’t feel care. Consequently, customized communication with customers today can be a source of a future competitive advantage.
With a CRM system, such personalization takes reasonable efforts. CRM consultants suggest starting the journey with prioritizing 360-degree customer profiles. Those should accumulate data from sales force and customer service reps at all touchpoints, as well as analytical insights based on customers’ purchase and browsing history and social network activities.
Knowing the customer well allows a company not only to exclude irrelevant communication (duplicate emails, irritating surveys) but also to provide exceptional service at every stage of the customer journey. For example, a service assistant instantly learns the details of the customer’s purchase via CRM, or a sales person shows care with a customer call after an issue is fixed by the support center.
Use Case #3. CRM for strategic marketing
Abundant CRM data makes it helpful at the pre-sales and post-sales stages as well. Customer sentiment gathered by sales people and via surveys can hint the marketing department at the market opportunities (like, the idea of a new or complementary product/service, improvements to the current offering). Automated to some extent, CRM data analysis will help to timely identify market trends and levels of interest in the company’s products. Subsequently, marketers can use these insights to adjust the marketing strategy.
Also, in-CRM analysis of customer data can be used to narrow down customer segments and target them with more precise messages. And finally, with certain analytical factors introduced to the system by CRM consultants, marketers will be aware of the results of their marketing efforts in terms of revenue and pipeline activity. Fact-based analysis of marketing campaigns, identification of the best performing channels and even ad messages – that’s the basis for future marketing improvements.
Use Case #4. CRM for proactive strategic management
Whether it’s about entering a geographic market, launching a product, or surviving competition, CRM enables the executives to detect problems early, before a company loses money and customers. Changes in lead generation and their pipeline movement, a slowdown in loyal customers’ response – these are signs to launch a dynamic in-CRM analysis to find out the reasons for dwindling results. With custom dashboards tailored to executive roles, CEO, CFO, CMO, VP of Marketing, or VP of Sales will be able to monitor key indicators they need so as to make more informed decisions.
Use Case #5. CRM for increasing profitability
In-CRM customer data analysis lets a company know more about their most lucrative customers so as to maintain relationships with them. Monitoring of the high-LTV customers’ purchase history and responses to sales and marketing activities will help to timely react to negative signs and as a result better retain such key customers.
Company executives, in their turn, can use CRM data to forecast revenue and manage profitability. Broader goals for increasing revenue and decreasing costs can be split into smaller ones and monitored in the CRM system. For example, to increase cash inflow, a company can set cross-selling and upselling targets. At the sales agents’ level, best practices visible for weaker performers in a CRM will let them convert more leads, while automated nurturing notifications will save all sales agents’ time, allow processing of more leads per quarter, and as a result raise returns on the employment costs.
Below listed are the verticles where CRM is used -
ACADEMIA AND GOVERNMENTScope of Social CRM software usage within government organizations is much broader as compared to private firms, due to their commitment of providing high level of service and receptiveness to its customers, keeping profit motive aside.
AUTOMOTIVE, TRANSPORTATION AND LOGISTICSAutomotive, Transportation and Logistics vertical is among the most dynamic and fast growing vertical today. CRM software solutions cut down the operating costs of processes by optimizing business processes, effectively planning of services and controlling quality. It manages the various documents associated with transport activities, executes the transport requests and assesses the vehicle amortization.
BANKING, FINANCIAL SERVICES AND INSURANCE (BFSI)BFSI companies are trying to connect to young and tech savvy customers through social networking sites for better social CRM processes. ICICI bank has started a Facebook application which lets its customers to directly perform any banking transaction. CRM solutions enable structural classification of information for providing configuration with business workflows.
CONSUMER GOODS AND RETAILThe Social CRM helps Consumer Goods and Retail industries to analyze market data, assess and monitor consumer social behavior, and offer direct engagement with customers. This enables enterprises to promote a positive brand image. It also helps enterprises to resolve concerns pertaining to Goods and Retail industries such as increased need for customer involvement, compliance and safety issues with the increased demand for environment friendly products and facilities, extensively distributed workforces and partners, and the need for better supply chain efficiency.
ENERGY, POWER AND UTILITIESCRM and social CRM solutions reduce overhead costs and delay in marketing, as well as support and service, by simplifying and automating processes. It also helps in collaborating social interface with the customers in Energy, Power and Utilities sector.
HEALTHCARECRM and social CRM solutions facilitate effective customer care service in the healthcare vertical by providing an intuitive and modular framework to the enterprises. It includes channels such as email, chat and social media. Customer care executive can act in response to customer’s requests by accessing a centralized database which contains articles and information from online sources.
OIL AND GASThe Oil and Gas vertical have a huge requirement of proper communication channel amongst owners, operators and vendors. They also have requirements across various functions such as marketing, sales and support. CRM and social CRM software serves this basic purpose along with the added advantages of managing unstructured information of these massive lifecycle processes and offering secure and speedier search option to track data.
TELECOM AND ITTelecom companies continue to deal with unbending revenue targets spread across vast number of departments, systems and regions. CRM & Social CRM helps telecom companies capitalize on account potential, increase overall customer satisfaction and improve revenues, by restructuring processes and consolidating customer data on a technology platform.
Top CRM trends
- CRM is a competitive, growing space. Everyone talks about providing best-in-class customer experiences, about CRM strategies and solutions, and about the vital role CRM plays in catapulting companies forward as marketplace demands intensify.
- Business revolves around the customer today more than ever. So, it’s no surprise customer experience is predicted to become the top brand differentiator by 2020.
- 84% of consumers value the experience they have as much as the product or service a company offers. CRM adoption will grow at 13.5% CAGR over the next three years
- AI is not only here, it’s on the path to major growth, according to Salesforce research. AI use cases would go up 257% over the next two years.
- Mobility has long been a central component of sales activities. But that doesn’t mean mobility is a bygone trend. If anything, as processes become more involved, the workforce becomes more scattered and buyer demands place more pressure on sales reps to perform, putting the power of CRM into the palm of your workforce’s hand will only serve to propel your brand further down the road to success.
- As the customer experience bar raises to new heights, social media has become a focal point. Positive social media interactions make people 7x more likely to purchase. Social channels allow companies to connect with their audience in real time and build brand equity where prospects and customers are already spending time. It also enables one-to-one marketing and the personal attention customers crave.
- The internet of things (IoT) also presents substantial integration possibilities. The number of IoT connected devices is projected to climb from 22 billion in 2018 to 39 billion by 2025. Furthermore, CRM systems are beginning to incorporate connections to IoT feeds. IoT/CRM integration will allow companies to take advantage of feeding more data into the system for deeper insight that leads to more strategic marketing efforts.
- The relatively recent development is the biggest opportunity moving forward for CRM users and vendors is that the CRM will be really helpful in organizing and planning the internal department activities. And it applies not to how CRMs can aid customers but to how they can streamline internal activities.
- CRM trends are like ocean breezes — the companies that stay aware of which way the wind is blowing can manoeuvre so they’re better positioned to sail toward success. Marketing organizations are expected to use data from 15 sources in 2019
Frequently Asked Questions
Partnerships & Collaborations
Merger & Acquisitions
Industry VerticalsBFSI | Healthcare | Oil & Gas | Retail | Transportation & Logistics | Real Estate | Government, Defense, & Public Sector | IT & Telecom | Manufacturing | Education | Media and Entertainment | Travel & Hospitality |
Source of Sales by % of contributionDirect | Distributors / VARs / OEMs | Agencies & Consultants | Managed Service Providers | System Integrators / Builders |
Channels of DemandWeb Search | Digital Marketing | Field Sales | Events |
GegraphiesUSA | Canada | Latin America | UK | Germany | Eastern Europe | Western Europe | Africa | UAE & Middle East | Israel | India & South Asia | China & HK | SEA & Singapore | Japan | Australia & New Zealand |
SupportSystem Integration | Maintenance & Troubleshoot | Live Support Chat | Ticketing | Consulting |
DeploymentCloud | On-Premise | Hybrid |
Features and Functionality
Sales AutomationContact Management | Quote Management | Opportunity Management | Forecastig & Tracking | Track Customer Feedback | Product & Pricing Management | Contract Management |
Reporting & AnalyticsCustomizable Reports | Interactive Dashboards | Revenue Analytics | ROI Analytics | SEO / Keyword Analytics |
Platform FeaturesWorkflow Capability | Customization | Performance Management | Internationalization | Test Environments | Content Management | Output Documentation | Real-Time Process Monitoring | APIs | User, Role, and Access Management |
Mobile & SocialSocial Network Integration | Mobile User Support | Social Collaboration Features |
Marketing AutomationUser tracking capabilities | Marketing Campaigns | Email Marketing | Campaign Management |
Integrated WorkflowsData ImpEx Tools | Email Tracking/Automation | Partner Applications | CRM Integration | Task Management | Calls and Voice |
Customer Support FunctionsCustomer Support Site | Knowledge Portal | Support Analytics | Case Management | Customer and Contacts Database | Interactive Voice Response (IVR) | Make, Receive, and Record Calls | Products and Version Tracking | Call Scripting |