The Europe cloud CRM market is expected to grow at 5.3% CAGR during the forecast period of 2020-2025. Cloud-based CRM software puts a business closer to its customers than ever before by managing all aspects of the customer relationship. An efficient CRM solution covers the entire customer lifecycle, which includes first contact, continuous inquiries, potential lead analysis, conversion, and long-term growth-oriented partnerships. Earlier, the European countries had faced with a growing range of challenges of the numerous impacts of digitalization. Recently, the European Union has released a declaration for digital transformation initiatives, a significant step in the launch of the ’European way’ of digitally transforming cities and communities. These initiatives will boost the cloud-based technologies market in the coming years.

  • According to the “CRM Cloud Survey Report” published by SoftClouds, more than 80% of companies use CRM systems for sales process automation and sales reporting. As stated by Salesforce, CRM software improves employee productivity, improves customer retention, and reaps other business benefits. The enterprises that leverage CRM’s capabilities to the full are expected to succeed, while businesses that deny a need in CRM will lose their competitive edge over its competitors.
  • With the rising smartphone and internet usage, customers can easily access various products and services across multiple channels, like social media, web, and other applications. With an average time spent on smartphones reaching around 5 hours per day and the availability of multiple customer touchpoints, like websites, social media, live chats, phone calls, and in-person assistance, brands find ample opportunity to engage customers with their brand and generate more revenues.
  • Account-based marketing is also among the popular trends that have influenced prominent companies to invest in acquisitions and partnerships. For instance, Adobe’s (Adobe Experience Cloud) acquisition of Marketo (a CRM provider) and Pega’s partnership with Idio to utilize its demand orchestration platform for B2B marketing will pave the way towards the trend.
  • Enterprises across industries are undergoing digital transformation and investing in customer engagement solutions. Also, a shift from the traditional platforms, like CRM is notably evident across enterprises. According to Oracle, there has been an increase in enterprises investing in customer engagement platforms rather than point solutions to support a specific functional need (like HCM or SCM applications) in the recent past. Such a shift among the enterprises, therefore, projects greater prospects to vendors in the market over the forecast period.
  • With the cloud-based solutions and integration of AI is another trend that is becoming a standard offering by existing vendors in the market. According to Pegasystems, which is a prominent vendor in the market, 67% of customer experience providers that embraced AI believed that it is not only a tool to make the customer experience more efficient but also to create more meaningful relationships with consumers.
  • CRM vendors during the COVID-19 pandemic are facing a time of unprecedented challenges and significant opportunities. During the pandemic, UK-based MCI Club has announced the extension of the free eKeeper Lite CRM solution to brokers amidst the COVID-19 pandemic.
  • Furthermore, in March 2020, Zendesk released its “Zendesk Benchmark Snapshot” to highlight the global impact of the current COVID-19 pandemic on enterprises. Zendesk Benchmark Snapshot is providing the analysis based on customer interactions at the pandemic stage, which will help the businesses quickly find the customer demand trends.



Key Market Trends

Small and Medium Enterprise Segment is Expected to Grow Significantly Over the Forecast Period

  • The development of SMEs has been a focal point of interest of National Promotional Institutions (NPIs) for earlier years and will continue to be an essential task. Small and medium enterprises drive investment and innovation, create substantial value addition, and provide the majority of job opportunities in European countries, including Germany, France, Spain, and the United Kingdom.
  • To keep European small businesses viable and competitive, KfW, Bpifrance, BGK, ICO, and the British Business Bank strive to improve access to finance for SMEs. Despite significantly favorable financing conditions and low-interest rates, innovative and young SMEs, in particular, experienced enormous financing difficulties. This evidence suggests that promotional funds can cover a considerable part of the financing gap.
  • Cloud migration is one of the significant problems for SMEs to implement cloud-based customer relationship management solutions for their businesses. In April 2020, CRM provider vCita has partnered with Mastercard in Europe to help SMEs run in a more digital-first environment. The newly formed alliance will offer a full learning and management solution that will help SMEs to migrate into the cloud.
  • Major cloud-based CRM providers are taking the initiative to drive the adoption of cloud-based solutions for promoting small and medium businesses. For example, Hubspot offers detailed reports on sales activity, individual performance, and productivity for a sales team’s success. With Hubspot’s free CRM offering, the users can enjoy unlimited customer data and 1,000,000 contacts with no time limit or expiration date.



The United Kingdom is Expected to Hold a Significant Share Throughout the Forecast Period

  • The major driver for the growth of the United Kingdom country segment is the significant presence of technology providers and the increasing number of SMEs in the business landscape. These players focus on entering into partnerships, merger-acquisitions, and innovative solutions offerings to stay in the regional and globally competitive market landscape.
  • For instance, in July 2019, Ernst & Young Global LLP, a UK-based advisory organization, acquired C Centric Solutions to broaden its capacity to offer a wide range of CRM services.
  • In November 2019, Eudonet, a CRM technology provider with a significant presence in the United Kingdom, acquired Dutch firm Stb. The acquisition, the company expects, will allow it to enter the Dutch market by targeting professional associations and other prominent sectors.
  • However, data migration is one of the major obstacles to cloud CRM implementation in the country’s market scenario. Other concerns like the availability of resources to get things done alongside the day job or resistance to change among CRM users are also restraining the growth at a significant level.
  • Most of the UK’s enterprises feel that GDPR has had an impact on how they deal with data. Some enterprises have introduced procedures and policies around data collection, data aging and data removal, security measures, and so on. Others have set up secure portals to communicate with customers and partners or have moved to an opt-in model.



Competitive Landscape

The Europe cloud CRM market is moderately competitive and comprises a significant number of global and regional players. These players account for a considerable share in the market and focusing on expanding their client base across the globe. These players are investing their resources on research and development to introduce new solutions, strategic partnerships, and other organic & inorganic growth strategies to earn a competitive edge over the forecast period.

  • In February 2020, Sceptre Hospitality Resources, which has a significant presence in Europe, launched its newly developed guest management system called Maverick CRM, for the hospitality industry. The solution will leverage valuable guest data from their sales channels for keeping the potential client relations intact.
  • In March 2020, Salesforce had announced new industry-specific innovations for healthcare industry-based solutions built on Salesforce CRM. This solution will improve health outcomes and enhance operational efficiency by connecting people, data, and processes on a unified platform. Newly added capabilities include relationship management tools in Health Cloud to offer the growth of healthcare service provider relationships with several new use cases.



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