Aug 18, 2021
Southeast Asia CRM Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)
The Southeast Asian Customer Relationship Management (CRM) software market was valued at USD 755. 2 million in 2020. It is projected to reach USD 1,751. 2 million by 2026, registering a CAGR of 14. 91% during 2021-2026. Reportlinker.com announces the release of the report “South East Asia CRM Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026).”
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 during the forecast period in the region.
Southeast Asia 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 increasing emphasis on customer engagement among enterprises? and growing adoption from SMEs aided by flexible pricing strategies provided by the vendors is 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 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 sales, and resolving the issues of the customers. Following the mandate of work from home (WFH), there is an increasing need for companies to collaborate with clients in remote working environments. This is subsequently anticipated to drive the demand for customer service CRM solutions.
Key Market Trends
Retail and Logistics Industry to Drive the Market
New players in the region have been adopting e-commerce business models to benefit from the increasing smartphone usage. Thus, vendors in the market have been exposed to many opportunities to increase their client base.
Additionally, retailers have been taking a hands-on approach to customer data, to predict patterns, customer preferences, and derive insights as combined with other data assets. Therefore, these companies have been integrating consumer insight with location data (GIS) to discover new insights into where and how people shop.
Furthermore, omnichannel retailers have been leading the development of segmentation of their customer base into core shopper profiles to cater to where and how each segment behaves.
For instance, Bata, a consumer goods retailer, in partnership with Singapore-based Capillary Technologies, strengthened its omnichannel CRM strategies across the Philippines and Vietnam. The company, post-deployment, achieved 2.2x higher returns from targeted campaigns in Singapore and 57x ROI from Facebook-based campaigns in Malaysia. Bata used Capillary’s Insights and Engage Platform to leverage unified campaigns, precise custom targeting, to name a few.?
According to a joint survey conducted by Centaur Media plc and Resulticks, the ability to deliver content and messaging in real-time and across multiple channels had a direct impact on the efficiency and effectiveness of customer engagement. For most Southeast Asian companies, to meet their short-term marketing priorities, 65% of businesses are opting for real-time marketing while 52% are looking for omnichannel delivery and engagement
Global cues, such as BYOD, and the use of IT tools for driving decision making expected to provide ample scope for future growth?
The use of IT tools, such as Big Data technology for decision-making is poised to integrate with CRM significantly in the future. Customer service is one of the most critical areas on which organizations should deliver metrics in today’s landscape. Enterprises in the region have been using real-time data to offer one-on-one personalized services and solutions to their customers.
CRM has involved data, but most of it is utilized to be structured data, such as latest contacts, contact information, products bought, etc. With the integration of IT tools, such as Big Data techniques, it is also possible to process, store and analyze massive amounts of unstructured data not supplied by the customer and use this to gain additional insights. Using Big Data technologies, CRM could become a significant revenue driver.
According to SAS, most Indonesian companies are in the data awareness stage and are starting to adopt Big Data and AI technology, to differentiate themselves from their competitors. The outbreak of COVID-19 has significantly increased the cloud’s adoption. For instance, Banking and business solutions provider NewGens Pte Ltd developed new products and gained access to new customers since going cloud-native with GoCloud. Also, Scion, an IT business consulting specialist to clients such as Komoco Motors, Hyundai Motor Company, Maserati, Ferrari Automotive Dealerships, and the Four Seasons Hotel, shares its journey and experience on GoCloud with Amazon Web Services.
The factors mentioned above are expected to provide growth opportunities for cloud CRM in the region. Cloud-based CRM allows robust integration with vital business applications with pre-built application connectors. This, in turn, facilitates significant user adoption of CRM. It also provides smooth transmission of data to and from other business systems, reducing the requirement for intensive IT support and involvement.
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:
August 2021 – Microsoft released several Wave 2 features in early access form to Dynamics 365 ERP/CRM and the Power Platform, ahead of the start of their rollout in October and continuing into March 2022. The company added multiple new features to its Dynamics modules in Wave 2, including Finance and Operations, Sales, Marketing, Customer Service, Commerce, Business Central, Field Service, Supply Chain Management, Human Resources, Connected Store, Customer Insights, Customer Voice, and Project Operations. The company is also trying to integrate Dynamics and Teams increasingly tighter.
March 2021 – Oracle Corporation announced the support extension provided for Siebel CRM to acquire more customers in the CRM market. The company has offered to provide extended functionalities, such as AI-powered, mobile sales capabilities to improve productivity and close deals faster. The product and solution also offer sales forecasting, order management, mobile selling, and loyalty marketing, among others. March 2021 – Oracle Corporation announced the support extension provided for Siebel CRM to acquire more customers in the CRM market. The company has offered to provide extended functionalities, such as AI-powered, mobile sales capabilities to improve productivity and close deals faster. The product and solution also offer sales forecasting, order management, mobile selling, and loyalty marketing, among others.
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.