The southeast Asia CRM market is expected to register a CAGR of 12% over the forecast period 2020 to 2025. Mature customer service, automated engagement, improved customer experience, and increasing scope of digital operations are a few factors fueling the demand for CRM solutions across various industry verticals in the region.
- Moreover, the development of cloud computing technology and the availability of various service models such as SaaS, Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) is also expected to drive the market growth over the forecast period in the region.
- The Southeast Asia region has witnessed an uptake in midmarket and enterprise companies moving to more modern business software applications to enhance their business processes and enrich the customer experience. E-commerce, ERP, and Customer Relationship Management (CRM) applications have all been at the forefront of this software technology adoption.
- Furthermore, the growing emphasis on customer engagement among enterprises? and growing adoption from SME’s aided by flexible pricing strategies provided by the vendors are driving the market growth in the region.
- According to the CRM Cloud Survey Report by SoftClouds (a vendor in technology solutions and digital transformation), 82% of companies use CRM solutions for sales process automation and sales reporting. According to Salesforce, CRM software helps to increase employee productivity, enhance customer engagement and retention, and reap other business benefits. According to the Cloudswave, using CRM in sales can increase the number of purchases customers make with the company. These facts are likely to boost the market growth in the region.
- The recent outbreak of COVID-19 has pushed organizations to undertake all necessary steps to ensure the safety of their employees and the community. Despite the crisis, the companies need to strive for pursuing opportunities, closing the sales, and resolving the issues of the customers. Following the mandate of Work from Home (WFH), there is an increasing need for the companies to collaborate with the clients in the remote working environment. This is subsequently anticipated to drive the demand for customer service CRM solutions.
Key Market Trends
Digital Transformation Initiatives in the SEA Region to Drive Market Growth
- Economies and societies across the globe are going digital. In Southeast Asia (SEA), the uptake of digital services and applications has grown apace, and the rapid diffusion of broadband, in particular mobile broadband, is enabling more and more people to connect to communication networks.
- Digitization in the region is benefiting the market’s growth positively. It is expected that the developing economies in Southeast Asia are anticipated to become Asia’s next top-ranking digital marketing markets owing to the growing number of mobile users, increasing demand in internet access, and declining internet connectivity or data prices.
- According to We are Social, Hootsuite Jan 2019 Report, internet users in Indonesia, Malaysia, and Thailand were 150.0 million, 25.28 million, and 57.0 million, respectively. Additionally, social media users in Indonesia and Thailand reached 150.0 million and 51.0 million. Moreover, the increased mobile and internet penetration in countries has resulted in a drastic increase in marketing spend in the region, specifically in Singapore, Indonesia, Thailand, Malaysia, and Vietnam.
- Digital Transformation in the region can enable SMEs to benefit from access to global markets and enable consumers to benefit from a greater diversity and choice of products and lower prices and offers many opportunities with enhanced growth, productivity and well-being and thereby fuelling the market growth.
- The digital transformation of SMEs also improves the uptake and use of digital applications and services. Together, these improvements can foster the digital transformation within economies that are needed to turn the use of digital services and applications into opportunities in the South East Asia region.
Increasing Adoption of SaaS to Drive the Market Growth
- Software as a Service CRM has become essential for enterprises across the retail, healthcare, BFSI, and telecom and IT sector to improve their marketing and sales operations and to align process efficiencies. SaaS CRM offers better planning and resource management, reduces operational costs, helps in streamlining data to one platform, and increases sales. These factors are expected to boost the adoption of SaaS CRM by SMEs, thereby, fueling the growth of the market during the forecast period.
- The increasing IT spending by enterprises on cloud computing strategies is another major factor that influences the growing adoption of the SaaS-based CRM in the region .The inherent benefits of cloud computing, such as scalability, reliability, and high resource availability, are compelling enterprises to adopt cloud architecture. Moreover, several organizations are increasingly moving their software apps to SaaS, which accelerates the adoption of SaaS applications such as CRM, sales management, HRM, and financial management.
- SaaS-powered CRM solutions are affordable and provide a way to make sure the organization doesn’t lose track of customers or miss out on key dates and events. It’s the first step towards a better digital infrastructure.For instance, with the sharp growth of retail eCommerce in the region, the CRM solutions can revolutionalize the customer experience and increase the online sales. Also can provide a competitive advantage to the company.
- Owing to the high costs of proprietary technology development, SMEs and startups in the region are increasingly turning to cloud software, infrastructure, and platforms as services. SaaS-based CRM offers many benefits to SME’s and thereby fuelling the market growth in the region.
The southeast Asia CRM Analytics market is competitive and consists of global and local players. These companies are leveraging product enhancements and partnerships initiatives to strengthen their market share and increase profitability. Some of the key developments in the market are:
- February 2020 - Brekeke Software, Inc. announced the integration of Brekeke PBX with Zoho CRM. Office telephony services built with Brekeke PBX can now seamlessly connect with Zoho CRM by adding their Zoho account information in the Brekeke PBX admin tool. Brekeke PBX users can utilize Zoho’s CRM system to enhance productivity and the quality of their services.
- In July 2019 - Nimble, a launch partner in the Microsoft Commercial Marketplace has launched a Smart CRM for Office 365 as a team relationship manager at Microsoft’s Commercial Marketplace.
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