CRM set for significant growth despite economic slowdown

The jury may still be out on whether the UK really is heading into a recession but there is no doubt that the economy is slowing down across EMEA and that spending on IT will be hit.

Interestingly though, one segment that is predicted to grow is customer relationship management (CRM), with AMI-Partners Research estimating that the global CRM market will increase at an average annual rate of 13% from 2007 to 2012, to reach $3.7 billion in 2012 - and that's despite the current financial downturn.

So why is CRM bucking the trend? Vivek Thomas, Managing Director, Maximizer Software, believes CRM is increasingly being seen as a valuable tool not just in helping organisations to win new customers - and keeping them satisfied once they are on board - but also delivering on business goals when times are tough.

Even during boom times, CRM should be at the heart of an organisation's business development and growth strategy - and is absolutely vital in an uncertain economy.

Gaining new customers is imperative but it must not result in neglect of the existing business base. CRM's ability to focus on best practice and optimise customer relationship processes is invaluable. This is particularly appropriate to small to medium-sized companies, which recognise modern CRM as a means of going beyond merely managing customer relationships, contributing to all areas of the business, Thomas says.

"This is the differentiator that now sets modern CRM apart as a value centre, in contrast to conventional, silo CRM which did little more than facilitate the collection of information surrounding customer engagements. Incorporating people, process and technology in an effective strategy that focuses on getting the best out of hard-pressed sales and marketing resources are vital in the current economic landscape and will play a major role with astute organisations in weathering the economic storm," Thomas adds.