When you need a CRM?
When do companies understand that it’s the right time to use a CRM system? What are the main reasons for its usage? Those are the main questions businesses are dealing with when deciding to invest in CRM software.
Customer Relationship Management system is a software built in order to create strong contact management, improve relationships with customers, increase sales and productivity. This is the way to keep all essential information about interactions with clients, leads and prospects, contact details, emails, phones, as well as the rest of important details in one place. Thus, there’s no need to spend time on researches of client order history in Excel, spreadsheets and Google docs, as you’re able to process, visualize and analyze all information in your CRM just with a few clicks.
Let’s review the analyzed results of CRM applying and its advantages for companies in numbers. CRM software market became the most fast-growing market in the past few years and it’s expected to gain revenue over $80 billion till 2025 according to the Grand View Research. It was $14 billion in 2010, so it is an almost 600% increase. According to SuperOffice Statistics in 2018, usage of CRM systems increased from 56% up to 74%.
Customer Relationship Management software is a solution that could be implemented for B2B and B2C business types. CRM can be created for startups, small business and enterprises across different industries: Retail, E-commerce, Financial, Logistics, Insurance, Healthcare, and others. If a company has a lot of specific peculiarities, then it is better to build CRM software from scratch, rather than implement the already-present system.
Not all types of companies should start using CRM. If the organization is small, leads flow is low, there are only a few orders and customer list is really short, then CRM software is not the best decision. However, if the company is growing, then it will be much easier and more efficient to scale processes with a CRM system.
Software Advice discovered that 74% of organizations who use the right CRM software improved their lead conversions, reached more sales and improved customer data processing. Capterra analyzed that 53% of the most performing companies improved their sales after involving Customer Relationship Management system. Though, the most interesting in this case is to get a full view of CRM impact on economic indicators of the company. Nucleus Research reported that the average Return on Investment is $8.71 from each dollar spent on CRM software. ROI increased since 2011 when it pays back $5.6 per each invested dollar.
HubSpot Research analyzed over 6200 respondents all over the world to find the main challenges faced by a sales team. You can see the results of those surveys in the infographic below.
A huge amount of companies with such difficulties can improve the situation by involving a business-oriented CRM system. It will optimize sales processes, marketing activities, leads and prospects generation from multiple channels and highly-qualified segmentation of each potential and existing client. We outlined the main signs when organizations should start using CRM software:
- Low quality of lead nurturing
According to The Annuitas Group researches, nurtured leads purchases are 47% larger than from other clients. Cloudswave find out that almost 75% of businesses don’t have a defined and effective lead nurturing process. This causes problems with salesforce and marketing automation but could be easily resolved by the leveraging of the CRM system.
- A decrease in productivity and sales
This is one of the main signs for a company that processes inside should be optimized. The best key for that is a powerful CRM software, which will be created according to the business needs and based on individual peculiarities of a company. Salesforce researched that after CRM system involvement, sales productivity increase is up to 34%, and sales growth is 29%. Moreover, sales forecast accuracy increased by 42%.
- Delays with real-time insights
CRM software provides data synchronization and visualization from multiple channels, so it’s easy to analyze it at one place in real-time. Forbes researched that 58% of enterprises get an increase in buyer loyalty as a result of using customer analytics. Real-time CRM analytics is one of the best keys for providing powerful customer experience and as a result, a company gets revenue growth.
The main sales priorities from analyzed surveys of over 6200 respondents in 99 countries are listed in the HubSpot Research Infographics below.
Based on the results of these surveys, 13% of companies mentioned that investing in Customer Relationship Management system is one of their top directions for 2019. If your company is interested in the creation of business-oriented CRM solutions based on the individual needs of your industry, please contact TwinCore.