Customer relationship management (CRM) software helps sales teams organize relationships with clients while making sure nothing falls through the cracks. CRMs foster collaboration and transparency across your entire team. The success or failure of your CRM system depends on factors like planning and implementation processes. Hence, making the right software choice for your particular business is a must.
We’ve compiled eight CRM statistics you should know to help you choose and implement a CRM system that helps you reach your business goals.
1. 91% of companies with over 10 employees use a CRM
As of May 2021, industry estimates show that over 91% of companies with more than 10 employees use CRM software. While CRM excels at facilitating customer service, 82% of companies use CRM systems for sales data to track and enhance customer interactions.
What this means for small businesses
Some small businesses can get by without specialized systems in place for keeping track of customers. However, once your small business grows past a certain point, you need to invest in a CRM to maintain that same level of customer satisfaction and organization. Teams without enough budget can start by exploring free CRM providers.
2. The CRM market grew 10% in 2020
2020 saw a massive expansion in demand for CRM software. Businesses need to accommodate changes that the pandemic brought, such as a greater focus on online sales. This meant having a software system to keep track of customers became more important.
Instead of relying on in-person sales, companies had to handle virtual interactions across multiple salespeople and customer service agents. As such, the CRM market grew 10% during the pandemic, compared to the average year-over-year growth rate of the three previous years. The CRM market is worth $58.04 billion as of 2021, and experts predict it will grow to $128.97 billion by 2028.
What this means for small businesses
It is more challenging to manage your operations when customers are online or over the phone, which is what many businesses have had to do since 2020. Investing in a CRM helps your small business succeed in a post-COVID economy by streamlining crucial tasks like customer interactions.
3. 80% of customers leave after 1 negative experience
In 2020, customers’ patience with poor customer service decreased significantly. As the pandemic took hold and companies had to start providing customer service remotely, 80% of customers reported that they were more likely to switch to a competitor after only one bad experience.
What this means for small businesses
You often have only one chance to win and keep your customer. If you provide a negative customer experience, your customer may not come back. However, a CRM system minimizes this risk by keeping notes about your customers’ preferences and interests and by tracking your leads so you know when and how to best follow up.
4. 35% of companies plan to increase digital consumer experience
Prior to 2020, some companies did not focus on digital customer experience services—then they were forced to adapt due to the pandemic. As of 2020, 35% of companies that previously ranked digital customer experience as a low priority said they were now adding more service across channels.
What this means for small businesses
This study from Zendesk showed the areas that companies found most important to focus on when they had to shift to a digital business model during the pandemic. Top of the list was increasing digital customer service across channels. CRM software helps you achieve this by improving communication, tracking sales opportunities, and fostering good customer service.
5. 52% of businesses say their CRM isn’t doing enough
According to a 2020 survey, 52% of businesses say their CRM system isn’t functioning well enough and is losing their organization revenue. The biggest complaint was that they can’t access aggregated data across multiple platforms, meaning they were not able to identify and predict which customers were likely to churn. If they had had access to that information, they could have avoided losing those customers.
Fortunately, there is a solution. Using artificial intelligence (AI) to enhance data analysis enrichment is key to CRM success in the new economy. Thus, 88% of businesses plan to increase their use of AI with their CRM system within the next two years.
What this means for small businesses
Just as 2020 changed the sales world and made CRM necessary for many businesses that weren’t planning to focus on online sales, it has also changed the way sales teams need to use their CRM. More digital customer interactions are happening on multiple platforms, and the biggest complaint companies had against CRMs in 2020 was that they did not integrate that data. As a result, companies lost customers unnecessarily.
If you are a small business trying to get the most out of your CRM, make sure you use one that provides the services you need for your individual business. Furthermore, invest in robust CRM training to ensure each sales team member knows how to use it correctly and efficiently.
6. 73% of customers expect companies to understand them
Seventy-three percent of customers expect companies to know their needs and expectations. However, only 51% of customers feel that companies do so, leaving a large gap of dissatisfied customers. CRM can help solve this problem by giving you the tools to collect all the information you need about your customers, their habits, and their interactions with your company.
What this means for small businesses
Investing in a CRM can help you understand your customers’ motivations and patterns, giving you insight into their needs and expectations. When choosing a CRM provider, be sure it has the capacity to integrate data from all your platforms so that you don’t leave out crucial information about your customer’s habits, needs, and behaviors.
Determine the top CRM features and functionalities that small businesses need to make the most out of their investment—both time and money.
7. 59% of customers don’t experience consistent interaction across departments
According to a 2020 study, 78% of customers expect to have consistent interactions with a company, no matter what department they are talking to. It is frustrating to be told different things by different people or to be handed off from a sales rep who understands what you need to someone who has no clue.
However, 59% of customers say that this expectation is not met. They have disconnected and disjointed interactions with companies. Furthermore, many of them leave interactions with companies feeling frustrated as they did not receive the consistency they expected.
What this means for small businesses
A CRM can help you achieve this consistency by recording interactions within the system that increase transparency and foster robust communication. If you can maximize your data analysis, you can streamline your customer interactions, making sure that every person on your team who deals with customers is on the same page and can give them a consistent experience.
8. Customer retention efforts increase profits by 40%
Studies have shown that gaining loyal customers can increase profits by anywhere from 25% to 95%. In a 2020 study using data from Bumped, Columbia Business School found that using customer retention strategies increased profits by an average of 40% across multiple industries.
What this means for small businesses
Implementing a CRM is an excellent way to retain customers because it increases customer satisfaction and makes them more likely to come back. Retaining customers is essential to a successful and profitable business. It costs far more to get a new customer than to keep an old one. A CRM helps foster customer retention by ensuring your customers don’t fall through the cracks, but have a consistent, positive experience with your company.
Bottom Line
Investing in a CRM is an excellent way to increase your profits and maximize customer satisfaction. Adopting a CRM and training your team on how to use it correctly encourages robust communication, fosters transparency, and improves the overall customer experience.
If you’re looking for the best CRM for your small business, check out our article about the top six CRM providers on the market.
