2020 CRM Statistics and Trends
“What is a CRM?”
“Does my business really need it?”
“What can this system do that I can’t do myself?”
These are all questions I’ve heard time and time again.
CRM stands for Customer Relationship Management”, which was historically used as a tool to collect, store and manage a database of customer information in order to retain customers and enhances sales. In recent years, however, CRMs have become much more than that, as they are now a way to create and develop long-term relationships and interactions with potential and existing customers.
I remember the first encounter I had with a CRM. I had just moved to LA and started my sales position with a local start-up. They got me logged on and I was off and running but the problem was the system was a MESS. They had purchased a large list of leads and prior to organizing and qualifying them, they were all dumped into the CRM without any workflows or processes put in place. A major issue for me, as an outbound sales rep, the duplicate entries. The same contact would often be listed twice, as a lead (potential customer) and a contact (existing client). This problem would lead to multiple people contacting the same person and I would often contact an existing client which led to more frustration and confusion.
We eventually solved this issue with a new CRM and better processes for the management of the system but this post isn’t about which CRM is right for you or which processes you need to put in place. This post is to convince you of the importance of a CRM. It’s not enough to just have the software, you need to ensure its set up properly with long-term management to ensure you have a clean, organized and well maintained CRM. You also need buy-in from everyone involved to ensure the system is actually used.
CRM STATISTICS
91% of businesses with over 11 employees now use CRM, compared to 50% of those with 10 employees or less (source)
In 2020, 45% of organizations will have invested in AI to enhance CRM initiatives. (source)
Towards the end of 2019, 86% of customers are willing to pay 25% more for better customer experience. (source)
In 2018, 56% of companies targeted their audiences based on CRM data such as purchase transactions, postal address and customer service information. This is expected to rise to 69% in 2020. (source)
50% of teams improved their productivity by using a mobile CRM. (source)
65% of teams are achieving their sales quotas while 22% of reps using a non-mobile CRM have reached the same targets. (source)
CRM TRENDS
Use of AI within CRM
By incorporating AI into your CRM and sales process, you’re able to collect all customer information as well as the behaviors and actions taken with you and your company and store them in one centralized location. AI helps you create and manage outreach campaigns to ensure you get in touch with your client/prospect at the time with the highest likelihood of reaching them.
High Importance on the “Customer Experience”
The customer experience includes everything from the initial contact to after the initial sale - account management. It’s important to monitor all the stages of this process to provide the best experience possible. You’re able to communicate much more effectively when you have the customer information as well as past encounters all in one place.
Ease of All-In-One Platform
Sales representatives are required to switch screens between channels over 1,000 times every day (source). Most CRM's integrate with various other platforms you’re already using which helps keep your information more accurate, updated in real-time and drastically improves your team’s work efficiency and output. For example, Social media information such as mentions follows and likes as well as emails, calls, and meetings can all be monitored and updated from one screen.
Social CRM
In 2012, 27% of buyers and decision-makers were between the ages of 18 and 34. Today, that number has changed from 27% to 46%, more and more decision-makers and falling between the ages of 18 and 34, this age group is also extremely active on social media. Integrating your social media interactions into your CRM opens up a new channel for communication and gives your customers the ability to get in touch with you for service-related issues through social media.
The rise in Mobile-Friendly and Cloud-Based CRMs
Companies that use mobile CRM see far higher adaption rates. Reps are looking more often for the ability to work from anywhere, especially their mobile devices, 81% of users are now accessing their CRM from multiple devices (source). Most CRM’s come with a mobile application of some sort but it’s important to consider the specifics when deciding which one is best for you.
Importance of Cloud-Based Solutions
Companies have an increasing need to access their software and data from multiple locations. 74% of users believe that CRM software gave them easier access to customer data and quicker access to data can help shorten the sales cycle by 8% -14% on average (source). You can assist your sales team in shortening their sales cycle by knowing their customer’s interests and history.