Social Customer Relationship Management Market - Forecast(2024 - 2030)

Social Customer Relationship Management Market Overview

The Social Customer Relationship Management Market size is forecast to reach $53.1 billion by 2027, growing at a CAGR of 20.4% from 2022 to 2027. Social Customer Relationship Management refers to the integration between CRM software and social media channels, which intend to help teams understand gain market insights, offer better customer services as well as create customer engagement through social mapping, social monitoring, social listening and others. Utilization of online marketing campaigns help in promoting digital brand advertising, improving customer retention, increasing sales growth, through direct social media interactions, and social mentions. In addition, rising adoption of digitalization across retail & e-commerce industries, growing penetration of users in social media platforms be it Facebook, Instagram and so on, along with increased emphasis on online shopping amidst COVID-19 outbreak have been eventually driving the market growth of social CRM industry. Moreover, rising adoption of cloud-based services, increased social media marketing strategy amidst high industry market competition, inclination of small businesses towards online digital marketing and social commerce alongside growing advent of AI based CRM tools for improving social customer interactions, customer relationship and others is set to further propel the market growth in the long run.

Social Customer Relationship Management Market Report Coverage

The report: “Social Customer Relationship Management Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Social Customer Relationship Management industry.

By Offering: Solution (Social Media Management, Social Mapping, Social Listening, Social Middleware, Social Measurement, Social Monitoring), Services (Integration & Implementation, Consulting, Maintenance & Support, Others).
By Functionality: Built-in Social CRM, Standalone Social CRM.
By Deployment Model: Cloud, On Premises.
By Organization Size: Small & Medium sized businesses (SMBs), Large Enterprises.
By Application: Sales Automation, Marketing, Customer Service & Support, Others.
By End Use Industry: IT & Telecom, Healthcare, Banking, Financial Services & Insurance (BFSI), Retail & E-commerce, Education, Government, Hospitality, Transportation & Logistics, Manufacturing, Others.
By Geography: North America (U.S, Canada, Mexico), Europe (U.K, Germany, France, Italy, Spain, Netherlands, Others), APAC (China, Japan India, South Korea, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa)

Key Takeaways

Social Customer Relationship Management Market Segment Analysis- By Deployment Model

Cloud Social Customer Relationship Management Market is analyzed to grow with the highest CAGR of 21.4% during the forecast period 2022-2027, owing to varied factors including adoption of cloud computing within enterprises, rising emphasis on saving additional upfront or operational costs, increased workload shift towards cloud migration and so on. Deployment of cloud social CRM solutions have been getting higher preference across organizations due to unlimited accessibility, high scalability, ease of integration and many more. As these solutions are capable of reducing additional IT hardware/infrastructural setup and maintenance requirements, alongside offering optimum security compared to on-premise models, they have started gaining wide popularity across varied end use industries overtime. Simplifying as well as automating tasks including customer query address, social media engagement, brand marketing in social media platforms, and many others, have eventually emerged as the vital factors attributing to the growth of cloud social CRM market. Moreover, pricing flexibility of monthly or annual subscription and free versions, growing penetration of active social media users and rising market competition among customer-centric businesses have been further accelerating its market growth. As per the Flexera State of the Cloud Report 2021, public cloud adoption within enterprises reached 79% for AWS, followed by 76% for Azure and 49% for Google Cloud in 2021, compared to 76%, 69% and 34% respectively in the previous year. In July 2021, Salesforce announced about the launch of an industry specific application, Advertising Sales Management for Media Cloud, in order to support cross-channel advertising sales management. This was done to provide cross-channel planning and execution, automated client reporting, as well as campaign optimization converge, thus set to boost the market growth of cloud social CRM in the long run.

Social Customer Relationship Management Market Segment Analysis- By End Use Industry

Retail & E-commerce sector is analyzed to witness the fastest growth with a CAGR of 23.6% in the Social Customer Relationship Management Market during 2022-2027. Increasing customer expectations, shift towards promoting media campaigns and social media advertising for raising sales margin, improving customer support services, alongside growing trends like building online retail businesses through use of social media platforms, like Instagram, Facebook, and so on have been acting as some major drivers attributing to the market growth of social CRM solutions overtime. Adoption of social CRM solutions help the retailers and e-commerce stores to generate more leads, improved customer relationships due to better communication, raise social engagement, regular monitoring or tracking customer preferences, drive higher product innovaations and so on, while boosting business revenue growth. In addition, growing customer reliance on social network consultation while making online purchases, higher shift towards online shopping amidst the COVID-19 pandemic, increased direct customer-retailer interactions, adoption of varied social media stargies from retail brands in areas of cosmetics & personal care, fashion, apparels and so on have can be considered vital in influencing the market growth in the long run. For instance, online stores lead to 32% more sales on an average in comparison to stores not having social media prsensce, as per the Yotpo’s use base. In April 2022, Freshworks announced about the launch of a CRM solution, with availability on the Shopify apps store. Through direct integration with an e-commerce company, Shopify, this solution was developed to help marketers create comprehensive customer profiles as well as run segmented marketing campaigns based on their purchasing behavior across social media platforms, like WhatsApp, Instagram, Facebook and so on. These factors are intended to accelerate the market growth of social CRM solutions within retail & e-commerce market in the coming time.

Social Customer Relationship Management Market Segment Analysis- By Geography

North America region accounted for the largest share of around 39% in the Social Customer Relationship Management Markett in 2021, attributed to growing utilization of social media marketing strategy by global companies like Amazon, Walmart and so on, higher penetration of social media users majorly across U.S and so on. Increased emphasis on improving customer engagement through spending on marketing campaigns and upgrading social media channels from time to time, adoption of digital marketing within enterprises and many others by various end use customers have been also catering to its market growth in the region. In February 2020, Walmart had revealed about employing a new social strategy, “Famous Visitors” campaign, which was intended to be more reactive in real time having a more conversational brand voice. Through this social media strategy, the company wanted to help its customers with the ability to order anything online while picking it up curb side, through more conversational and reactive efforts, in an aim to transform its social presence. Additionally, the company revealed that implementing this had increased its mobile app downloads by 50% week-over-week. According to U.S Department of Commerce, digital spending during the holiday-centric Q4 increased 9.2% year over year, making the total jump in ecommerce to 14.2% in 2021. Furthermore, shift towards cloud computing or cloud based infrastructures for business growth optimization, as well as growing focus towards improving customer retention, build customer relationships, innovating customer centric products and so on, eventually create the need for efficient social CRM solutions, thus driving its demand forward in the North American markets.

Social Customer Relationship Management Market Drivers

Growing inclination of small businesses towards online digital marketing and social commerce is positively impacting its market growth:

Growing shift towards online digital marketing and social commerce by small businesses act as one of the major factors influencing the need for maintaining social media groups, pages, advertising and marketing campaigns, thus driving the growth of Social Customer Relationship Management Market. Adoption of social CRM solutions help in benefitting the small-scale businesses to expand their customer base, create brand awareness, improved customer experiences and others. Leveraging digital marketing strategies and shift towards social commerce majorly by small business or startup intends to provide efficient social interaction, raise successful lead generation ratio, maintain customer retention, campaign management, identifying market trends, enhanced customer care support and many more have been eventually driving the market growth of social CRM solutions. According to Accenture, social commerce is estimated to become a $1.2 trillion global market by 2025, accounting for about 16.7% of total e-commerce spend, thus expected to grow three times faster than the traditional e-commerce within the coming four years. This transition is set to drive popularity of social media shopping, while opening new avenues for small-sized businesses. In addition, a survey from Accenture of more than 10,000 global social media users showed that 59% people are more likely to buy from smaller brands while shopping on social media in comparison to standard online browsing. In March 2022, Visual Objects had surveyed about 1003 small business owners and managers, in order to learn about their approach towards digital marketing. As per the survey findings, 25% of small businesses consider social media as the most successful digital marketing tool in 2022, making it the top choice. These factors are set to drive the market growth forward in the coming time.

Integration of advanced technologies such as artificial intelligence to improve social customer interactions, customer relationships and so on, is positively impacting the social customer relationship management market growth:

Integrating advanced technologies like artificial intelligence for improve social customer interactions, customer relationships and others, have been impacting the growth of Social Customer Relationship Management Market. Due to growing unstructured data volumes alongside increasing complexities of customer relationships or processes, artificial intelligence (AI) technology has emerged as highly essential for CRM systems. As social media channels are considered as one of the major sources of acquiring data about customer behavior, adoption of AI based social CRM solutions can help in predicting customer behavior in advance, thus enabling enterprises to strategize as well as plan their campaigns. In addition, tasks like customer interactions, schedulers, follow-ups, as well as many other repetitive tasks helps in providing higher automation and efficient management, which in turn drives the market growth. In November 2019, Dynata had conducted commissioned research, which revealed that only 12% of CRM users have been actually utilizing a specific AI-based tool, with 11% stating that CRM integrated with AI helps them to focus on high-value customers. In July 2020, IBM collaborated with a social media technology company, Influential announced about the launch of a solution harnessing artificial intelligence, Watson Advertising Social Targeting, developed in order to help companies in identifying influencers best aligning with their brand values. Leveraging natural language understanding on the IBM public cloud, this solution ensures processing as well as analysis of social media data to help expedite influencer identification. Such factors can be considered crucial towards accelerating the AI integrated social CRM market growth in the long run.

Social Customer Relationship Management Market Challenges

Security or privacy concerns regarding data protection and breach incidents hampers the growth of Social Customer Relationship Management Market: 

Security or privacy concerns regarding data protection and breach incidents can be considered as a major challenge impeding the market growth of Social Customer Relationship Management. With growth of social CRM, organizations are getting exposed to more security breaches or threats, be it data exploitation, data theft, and related cybercrime. Social media communities help in opening up all kind of exposures for an organization, which in turn eventually make them prone to threats from middleware, networks, software and so on. Adoption of social CRM tools utilizes user-centric personal information, confidential data and so on, which eventually influences security concerns like data leaks, frauds and others, thus adversely impacting company’s brand image and reputation in the market. In January 2021, the fourth largest carrier in U.S, UScellular had revealed about a data breach incident under which employees of a retail store were scammed into downloading a software within their computers. After logging in customer relationship management (CRM) by the store staff, the records became accessible to the hackers, creating data breach. In March 2022, according to a survey of about 1000 citizens, conducted by Censuswide on behalf of ProtonVPN, social media sites have merged as one of the top website types to be targeted by cyberattacks. Such breach incidents over social media platforms have been eventually raising security and privacy concerns, thereby causing adverse impact on the market growth of social CRM. 

Social Customer Relationship Management Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Social Customer Relationship Management Market. The Social Customer Relationship Management Market top 10 companies include:

1. Salesforce Inc.
2. Zoho Corporation
3. SugarCRM Inc.
4. IBM Corporation
5. Microsoft Corporation
6. HubSpot Inc.
7. Pegasystems
8. Oracle Corporation
9. Sprout Social Inc.
10. Nimble

Acquisitions/Technology Launches/Partnerships

Relevant Report Titles:

Customer Experience Management Market- Forecast (2022-2027)
Report Code: ITR 68221

Social Audit Services Market- Forecast (2022-2027)
Report Code: ITR 0276

Social Media Management Market- Forecast (2022-2027)
Report Code: ITR 82599 

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