That’s a nice new tower you have there, San Francisco.
Salesforce tower in San Francisco. Photo credit: The B1M
The Salesforce Tower, now the tallest building in SF, is a testament to tech and the city’s place at the head of the table. More specifically, it’s a shrine of sorts to CRM software — the bread and butter of Salesforce and one of the most competitive spaces in not only B2B, but the SaaS space overall.
CRM (customer relationship management) technology and its march to dominance is one of the defining stories of the last decade in tech. Worldwide CRM revenue totaled $16 billion in 2011, and has nearly octupled since then to $120 billion.
A contingent of salespeople has yet to adopt a CRM — some don’t know even know what it is — but those aboard the bandwagon are unlikely to jump off anytime soon. These applications have modernized sales processes and helped millions document their customer interactions so they can offer the best service possible en route to closed deals, renewals and upsells.
The customer relationship management space is crowded, with 379 CRM systems listed on G2, yet only 18 percent of those platforms have a 4 or 5 star rating.
It’s a central player in an effective demand generation strategy, among other things. It also goes hand in hand with sales intelligence software to streamline the sales cycle and help rock star sellers stay organized when juggling countless prospects and contracts.
CRM is the biggest revolution in sales since teeth whitening strips. And with Salesforce leading the pack — skyscraper and all — developers and consultants will continue injecting life into the industry for the foreseeable future.
We’ve culled together various CRM statistics that help underline the software’s swelling popularity, as well as the business benefits and needs behind its towering success. If you’re in the market for a new platform, or considering CRM for the first time, these stats can add fuel to your search and help steer your sales team to a record year.
General CRM statistics
- 46 percent of sales teams report widespread use of CRM systems. (Entrepreneur, 2018)
- The global CRM software market is valued at $120 billion. (Forbes, 2018)
- 22 percent of salespeople still don’t know what a CRM is. (Nutshell)
- 40 percent of salespeople still use informal methods like spreadsheets and email programs to store customer data. (Nutshell)
- 13 percent of companies say that investing in a CRM is a top sales priority this year. (HubSpot, 2018)
- 65 percent of companies adopt a CRM system within the first five years of business. (Nutshell)
- 81 percent of CRM users access the system using multiple devices. (Nutshell)
Benefits of CRM software
- The average return on investment (ROI) on CRM software is $8.71 for every dollar spent. (Nutshell)
- Effective sales organizations are 87 percent more likely to be consistent users of CRM or another system of record. (Nutshell)
- CRM applications can help increase sales by up to 29 percent, sales productivity by up to 34 percent, and sales forecast accuracy by 42 percent. (Nutshell)
- 74 percent of CRM software users said that their CRM system gave them improved access to customer data. (Nutshell)
- Data accessibility can shorten the sales cycle by 8–14 percent on average. (Nucleus Research, 2015)
- CRM decision-makers report a productivity gain of 14.6 percent from mobile CRM capabilities and 11.8 percent from social CRM. (Nucleus Research, 2012)
- 24 percent more sales reps achieve their annual sales quota with mobile access to their CRM. (Nutshell)
- 47 percent of CRM users said that their CRM had a significant impact on customer retention. (Nutshell)
- 47 percent of CRM users said that their CRM had a significant impact on customer satisfaction. (Nutshell)
Sales team statistics
- 75 percent of companies say that closing more deals is a top sales priority this year. (HubSpot, 2018)
- 48 percent of companies say that improving sales funnel efficiency is a top sales priority this year. (HubSpot, 2018)
- 69 percent of companies say that converting contacts/leads to customers is a top marketing priority this year. (HubSpot, 2018)
- 44 percent of companies say that increasing revenue derived from existing customers is a top marketing priority this year. (HubSpot, 2018)
- 37 percent of companies say that sales enablement is a top marketing priority this year. (HubSpot, 2018)
- 40 percent of companies say that getting a response from prospects is more difficult now than 2–3 years ago. (HubSpot, 2018)
- 31 percent of companies say that engaging multiple company decision-makers in the buying process is more difficult now than 2–3 years ago. (HubSpot, 2018)
- 30 percent of companies say that closing deals is more difficult now than 2–3 years ago. (HubSpot, 2018)
- 13 percent of companies say that using sales technologies in day-to-day jobs is more difficult now than 2–3 years ago. (HubSpot, 2018)
Other CRM statistics
- The global health care CRM market was worth $7.27 billion in 2017 and is projected to reach $28.89 billion by 2026. (Business Wire, 2019)
- Salesforce, the largest provider of CRM software, increased its revenue by 26 percent in 2017. (Entrepreneur, 2018)
- Salesforce claimed 19.6 percent of the global CRM market share in 2017. (Forbes, 2018)
- Oracle has the second-largest share of the global CRM market, claiming 7.1 percent market share in 2017. (Forbes, 2018)
- SAP SE has the third largest share of the global CRM market, claiming 6.5 percent market share in 2017. (Forbes, 2018)
In a crowded B2B software scene, CRM software and its creators deserve credit for sticking out. As the billions pile on, presumably, this technology will become a fixture for untold numbers of new businesses as they work it into their sales strategy, and build a mountain of contracts as tall as the Salesforce Tower.
Consider a trial run with one of the free CRM software platforms on the market to see how this software can benefit your business.