Western European CRM Market Expected to Exceed $1 Billion in 2000, IDC Says

LONDON – JUNE 29, 2000 – According to the latest research from IDC, the market for customer relationship management (CRM) solutions is in rapid growth across Western Europe, with CRM projects in high demand over the next few years. With expected revenues of over a billion dollars in 2000, the Western European CRM market is expected to be worth around $3.3 billion by 2004.


"In the 1990s, many companies adopted a product-centric approach to sales and marketing," said Anders Munk Ebbesen, senior analyst with IDC's European Cross Industry Applications research program. "However, this attitude is being replaced by a much more customer-centric approach, which, in turn, has led to a phenomenally high demand for applications that automate and streamline all contact points between a company and its customer base. Today's company seeks to integrate all facets of its interaction with customers across all channels, from lead generation and prospecting, to customer service and support." The key to the success of CRM lies in the ability to integrate these technologies in a harmonious and consistent manner.

CRM implementation is moving further away from being a point solution implementation, such as a call center or a sales force automation application, to encompass a more fully integrated solution with ebusiness and supply chain management. "CRM means being able to optimally deliver one-to-one marketing strategies and build customer loyalty. To accomplish this, companies need to understand who their customers are, their buying preferences, and what products and services these customers want," Ebbesen said.

Key Market Drivers

· The Internet and WAP technology – Companies are realizing they are able to target a wider audience through a centralized location, and these technologies allow the tailoring of products and services to the needs of individuals.

· Globalization -Companies across Western Europe are venturing into new geographic markets and are beginning to operate on a global scale. This, coupled with the shift to a virtual paradigm in which time, size, and physical location have no boundaries, is creating an environment whereby customers expect the same level of service wherever they may be located.

· Deregulation and privatization – The increasingly competitive situation created by the EU directives to open up these industries to competition has resulted in both sectors investing in contact centers and improving their customer service in an attempt to win customers.

· Prepackaged solutions versus customization – The key strategy for CRM service vendors will be the ability to deliver prepackaged solutions that can be used by many different clients. However, in many cases, some degree of customization is necessary to obtain a fully integrated suite.

CRM Applications in Western Europe – 2000 Forecast and Analysis (IDC #LC03G) provides data for CRM software markets from 1999 through 2004 for 16 Western European countries. The report includes market revenue and market shares for the major software vendors in Western Europe. In addition, the study includes a discussion of key trends in this market and a breakdown into sales force automation software, marketing automation software, and customer support and help desk software. This report is available to purchase from your local IDC office.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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