New Gartner research reveals CRM software revenue grew 12.5% in 2012. This growth provides optimism that B2B marketers could continue to benefit from new software offerings and enhanced functionality as competition in the CRM space heats up.
This competition has also lead to consolidation and acquisition in the marketplace, as the top five CRM vendors accounted for nearly 50 percent of CRM software revenue in 2012. Larger vendors are getting into the marketing software mix as well; IBM, Microsoft, and Oracle all made acquisitions in marketing last year.
“With corporate cash at all-time highs, many vendors are willing to pay high premiums to acquire specific technologies and expertise in an increasingly dynamic and competition CRM environment,” said Joanne Correia, vice president at Gartner, in a FierceEnterprise Communications article. Analytics, lead quality, and multichannel support for social and mobile technologies continue to lead the list of requirements of buyers.
The adoption of Software-as-a-Service (Saas)-based CRM models was a key factor driving growth as well. According to a recent article from Forbes, this type of growth was driven from the fact that enterprise clients were seeking out easier-to-deploy CRM systems to replace legacy systems. Gartner research showed that 40% of all CRM software sold in 2012 worldwide was Software-as-a-Service (Saas)-based. With Salesforce.com replacing SAP as the largest vendor in the CRM market, cloud-based CRM systems seem to be key to staying competitive in the space.