A proper Customer Relationship Management System (CRMs) is crucial for many business tasks. The principal objectives of CRMs are to assist with overseeing customer connections and, typically, to build successful deals and increase profits. Hence, CRMs can be beneficial to your business. Nevertheless, in particular, it can assist with keeping essential data about your clients. The information your CRMs give can help maintain current customers and intrigue forthcoming ones to return to work or shop with you. What facts about CRMs make you want to invest in or use them? To aid you with a better understanding of CRMs, here are some interesting facts and statistics about them:
CRMs Market Size and Share
According to Global News Wire - Markets and Research. “Global Customer Relationship Management (CRM) Software”, the global CRM market was forecast to reach around US$55.3 Billion in 2020. Rising at a Compound annual growth rate (CAGR) of 12.2 % between 2020-2027, while mobile CRM grew to $15 billion the same year. The market size is expected to increase to around US$123.8 Billion by 2027.
Another research by Fortune Business Insights -“Customer Relationship Management [CRM] Market Growth, 2029”, shows a projected growth from $63.91 billion in 2022 to $145.79 billion by 2029, at a CAGR of 12.5%. The global COVID-19 pandemic has been unexpected and astounding, with lower-than-expected demand across all areas compared to pre-pandemic levels. Based on the analysis, the global CRM market growth declined by 10% in 2020 compared to 2019.
From these statistics, CRMs are rapidly expanding, and as a result, businesses prioritise CRMs implementation in their enterprises, making it at the top of most organisations' budget proposals.
CRMs Adoption Rate
This is the rate at which the number of people, companies and organisations are using or are planning to use CRM solutions. The market share shows an increase of about 12.5% in CRMs adoption growth over six years, i.e. between 2022 and 2029. With reports on a positive correlation between CRM adoption rates and sales teams' performance, companies ensure broad adoption of CRMs, and 65% of companies invest in CRMs within their first five years of business.
Although such reports show a direct correlation between CRM adoption rates and sales team performance and that most businesses use CRMs, the adoption rate remains low, with an average adoption rate of 26% across various industries. Additionally, only 47% of companies with a CRM have a business adoption rate of more than 90%. The lack of integration with other tools is cited by 17% of salespeople as the most major difficulty with their current CRM.
“A recent poll of CRM users found that 47% of respondents say CRM usage substantially impacts customer retention. An equal percentage say that CRM usage helped them increase customer satisfaction.” (Source: Capterra through Agile CRM).
It’s well noted that when a company implements CRM, it’s used by sales teams (80%), marketing and customer service departments. Approximately 91% of companies with ten or more employees use a CRM to handle customer conversations. Sales teams using these CRM confirmed that job satisfaction increased. Top-requested CRM features are contact management, track integrations, and scheduling /reminders, enhancing the quality of communication among sales reps and executives.
CRMs Features
According to SelectHub's CRM user study, 22.75 % of surveyed businesses will continue to invest in the CRM system since it lacks the necessary functionality. Other reasons include the lack of unified client information in a CRM solution and general inconvenience (difficulty to use, inflexibility or slowness). As a result, you should think of CRM services as bespoke development, integration, and customisation from the beginning.
Research by Butler Group shows that only about 50% of the CRM features paid for by businesses are actually used; on this, the study indicates that 43% of the users use less than half of the features provided by the CRMs. The good news is that CRMs are improving and becoming more user-friendly, more inexpensive, more intelligent, and more customisable every year. This improvement is advisable, as studies conducted by Salesforce (as mentioned in FocusOnForce) found that 72% of CRM users say they would trade complex functionality for usability in the software. 51% of CRM users cited data synchronisation as a significant issue (Front Row Solutions).
CRMs Benefits & Conclusion
CRM statistics have highlighted areas for sales to improve in recent years, which are critical to remember for 2022. Converting clients, Closing more transactions, Improving sales funnel efficiency, Driving lead creation, and Getting more answers from prospects are some of these areas.
Companies are continuing to invest in CRM to utilise the latest analytics, social collaboration, mobile, and other features, and for a good reason; a study by Nucleus Research shows the average ROI for CRM is $8.71 for every dollar spent. While per salesperson, a CRM can increase revenue by 41%.
Another research from Findstack indicates that CRM software can increase sales by as much as 29% while improving sales forecasting accuracy by up to 32% and improving sales productivity by 39%. CRM is known to improve customer retention by as much as 27%, and also, 79% of all marketing leads are never converted to sales, as per Salesforce.
Companies that do not want to lag behind the competition should invest in CRMs supporting sales and marketing teams. Nevertheless, acquiring CRMs does not complete the task of improving company operations. CRM customisation, connectivity with external systems, and user adoption are all required to assist sales, marketing, and customer support teams in making the most of the CRM's features.
