Every year, more and more businesses are realizing the benefits of customer relationship management (CRM). With a crowded space valued at $120 billion and with around 381 CRM software platforms on the market, there is a huge range of tools to choose from.
The stats show that 13% of companies chose investing in a CRM as a top sales priority for 2019, while another 23% were planning on improving existing sales technologies. As we head into 2020, we predict this trend continuing as more businesses across all industries understand how CRM can impact their bottom line.
One thing is for sure: CRM isn't just for large businesses: "Even the smallest operation needs a CRM," shared Rashan Dixon, Co-founder of Techincon and Senior Business Consultant for Microsoft, on Entrepreneur.com.
As we move through the year, here's our round-up of the most telling CRM statistics for 2019 and 2020.
- Market share among the most popular CRM systems
- Stats on CRM adoption in 2019
- Top benefits of CRM software
- Top barriers to adopting a CRM system in 2019 and 2020
- Sales team statistics
- Top benefits of CRM for end customers
- Most important CRM features for SMEs
- CRM stats for 2020: what's important
- Looking forward to 2020
Statistics about CRM for 2019 and predictions for 2020
Market share among the most popular CRM systems
According to G2 Crowd, these are the ten most popular CRMs in 2019 based on their number of reviews:
- Salesforce (8,702 reviews, 4.2 / 5 average rating)
- HubSpot CRM (3,143 reviews, 4.2 / 5)
- Zoho CRM (1,229 reviews, 3.9 / 5)
- Microsoft Dynamics 365 for Sales (1,119, 3.7 / 5)
- Pipedrive (1,087, 4.3 / 5)
- PipelineDeals (795, 4.3 / 5)
- Nimble (774, 4.5 / 5)
- Freshsales (558, 4.7 / 5)
- Insightly CRM (475, 4.1 / 5)
- SugarCRM (457, 3.7 / 5)
- Copper (410, 4.6 / 5)
It's worth noting that despite there being 381 CRM systems listed on G2 Crowd, only 18% have a 4 or 5-star rating. We predict the top five CRMs above will continue to dominate in 2020, although there may be some merges and new players in the market.
For more recommendations on choosing the best CRM for you, check our blog post: The best CRMs for small businesses in 2019: pros, cons, and what you need to know
Stats on CRM adoption in 2019
Over 50% of CRM buyers are in one of four markets: real estate, consulting, distribution, and insurance (Software Advice, 2019). "A great deal of new CRM growth will come from industry CRM aimed at vertical markets like healthcare, finance, insurance, manufacturing and the like," predicts Denis Pombriant as we head into the 2020s.
More than half of sales professionals (64%) use CRM applications. CRM adoption has grown 113% since 2016 and 28% since 2017. (LinkedIn State of Sales, 2018)
28% of millennials think CRM applications are “extremely critical” to their success, compared to 18% of Generation X and 9% of Baby Boomers. (LinkedIn State of Sales, 2018)
Salesforce's share of the CRM market is now over 19%, wrote Forbes in January 2019.
46% of sales teams reported widespread use of CRM systems in the 2018 Sales Operations Optimization Study from CSO Insights.
18% of salespeople still don't know what a CRM is. This has improved from 22% in 2016. (HubSpot, 2017) Are you one of them? Don’t worry, here’s everything you need to know to get started.
65% of companies adopt a CRM system within the first five years of business. 18% adopt a CRM within the first year. (Capterra, 2015)
Top benefits of CRM software
Three-quarters of sales professionals (73%) use technology to close more deals. Of this group, 97% consider sales technology “very important” or “important.” (LinkedIn State of Sales, 2018)
Businesses that leverage CRM software see sales increase by 29%, sales productivity increase by 34%, and sales forecast accuracy increase by 42%. (Salesforce)
Because CRM software greatly improves data accessibility, sales reps at companies using a CRM can shorten their sales cycles by 8-14%. (Nucleus Research, 2015)
Top barriers to adopting a CRM system in 2019 and 2020
As client relationship management is such a powerful tool for businesses, why are some salespeople not using a CRM tool yet? Here's what the data says.
Common obstacles to adopting a CRM in 2019 – which are likely to continue into 2020 – include:
- Cost: The CRM tool Workbooks found that 38% of UK SMEs cite cost as an obstacle to CRM adoption. While traditional methods might look cheaper than a CRM subscription at first glance, the time and efficiency cost can be a different story.
- Set-up: 40% of SMEs without a CRM say they lack the resources to implement one. 38% also say they lack the required IT skills. (Workbooks, 2018)
- Resistance to change: 34% of SMEs without a CRM cite resistance to change as an obstacle. Often it's top-level management who are reluctant to adopt new tools. (Workbooks, 2018)
- Adoption: Between 18% and 69% of CRM implementation projects fail, according to CIO Digital Magazine. Entrepreneur.com shared in 2018 that CRM investments fail to deliver because "CRM is focused on executives, not sellers." CRM is exceptionally good at giving management teams better visibility to data and pipeline revenue, but users on the front line of sales can find the CRM experience less rewarding. Only 47% of businesses with an implemented CRM have an adoption rate of over 90% in the business. (CSO Insights, 2019)
- Lack of integration: 17% of salespeople cite lack of integration with other tools as the biggest challenge using their existing CRM. (HubSpot, 2017)
Sales team statistics
Sales development reps use on average six tools. (Sales For Life, 2017)
40% of salespeople still use informal means such as Microsoft Excel or Outlook to store lead and customer data. (HubSpot, 2016)
27% of salespeople are spending an hour or more on data entry each day. (HubSpot, 2018)
The most popular sales tools include CRM, social prospecting, data and list services, email engagement, phone, and sales cadence. (Hubspot, 2018)
Top benefits of CRM for end customers
69% of customers expect a connected experience when they engage with a company. This means that their preferences are known across touchpoints and interactions, and any required information about transactions or inquiries can be quickly accessed (Salesforce, 2019). Having a CRM and connected tech stack is the best way to enable this.
78% of customers now expect consistent interactions across departments. (Salesforce, 2019)
47% of CRM users said that their CRM had a significant impact on customer retention. (Capterra, 2015)
47% of CRM users said that their CRM had a significant impact on customer satisfaction. (Capterra, 2015)
74% of CRM software users said that their CRM system gave them improved access to customer data. (Capterra, 2015)
Most important CRM features for SMEs
81% of marketers now operate their CRM platform from multiple devices. (Algoworks, 2018)
The most important factors in CRM purchase are functionality (24%), ease of use (20%), price (14%), company reputation (9%), support (8%), implementation training (8%), software popularity (6%), reviews and recommendations (6%). (Capterra, 2015)
Top-requested CRM software features are basics like contact management (94%), interaction tracking (88%), and schedule/reminder creation (85%). (Software Advice, 2019)
About a quarter of buyers want sales pipeline and funnel monitoring, and a fifth want sales automation, a central database, email marketing, customization, and reporting/analytics—slightly more advanced CRM functionality. (Software Advice, 2019)
CRM stats for 2020: what's important
Your CRM needs to help your business provide great customer experience
Past prediction: In 2013, Walker's Customer 2020 study predicted that by 2020 customer experience will be the leading brand differentiator when it comes to a buying decision, leaving behind such criteria as product and price.
Still relevant? Yes: 84% of customers believe the experience a company provides is as important as its products and services. (Salesforce, 2019)
The best CRMs use automation to give customers direction and provide quick solutions
Past prediction: In 2011, Gartner predicted that by 2020 a customer will manage 85% of the relationship with an enterprise without interacting with a human.
Still relevant? Yes: "The AI in CRM market is pegged at ~$50B by 2020," says Martech Advisor's 2018 report Is Your CRM Ready for 2020?. By combining AI with CRM, companies can automate routine tasks to speed up sales cycles, automatically send personalized marketing messages, and proactively resolve customer service cases.
Looking forward to 2020
36% of sales professionals are still yet to adopt a CRM solution (LinkedIn State of Sales, 2018), but Denis Pombriant predicts on MSDynamicsWorld this will change as we head into 2020:
"There is a great deal of white space in CRM to be claimed and this will be where humans will add the greatest value as we continue to bring CRM to businesses that were once completely manual."
When done well, CRM should take your business further and raise the bar for success. To maximize your results, make sure that your CRM system is configured to complement the rest of your tech stack.
With PieSync, you can use our connections between 180+ apps to keep your contacts data perfectly in sync across all systems. As soon as something changes in one tool, you'll see it reflected in your other go-to apps. It's the most powerful power-up for your CRM system.