Can you imagine software so powerful it can generate $1.1 trillion (about the size of Mexico’s GDP) in just 5 years?
Well, software alone can’t do that, but it can create opportunities worth this ridiculous amount of money.
CRM is short for customer relationship management. To put it simply, it is software that manages your interactions with your present and future clients.
CRM software has already become a multi-billion dollar industry. It has changed the way companies sell, and it has generated billions of profits for them.
And that’s just the beginning.
The Most Important CRM Statistics You Need to Know in 2019
- Revenues in the CRM market are expected to reach $82 billion by 2025.
- 91% of companies with more than 11 employees already use CRM.
- Firms using CRMs increase their sales by 29% on average.
- CRM can improve the accuracy of reports by 42%.
- CRM pays back $8.71 for every dollar spent.
- 46% of sales teams report widespread use of CRM software.
- AI in CRM is set to generate an extra $1.1 trillion in revenues by 2021.
OK, now that I’ve got your attention, let’s have a look at some fascinating numbers behind the CRM craze.
The CRM Market Is Exploding
And coming up are the stats to prove it.
1. In 2018, the global CRM market broke the $48 billion barrier.
- The CRM market expanded by a whopping 15.6% in 2018, making it the largest and the fastest-growing enterprise application software category.
- 72.9% of CRM spending was on Software-as-a-Service (SaaS).
- The top 5 CRM software vendors accounted for more than 40% of global sales.
Not only is the CRM industry huge, it’s also expanding at lightning speed. More and more companies realize the benefits of CRM, and they invest heavily in the technology.
CRM software is easy to use because it’s cloud-based. You don’t need to install anything on your office computers. You just open a browser, fill in your credentials, and you are ready to go.
There are a few big players in the CRM scene that bite off almost half of all revenue. The concentration of a significant market share in a handful of companies will probably continue in the coming years. We can expect more consolidation in this industry.
2. Salesforce has the biggest CRM market share.
- Salesforce owned 19.2% of the market at the end of 2018. The company’s market share is twice as big as the industry’s second-biggest vendor, SAP (8.3%).
- Oracle, Adobe, and Microsoft are also industry leaders, owning 5.5%, 5,1%, and 2.7% of the market, respectively.
- Other CRM software vendors control the remaining 58.8% of the market.
Salesforce is the CRM tzar, and right now, it seems that no one can shoot for its crown.
However, times change, and that is true for the biggest CRM companies too. Remember when 20 years ago, Nokia was the global leader in the mobile phone market? It now owns about 1% of global smartphone shipments.
What’s important is that small vendors still hold a significant share of the market. This is good for the end-user as it increases competition and delivers more quality products at better prices.
3. The Global CRM market is set to grow to $81.9 billion by 2025.
(Source: Ground View Research)
The CRM market has enormous potential that is yet to shine. With many new clients rushing in every day, we can expect the industry to double its revenue in the next 7 years.
Companies Are Embracing the New Trend
CRM adoption is on the rise, especially among bigger companies.
4. 91% of companies with more than 11 employees use a CRM system.
- Companies that use CRM saw their sales increase by up to 29%.
- Salespeople saw productivity increase by 30% once they had mobile access to CRM.
- 30% of marketers say having many data sources is a primary reason they can’t get valuable data about customers.
CRM platforms gather various types of data about current and future customers. Those platforms analyze the numbers and show the results in nice and easy-to-understand graphics and reports.
The bigger a company is, the more it needs a CRM system.
By introducing mobile access to CRM software, employers can improve productivity even more. After all, you don’t need to sit at your desk to monitor processes. You can do it from a coffee shop or while at the airport!
5. Sales productivity can increase by up to 34% thanks to CRM.
- CRM increases forecast accuracy by up to 42%
- CRM returns $8.71 for every dollar spent.
CRM statistics show it makes sense to invest in client relationship management. For every buck you spend on CRM software, you get more than 700% return.
This is huge! CRM increases productivity and stimulates sales. It also gives you a bigger picture of your future revenues.
Forecasting is an essential process for any business. CRM software can crunch numbers and return predictions about future gains.
6. A lot of companies still underestimate the importance of CRM.
- Just 13% of firms say investing in CRM is their top sales priority for 2019.
- The majority of companies (75%) spend most of their time trying to close more deals.
- About 27% of them think that their top priority should be to train sales teams.
- Almost 25% say that improving existing sales technology should be their main goal for 2019.
It’s understandable: the board of directors wants more sales, so what do managers do? They try to close more deals. Little do they know that a CRM tool might help them do it faster and more efficiently.
While employee training in updating existing technology is important, CRM software can make sales teams more productive and bring more value to sales and marketing tools used by the company. And CRM statistics prove it.
The Market Is Overcrowded
Although there’s an impressive number of CRM platforms out there, you’ll be surprised at how many of them have high ratings.
7. There are 379 CRM systems on the market.
- Only 18% of them have a 4 or 5-star rating.
- 46% of sales teams report widespread use of CRM software.
- 22% of salespeople still ask themselves, “Why is CRM important?”
The CRM market is already overcrowded with almost 400 different platforms (and that’s just the number of tools that G2 lists!). However, only a fifth of these tools have a top rating.
This means that most CRM systems are still too challenging to work with or are crappy pieces of code. So why use a CRM in the first place?
It’s hard to imagine that with all this buzz around CRM, there are still sales specialists that haven’t heard of it. Oh, well, some salespeople do have a hard time getting used to new things.
On the other hand, almost half of sales teams asked – are hardcore users, according to CRM statistics.
8. 75% of companies that want to buy CRM software have an annual turnover between $1 and $50 million.
- 84% of those companies have less than 1000 employees.
- 29% of them currently do CRM with the help of… Outlook.
- Another 22% rely on Excel.
CRM is not just for big companies. Small and medium enterprises need it too. Big companies probably already have software, but SMEs are yet to catch up with the CRM trends.
The latter still use tools like Outlook and Excel to satisfy their CRM needs. While these are both powerful programs, an Excel sheet is no match for a platform that’s been created specifically for client relationship management.
Outlook works great as mail client, but it’s hard to customize thousands of letters with it. However, it seems to be one of the most used CRM solutions when it comes to email marketing among small and medium firms.
9. Service and IT companies are most interested in buying CRM software.
- 32% of firms that want to buy CRM platform are in the service industry.
- 13% of IT companies want to invest in CRM.
- 10% of finance companies want to do the same.
- Only 3% of healthcare companies are interested in CRM.
Services is a robust sector and a major contributor to GDP. It’s no surprise then, that service companies are so interested in popular CRM software. They work with clients all the time and need a system to keep all their contacts and communication history intact.
The same goes for IT companies. Some of them work with thousands of big clients. It’s hard to keep track of all the projects that an IT company may be working on at a given time.
What might be surprising is that healthcare companies have a relatively low interest in CRM. Healthcare can be a major booster of the CRM market share size. Only time will tell if these companies will begin to appreciate the value of such software.
Cloud and Mobile Rule the Industry
The cloud CRM is dethroning the on-premise one. Here’s the proof:
10. 87% of companies used cloud CRM in 2017.
- The other 13% still prefer CRM on-premise.
- Back in 2008, it was much more different: on-premise CRM ruled 88% of the market.
- 10 years ago, only 12% of businesses used cloud CRM.
This data is critical. It shows a massive shift in the CRM market share and structure.
About a decade ago, on-premise CRM software was king. But now the tables have turned. Managers want an easy-to-use product they can access from everywhere. With on-premise programs, this is harder to do.
Today, cloud is king. It won’t be long before cloud CRM software completely takes over the market. Just like Wikipedia and online sources destroyed the CD-ROM encyclopedias market.
11. 65% of companies with mobile CRM achieve their sales quotas.
- 78% of firms without mobile CRM don’t meet their quotas.
- Without any CRM, 79% of clients fail to convert.
- Social CRM boosts retention by 26%.
Forget about CRM statistics for a moment. Let’s talk about something way more fun.
Who needs an office desk when you can manage your clients from the beach, holding a smartphone?
Mobile CRM has made a considerable impact on client relationship management.
With CRM usage growing, no major client relationship platform exists without a mobile version. Whether it’s a mobile app or responsive web design, mobile CRM is a must.
Most companies prefer it because it’s easy to use regardless of a person’s location. No wonder it helps them achieve their sales quotas.
Meanwhile, companies that don’t use mobile CRM struggle with sales.
But a desktop-only CRM is still better than no CRM at all. As CRM usage statistics show, 4 out of every 5 companies without CRM can’t achieve their sales goals. How would you like to be a manager in a company like that?
AI Will Disrupt the Market Even More
AI adoption is on the rise worldwide, and CRM isn’t an exception.
12. Between 2017 and 2021, AI will add $1.2 trillion in the coffers of companies using CRM.
- AI use in CRM will create more than 800,000 new jobs.
- 28% of companies have already adopted AI in their CRM.
Return of investments (ROI) is one of the most important indicators managers are looking at when they decide what new assets to buy.
The link between artificial intelligence and CRM ROI statistics is easily visible. Computers can automate tasks. They can create predictions and models based on existing data. AI can improve CRM drastically, and thus influence revenues.
When people talk about automation, they usually assume job losses. While that’s true to some extent (machines are more precise and cheaper than human labor), AI in the CRM niche will have a net positive effect on jobs.
Smarter, better CRM programs create more opportunities for companies, which increases the demand for labor. So don’t trust that myth about the big bad robots taking our jobs just yet.
Customer Relationship Management has been around for decades, but it got a powerful boost in the nineties thanks to Tom Siebel who created the first CRM software. Ever since then, CRM has been a growing industry.
CRM statistics leave no room for doubt. The market will continue to expand as companies from all sizes embrace new technologies. And with the help of AI, it may mean a tremendous shift in the way businesses perceive their clients.