Demand for customer relationship management (CRM) technologies, including data warehouses and call centers, will more than triple by 2003, says IDC. Western Europe’s CRM consulting, implementation and outsourcing services market was worth $7bn last year and will reach $23bn within four years, according to the IDC report Becoming Customer-Centric: Customer Relationship Management Offerings.
The key driver to Europe’s CRM growth is a growing awareness that retaining existing customers is more important than increasing market share in gaining competitive advantage, says IDC. The growth will see European companies make up ground on their American counterparts said Rasika Pradhan, research analyst for IDC’s European consulting and Management Services program. Today Europe is lagging behind the United States in terms of implementation of concepts like one-to-one marketing and mass customization if products and services, said Pradhan.
