CRM NEWS: Social CRM worth $1bn by 2012
The Social CRM market will be worth $1bn by the end of 2012 according to research from Gartner.
It’s projected worth for 2011 is $820m, up from approximately $625m in 2010. Spending on social CRM in B2B is growing fast, Adam Sarner, research director at Gartner, said, “It is expected to account for 30 per cent of the total social CRM spend by 2015.”
The research giant said although over 100 vendors have social CRM offerings, most are not profitable and generate annual revenue of less than $1m.
Explaining the increased interest in the social CRM market yet lack of profitability for its vendors, Sarner says, “The market is fragmented into at least three segments — sales, marketing and customer service — with many small vendors taking various approaches to address one area, approach or use case. The majority of vendors that survive and thrive in the mid-term will offer tools that can address multiple use cases in more than one department."