itb-nz logo
Story image

NZ CRM revenue increase lags global figures

Customer relationship software spend in New Zealand reached $79 million in 2013, according to Gartner.

That figure is a 1.5% increase on 2012's $69.2 million – but well below the 13.7% increase seen globally, where worldwide CRM software totaled $20.4 billion.

Joanne Correia, Gartner research vice president, says high levels of end-user investment in digital marketing and customer experiences were the primary growth drivers for the market in 2013.

“CRM will be at the heart of digital initiatives in coming years.

“This is one technology area that will get funding because digital business is critical for companies to remain competitive.”

Software-as-a-service accounted for more than 41% of CRM total software revenue for the year, as organisations of all sizes sought easier-to-deploy alternatives to replace legacy systems, implement net-new applications or provide alternative complementary functionality.

Gartner says the top five CRM vendors accounted for 50% of global CRM software revenue, with Salesforce.com continuing to be the largest vendor overall in the market with a 16.1% share.

SAP remained in second position, with 12.8% share of the overall CRM market, but is still the leader in terms of revnue and market share for the sub-segments of customer service and e-commerce.

Oracle, with 10.2% of the market, Microsoft (6.8%) and IBM (3.9%) rounded out the top five.

The research company says competition between vendors intensified throughout 2013, as major players continued to vie for broader market penetration internationally, and more widespread functionality adoption within midsize to large enterprises.

The communications, media and IT services verticals are the largest spenders on CRM because they focus on large groups using call centre technologies, Gartner says. “They also invest more to improve analytics-related areas and improve/provide more consistent customer experiences.

“Maufacturing, including consumer packaged goods, is in second place, with these companies using CRM for product and channel management.

“Third-ranked is banking and securities, in which customer service and upselling to other financial products are core to growth.”

And for those wondering about the state of play across the Tasman, our Aussie neighbours clocked up CRM spend of AU$740.2 million, up 12%.

Link image
Rapid response: The best way to detect and respond to traffic anomalies
Metadata is a must-have security practice that allows analysts to parse through more devices, more communications and more data in less time.More
Story image
The four key practices of supply chain strategies, according to Accenture
The Accenture analysis found that these leading companies follow four key practices that cement them as leaders among their peers. First, they begin with the customer in mind.More
Story image
B2B buyers more likely to buy from vendors with digital purchasing channels - report
Procurement and purchasing leaders have steadily been shifting purchasing from traditional reliance on sales reps to self-serve ordering through digital channels, and COVID-19 has dramatically accelerated this shift..More
Link image
In the world of IT strategies, data resilience is among the most critical
The value of data in 2020 cannot be overstated, with some businesses facing catastrophe if subject to a breach. Here's why having a robust strategy to prevent this is crucial.More
Link image
Network visibility: Why TAPs reign supreme compared to SPAN ports
TAPs are hardware components that connect into the cabling infrastructure to copy packets for monitoring purposes. So why are they better than SPAN ports?More
Story image
NTT creates A/NZ business as part of Asia Pacific expansion, announces new leaders
"Creating this extended region means that NTT Ltd. will be a stronger partner for its 1,400+ clients across Asia Pacific, making it easier for partners to work with the organisation."More