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