Gartner predicts boom in social CRM

The customer relations management (CRM) market is set for a shake-up in the next three years as global spending on social CRM software passes the $1bn (£620m) mark, according to the latest research from Gartner.

The analyst firm's predictions for CRM in 2011 and beyond state that social CRM will encompass approximately eight per cent of all CRM spending in 2012, up from roughly four per cent in 2010.

Companies interested in capitalising on CRM should take a three-step approach, according to Gartner. This involves checking whether projects are already underway, calculating the likelihood that they will be forced to start something in 2011, and sharing case studies with other decision makers in the organisation.

Businesses are now realising that social media channels cannot be ignored, according to Helen Rutherford, director at consultancy 2e2.

"With increasing investments in social CRM we'll see organisations widen their contact strategies so that customers receive the same service and experience regardless of which communication channel they choose," she said.

"From an IT perspective, it is imperative that organisations manage these channels and the associated CRM applications in a joined up fashion."

Gartner also predicted that a third of spending on new CRM software by 2015 will be software-as-a-service, up from virtually zero in 1999.

However, CRM apps buyers should make sure to involve IT in purchase decisions early on to avoid potential problems with data integration, inadequate security, scalability and privacy, said the analyst.