CAS has created specialized industry insights for each of our main outsourced business services sectors (Accounts Recievable Management, Revenue Cycle Management, Customer Relationship Management, and FinTech/Debt Settlement) to provide easier access to relevant information for our publics.
Read the full CRM insights here.
Embracing the omnichannel focus across a variety of end-markets is shaping the CRM industry.
Spurred in large part by the COVID-19 pandemic and its impact on the way businesses operate, CRM software is now the largest software market in the world, with the industry expected to reach a value of $80B in revenues by 2025. Some of this growth can be attributed to more willingness amongst businesses to adopt new software, and also continued employee acceptance of accelerated technology models. Companies have begun to recognize the value of CRM software as well. According to Forester, 50% of teams have increased their productivity due to CRM adoption, and 65% of companies using mobile CRM have reached their sales quotas, compared to 22% using non-mobile CRM.
Operators in the telemarketing and contact center industry provide clients with inbound call services, including technical support and customer assistance, as well as outbound services, such as fundraising and debt collection. The industry standard continues to follow the path of technological advancements including cloud-based systems, voice-recognition software, and Artificial Intelligence. As a result, over the next five years to 2025, IBISWorld forecasts industry revenue to reach $27.2B, a 2.3% increase annually. Additionally, a key trend within the call center space has been increased call volumes leading to lower satisfaction rates, with 40% of customers waiting five minutes or longer on hold before speaking to a live representative in direct banking. Studies also show that on average, customer satisfaction scores drop 34 points when on-hold for longer than four minutes. Consequently, there is pent-up demand for providers that are able to support higher call volumes and has further accommodated the shift to automation to increase efficiency.
COVID-19 has rapidly transformed the healthcare CRM industry, as healthcare institutions hone in on providing patient-centric service. Healthcare companies with large patient bases have found personalizing communications extremely difficult since the pandemic began, as many lack the proper systems integrations or automated processes. Many companies already had electronic health records (EHR) software, which manages needs from a clinical standpoint, however its lack of flexibility and enterprise support has led firms to look elsewhere.
Healthcare CRM software such as Salesforce have not only provided an email solution that meets needs, but also many companies have integrated its EHR with Health Cloud. Health Cloud offers a more complete view of the patient across offices and improves the overall patient experience. Through this CRM utilization, call center agents can have seamless access to the patient’s information when the call is placed, helping to solve examinations more efficiently. The CAGR within the Healthcare CRM market, accelerated by COVID-19, is expected to be 14.6% through 2023, resulting in a market size of $17.4B annually.
Software as a service (SaaS) is revolutionizing the cloud computing market, as a companies and organizations seek out more accessible and versatile software solutions. Gartner forecasts that the service-based cloud application industry will be worth $138.26 billion by 2022, setting the stage for 2021 to be a year of even greater growth. No industry has been shaped by cloud-based SaaS more than the call center space, which has realized numerous benefits from this shift.
One such shift is the adoption of omnichannel and multichannel communications. Omnichannel CRM allows for consistent and seamless interaction with customers through their preferred channels, be it mobile, call center, online, text, email, or live chat. One platform, Nextiva, helps business provide omnichannel customer support through a fully integrated customer helpdesk, live chat, voice, and SMS into a single dashboard. As a result, the same customer service agent can communicate with a single customer across all channels, leading to greater customer satisfaction and efficiency.
Q1 2021 began with strong M&A activity within the CRM and call center technologies industry. A number of CRM software companies announced their respective funding rounds, including CloudTalk, which will utilize the funding to continue scaling its operations, and product offering. The most notable M&A market activity in the CRM sector was the TTEC acquisition of Avtex, a CX technology leader, positively positioning TTEC for the future of end-to-end digital customer experience solutions. The acquisition will also increase TTEC’s CX addressable market from 25% to more than 50% coverage. Another significant M&A transaction in the industry, Quisitive completed the acquisition of Mazik Global Inc., an independent software vendor (ISV), that assists companies with the implementation of Microsoft Dynamics CRM, Cloud, and ERP solutions. While Mazik offers healthcare, public sector, education, and manufacturing industry solutions, its healthcare application, VaccineFlow, is the most lucrative aspect of the deal, for its electronic medical records (EMR) management for vaccinations.
Geographic market activity in Latin America and Central America is expected to continue its upward trajectory in 2021, offering a great deal of growth opportunities for companies seeking inorganic expansion in the CRM market. Much of the regional growth is due to Brazil’s rapid adoption of CRM, and overall institutional investments in IT. One company that has reaped the benefit of the Latin American advancement in CRM is Atento, which has captured 16.7% of the Latin America CRM market share, according to an annual study performed by Frost & Sullivan.
Automated CRM has been implemented across a variety of businesses and organizations in all industries. While the benefits can be realized within organizations of any size, the adoption rate of larger organizations has been much higher. According to CRM Magazine, 91% of companies with 10 or more employees have a CRM system. However, only 40% of companies with CRM have end-user adoptions rates above 90%. Therefore, as the CRM market continues to grow in 2021, more companies will find it effective to continue enforcing and encouraging employees to adopt CRM systems. This will certainly have a positive impact on business operations and reduce the existing disconnect between company objectives and employees.
Continue to the full CRM insights here.