06- Feb2017
Posted By: Terrance
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Why CRM Was Forecasted To Be A 36 Billion Dollar Market By 2017?

One of the most effective tools you can use in aiding your business is Customer Relationship Management (CRM) software. It can help you cultivate and improve customer relationships. Firms which have already adopted CRM unceasingly spout its glory, while others quickly jump onto the bandwagon. Real Estate CRM Software is a fine example of Customer Relationship Management in the Real Estate Market.

A couple of years ago, aprediction was made by Gartner which stated that by 2017, CRM software sales would amount to a whopping $36.5 billion worldwide. The analyst firm releases CRM market reviews, critics and predictions every year. The 2017 prediction was one of its biggest, showing an increase of 5.4% in revenue forecasts. Earlier analysis postulated only 9.7% in growth rate. To a casual user, this may seem like a big leap of faith. However, there are several reasons for this astronomical jump in numbers.

  • CRM is one of the fastest growing markets. It provides extensive help in data collection, data management and tracking algorithms. 61% of sales distributors use a CRM. Key access to customer information and data is vital to a business’ success.
  • Surveys show that senior managing officers who have tried CRM do not hesitate to recommend it further. 75% of sales managers say that using CRM helps drive sales force and generate revenue.
  • On average, for every $1 spent on it, CRM returns $5.60. That is a rate of return greater than 50%! Such statistics encapsulate just how beneficial CRM is for any company
  • CRM software can create, establish and sustain leads, in both consumer and vendor markets. However, 75% companies have no process of nurturing leads. CRM use is a must for these companies.
  • Reports show sales teams overall organizations showed at least a 15 % increase in productivity due to use of CRM by their organizations.
  • CRM shows inspiring sales growth for firms. On average, when a company engages a customer using CRM, the customer is likely to spend 20% – 40% more. This is why more and more businesses are opting for CRM.
  • Use of CRM creates a positive feeling in customers. Feedback suggests that customers who have had a positive experience are more likely to recommend a company to family and friends
  • Use of CRM increased revenue per sales represented by an average of 41%. CRM also saw a 10 % increase in cash-flow in mobile apps and 24% increase in sales productivity.
  • Marketing costs have been slashed by over 23% due to increased use of CRM. The software data management and data driven predictive engines allows targeted marketing aimed at specific customers.

What does this mean?
Use of CRM has been steadily increasing over the years. The vast advantage provided by the software has led to bigger and better sales opportunities that businesses all over are utilizing. World market trends show Asia/Pacific markets showing the fastest growth rate, with growth of 21.9% in 2015. China followed at a close second with rates of 18.4%. Middle East and North Africa and mature Asia/Pacific were also not far behind with all three achieving double figures in growth.

By 2015, the market had already reached $26.3 billion.

With more and more companies discovering the benefits and capabilities of CRM, it is not a far stretch for Gartner to make its lofty prediction. Companies all over the globe are making the switch to CRM, and anyone not doing so will only be left behind in the dust of its rivals’ success.

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