CIOs ranked customer relationship
management (CRM) as their No. 8 technology priority for 2012, according to a
global survey of CIOs by Gartner, Inc.'s Executive Programs. CRM moved up from
the No. 18-ranked technology in 2011.
Additionally, Gartner’s 2012 CEO
Survey found that CEOs cited CRM as their most important area of investment to
improve their business over the next five years. Gartner predicts that by 2014,
refusing to communicate with customers via social channels will be as harmful
to the relationship as ignoring their emails or phone calls is today.
Gartner said
worldwide CRM software revenue reached $12 billion in 2011, a 13.5 percent
increase from 2010, and it is forecast to grow 7 percent in 2012. Gartner
analysts added that a growing percentage of this revenue is accrued through
software as a service (SaaS) and cloud computing. In 2011, SaaS accounted for
32 percent of the CRM software market and is expected to grow 16 percent in
2012.
As competition intensifies, service
providers will either have to grow their own CRM practice to incorporate cloud
computing, social CRM, digital media and mobility -- or they will have to form
partnerships with specialist vendors. Service providers that are still focusing
on traditional on-premises CRM solutions today will gradually lose out to the
competition during the next one to two years.
More information on service, support and CRM can be found at www.SupportIndustry.com
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