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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 SOCIAL CUSTOMER RELATIONSHIP MANAGEMENT (CRM) MARKET BY SOLUTION (SOCIAL MONITORING, SOCIAL LISTENING, SOCIAL MAPPING, SOCIAL MEASUREMENTS, SOCIAL ENGAGEMENT, SOCIAL MIDDLEWARE), BY DEPLOYMENT (HOSTED, ON PREMISE) GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2015 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, describe, and forecast the global social customer relationship management (CRM) market on the basis of applications, solutions, deployment modes, end users, and verticals To provide a detailed information regarding the major factors (drivers, restraints, opportunities, industry specific challenges, imperatives, and burning issues) influencing the growth of the market To strategically analyze micro markets with respect to individual growth trends, future prospects, and contribution to the total market To analyze the opportunities in the market for stakeholders and to detail a competitive landscape for market leaders To forecast the size of market segments with respect to five main regions, namely North America (NA), Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America (LA) To strategically profile key players and comprehensively analyze their market shares and core competencies To track and analyze competitive developments such as joint ventures, mergers and acquisitions, new product developments, and research and developments in the social CRM market 1.2 MARKET DEFINITION Social CRM has become a vital part of various functions across global enterprises. Advancements in social CRM have made it faster and reachable and have also brought in vital information on business analytics. Enterprises are adopting social CRM as an additional channel in the overall CRM software solutions. Social CRM refers to a social layer on top of traditional CRM software solutions; these solutions provide enterprises with several advantages including increased transparency, better communication of business ideas and information, flexibility, and performance. Social CRM helps companies to establish customer engagements and increase their brand presence among customers. Social CRM focuses on capturing the customers need and creating value for them in a transparent business environment. Social CRM has magnified the scope of marketing for enterprises by significantly improving marketing functions and execution. It leverages and amplifies customer interaction through effective and efficient marketing. It includes marketing strategies such as direct marketing, web marketing, and marketing. It also helps in increasing response rates in marketing campaigns along with cost cutting on promotions and providing higher security on organizational investments. Apart from major functions, there are some emerging areas where social CRM software systems are being utilized such as innovations, enterprise collaboration, extended collaboration, and customer experiences. These functions will emerge out to become a major part of the global social CRM market along with the emergence of the social CRM channel. 2

5 1.3 MARKET SCOPE The social CRM market report defines social CRM as a tool which is supported by technology platform, business rules, workflow, processes, and social characteristics to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. This report strictly includes social CRM solutions. This study covers four major solution segments to arrive at the global market size for social CRM during the forecast period The social CRM market comprises solutions which include software, professional services (such as consulting, system integration service, and various others), and support and maintenance service (including database management service, system up-gradation and training) The sub-segment solution comprises major solutions such as social monitoring, social mapping, social middleware, social management, and social measurement solutions FIGURE 1 MARKET SCOPE AND SEGMENT DEFINITIONS Social CRM Market Solutions for Marketing Solutions for Sales Solutions for Service & Support Solutions for Other Functions Social Marketing Insights Social Sales Insights Social Support Insights Innovations Rapid Social Marketing Rapid Social Sales Insights Rapid Social Response Enterprise Collaboration Insights Proactive Social Lead Peer to Peer Support Customer Experience Social Campaign Tracking Generation Event Management MARKETS COVERED This research report categorizes the global social CRM market into the following segments: Global Social CRM Market, By Solution Social Monitoring and Social Listening Social Mapping Social Middleware Social Management Social Measurement 3

6 Global Social CRM Market, By Application Marketing Sales Customer support and service Others (innovation, collaboration, customer experience) Global Social CRM Market, By Deployment Mode Hosted On-premises Global Social CRM Market, By End User Small and medium businesses (SMBs) Enterprises Global Social CRM Market, By Vertical Academia and government Automotive, transportation, and logistics Banking, financial services, and insurance (BFSI) Consumer goods and retail Energy, power, and utilities Healthcare Oil and gas Telecom and IT Other verticals (media & entertainment and sports & recreation) Global Social CRM Market, By Region North America (NA) Europe Asia-Pacific (APAC) Middle East and Africa (MEA) Latin America (LA) YEARS CONSIDERED Historical Year: 2012 Base Year: 2013 Expected Year: 2014 Projected Year:

7 1.3.3 LIMITATIONS The study is limited to five types of applications, namely process modeling, automation, integration, content & document management, and monitoring & optimizing across the industry verticals which include academia & government; automotive; transportation & logistics; BFSI; consumer goods & retail; energy, power, & utilities; healthcare; oil & gas; telecom & IT; and other verticals (such as media & entertainment and sports & recreation). To derive the market size, an elaborate study based on interviews with industry experts and other secondary sources such as press releases, Factiva, blogs, and SEC filings have been used. However, considering the dynamic market scenario certain macro and micro economic conditions such as fluctuations in currency and possible human or natural calamities have not been taken into consideration during forecasting. 1.4 CURRENCY The denominated currency used in the report is U.S. dollars, with market size indicated only in $million. For companies reporting their revenues in U.S. dollars, the revenues were picked from their annual reports For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value in U.S. dollars 1.5 STAKEHOLDERS Social CRM solution providers End users/consumers/enterprise users Government organizations Consultants/advisory firms System integrators and resellers Training and education service providers Support and maintenance service providers Managed service providers 5

8 2 EXECUTIVE SUMMARY Social CRM solutions are gaining pace and are expected to grow at a CAGR of % during the forecast period in the current enterprise ecosystem. With the boom of social media, enterprises are adopting social integration with CRM software as well, thus making way for social CRM as a new channel nowadays. Social CRM solutions combine traditional CRM solutions with social media for improving the customer engagement for enterprises. The solution provides a social platform for evolving business CRM needs, while also offering flexibility in terms of reach, deployment, and administration. Social CRM incorporates customer decisions into the planning mix and the feedback loop so as to engage customers with the enterprises. Enterprises are coming up with solutions for social monitoring, social listening, social middleware, social management, and social measurement for providing the best-in-class customer experience to the customers. Today, CRM is not limited to increasing sales and improving marketing activities, but is also used to bring in better customer engagement with the enterprises. Investments in social CRM are expected to increase across all geographic regions and verticals, with the need for more business specific solutions for enterprises. These solutions will put together customer data from all sources with the enterprises. It is predicted that, these solutions will move beyond marketing and sales functions into customer facing departments, improving brand value through better communications and seamless connectivity across all departments. FIGURE 2 THE EVOLUTION OF SOCIAL CRM CRM suite integrated with social platforms Evolution of Businesses DB Marketing Support, Sales and Marketing Integrated CRM Hosted CRM, Enterprise integration Social CRM Advances in Networking technologies & Databases Internet, Integration, Networking, Smart- devices Technology changes Databases Client Server Web Based Multi Client Types, SOA Cloud Computing, Social Networking Past Now Sources: Expert Interviews, and MarketsandMarkets Analysis The market for CRM is gradually evolving into a more customer focused environment, based on customer experiences and collaborations of technologies. With the advent of social media, CRM software solutions are integrating themselves with social sites to increase customer involvement. In late 1980s, innovations in database technologies made managed CRM more feasible. It led to the automation of CRM functions such as marketing, sales, and support. Later, CRM software started being delivered on hosted platforms and were integrated with other enterprise applications as well. Finally, CRM software providers started collaborating solutions with social media to improve overall communication. 6

9 The rapidly emerging social media integration, along with a huge helping hand from cloud, is fundamentally changing the way enterprises use CRM software. It is helping enterprises involve customers directly through their specific marketing, sales, and support campaigns. The emerging social CRM, as a new platform, is bringing better engagement and innovations for enterprises. Thus, a disruptive trajectory where social CRM is crossing CRM trajectory can be seen, bringing in enhanced and more customer involving solutions. It is expected that during the forecast period, enterprises are keen to integrate solutions meant for monitoring, mapping, management, middleware, and measurement for social purposes. Many companies have even started providing solutions related to these emerging areas. The figure below represents the regional market share and growth rate for the five regions. NA accounted for almost X% of the global social CRM market share for the year Also, NA due to its technological advancements is expected to grow for the next 5 years with a compound annual growth rate (CAGR) of % for the forecast period of NA is followed by Europe having almost % of the global market share for social CRM in However, APAC is gaining market rapidly, with a market share of around % for the year 2014, and is projected to have the highest growth rate of % for the forecast period of The drivers for this high growth rate are the increasing number of users for Internet, smartphones, social media, and online shopping and the fact that APAC is expected to showcase the highest adoption rate of any technology in the coming years. LA and MEA accounted for market shares of almost % and %, respectively, of the global market in These regions are in the introduction phase of the social CRM. FIGURE 3 NA DOMINATES THE SOCIAL CRM MARKET EUROPE Market Share = CAGR = NORTH AMERICA Market Share = CAGR = ASIA-PACIFIC Market Share = CAGR = LATIN AMERICA Market Share = CAGR = MIDDLE EAST & AFRICA Market Share = CAGR = Sources: Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis Note: Market Share (2014) and CAGR ( ) 7

10 FIGURE 4 TOP THREE REVENUE SEGMENTS IN SOCIAL CRM MARKET The figure showcases the top three revenue segments of the social CRM market for the year In case of the regional market share, NA is the leading market for the social CRM in Consumer goods and retail is the top vertical segment with almost % market share of the global social CRM market for Also, in the solution segment, social management is leading the market with almost % market share of the global social CRM market for % NA, the largest regional segment in 2014 % % Social Management highest solution segment in 2014 Consumer Goods and Retail, the largest vertical in 2014 Sources: Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis The global social CRM market is expected be $ billion in 2014 and is forecast to be $ billion by 2019 with a CAGR of % for TABLE 1 SOCIAL CRM MARKET SIZE AND GROWTH, ($MILLION, Y-O-Y %) Social CRM Market e 2019-p CAGR % ( ) Market Size Y-o-Y (%) e- Estimated; p-projected Sources: Related Research Publications, Government Publications, Company Press Releases, Company Annual Report, Company Websites, Company Publications, MarketsandMarkets Analysis The market for manufacturing vertical is expected to grow almost nine times during the period 2014 to 2019.The growing demand for social CRM solutions in the manufacturing industry for effective communication between manufacturers, distributers and wholesalers is driving the social CRM market in this vertical. 8

11 FIGURE 5 MANUFACTURING IS EXPECTED TO GROW WITH THE HIGHEST CAGR DURING THE FORECAST PERIOD CAGR% Others Telecom and IT Manufacturing Healthcare Energy power and utilities Consumer goods and retail BFSI Automotive Transportation and Logistics Academia and Government Market Size ($Million) e- Estimated; p-projected Sources: Related Research Publications, Government Publications, Company Press Releases, Company Annual Report, Company Websites, Company Publications, MarketsandMarkets Analysis The market for customer service and support is expected to grow the highest at CAGR of % from the period 2014 to The growing demand for customer services is propelling the Social CRM market in this application. 9

12 CAGR % ( ) Social Customer Relationship Management (CRM) Market -Global Forecast to 2019 FIGURE 6 CUSTOMER SERVICE AND SUPPORT AN ATTRACTIVE SEGMENT FOR SOCIAL CRM VENDORS Best markets to invest in next 5 years Sales Customer services and support Marketing Sources: Related Research Publications, Government Publications, Company Press Releases, Company Annual Report, Company Websites, Company Publications, MarketsandMarkets Analysis Note: Highest size represents system devices to have highest market size in

13 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. 11

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