The Increasing Popularity of CRM in 2024
Posted on February 21, 2024
Introduction
How important are your customers to you? Without any doubt, your audience is the first thing you think of while making any business decision. CRM software evolved to give businesses a better way of managing their audience.
Customer relationship management (CRM) refers to technology that manages all your company’s relations and interactions with clients and potential customers. CRM software plays an important role in managing your company and business. With the help of CRM, the marketing and sales teams can follow and track the customer’s feedback and experience with your business. By strategically using CRM, companies can stay connected with their customers, improve profitability, and streamline processes.
CRM software is gaining importance and growing faster in the software category. It is predicted that worldwide spending on CRM will reach USD 114.4 billion by 2027. Let’s understand more about CRM, its features, future opportunities, and much more interesting things.
The Evolution of CRM
- 1950–1970s: pen and paper did the job of feeding the customer data. Over time, it became a tough task as the business expanded. In 1956, Rolodex was invented to record customer data. Later, as computers came into existence, a digital database was designed, which provided a base for future CRM.
- 1980s–mid-90s: as technology grew faster, the contact management system was developed. Things such as e-mail addresses, names, phone numbers, etc. would be stored here. The primary goal of CMS was sales management rather than customer relationships. In the mid-1990s, sales force automation was invented, which allowed repetitive daily tasks such as recording and tracking, etc. In 1993, the Siebel system was invented, which shaped the beginning of CRM solutions. In the late 1990s, CRM evolved to include marketing, sales, other customer services, and so on. The first official CRM was launched by Salesforce, and thus the traditional CRM began to fade out of the picture.
- 2000s–2020s: CRM technology is officially developed in the 2020s era. With each passing day, CRM technology keeps shaping and fulfilling the needs of businesses of all types and sizes. Social media was also on the rise in the 2000s. By the mid-2000s, CRM systems began to integrate with social media platforms such as Facebook, Twitter, Instagram, etc. This enabled businesses to gain a better understanding of customers’ needs, preferences, ideas, etc. through likes and comments.
For social media presence, social CRMs serve as an important key element of CRM solutions. There are four types of CRM systems. Each is created to meet specific business goals and needs.
- Analytical CRM systems
- Strategic CRM systems
- Operational CRM systems
- Collaborative CRM systems
Factors driving CRM popularity in 2024
CRM software is one of the largest software markets in the world. Let’s discuss some interesting and knowledgeable facts about CRM software.
- 22% of people don’t know what CRM is.
- In 2021, 88% of businesses used the customer relationship management system through cloud-based solutions using various devices such as smartphones, desktops, laptops, and tablets.
- US businesses are more likely to spend USD 350 million in email marketing, making CRM an important aspect of email marketing strategies.
- 74% of CRM users revealed that their CRM gave them improved and better access to necessary and important customer data.
- 65% of businesses and companies start using CRM software in the first five years of business
- 47% of CRM users revealed that their CRM had a good impact on customer satisfaction.
The latest trends, tools, and CRM technologies in 2024
Customer Satisfaction
In 2022, customer satisfaction became an important part of business. According to studies, 86% of buyers are ready to pay extra for a smooth and flexible customer experience. CRM technology aims to provide a personalized customer experience that results in long-term customer loyalty.
Communication Tools
Conversational tools such as voice assistants and chatbots can improve your business. Chatbots help improve service efforts by clearing customers’ doubts and queries. However, natural language programming (NLP) plays an essential role in managing customer service.
- It helps to identify customers’ requests and understand their highest priority.
- AI is also used for recording voice meetings and creating transcripts by knowing the topics of each business or organization.
Social CRM
Social CRM refers to the integration of social media platforms into the CRM platform. If CRM technologies and social media are combined, they can do wonders! These two platforms can help in acquiring brand sentiment. If a business or company uses a social CRM system, they can boost customer relationships and engagement.
Conclusion
Trends are like the wind in the palm of your hand. They are constantly changing. Market leaders are constantly innovating and adopting new systems. You need to be better prepared to navigate your way to success. While embracing the latest CRM trends is a good decision to keep up with your competition, it is equally important to keep up with the new trends.
With the help of artificial intelligence and machine learning, CRM Software will continue to evolve in the years to come, taking the customer experience to the next level. It also means better data protection, which is essential for any future CRM platform to protect against cyberattacks. CRM has a bright future ahead of it.