The crm market - France (2023)

1.2 A concentrated global market driven by the growth of SaaS solutions

CRM software sales World, ****-*****, in billions of dollars Source: ****

Global spending on customer experience and relationship management (***) reached $**.* billion in **** and is expected to grow at a CAGR of **. *% over the period **** - ****. Growth in this sector is being driven by the development of digital functionalities and AI, enabling personalized customer relations while reducing costs through automation.

By ****, SaaS software will account for the largest share of the CRM software market:

CRM software market share by hosting type World, ****, in Source: ****

Large companies account for **. *% of CRM software customers worldwide. These companies will favor in-house software in order to control their customers' data. Nevertheless, technological developments and increasing digitalization will benefit the small and medium-sized business segment, whose share of the overall CRM market is set to grow at a CAGR of **.*% over the period **** - ****.

Global CRM market share by customer profile World, ****, in Source: ****

Global CRM market leaders include Salesforce, SAP SE, Microsoft Corporation, Oracle Corporation, Adobe Inc. and SugarCRM Inc.

1.3 A growing French market

Customer relationship management is part of a policy of mastering customer knowledge and monitoring customer exchanges. While the latest software products combine these two practices, there are also contact centers that make the most of the data they collect, and support their customers in their decision-making thanks to steering tools, key indicators, tracking curves and predictive analyses.

More than two-thirds of companies in France (***) will prefer CRM to other solutions in ****.

Tracking exchanges through contact centers: outsourcing is the way forward

Outsourcers are adding value to the data they collect, and developing their offer of advice and support to principals. Outsourcers are now in a position to provide their customers with steering and decision-making tools, including key indicators, tracking curves, predictive analyses...

Contact center sales France, ****-****, billions of euros Source: ****

According to a study conducted by EY for the Syndicat Professionnel des Centres de Contact (***), theFrench customer relationship outsourcing market will amount to *.** billion euros in ****, showing growth of **.*% over **** and average annual growth of +*.*% over the **** - **** period.

The drivers of this acceleration include

very strong growth in the e-commerce sector, requiring efficient remote management of customer relations the growing outsourcing trend among small and medium-sized businesses. the increasing ...

2.1 CRM at the heart of corporate customer relations

According to a survey conducted by HubSport in ****, **.*% of French companies use CRM software as their central point of contact. Nevertheless, more than half of them use a variety of third-party software and solutions, depending on the different aspects of customer relations to be handled.

Customer relationship management tools France, ****, in Source: ****

The growth in the number of companies in France is therefore a good indicator of the evolution of CRM demand. In ** years, the annual number of companies created has risen from ***,*** in **** to *,***,*** in ****, an increase of almost**%. The year **** corresponds to a record for business start-ups in France.

change in annual number of businesses created France, ****-****, in thousands of companies Source: ****

of the *,***,*** French commercial businesses registered in ****, **% are microenterprises.

Total Microenterprises SME ETI GE Number * *** *** * *** *** *** *** * *** ***

Source: ****

Although France's commercial companies are mainly small and medium-sized enterprises (***), a survey carried out in **** showed that only **% of companies of this size had CRM software. And yet, more than half of them wanted to invest in this solution, or to renew the same CRM software they were already using. SMEs and SMBs therefore represent strong growth potential for this market. [***]

2.2 What companies expect from CRM

Virtually all companies have the same objectives when purchasing CRM software. Among the most frequently cited objectives, we find the desire to contribute directly to the company's operational(***) growth. Emphasis is placed on improving the work of sales and marketing teams who are closest to the customer. Companies' expectations following CRM adoption France, ****, in Source: ****

Thus, the functionalities expected from CRM software are above all the security of sensitive data, for **% of companies surveyed, followed by the tool's scalability (***) for **% of companies and the desire to have an automated tool for **% of companies.

Expected CRM functionalities France, ****, in Source: ****

2.3 Companies turn to cloud computing: SaaS solutions, a dynamic segment

There are two main segments in the CRM market:

CRM solutions in "on-premise" mode: this refers to software licenses acquired by a company so that the software is hosted directly on the company's server. CRM solutions in SaaS (***) refers to a system whereby an external provider hosts CRM applications and systems, making them accessible to the end customer via the Internet.

Has your organization implemented SaaS CRM? France, ****-**** Source: ****

In ****, nearly **% of respondents indicate that their company has generalized or plans to generalize customer relationship management in SaaS mode. In a previous survey conducted in ****, only **% of the decision-makers consulted were moving in this direction. Among medium and large French companies, the market for CRM applications is therefore shifting towards a cloud model.

Of all CRM types, SaaS CRM is the most promising and dynamic. It is driving market growth in France and abroad.

SaaS CRM means that companies no longer need to install applications on their own computers or data centers. Instead, CRM solutions are hosted by external providers and made accessible via the Internet. This eliminates the cost of hardware acquisition, procurement and maintenance, software licensing, installation and support. But the benefits of SaaS solutions aren't just about ...

2.4 Demand boosted by social networks

One of the challenges of **** is the hybridization of channels to produce a so-called "social CRM", i.e. a tool that can integrate all social networks in order to trace a customer's journey and enable them to interact with the company on each of these channels. [***]

According to the Hootsuit **** barometer on the use of social networks by companies, building a unified view of the customer and personalizing content and experiences are among the main objectives of companies on social networks with **% and **% of responses. These objectives can be achieved with a CRM, and in fact, **% of respondents would like to integrate social network data into their CRM.

Companies' main social media challenges France, ****, in Source: ****

When it comes to the social networks considered most effective by companies in ****, Instagram comes in first place and is cited by **% of B*C companies, while for B*B companies, Linked In tops the list with **%.

Most effective social networks by company type France, ****, in Source: HootSuit Edition **** That's as many channels as CRM software will need to integrate.

3.1 Different providers offer customer relationship management services

CRM software value chain

*. Research and development this stage involves the research, design and development of CRM software. Companies invest in research and development to create features and tools that meet specific customer needs.

*. Production and distribution once CRM software has been developed, it needs to be produced and distributed. This may involve producing software licenses, installing servers or deploying cloud solutions, as well as distributing and installing the software at customer sites.

*. Marketing and sales marketing and sales: CRM software must be marketed and sold to companies wishing to improve their customer relationship management. Marketing activities are carried out to promote the software's features and benefits, and sales efforts are deployed to convince customers to adopt it.

*. Training and integration once CRM software has been sold, it needs to be installed and integrated into the customer's organization. This may involve training staff in the use and management of the software, as well as customizing the system to the company's needs.

*. Technical support and after-sales services cRM software providers generally offer technical support and after-sales services to their customers. This can include telephone support, software updates, bug fixes and assistance in resolving problems or difficulties encountered ...

3.2 Players in customer relationship management

The French CRM software market dominated by a handful of international players

The major global CRM players are also the current market leaders in France. Today, * major global players share the CRM software distribution market, most of them acting as on-site installers. In terms of market share, Salesforce has seen significant growth, rising from world leader with **% market share in **** to **. *% market share in ****. It is by far the best-selling software, as the second giant, SAP, only has a *. *% share of this market.

Total software revenues worldwide World, ****, in millions of US dollars Source: ****

The top five CRM software vendors accounted for almost **% of the total market in ****. The ranking of the top five vendors has changed very little from ****, although Microsoft has moved up to third place, narrowly ahead of Oracle.

These national market leaders, however, face increasing competition from smaller players who draw their strength from their specialization incommunication, configuration, pricing and quotation, or sales content (***), E-Deal and Efficy CRM.

Other players, such as Easybill and INES, offer interesting packages integrating CRM and invoicing modules. Leading companies are increasingly interested in these new offerings, so the market could see a wave of major acquisitions in the next few ...

3.3 Still low penetration of CRM software among small businesses

GRC/CRM usage by company size France, **** Source: ****

This graph illustrates the share of companies with more than ** employees in mainly market sectors (***) using CRM software, with a distinction made between the use made of the latter.

The majority of CRM software target customers are companies with more than *** employees: **% of companies with more than *** employees will be using CRM software in ****.to collect, store and access customer information. According to INSEE, **% did so to analyze information for marketing purposes. In contrast, snly **% of companies with fewer than ** employees used CRM software to collect information, and **% for marketing purposes.

3.4 Sectoral differences in the use of CRM software

GRC/CRM usage by sector France, **** % of companies Source: ****

According toINSEE, companies using CRM software in France in **** were doing so to optimize the collection, retention and accessibility of customer information more than to analyze customer information for marketing purposes. Nevertheless, the valorization of collected data is increasingly common.indeed , **% of companies with more than ** employees in mainly market sectors (***) use CRM software to collect information on their customers, while only **% of these same companies value this data.

However, the marketing segment is the fastest-growing market segment, with annual growth of *. *% according to IDC: companies are combining data collection with data analysis for marketing purposes. Next in line are customer services(***).

Importance of sector

The use of CRM software also varies according to sector: we can see that the use of CRM is less widespread in companies in the construction, transport and accommodation sectors than in companies in the information and communication sector in particular. In fact, only **% of construction companies use CRM software to collect customer data, while **% of information and communication companies do.

3.5 Interview with Arthur Dachon, co-founder of Sidely

Marine: Today we're talking about the CRM market. CRM software is used to optimize and analyze the processing of data relating to a company's customers or prospects. To decipher this market, today I'm talking to Arthur Dachon, co-founder and CEO of Sidely. Hello Arthur!

Arthur : Hello Marine.

Marine: To begin our discussion, I'll let you introduce yourself and Sidely.

Arthur: Yes, I went to business school. I've had quite a variety of professional experiences, but the common thread is that I've always gravitated towards CRM. So, first of all, as a user, like a lot of auditors, I think. Then, as a trainer, when I was a consultant at Accenture. Then, I worked in a large market place in Asia, where I was in charge of a CRM project.

And since this was a world that I really liked, and that I actually found quite exciting, I decided to join Odonates, the French leader in CRM. First as country manager in the UK, to launch the business there, and then as international expansion manager, mainly on the acquisition of international competitors. And in fact, during this period, I had the opportunity to see, but above all I had the opportunity to ...

4.1 Software prices depend on performance requirements and company size

The cost of acquiring a cRM softwaresoftware are correlated to a number of factors:

The cost of purchasing the software and/or the cost of the monthly subscription, depending for example on the number of contacts in the customer file, the number of e-mails sent, the number of user licenses activated, etc. Softwareinstallation and deployment costs: these vary widely depending on the type of software chosen. Employee training may also be required to optimize use of the software. The cost of monitoring and improving performance.

In addition to these costs, there are a considerable number of services and options which are more or less costly: activation of additional modules, database cleansing, telephone support, dedicated IP range rental, etc.

The digital consultant gives the average cost of CRM software according to company size:

4.2 Examples of prices in 2022

The prices below are the monthly subscription prices for a **-month contract and for a single user. The minimum price corresponds to the price of the software with basic functions, and the maximum price corresponds to the price with all possible functions.

Software Minimum price in € Maximum price in € Trial period Salesforces ** > *** ** days trial Microsoft Dynamics **.** > ***.** ** days HubSpot ** > **** On request PipeDrive **.** ** ** days Sellsy ** *** ** days Zoho ** ** ** days Odoo ** According to modules ** days Axonaut **.** **.** ** days NoCRM ** ** ** days

Source: ****

So, depending on the features you choose, the entry fee can be multiplied by more than **.

4.3 Increasingly adapted and connected CRM solutions

A mobile offering

While CRM is basically a desktop solution, it will increasingly become a mobile solution. For some time now, publishers have been working hard to offer basic mobile versions of their desktop solutions, notably Salesforce with its mobile version of Sales Cloud, to make CRM available anywhere, anytime. Today, Zendesk Sell, Pipedrive and Freshsales offer recognized and increasingly used solutions for contact management and communication, task management and mapping tools (***).

Personalized offerings

What's more, horizontal CRMs, capable of supporting any type of industry, will gradually be challenged by vertical CRMs capable of helping companies meet specific challenges . For example, a real estate agent has different needs from a medical equipment salesperson. The example of the healthcare market is well illustrated by Veeva, a new CRM focused on the pharmaceutical industry. In response to this boom in vertical CRM, Salesforce is also starting to launch industry-specific brands.

CRM solutions are beginning to be equipped with analytical engines to enable real-time evolution of offers to customers: predictive analysis will make it possible to assess customers' likely future purchases according to their previous actions.(***)

Connected CRM

CRM is becoming increasingly connected with the emergence of the Internet of Things (***) of data every ...

4.4 From CRM to social CRM: the growing importance of social networks

Traditionally, CRM (***) is unidirectional, from brand to market. It includes sales, marketing and support functions. It is used to attract customers and keep them coming back. It relies on information gathered about customers to better segment and target them. Social CRM is an evolution of CRM based on social presence, customer engagement and interaction.

Source: ****

Traditionally, CRM has focused on managing data, tasks and transactions. CRM was, and still is, internally focused, emphasizing specific processes and the optimization of these processes. Among the problems with CRM is the fact that the value to the end-user, within the enterprise, is limited. User adoption is also limited, partly because of this internal focus of the solution.

SCRM is an extension of CRM, not a replacement, and among the important benefits, it brings added value to both users and customers. It adapts to customers and their expectations. Customers choose how they interact with companies and their brands; they are invested and actively involved in the corporate ecosystem, not only as buyers, but also as advocates and influencers.

5.1 European regulations and RGPD

According to Gartnercompliance with the European General Data Protection Regulation (***) of May **, **** is expected to, among other thingsincrease the budget dedicated to CRMs already containing a number of personal data inserted over long periods of time. More than just distinguishing between "sensitive" and "non-sensitive" personal customer data, the RGPD will push companies to professionalize their customer relations and the use of customer data.

To be comply with this regulationcompanies must take particular care to :

Produce clear e-mail collection forms, explicit as to the content collected, and containing a link to the privacy policy. Customers must also be able to cancel their registration at any time Offer the possibility of exporting the data collected for the customer's information, who must also be able to request modification or deletion of this data at any time; Obtain customers' explicit consent to the collection and storage of their data. Take care not to collect "sensitive personal data" as defined by the Commission Nationale de l'Informatique et des Libertés (***), in particular data relating to health, racial and ethnic origin, political opinion, religious beliefs, etc.

6.1 Segmentation

• SAP
• Concentrix (ex Webhelp)
• Majorel
• Hardis Groupe
• SalesForce
• Absys Cyborg (Keyrus groupe)
• Adobe Expérience Cloud
• Bullhorn CRM
• Business Web Agence
• Cloudcc
• Hubspot
• Oracle
• Pipedrive
• Vtiger CRM
• Vipp Interstis
• Teleperformance
• Aircall
• Genesys Conferencing (Groupe Intercall)
• Sellsy
• Sidely
• Brevo Sendinblue
• Genesys
• Proginov
• SideTrade
• ADM Value
• 1000mercis Group