CRM Spending Skyrockets

David Needle

Updated · May 29, 2001

E-businesses’ push to connect more effectively with their customers will continue to drive robust spending on customer relationship management applications this year.
Tech analyst firm eMarketer says spending on CRM will grow to $10.4 billion by the end of 2001, a 167% increase from $3.9 billion in 2000. The rapid growth comes despite uncertain economic conditions in the U.S. and elsewhere.

eMarketer’s survey data from late 2000 indicates more than 80% of businesses placed a high priority on CRM projects heading into 2001. Siebel Systems, a leading CRM provider, reported that 52% of its sales in the first quarter came from new clients, a sign companies are following through on their plans.

What’s hot within the CRM space? The integration of telephone and Internet-based customer service channels is the top priority of those companies surveyed. Marketing and analytical CRM applications is another high-growth area.

The worldwide market for CRM applications is dominated by the United States and Europe, which together will account for more than 75% of CRM industry software and services revenues by 2003.

According to research by Datamonitor, the market for CRM software in Western Europe will more than triple in the next five years, from $2.2 billion in 2000 to $7.6 billion by 2005.

In North America, Datamonitor predicts the market for CRM software will grow from $3.9 billion in 2000 to $11.9 billion by 2005. The CRM market in the region will grow most rapidly in the government, entertainment and Internet retailing industries.

David Needle
David Needle

David Needle is an experienced technology reporter, based in Silicon Valley. He covers big data, mobile, customer experience, social media, and other topics. He was previously the news editor for Enterprise Apps Today, TabTimes editor, and West Coast bureau chief of

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