London: Analytical customer relationship management (aCRM) technology, considered the logical evolution of the CRM lifecycle, is being adopted by enterprises on a broader global scale. This is revealed in a new report by the London-based independent market analyst Datamonitor (DTM.L).
The report, Analytical CRM, forecasts global enterprise investment in aCRM will grow from an estimated $2.3 billion today to over $3bn in 2009.
aCRM (a sub section of the wider business intelligence [BI] market), whilst complex is a compelling technology. By employing aCRM analytics, businesses stand to gain a fuller understanding of the customer in order to serve them better thus increasing customer longevity and generating more profit.
“The aCRM, and wider CRM market is going through a period of exciting change,” says Tom Pringle, technology analyst at Datamonitor and author of the study. “High and stable growth reflects the value businesses place on understanding more about their customers. However, vendors will need to make every effort to educate enterprises. Many are still confused by the concept and technologies that constitute BI.”
According to Pringle, growth is already at a high, stable level, a reflection of some maturity in the wider BI market in North America and Western Europe, and strong growth in the APAC and CALA regions.
aCRM is the active collection, concentration and analysis of data gathered about the customer and his interactions with the business. It represents the next, logical step in this development path through utilisation of customer data held within the enterprise. This analysis is then used to generate value, both for the enterprise and the enterprise’s customers. It encompasses cultural change at every level as part of the wider CRM project: the creation of a customer focused business.
The report reveals the clear lead adopters are to be found in the financial services, retail, manufacturing and communications industries around the globe. However with confusion and lack of understanding among end users regarding aCRM and its uses, it will be imperative for vendors to educate enterprises across all verticals as to the aCRM function, its working, uses and benefits.
“Vendors in this space need to tread carefully to exploit the opportunities which exist. Market education is a clear requirement, with many potential users confused by the range of technological options available to them, and a lack of understanding around the uses of aCRM. There are clear signs marking the appropriateness of aCRM for different enterprises and vendors will do well targeting those that display them.”
Note: Datamonitor’s report, defines the market as both a technology and a concept. This report simplifies the technologies, uses and user groups found in the aCRM market. The full range of technologies in the aCRM market are covered, including ETL, data quality, data warehousing and BI tools. The development of aCRM technologies is discussed as part of the changes seen in the wider BI market. A full market sizing analysis by geography, vertical and technology for the aCRM space is also given. The uses of aCRM are varied. The ways in which it is currently deployed, and how this will change are covered by this report.