Report

July 2002

CRM's Future: Humble Growth Through 2007

Bob Chatham 		After shrinking by more than $2 billion in 2002, the CRM market will grow at more than 11% annually -- hitting $73.8 billion in 2007. During this period, users will shift from integration to continuous optimization.
by Bob Chatham with Bruce Temkin, Katharine Gardiner, Taichi Nakashima

MARKET OVERVIEW
  • The CRM market declines more than 5% in 2002.
  • CRM applications grow from $11.7 billion in 2002 to $20.6 billion in 2007.
  • Services represent 56.8% of the total market in 2007.
ANALYSIS
  • Web services will lower both user lock-in and license fees.
  • After mastering multichannel infrastructures, CRM users will wield analytics to tune their customer and channel mix.
WHAT IT MEANS
  • Microsoft dominates the mass market for analytics.
 
Figures & Data
  • Figure 1.  Subsegments Of CRM Market
  • Figure 2.  Forecast: Global CRM Sales, 2002 To 2007
  • Figure 3.  Forces Reshaping CRM Market
  • Figure 4.  Evolution Of CRM Activity At Typical Global 3,500 Firms
   
RELATED MATERIAL 
  • Online Resources
  • Forecast Methodology
  • Related Research
 
GRAPEVINE
  • Rube Goldberg writes a business plan.
  • Upgrade pace slows for Siebel.
  • Delta's passive-aggressive profitability preference.

 

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