For any business, the customer is the focal point of operations, and although the size, shape, and number of customers may vary, every business must consider their wants and needs if it wishes to stay afloat. To do this, companies attempt to establish and nurture customer relations through face-to-face interactions or writings, among other forms of contact, and record those engagements for later reference. Specialists of these processes are part of the customer relationship management (CRM) industry, which Kaulkin Ginsberg Company (Kaulkin Ginsberg) splits into two primary segments: CRM software and outsourced customer contact. CRM software focuses on tracking and recording customer outreach, whereas the outsourced consumer contact segment involves service representatives engaging customers to nurture stronger business-to-consumer relationships and assist in ongoing support.
CRM has developed into an increasingly complex and vital aspect of a business’ lifecycle. As computer systems flourished over the past few decades, affordable software allowed businesses to compile far more massive customer databases. Additionally, cultural shifts and the proliferation of social media drove businesses to explore avenues of incorporating the colossal amount of information available over the internet about existing – and prospective – consumers. Discovering, analyzing, and acting on these data through effective CRM processes may make a start-up company a new-found goliath.
Kaulkin Ginsberg assessed the total size of the North American CRM industry by first analyzing the two segments: CRM software and outsourced customer contact. As of year-end 2017, Kaulkin Ginsberg estimated the CRM software and outsourced customer contact segments to have totaled $19.4 billion and $18.7 billion in revenue, respectively, for an aggregated industry size of roughly $38.2 billion. By considering factors such as publicly held companies’ historical growth rates, advances in cloud technology, and the rise of new communication channels, the CRM industry has grown by about 5.7% since 2000. Kaulkin Ginsberg estimates the CRM industry to grow by about 3.8% annually, on average, over the next few years, amounting to about $48.7 billion by 2022.
While the CRM industry develops in North America and expands globally into emerging markets, businesses are continually changing and becoming more effective. Furthermore, the growing utilization of advanced technology systems and businesses’ increased capabilities to capitalize on modern analytics drives the interest from strategic and financial buyers for CRM companies. Kaulkin Ginsberg serves as a strategic consultant and transaction advisory to current and prospective industry executives, providing premier market intelligence and strategic insight to its clients.
Kaulkin Ginsberg enjoys a successful history of assisting CRM companies boost their operational performance and value it appropriately. Kaulkin Ginsberg is excited about the potential within the CRM industry and look forward to collaborating with owners and executives who are committed to achieving their growth and exit objectives.
If you are interested in purchasing a copy of the entire Customer Relationship Management Industry: 2018 Outlook, or would like to confidentially discuss your interests in the CRM industry, please contact a member of our strategic advisory team at email@example.com. Additionally, if you would like to receive a copy of Kaulkin Ginsberg’s Customer Relationship Management whitepaper, simply fill out the request form to the right.