2020 CRM statistics worth exploringSchedule a Free Demo
The usefulness of Customer Relationship Management (CRM) systems and their benefits for businesses should both be undisputed in 2020. MoversTech CRM has repeatedly delved into the analysis of both, but doubts are understandable. CRM is indeed an evolving, powerful technology that continues to grow – but numbers can pinpoint reality more accurately. It also continues to face the challenge of user adoption, and the hardships that it entails. Thus, with both in mind, we will use this article to explore the most vital 2020 CRM statistics worth exploring.
2020 CRM statistics: growth
To begin with, growth is likely among the most important statistics to explore. Indeed, CRM has seen steady growth, in no small part due to the rapid advancement of technology at large. From small, local businesses to large, multi-location businesses, CRM is seeing widespread adoption and growth.
As of 2020, CRM is the single biggest software market globally. Furthermore, it’s the fastest-growing software market as well. A comparatively modest $14 billion industry in 2010, it has grown to over $40 billion today and is expected to grow to $80 billion by 2025.
One may attribute much of CRM’s growth to the growing popularity of mobile devices and cloud-based software. In 2008, only 12% of all businesses used cloud-based CRM, as opposed to on-premise CRM. In 2020, more than 87% of all businesses have embraced cloud-based CRM.
Personalized marketing in 2020
Furthermore, while social media marketing becomes increasingly popular, digital marketers are keener on increasing investment in email marketing in 2020. That’s understandable, given email’s reliably consistent ROI – yet Business2community highlights that only 1 in 5 marketers use “most or all” automation features at their disposal. Similarly, customer experience increasingly takes priority. As such, it should be safe to assume that CRM will remain valuable in 2020.
2020 CRM statistics: effectiveness
Growth aside, one may have an unclear view of CRM’s effectiveness. From helping one’s employees coordinate to lead nurturing and, finally, sales, there are equally interesting statistics worth exploring in this front.
Productivity and sales
Since CRM seeks to improve the efficiency of your operations, gauging its effectiveness is vital. Salesforce reports benefits in 3 key productivity areas:
- Sales – 29%
- Sales productivity – 34%
- Forecast accuracy – 42%
Given the wealth of sales automation, customer segmentation, and internal cooperation features that CRM provides, such benefits are only to be expected.
Lead nurturing and lead cost
It is equally vital to note that, among CRM features that are globally useful, lead nurturing tools are essential. On this note, let us highlight both the usual shortcomings on the front of lead nurturing, as well as the potency of CRM.
- According to Cloudswave, 75% of all businesses do not have a clearly defined lead nurturing process.
- According to Pardot, 79% of all leads never convert.
- CyberSphere holds that 30% of all marketers struggle to nurture leads due to a lack of centralized data sources.
However, statistics show that CRM can address such concerns manifold, as well as reduce lead acquisition costs.
- Dmnews has found that 84% of all companies find CRM to be useful in determining lead quality.
- According to Annuitas Group, leads nurtured through CRM can spend up to 47% more.
- According to Cloudswave, CRM can decrease the lead acquisition cost by up to 23% per lead.
Therefore, it should be clear that CRM holds unquestionable promise on this front as well. With such features as customer segmentation, predictive modeling, and lead analysis, it stands to reason that it should.
Conversion rates, customer retention, and sales quotas
On the subject of sales performance, then, CRM undoubtedly delivers. Consider the following statistics worth exploring:
- According to Cloudsware, CRM can improve conversions by up to an astounding 300%, as well as increase individual purchase value by up to 40%. The latter is consistent with Annuitas Group’s aforementioned statistic.
- Nucleus Research and Trackvia both find that CRM can increase customer retention rates, quantifying the number at 26% and 27% respectively.
- According to Innopple Technologies, companies can expect a sales quota increase of up to 65% after adopting CRM. Furthermore, they found that 65% of sales reps who use mobile CRM achieve their sales quotas, as opposed to 22% who do not.
Furthermore, a poll of CRM users conducted by Capterra found that nearly half (47%) of all respondents identified similar benefits. Namely, they identified a “substantial impact on customer retention” and an improvement in overall customer satisfaction. Thus, using CRM should yield considerable benefits in this front as well, especially if you integrate mobile CRM into your operations.
2020 CRM statistics: Return on Investment (ROI)
Finally, as with all such investments, ROI is an absolutely essential metric to keep track of. Among all the statistics highlighted in this article thus far, RO is perhaps the one CRM statistic worth exploring the most.
Perhaps predictably, given CRM’s prominence and market growth, CRM boasts a very high and somewhat consistent ROI. Nucleus Research finds that CRM yields an ROI of $8.71 for every $1 spent, and similar studies confirm this average. A Forrester report on larger companies with over 2,000 employees found a potential ROI of as much as 245%, as well as the following highlights, among others:
- Improved productivity on 50% of teams
- A 40% reduction of customer service labor costs, and a 20% reduction of overall labor costs
- A 2% total increase in revenue
However, it is equally noteworthy that many such studies presuppose optimal user adoption. Therefore, while potential ROI is indeed high, this factor should be taken into account.
2020 CRM statistics: user adoption
On this subject, let us conclude with a CRM statistic that highlights a challenge for many companies. User adoption is vital for optimal CRM efficiency, and it remains a hardship for many companies to overcome.
Specifically, according to Salesforce, the average adoption rate across industries is 26%. Building on this statistic, CSO Insights, Forrester, and Trovare all find the following:
- Less than 40% of businesses that adopt CRM have an end-user adoption rate of over 90%.
- 22% of all CRM implementation problems are related to staff or user adoption.
Thus, while CRM holds much promise, the persistent challenge of user adoption rates should remain on everyone’s mind in 2020.