News Article - 23 May 2012
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Customer relationship management (CRM) software revenues in Europe saw an increase of 9.7 per cent from 2004, according to new research.

UK analyst firm Gartner found that total revenue for the software reached $1.9 billion in 2005.

Despite the increase, CRM market growth in Europe was lower than the 13.7 per cent increase seen worldwide in 2005 and lower than the 15.1 per cent seen in the region in 2004. 

However, Gartner highlighted several factors that contributed to this lower revenue growth, arguing that there is actually more CRM business in the market.

"The picture in Europe is very fragmented," said Chris Pang, senior research analyst for Gartner.

"Our research shows that growth in spend on CRM software correlates strongly with economic growth measures such as gross domestic product (GDP). GDP growth in countries such as Italy and Germany remains lower than the rest of the world, while market growth in countries such as the UK, Sweden, Norway and Denmark has been more consistent with that in north America.

"This means we are seeing CRM growth rates ranging from a slight negative to more than 27 per cent depending on the individual country," he added. 

High levels of acquisitions in the CRM application market, significant price reductions and exchange rate fluctuations were also "major contributors" to levels of growth, Gartner said.

The highest growth in CRM software could be seen in applications for marketing automation, which increased by 18.6 per cent. This was followed by sales automation at 12.1 per cent and customer service and support applications at 3.6 per cent.

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