Gartner indicates that SAP and Oracle with Siebel jointly hold more than 50% of the total European CRM software market and Microsoft is experiencing the fastest CRM growth in Europe. Software as a Service CRM systems currently make up about 5% to 8% of Europe's growing CRM market, however, continue to grow near 40% per year, which gives Salesforce.com an opportunity to delay or displace Microsoft Dynamics CRM and continue its SaaS leadership. This CRMsearch channel focuses on regional advancements, industry research, expert insight and peer advice for the European Union CRM software market.
Europe CRM Software Market
While the U.S. is the global leader in Customer Relationship Management software adoption, research firm Datamonitor projects that the European Union and Western Europe are set to grow at 22% annually, possibly eclipsing the U.S. enterprise software market and representing the next large regional opportunity for CRM software vendors and consulting firms.
While overall CRM adoption throughout Europe will grow only slightly - about 0.7% - according to a 2010 Gartner report, CRM sectors such as software as a service, social CRM and customer analytics will enjoy accelerated growth. “In terms of growth opportunity in the market, SaaS solutions, e-commerce and CRM analytics will continue to see strong demand” says Chris Pang, Gartner analyst.
Western European retailers are attracting shoppers through smart inventory choices, competitive pricing – and integrated CRM software with social CRM. In this article, analysts Forrester and IDC forecast the retail outlooks in the European Union and comment on the need for increased integration between CRM and POS, ERP and other business systems.
Research from Gartner and Forrester shows that CRM software adoption in Europe varies significantly by North/South regions and individual countries. While SaaS CRM continues to show significant growth, regulatory and data privacy concerns for business applications hosted outside Europe linger among CRM buyers.
IDC predicts that 50.3% of European employees will be mobile workers by 2013 – and that means European businesses must find CRM systems that leverage mobile solutions to deliver customer account information, inventory availability, order status, payment history, product specifications and more in order to provide the level of service to meet staff and customer expectations.
Do Europe and the U.S. differ in their approach to Customer Relationship Management and what can be said about differences in user preferences for software solutions? A lot can be said about these questions. This U.S. and European CRM comparison begins a discussion on transatlantic similarities and differences around CRM.
Europe CRM Thought Leadership Views
UK High Street Gambling With Stock Shortages During Crucial Christmas Shopping Period
One in three UK retailers prefers to risk running out of stock at Christmas rather than incur excess inventory levels, according to survey research sponsored by cloud-based ERP software vendor NetSuite. One-third of respondents have kept inventory levels low in response to the economic climate. 44% say they will be keeping stock levels very tight even in the run up to Christmas. Go To ...
Europe CRM Market Briefs
European Software Market Increasingly Fragmented
The slow rebound of the enterprise software market in Western Europe — which in 2011 began only a mild recovery — is in striking contrast with Eastern Europe and the MEA region — however, the divide will ultimately disappear. Gartner analysts comment that Eastern Europe is proving to be a highly volatile region with a boom and bust tendency, which can bring huge gains to companies that invest during good years (i.e., 2007 and 2008) but great pain in years of recession (e.g., 2009). "The story in Western Europe at the moment is the duality of the situation with Germany leading the rebound, France following behind, and the U.K. and the Nordic countries showing promising prospects, while Ireland, Spain, Portugal and Greece are still struggling with weak performances," commented Fabrizio Biscotti, research director at Gartner Europe. "This is leading to a 'polarization' of performances in the software market, with the countries that are leading the recovery being more proactive on the software purchase front while those that are still languishing in recession are missing out on the more innovative software investments ... this could lead to an even larger gap between the size and growth rates of the software markets in these of countries."
UK Companies Need Improvement in Multi-Channel Customer Service
The nGenera Online Customer Service Index report, based on a mystery shopper survey of 100 major brands in the UK, reveals that top brands and government have hit new lows in their delivery of multi-channel customer service. The benchmark index calculated an average score of just 33% for effective online customer support using the website, emails and chat. Only 3% of companies offered multi-channel support including email, an online help section and live chat. The study assessed the availability of multiple support channels, the personalisation and timeliness of responses, and the accuracy and clarity of responses. Companies were selected from retail, financial services, public sector, utilities, travel and leisure industries. Retail was the highest performing sector with a score of 39%, followed by travel and leisure (36%) and utilities (33%). Government scored just 29%, slipping slightly ahead of financial services at the bottom of the Online Customer Service Index with 28%.
EuroCloud is a fairly new group, founded in 2009 by Pierre-José BILLOTTE, Founder & Chairman of the French ASP forum. The professional association seeks to become a the pan European Cloud Computing business network. The organization has local chapters in most European countries, collaborates continent wide and offers special programs, such as Congress and CloudCamp, in various locations or times of the year.
The picture in Europe is very fragmented. Our research shows that growth in spend on CRM software correlates strongly with economic growth measures such as gross domestic product. GDP growth in countries such as Italy and Germany remains lower than the rest of the world, while market growth in countries such as the UK, Sweden, Norway and Denmark has been more consistent with that in North America. This means we are seeing CRM growth rates ranging from a slight negative to more than 27% depending on the individual country."
~ Chris Pang, Gartner Senior Analyst
Europe CRM Forecasts
The European Union and surrounding European states continue their adoption of customer relationship management systems.
A Cahners research survey shows that the UK leads Europe in forecasted CRM implementations with 29% of respondents noting they plan to implement CRM systems. Spain followed the UK with 19%, followed by Scandinavia at 16%, Italy at 13%, France at 11% and Germany at 9%. Survey results also indicated that the telecommunications and consumer packaged goods industries project the largest CRM growth with the health care and automotive industries following close in tow.
IDC forecasts the global SaaS industry will increase sales from $13.1 billion in 2009 to $40.5 billion in 2014, and that the 2010 shift to subscription software will result in a $7 billion decline in world-wide traditional software license revenue. The research firm indicates Europe, the Middle East and Africa account for just a small piece of the SaaS market, 13% in 2009, versus 74% in the Americas. By 2014, IDC projects the region will increase its share of such sales to 35%.
Despite increased CRM adoption in Europe, Gartner's most recent IT outlook is bleak. The analyst firm states that Europe, the Middle East and Africa (EMEA) incurred a 1.4% decline in enterprise IT spending in 2011 at $835.3 billion, and further projects that Western Europe will continue to slow EMEA growth through 2015. "The second recession is about to hit and CIOs must decide which way to turn," advised Peter Sondergaard, SVP and global head of Research at Gartner.
Forrester reports that 47% of North American and European enterprises have already implemented a CRM solution in the form of marketing, sales and customer service.