Customer Relationship Management (CRM) - Market For Crm

MARKET FOR CRM

A mid-2001 report from eMarketer noted that businesses spent $3.9 billion on CRM software in 2000 and projected that they would spend $10.4 billion in 2001. eMarketer also estimated that for every dollar spent on CRM software, an additional $3 was spent implementing it. An earlier study from AMR Research and reported by eMarketer put worldwide CRM software revenue at $5.4 billion for 2000 and projected $7.9 billion in revenue for 2001, $11.5 billion for 2002, and $16.8 billion for 2003. The same study pegged revenue from worldwide CRM services at $67.4 billion in 2001, $74.4 billion in 2002, $97.8 billion in 2003, and $125.2 billion in 2004. According to a study by Ovum, in 2000 companies in North America spent $1.18 billion on e-commerce CRM, compared to just $100 million in Europe and only $30 million in Asia.

According to a mid-2001 study by Jupiter Media Metrix, three-fourths of all U.S. businesses were planning to increase CRM infrastructure spending by 25 to 50 percent in 2001. The number of online customers needing service was projected to increase from 33 million in 2001 to 67 million by 2005, thus making the investments a necessity. Jupiter, which hosts a national CRM forum called "Connecting with Customers," warned companies against implementing a Web-only CRM system, or they would fail to build a consistent customer experience across all channels.

A March 2001 study of chief information officers (CIOs) from investment brokerage Morgan Stanley Dean Witter suggested that CRM was the most popular enterprise software application for 2001. The study found that customer service applications were the least likely of 33 possible IT spending categories to be cut during an economic downturn. For the same period in early 2001, leading CRM solutions providers such as Siebel Systems reported significant revenue increases over the previous year, with a great share of sales, sometimes the majority, coming from new customers.

A mid-2001 study by Forrester Research reported in InfoWorld found that 45 percent of the Global 3500 firms surveyed were considering CRM projects, and that 37 percent had CRM installations completed or in progress. The study also found that a typical firm would spend $15 million to $30 million per year on software and services to improve communications with customers.