The origin of Customer Relationship Management (CRM) dates back to the 1980s when the concept was first introduced.
CRM is at the basis of direct marketing. It uses customer database analysis to determine which clients are most likely to respond to specific campaigns.
It is now the largest software market in the world! It’s expected to reach more than $113.46 billion in revenue by 2027 and offers businesses the chance to increase sales by as much as 29%.
With its immense dimensions and a rapidly-changing client base, CRM is hardly the same it was 30 years ago.
Let’s review some CRM statistics that show us how this industry evolved throughout the years and where it stands now.
CRM Stats Highlights
- 91% of companies with 11 employees or more use CRM.
- The CRM industry will reach $113.46 billion by 2027.
- CRM may boost sales by up to 29%.
- The average ROI on CRM is $8.71 for each dollar spent.
- CRM can increase a sales team’s productivity by up to 26.4%.
- The CRM market share was $120 billion in 2020.
- 74% of all businesses use CRM software.
- Over 20% of problems with CRM usage are a result of poor user adoption.
What Is CRM?
Before we get into the nitty-gritty of CRM statistics, let’s cover the basics. CRM is a form of customer management based on how clients respond to marketing campaigns.
You can use it to manage business-customer interactions, develop a better relationship with clients, boost sales, streamline processes, increase profit, and improve customer service.
Knowing the top CRM stats will help you decide whether you need CRM software and show you how to take full advantage of it.
Mind-Boggling CRM Stats in 2022
1. In 2019, 91% of businesses with 11+ employees used some form of CRM and database software.
(Source: Stellaxius)
CRM is truly at the core of every growing organization. The market has seen remarkable growth in the last few years. In 2020, the overall CRM usage grew from 56% to 74%, which is a massive 18% increase.
2. 74% of all businesses utilize CRM.
(Source: SuperOffice)
According to recent CRM statistics, 74% of all businesses use CRM software. Out of those, 74% reported a major improvement in their access to customer data.
3. CRM boosts productivity by 34%.
(Source: AgileCRM)
Implementing CRM also increases the number of sales by 29%, enhances the accuracy of forecasts by 42%, and shortens sales cycles by an average of 8-14%.
4. More than 20% of all reported CRM implementation issues were as a result of unsuccessful user adoption.
(Source: Forrester Research)
Considering the high satisfaction rates reported in CRM stats, it is not surprising that a large percentage of reported problems are related to user adoption. Choosing the right software can spare you a lot of trouble.
5. CRM users can expect an average ROI of $8.71 for every dollar spent.
(Source: Nutshell)
The turnaround time is pretty quick too. Most users will see an ROI within 13 months of implementing the CRM software.
Companies That Use CRM Systems
More organizations than ever are adopting CRM software and the numbers keep growing.
6. 60% of businesses increased their investment in technology in 2020.
(Source: SuperOffice)
44% of companies plan to increase this even more in 2022. The investment is essential for virtually all businesses to remain relevant and keep up with tech developments.
CRM statistics reveal that a large portion of this budget is spent on CRM—as companies are growing, they need more help managing their clients.
7. 65% of businesses adopt a CRM system during the first five years.
(Source: Capterra)
Companies using CRM successfully have most likely started using it during the first five years of their existence. Early adoption is key to ensuring that a business gets the most of CRM.
Companies that use CRM software see improvements in sales revenue, customer retention, and satisfaction.
CRM Market Stats in 2022
The SaaS market as a whole is expanding quickly. Innovative CRM solutions are part of the trend.
8. The CRM market size was $120 billion in 2020.
(Source: FinancesOnline)
The CRM industry is going nowhere but up, largely thanks to its worldwide user base. It is one of the fastest-growing tech industries.
This increase is set to continue as CRM becomes an increasingly valuable asset to companies looking to engage with their customers.
9. The CRM industry is forecast to reach $113.46 billion by 2027.
(Source: FinancesOnline)
This makes it the fastest-growing software market in the world. In 2022, the CRM market was worth a whopping $42 billion. This means the number will nearly double in only six years!
10. The number of CRM products on G2’s site increased by 121.3% in one year.
(Source: Replyco)
The number of products on G2's CRM Grid grew from 178 to 394 in just one year. That’s a 121.3% growth year over year. The number of CRM software in 2021 is 644!
However, only a fifth of these have a top rating of 4 or 5 stars. The CRM market is clearly overcrowded, which makes it very hard for businesses to choose the best software for their needs.
11. 75% of businesses that want to invest in CRM software have a yearly turnover between $1 million and $50 million.
(Source: SelectHub)
These CRM statistics show that major companies recognize the potential of these systems. The software is most commonly selected by the CEO, but in businesses with revenue larger than $50 million, the IT department has a bigger say.
Stats About CRM Software Companies in 2022
We at HostingTribunal know CRM development is tough, but sometimes its adoption proves to be even tougher.
12. 32% of CRM users are in the service industry.
(Source: SelectHub)
Customer relationship management applications improve customer-business relationships, so it comes as no surprise that the largest percentage of users are from the service sector.
The IT and manufacturing industries come in next, both at 13%.
13. 83% of senior executives struggle to convince their staff to use the CRM software.
(Source: Nomalys)
Even though CRM was proven effective time and time again, 83% of senior executives can’t get their staff on board. Many salespeople would rather spend hours entering data into an Excel sheet rather than learn how to use a new program.
Companies that use CRM software are typically more productive than those that don’t, but the training process can be hard and lengthy.
14. 92% of businesses using CRM claim it helped them achieve their revenue goals.
(Source: SuperOffice)
Their expectations from the CRM vary from improving customer service and retention to generating new business and increasing sales. The high satisfaction rates and improved online reputation demonstrate that these goals were at least partially accomplished.
Customer Relationship Management Trends in 2022
CRM has changed dramatically over the last few years as businesses move to implement mobile and cloud-based CRM systems.
Many companies that use CRM have struggled to get employees to adapt to the software. However, with an increased dependency on mobile technology, mobile CRM adoption rates are far higher than traditional CRM systems.
Cloud-based CRM is also experiencing a major boom, particularly in the age of Covid-19. With more teams working remotely, it makes sense for companies that use CRM to move their operations to the cloud.
15. The mobile CRM market will reach $15 billion.
(Source: SuperOffice)
50% of teams boosted their productivity by implementing mobile CRM. 65% of the companies that use mobile customer relationship management report that they achieve their sales quotas. Compared to the 22% of non-mobile CRM users, this number is through the roof.
16. 44% of medium-sized businesses used cloud-based CRM in 2020.
(Source: FinancesOnline)
Many businesses are already shifting to cloud solutions and their customer relationship management applications are no exception.
Small and medium-sized companies are taking the lead with this move—33% of the former and 44% of the latter are already using cloud-based CRM systems.
Wrap Up
A customer relationship management platform is designed to help companies manage consumer data. CRMs provide insights into customer behavior, support the sales team, integrate with social media, and improve business-customer communications.
The CRM statistics demonstrate its effectiveness in increasing productivity, customer satisfaction, and sales. It’s a win-win solution that benefits employees, clients, and businesses.
The value of CRM is recognized globally.
Get on track and let your organization flourish!
Sources
Branko is a round-the-clock tech geek and loving it. His ideal vacation destination is the Akihabara District (or really any place he can take his computer). If there’s a server out there, count on him to find out what it’s made of… and tell you all about it.
