Embracing digital transformation and the latest software trends is crucial for businesses to grow. Today we're talking about customer relationship management — arguably the biggest software market on a global level. Integrated software solutions streamline your administrative processes, which means you can focus on the strategic aspects of leading your business. Keep reading these CRM statistics to figure out how to apply the technology to increase your efficiency and profitability.
CRM Statistics (Editor's choice)
- The estimated CRM market value currently stands at around $66.5 billion.
- A CRM industry overview reveals the CRM market quadrupled between 2010 and 2019.
- A whopping 91% of businesses with over 10 employees use CRM.
- CRM became the largest software industry in 2017.
- 87% of CRM is cloud-based.
- 92% of businesses see CRM as crucial for achieving their revenue goals.
- Contact management is the top-requested feature of CRM with 94%.
General CRM Statistics & Facts
1. A CRM industry overview shows the global market size is valued at nearly $66.5 billion.
The exact figure as of 2021 stands at $66.4 billion. Experts forecast that the CRM market will remain the fastest-growing market going forward.
2. The CRM market value has quadrupled between 2010 and 2019.
As CRM adoption rates grow at lighting speed, so does the market's value. In 2010, the CRM market was worth $13.9 billion, only to increase its value to $56.5 billion in 2019.
3. CAGR for 2021-2025 for CRM software is 13.1%.
CRM market statistics forecast an annual growth rate for the industry at a staggering 13.1%. That means that by 2025, the CRM market size will grow to $108.5 billion.
4. CRM became the largest software industry in 2017.
Until very late 2017, database management systems had the most extensive software market revenue. At the moment of CRM overtaking DBMSs, it had reached $39.5 billion. CMR growth has continued since. Experts argue that CMR revenue enjoys such a healthy growth rate because of its three separate segments, namely:
- Lead management
- Voice of the customer
- Field service management.
Each of those is estimated to be growing at an annual rate of over 20%, according to CRM market statistics.
5. Lead generation and customer retention applications accounted for nearly one-third of the global CRM market share.
In 2019, the CRM software market was categorized according to application type. The highest percentage of CRM firms targets lead generation and customer retention applications with 32%. Customer management and customer support applications followed with the second and third highest share of the customer relationship management market.
(Fortune Business Insights)
6. CRM usage statistics for the US reveal that a whopping 91% of businesses with over 10 employees use CRM.
Since 2017, almost every business in the US has already used a CRM solution. The explanation is straightforward — manual processes are inefficient, while repetitive tasks reduce productivity and weigh on morale. Also, CRM features improve sales funnel management, customer intelligence, lead generation, customer retention, etc., and are evolving to accommodate customer preferences.
7. The latest CRM usage statistics show that HubSpot is the most recommended service software for small businesses.
CRM research shows that HubSpot continuously tops lists of best and most trusted CRM software. The platform is aimed at small businesses and has a forever-free version. G2 Satisfaction Scores show 4.5 out of 5. This ranking meant it was first again. Finances Online gave it the Best Sales Software Award in 2018. Alignable's Survey shows HubSpot was the most trusted software in Marketing Automation & CRM Category from the same year.
8. Salesforce has the biggest CRM software market share with 19.8%.
CRM statistics confirm Salesforce’s position as a global leader in the CRM industry, with 19.8% of the total market. In 2020, International Data Corporation named it the top CRM provider for the seventh consecutive year. Oracle comes in next with a 5.3% CRM software market share, while SAP is third with 4.8%. Adobe and Microsoft complete the top five with 3.9% and 3.8%.
9. Cloud CRM statistics show that 87% of CRM is cloud-based.
With a significant rise in mobile CRM applications, traditional on-premise CRM is losing its value. Being able to access your CRM software from different devices is attracting a growing number of users. The percentage of cloud-based users was only 12% in 2008, then jumped to 62% in 2018. It has drastically increased to 87% nowadays.
10. Cloud CRM statistics for 2018 show 72.9% of CRM spending was on SaaS.
The availability of online access from multiple devices is increasing customer satisfaction. As CX is an integral part of CRM, an increasing number of smartphone users led to SaaS becoming dominant on the market. When we add customers on laptops and tablets, it all adds up.
11. Four sectors accounted for over 50% of CRM users in 2018 and 2019.
Data related to buyers of CRM solutions show 25% of users come from the real estate industry. The second sector on the list is consulting with 11%, followed by distribution and insurance with 8% each. This doesn't come as a surprise, as all four industries depend on frequent meetings. 2020 meanwhile brought more CRM growth in the health, finance, insurance, and manufacturing industries.
12. CRM usage statistics show that 81% of CRM clients use the software from multiple devices.
There is a strong correlation between this CRM fact and the modern way of life. CRM is an ongoing endeavor that requires upkeep as the customers' expectations evolve. 81% of existing clients use multiple devices such as laptops, smartphones, and tablets to access the software.
13. CRM statistics point to contact management as the most-requested feature, with 94%.
As CRM developments continue to improve the functionality, the most requested features change a little. The second place goes to interactions tracking with 88%, and a close third to scheduling and reminders with 85% of CRM users. Funnel monitoring, sales automation, a central database, and email marketing are following, with an average of 22%.
Important CRM Benefits Statistics
14. A whopping 74% of companies using CRM successfully report improved customer service.
Having a 360-degree view of each customer helps your business develop a personalized connection with them. 74% of companies that use CRM solutions report that every step of their customer service has improved significantly. Some benefits they emphasize are higher lead generation, conversion rates, and customer retention.
15. CRM statistics reveal that 50% of companies that use CRM enjoy improved productivity.
Productivity levels are continually rising with CRM solutions, as 50% of companies that use them claim. The automation of repetitive tasks leads to increased efficiency in daily operations. Once employees get used to new features, the ease of workflow makes them more productive.
16. 92% of businesses report that CRM usage is crucial for achieving their revenue goals.
CRM adoption statistics show that companies using CRM successfully believe such solutions are essential for achieving their revenue goals. A staggering 92% consider this to be true.
17. CRM users report the software usage can boost sales by 29%, while conversion rates can increase up to 300%.
Implementing CRM software increases customer satisfaction, and this will reflect on your sales levels. Automation of tickets, an increase in your leads, and higher customer retention mean a 29% boost in sales. AI categorization in the lead funnel tracks customer behavior more precisely, resulting in up to 300% higher conversion rates, according to CRM statistics.
18. Nearly two-thirds of companies that use mobile CRM achieve their sales quotas.
Stats from 2020 show that only 22% of companies that do not use CRM achieved their sales quotas. That compares to 65% of businesses that use mobile CRM.
19. CRM ROI statistics reveal that ROI can exceed 245% for CRM software usage.
CRM software, if properly implemented, improves your business in the long run. It can yield an ROI of over 245%. CRM research shows that companies with high adoption rates have seen ROI after only four months post-implementation. The vast majority, however, will have to wait up to a year.
20. 99% of top performers in B2B use CRM for customer retention.
Having insights into your customers' preferences allows businesses to resolve issues fast. CRM statistics in a survey of 750 mid-size B2B companies shows that almost every participant believes CRM is the best way to analyze their customer behavioral patterns and respond appropriately. Email marketing was next with 68%, followed by marketing automation with 50%.
21. Companies can reduce labor costs by 40% with CRM investment.
The first variable of reduced labor costs is that automation makes manual data entry obsolete. Overall, decreasing costs were calculated at 40%. Marketing and sales teams benefit the most from CRM. That means no more spending time collecting, entering, or linking data across systems for your employees.
22. CRM statistics point to predictive accuracy of up to 95%.
Predicting the outcomes of potential sales with leads and customers is key. With CRM solutions being accurate in up to 95% of cases, your sales representatives won't be losing their valuable time anymore. With 79% of leads never converting to customers, it’s all about focusing on the right deals.
23. CRM statistics show that 74% of companies using CRM successfully improved access to their customer data.
The correct customer data plays a role in improving communication with existing clients. Following the Pareto principle, which states 80% of your profits come from 20% of your customers, it is crucial to have all previous interactions recorded and available at all times. Higher customer retention, therefore, comes from identifying and prioritizing your top customers.
24. 28% of millennials believe CRM software is critical to their success.
Tech-centric younger generations such as millennials and Gen Z insist on using applications. Compared to 28% of millennials, only 18% of Gen X, and as low as 9% of Baby Boomers believe that CRM intelligent software is essential for success, CRM statistics indicate.
25. CRM system was fourth on the list of sales tools that have become more valuable since 2019.
A 2020 report shows that global sales trends have significantly changed since the year before. As social distancing became a must, these top 5 sales tools have drastically increased in their value:
- Video conferencing
- Mobile sales apps for employees
- CRM system
- Sales prospecting tools.
CRM Failure Statistics You Need to Know
26. An average of 30% of CRM projects doesn’t succeed.
By analyzing the most common pitfalls of these projects, we can isolate four key reasons:
Lack of a coherent strategy
- Lack of attention to the process
- Focus on technology instead of people
- Failure to adopt after implementation.
Different case studies point to failure rates in the 18%-69% range or an average of about 30%. While the technology has its faults, it’s just a tool, meaning proper training of your marketing and sales teams is equally crucial for boosting your revenue and customer satisfaction with CRM.
(Harvard Business Review)
27. Less than 40% of companies have achieved adoption rates of over 90%.
CRM adoption statistics show that out of over 1,000 reviewed companies, only 40% achieve the desirable adoption rates. The same or similar issues are to blame, from people-related adoption to the diluted focus of the solution. CRM is a tool that can have superb results, but only if implemented adequately within a team.
(G2 Learn Hub)
28. People account for 22% of issues with CRM adoption.
Successful implementation of CRM comes with several issues, 22% of them being people-related. Properly training your employees is crucial, as CRM can be a powerful tool only if they know how to use the features. For your sales force, CRM means a change in the way they do their job. If you want to maximize the CRM adoption rate, be patient and regularly ask for feedback.
29. CRM statistics show that most businesses use only 50% of their paid CRM features.
Most users don't take advantage of all the features their business is paying for. Proper training of employees would highly increase the satisfaction levels and revenue. It's clear that if you're using only half of the features, you can't expect the application to provide the best results.
CRM Facts – Customers' Point of View
30. 82% of customers leave businesses because of poor customer service.
The customer is king and should always come first. They need to believe that your business cares about them as individuals which makes the emphasis on personalization a key aspect of customer retention. While 82% of customers will leave a business because they believe you simply don't care, only 14% leave because they are not satisfied with products or services.
31. An exceptional 24/7 service accounts for 33% of customer loyalty levels.
Here comes the ultimate combination of chatbots, IoT, and AI in your CRM usage. CRM statistics show that 24/7 instant service helps in building customer loyalty the most with 33%. Next on the list are rewards, referrals, and feedback, which are the primary reason for 20% of customers. Receiving exclusive offers and providing personalized products are also important for 12% and 11% of customers' loyalty to a particular brand.
32. Personalized customer experience makes a purchase more likely for 80% of consumers.
Personalization is one of several factors that create a stellar customer experience. 80% of customers said they are more likely to make a purchase if a brand offers personalized service. The creation of a unique journey makes customers stay loyal. CRM facts also show that 89% of companies mainly compete on a CX basis.
33. An average customer will spend 12% more to get exceptional service.
Adding value to customer experience pays off. A study shows that an average customer is willing to spend up to 12% more of the amount of money if they find the service exceptional. A surprising 13% of customers would pay 20% more for this reason.
Cutting-Edge CRM Statistics & Trends
34. 81% of sales representatives admit that sales technology needs have changed.
81% of sales leaders understand just how digital transformation expedites and map their business priorities in accordance. Since 2019 and the global pandemic, 66% focus on improving their employees' skills. 56% of top sales performers are confident they can adapt to rapid changes and technology advancements, including CRM solutions and AI.
35. According to the latest customer relationship management trends, 44% of businesses will expand their IT budgets in 2021.
An increase in sales and ROI with CRM usage is becoming impossible to ignore. As a result, the percentage of companies investing in CRM SaaS solutions continues to explode. A global pandemic has influenced adopting digital workflows. 32% of businesses said they plan to connect their employees this way as well.
36. CRM trends point to highly increased CRM usage on mobile devices.
61% of companies that use CRM trust that mobile solutions are the best method for increasing their target audience reach.
37. 94% of users find voice search useful.
Voice technology is becoming critical for SaaS tools' accessibility. It is practical and often more convenient to use, and more interactive for customers. 94% of users said it improves the quality of their lives.
38. The latest CRM trends point to AI and IoT as the most significant game-changers.
Automation with AI improves efficiency and predicts customer behavior. Study results reveal that AI-fueled activities can increase business revenues by a jaw-dropping $1.1 trillion. Conversational chatbots and IoT integration in CRM are significant factors in increasing personalization levels and customer satisfaction.
Let's Wrap It Up
Customer relationship management is a necessity for a business. It makes it easier to be proactive and get ahead of your competitors. We've shared these CRM statistics to show that tech literacy is equally crucial as the quality of your products or services. As a combination of strategies, practices, and technologies that our digital society requires, investing in CRM creates new opportunities.
- Fortune Business Insights
- Software Advice
- OnePage Express
- Agile CRM
- Martech Zone
- Harvard Business Review
- G2 Learn Hub
- Technology Advice
- Business World