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Software Advice BuyerView: Small-Business CRM Software Report 2014

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Every year, Software Advice speaks with thousands of organizations looking for the right customer relationship management (CRM) software. We analyzed these interactions to understand buyers’ most desired applications and most common reasons for seeking new software.

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Software Advice BuyerView: Small-Business CRM Software Report 2014

  1. 1. Software Advice BuyerView: CRM Software Report Insight into today’s small-business software buyer
  2. 2. Every year, Software Advice speaks with thousands of organizations looking for the right customer relationship management (CRM) software. We isolated a random sample of 385 interactions with small-business buyers representing companies in Australia, the U.K. and the U.S. We then analyzed the findings in order to understand: • What are small-business CRM buyers’ top-requested applications, features and reasons for buying? • How have CRM buyers’ requirements evolved since our previous report in 2013? • How do CRM buyers’ needs differ across different geographies? Abstract
  3. 3. Over half of the buyers in our sample (53 percent) currently use manual methods, such as spreadsheets or paper, to manage customer relationships. Prospective Buyers’ Current Methods Spreadsheets31% Paper22% CRM software22% Email client8% Email marketing software5% Proprietary software5% Industry-specific software3% Other software4%
  4. 4. Even more U.S. buyers are upgrading from manual methods this year, at 47 percent, than were last year (44 percent in 2013). Year-Over-Year Comparison: U.S. Buyers’ Current Methods 2013 U.S. Buyers 2014 U.S. Buyers Manual methods44% CRM software26% Other software24% Proprietary software 5% Manual methods47% CRM software25% Other software24% Proprietary software 4%
  5. 5. Compared to the U.S., where 47 percent of buyers are using manual methods, even more are using them in the U.K. (56 percent) and Australia (55 percent). International Comparison: Buyers’ Current Methods Percent of sample CRM softwareManual methods Other software Proprietary software U.S. U.K. AU 0% 20% 40% 60% 80% 100%
  6. 6. Percent of Sample Nearly all buyers across all geographies (88 percent) seek sales force automation (SFA), making it the top-requested CRM application by small businesses. Top-Requested Applications Sales force automation Marketing automation Customer support Help desk Call center 0% 20% 40% 60% 80% 100%
  7. 7. More U.S. and U.K. buyers seek CSS functionality compared to buyers in Australia: 14 percent and 12 percent, respectively, compared to just 5 percent of AU buyers. International Comparison: Top-Requested Applications Sales force automation Marketing automation Customer support Help desk Call center 0% 20% 40% 60% 80% 100% U.S. buyers U.K. buyers AU buyers
  8. 8. Percent of Sample Among those buyers seeking an application for SFA, interaction tracking is the most requested module, with 82 percent seeking to log notes and conversations. Top-Requested CRM Functionality (Sales) Interaction tracking Alerts/reminders Pipeline management Sales reporting Workflow automation Quoting generation 0% 20% 40% 60% 80% 100%
  9. 9. Percent of Sample All of the small-business buyers who seek an application for marketing automation specifically request a module for email marketing. Top-Requested CRM Functionality (Marketing) Email marketing Lead segmentation Lead nurturing Lead scoring Email analytics Forms/landing pages Campaign management Marketing analytics Web analytics MRM 0% 20% 40% 60% 80% 100%
  10. 10. Percent of Sample Among those buyers requesting a CSS application, most seek features directly related to addressing customer inquiries via email, phone or live chat. Top-Requested CRM Functionality (Customer Support) Ticket management Ticket routing CSS reporting Ticket escalation Ticket time tracking Multichannel support Knowledge management Self-service Live chat IT asset management 0% 20% 40% 60% 80% 100%
  11. 11. Most small businesses in our sample (62 percent) are looking to purchase a single, best-of-breed CRM application. Integration Preferences Best-of-breed62% Integrated suite37% Multiple products1%
  12. 12. However, among U.S. buyers, 42 percent are requesting an integrated suite in 2014, up from just 7 percent in 2013. Year-Over-Year Comparison: Integration Preferences 2013 U.S. Buyers 2014 U.S. Buyers Best-of-breed91% Integrated suite7% Multiple products2% Best-of-breed57% Integrated suite42% Multiple products1%
  13. 13. Most buyers seeking a standalone application want SFA; most seeking an integrated suite want a pairing of applications for SFA and marketing automation. International Comparison: Top-Requested Application Pairings 0% 15% 30% 45% 60% U.S. buyers U.K. buyers AU buyers SFA SFA & marketing automation Customer support Marketing automation Help desk SFA & customer support Percent of Sample
  14. 14. Nearly three-fourths of all small-business CRM buyers specifically request solutions hosted in the cloud. Deployment Preferences Web-based71% Not sure29%
  15. 15. More small-business buyers this year are certain they want Web-based products, with fewer buyers who aren’t sure (50 percent, compared to 26 percent in 2013). Year-Over-Year Comparison: Deployment Preferences 2013 U.S. Buyers 2014 U.S. Buyers Web-based48% On-premise2% Not sure50% Web-based74% On-premise<1% Not sure26%
  16. 16. Percent of Sample Only 10 percent of small-business CRM buyers seek integration with social media channels to import contacts and track social interactions. Top-Requested CRM Integrations Email client Calendar Company website Industry-specific Social media Accounting Other CRM apps Project management Other integrations 0% 10% 20% 30% 40% 50% 60%
  17. 17. U.S. buyers were over three times more likely to request social media integrations, at 19 percent, than U.K. and AU buyers, at just 6 and 5 percent, respectively. International Comparison: Top-Requested CRM Integrations U.S. buyers U.K. buyers AU buyers Email client Calendar Company website Industry-specific Social media Accounting 0% 20% 40% 60% 80%
  18. 18. Buyers using software for CRM cite the need for more features as a reason for buying; buyers using manual methods cite the need to centralize information. Top Reasons for Evaluating New Software Researching benefits/options Centralize information Automate more tasks Scale with growth Need more/better features Improve data quality Improve visibility Improve follow-ups 0% 5% 10% 15% 20% 25% 30% 35% 40% Buyers using manual methods Buyers using specialized software
  19. 19. Fewer buyers in the U.S. want CRM software to help automate tasks, compared to those in the U.K. and AU. International Comparison: Reasons for Evaluating Software U.S. buyers U.K. buyers AU buyers Researching benefits/options Need more/better features Centralize information Scale with growth Automate more tasks Improve data quality 0% 5% 10% 15% 20% 25% 30% 35% 40%
  20. 20. Most small-business buyers in our sample plan to have only a single named user (19 percent) or between two and five named users (47 percent) on the system. Prospective Buyer Size by Number of Users 119% 2-547% 6-1019% 11-2011% 21-503% 51-100<1% More than 100<1%
  21. 21. Over half of the respondents in our sample (56 percent) represent extremely small businesses with just 10 employees or fewer. Prospective Buyer Size by Number of Employees 111% 2-530% 6-1015% 11-2013% 21-5015% 51-1007% 101-5008% 501-1,0001% More than 1,0011%
  22. 22. Percent of Sample Most of the buyers in our sample represent businesses in consulting, real estate, manufacturing, software and information technology (IT) and retail. Prospective Buyers by Industry Consulting Real estate Manufacturing Software/IT Retail Advertising Media Construction Insurance Other 0% 4% 8% 12% 16% 20%
  23. 23. Real estate companies comprise just 1 percent of U.K. buyers in our sample, compared to 23 percent of U.S. buyers and 13 percent of Australian buyers. International Comparison: Prospective Buyers by Industry U.S. buyers U.K. buyers AU buyers Consulting Real estate Manufacturing Software/IT Retail 0% 5% 10% 15% 20% 25%
  24. 24. Read the full report Get free price quotes on top CRM software Get unbiased reviews & free demos on top CRM software Learn More About CRM Software Read Report Get Free Quotes Get Free Demos
  25. 25. Software Advice™ is a trusted resource for software buyers. The company's website, www.softwareadvice.com, provides detailed reviews, comparisons and research to help organizations choose the right software. Meanwhile, the company’s team of software analysts provide free telephone consultations to help each software buyer identify systems that best fit their needs. In the process, Software Advice connects software buyers and sellers, generating high-quality opportunities for software vendors. @SoftwareAdvice /company/software-advice @SoftwareAdvice/SoftwareAdvice

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