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54 Key CRM Software Statistics: 2019 Market Share Analysis & Data

Category: B2B News

Sales success is a two-way street, and to make this possible, you need to nurture your relationships with customers and ensure a good shopping experience for them from start to end. This is why having CRM software solutions as part of your operations come in handy.

Generally, CRM systems simplify this difficult endeavor by giving sales representatives a comprehensive view of client records so they can send personalized responses and reply with context. Think about it. Will you answer a person who can’t remember your name, or converse with one who does? CRM tech solves this problem effortlessly and does so much more if you use it correctly.

One way to do so is remaining apprised about the different changes in the customer relationship industry and how you can leverage these to improve your business. To help you out, we have compiled the key CRM trends that you should look out for in 2019. From general facts to CRM charts on implementation challenges, this article should give you all the data you require to understand the ins and outs of CRM and what it all means for you as a business owner.

3 Key CRM Statistics

General CRM Market Statistics

Converting new leads is important, but customer retention is really where the money is at. The process of customer acquisition costs five times more than simply focusing on your existing customers. Meanwhile, investing in customer loyalty by 5% can actually increase your profits by up to 95%. This is why the CRM market share has enjoyed steady growth over the past years. What’s more is that there are still plenty of sales teams who have yet to utilize this technology.

  • The CRM market size currently has a value of $120 billion. (Forbes, 2018)
  • By 2025, the CRM market has already increased to $82 billion, growing at 12% per year. (Seeking Alpha)
  • 13% of companies say that investing in a CRM is one of their top sales priorities. (HubSpot State of Inbound, 2018)
  • A properly implemented CRM solutions can yield an ROI of $2.50 to $5.60 for every dollar invested. (Inc., 2019)
  • 48% of sales teams heavily utilize their CRM systems to improve operations. (Sales Operations Optimization Study, 2018)
  • Sales teams that are productive and have effective workflows are 81% more likely to use a CRM system consistently. (Aberdeen Group)
  • 64.2% of businesses view CRM tools as impactful to their bottom line (LinkedIn State of Sales, 2016)
  • 40% of sales teams still use spreadsheets and email programs to store customer data. (HubSpot State of Inbound, 2016).
  • CRM is considered one of the most important aspects of sales right next to lead generation and lead engagement. (Bowery Capital, 2017)

Do note, however, that while CRM is recognized as one of the best methods to boost revenue, this doesn’t mean that all CRM solutions are created equal. This is why companies often assess a wide variety of factors before purchasing a particular software.

  • The CRM features that professionals look for are ease of use (65%), schedule management (27%), and CRM data snapshot capability (18%). (Inside CRM)
  • 63% of businesses prefer cloud-hosted CRM systems over on-premise applications. (SelectHub, 2019)

Mobile CRM Statistics

Mobile CRM is by no means a new technology; it started back in 1999 with Sibel Sales Handheld. Companies like PeopleSoft, SAP, and Oracle followed suit by creating their own mobile CRMs, but these did not gain traction due to lack of devices.

Fortunately, we now have a plethora of sophisticated, internet-enabled mobile devices available on the market. With that said, it is much easier to reap the benefits that mobile CRM software solutions have to offer.

  • Users of mobile business applications experienced a 74% increase in customer satisfaction, an 87% improvement in sales, and a 73% improvement in business process efficiency. (Forrester Research, 2016)
  • 81% of marketers now operate their CRM platform from multiple devices (Algoworks, 2018)
  • 61% of companies believe that mobile CRM is now a mainstream method for tapping into your customer base. (Forrester Research, 2016)
  • 65% of sales representatives who adopted mobile CRM were able to reach their sales quotas. (Innoppl Technologies)
  • 87% of users shop through their mobile devices and use various channels for interacting with company brands. (Nielsen)
  • CRM decision-makers claim to have increased their productivity by 14.6% through the use of mobile CRM. (Nucleus Research)
  • 48% of CRM users work from their smartphones and 45% use tablets. (ForceManager)
  • 24% more sales representatives are able to achieve annual sales quota with mobile access to their CRM. (Aberdeen Group)

Benefits of Using Mobile Business Apps

Improvement of sales and employee productivity

%

Boost productivity and efficiency of front desk employees

%

Increase in customer satisfaction

%

Improvement of business process efficiency

%

Increase in adoption and usage of CRM software

%

Source: Forrester Research Survey (2016)

Designed by

Social CRM Statistics

There are different types of CRM that you can use to improve your sales efficiency and one of which you should not do without is social CRM.

The role of social media in business is becoming more and more important, especially because 7 in 10 Americans use social media regularly. According to the Pew Research Center, a large chunk of these consumers log on to Facebook (76%), Instagram (51%), Twitter (42%), and Pinterest (25%) on a daily basis.

This just goes to show that it would be more helpful to implement social CRM platforms if you want to improve your interactions with leads and existing clients.

  • Social CRM is expected to hit a market size of 10 billion before the end of 2019. (Algoworks, 2018)
  • Customer interactions that happen on Twitter have increased by 250 %. (Twitter)
  • 1 in 4 shoppers follow their favorite brands and interact with them on social media. (Global Web Index, 2018)
  • BYOD and the incorporation of social media in CRM have increased employee productivity by almost 26%. (MarketWatch, 2018)
  • Social CRM can improve customer retention by up to 26%. (Nucleus Research)
  • The productivity of sales reps increased by 26.4% since they added mobile and social media access to their CRM apps. (Nucleus Research)
  • 8% – the increase in productivity associated with social CRM capabilities. (Nucleus Research)
  • 86% of customers want to hear back from organizations on Twitter when they reported a complaint. (Maritz Research)
  • 25% of social media users are expecting businesses to reply to their complaint within an hour. (Fanhub)
  • 250% – the increase in Twitter service interaction for the last two years. (Twitter)

CRM Benefits Statistics

The main reason developers create CRM and similar programs is to make work easier for business owners and their staff. In fact, when used properly, these software solutions can increase sales and team productivity, among other things. Not only will the right software benefit your business by lowering labor costs and time spent on customer service work; these can also make your company look even better to your prospective and current customers.

CRM solutions can help your business in many ways. However, keep in mind that there are different types of platforms available. For instance, there are some CRM solutions for small businesses while there are also those created specifically for large enterprises. There are also platforms offering industry-specific functionalities like CRM for retail.

If you truly want to maximize CRM for your company, you first need to zero in on what benefits you are expecting to reap so that you may plan on how to use your CRM system to achieve them.

  • CRM software can boost sales by 29%, productivity by 34%, and forecast accuracy by 42%. (Salesforce)
  • Sales professionals hope that CRM will help them improve customer service (74%), customer satisfaction (66%), and customer retention (56%). (ITIC CRM Deployment Trends Surveys)
  • CRM applications can increase revenue by up to 41% per sales representative. (Trackvia)
  • CRM systems can enhance customer retention by up to 27%. (Trackvia)
  • CRM can boost conversion rates by 300% (Cloudswave)
  • Sales professionals can reduce lead cost by 23% using CRM. (Cloudswave)
  • 74% of users believed that CRM software enhanced their access to customer data. (Ringlead)
  • 47% of CRM users claimed that CRM greatly improved their customer retention rate. (Nutshell)
  • With regard to work performance, mobile CRM enhances employees’ productivity by 15%. (ForceManager)
  • Data accessibility is capable of shortening sales cycle by 8–14% on average. (Nucleus Research,)
  • 47% of CRM users believe that CRM made a significant impact on their customer satisfaction. (Nutshell)

Number of Businesses That Gained ROI Benefits By Using CRM Systems (2017)

50%

Improved productivity

65%

Increased sales quota

40%

Labor cost reduction

74%

Improved customer relationships

Source: IBM

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CRM Challenges Statistics

With every means of improving business operations come different benefits and challenges, the latter being inevitable yet surmountable. For starters, not all companies have professionals who understand how to use CRM applications, let alone how to create a mobile CRM strategy. Thus, they either fail to use the platform to its fullest extent or opt not to use it at all.

With the chance for improving your company’s overall performance hanging in the balance, it’s easy to imagine the consequences of using certain CRM. However, these challenges shouldn’t discourage you from taking advantage of this technology. All you have to do is get to know these hindrances and come up with ways to overcome them as you implement your CRM system.

  • 22% of sales professionals are still unsure about what CRM is. (HubSpot State of Inbound, 2016)
  • Sales professionals spend 2/3 of their office hours on administrative tasks like CRM software management. (Sales Operations Optimization Study, 2018)
  • While CRM systems are mainly intended to help sales representatives achieve better results, below 37% of agents take advantage of their company’s customer relations management platform. (CSO Insights)
  • CRM research shows that the number 1 challenge to CRM adoption is manual data entry. (HubSpot State of Inbound, 2018)
  • Data synchronization is a major issue for 51% of CRM users. (CSO Insights)
  • 43% of CRM users only use less than half the features of their CRM system. (CSO Insights)
  • Not all CRM projects have proven successful for some companies, with studies conducted over the past years indicating that somewhere around 25% and 60% of campaigns have fallen below expectations. (CSO Insights, 2016)
  • Among the biggest CRM implementation challenges are the lack of rewards for customer-centric behavior (47%), user adoption (46%) and the mismatch in employee responsibilities and technology needs (45%). ( The Future of CRM Online Survey, 2015)
  • It takes about 1 – 6 months before a traditional CRM can be implemented. It takes another 3 – 5 years before a company gets a good ROI. (ForceManager)
  • 32% of sales representatives spend more than an hour each day on manual data entry. It’s also the number 1 reason for the lack of CRM adoption. (State of Inbound)
  • 63% of CRM projects are prone to failure. (Merkle Group Inc.)
  • Only 45% of businesses are using CRM for storing their customer and lead data. (HubSpot)

What Do These CRM Statistics Mean for Your Business?

The CRM market has certainly come a long way. Starting out as a means to store customer information, it has become an end-to-end solution that lets you engage clients.

However, this does not mean that it can no longer evolve to keep up with the times. The age of digital transformation is rapidly changing what customers expect from businesses and how these businesses stay at the top of their game.

Nowadays, it is not enough to know for you to simply have the best CRM software solutions. You should also try to discover how you can use them in the context of the prevailing industry trends. This way, it will be easier for you to stay ahead of the competition as you know how you can make the most of it.

So, to sum up, our compilation of CRM statistics, here are some key takeaways that we’d like you to leave with:

  1. CRM software undoubtedly offers a wide variety of benefits for your business; however, it is up to you to maximize it by fully understanding how CRM works.
  2. Mobility has grown increasingly important in all aspects of today’s business landscape. Be sure to find a CRM solution that is accessible across your devices so you can easily use your system wherever you may be.
  3. Going social will do wonders for your business. Consumers spend a lot of their time on websites like Facebook and Twitter, so you should do the same to make yourself more accessible to your target audience.
  4. Don’t make the mistake of spending too much time on CRM software management that you are no longer talking with your customers. Remember, these are only meant to automate backend sales processes and help you organize customer data. At the end of the day, nothing beats human interaction when it comes to customer retention and engagement.

Aside from analyzing the CRM facts we’ve compiled and keeping yourself up-to-date on the different industry trends, you can also apply these CRM best practices to further maximize your use of CRM software.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

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