You’ve probably been told many times about the many wonderful things customer relationship software can do for you—but what do the stats say? It’s much easier to fathom the true benefits of ecommerce CRMs if you take a look at what industry knowledge says on the subject.
I’m going to provide you with 16 stats that demonstrate the benefits of ecommerce software, including how it affects your online business and your relationship with your customers.
What is Ecommerce CRM Software?
Ecommerce CRM, sometimes shortened to ECRM, is a digital tool designed to help businesses reach out to current and potential customers in order to boost sales, strengthen customer loyalty, and mediate potential problems.
Businesses—especially online businesses—understand that the marketing messages of the pre-digital era are no longer effective. Remember when guerilla marketing tactics included fax advertisements and door-to-door campaigns? Yeah…that’s not going to cut it anymore.
The best ecommerce system for customer management should be able to:
- Create actionable customer profiles
- React quickly to complaints
- Segment client lists for promotions and marketing campaigns
- Analyze sales data to direct future actions
- Hyper-personalize customer communication and outreach
- Identify sales opportunities and buying patterns
- Plug into social media channels and other feedback centers
So now you know the “what” of ECRM solutions. But what about the “why”? Keep reading and I’ll dive into some of the most compelling stats you should consider when deciding to leverage an ecommerce CRM platform for your sales and marketing goals.
Benefits of eCommerce CRMS by the Numbers
CRMs provide new ways to collaborate with customers, upsell and cross-sell, and analyze purchase data after the fact. It’s not surprising that it has a large return on investment, but even I was impressed that, in time, it gives you back nearly $9 for every $1 you spend. Remember this juicy statistic if you are looking to pitch the tangible value of ECRM to the C-suites.
A CRM system provides a wealth of data, including customer profiles, sales history, purchasing bottlenecks, and conversion rates. Sales people who have access to all of this information are able to shorten sales cycles, meaning they can move more quickly and bring in more customers.
It’s safe to say that most of your competition is using CRM data to improve the customer journey. To stay ahead, you should too. It can be hard for an ecommerce company to stand out when just about anyone can make a Shopify or Ebay account these days. Holistic, consistent CRM strategies are what will set you apart from the masses.
4. The CRM market is the fastest growing software niche and is projected to reach $80 billion by 2025.
Businesses of all types are getting on board with CRM software. As more businesses see the benefits, developers are driven to find new and better ways to use this technology. That these programs are growing so quickly is a sign of the innovation to come.
The global CRM market is expanding rapidly and soon it will become as synonymous with business operations as word processing software and spreadsheets. Again, this goes to show how important this software is becoming and how quickly it’s being adopted around the globe. In the near future, it will be essential to invest in CRM software to stay current and competitive.
Sales reps get bogged down by administrative work, report building, client analysis, and data entry. What would happen if you took some of these items off their plate? By investing in an ecommerce CRM solution, sales reps can free up some of the time they’re spending on non-selling tasks and getting back to what they do best. Giving your sales team more time to actually sell can go a long way to increasing revenue.
One of the most effective approaches to customer retention is to take feedback seriously. Nothing improves a customer relationship more than making them feel that you are there to help and listen. CRM systems may even pull customer feedback data from a variety of sources so that you can sort through it all at once and drill down on any issues. This way, nothing gets missed.
Some businesses may be wary of the automated side of CRM software, but this may not be as big of an issue as you might think. A good portion of customers are fine with interacting with a chat bot to resolve their problems. Some people want fast, self-help oriented responses and will prioritize this over connecting to someone in person. Empowering these customers to do so will lighten the load of your customer service team, too.
Personalization is so important and a lot of consumers these days look for more than a quality product at a good price. Customers, especially millennials, like to feel that they are a part of something bigger. Belonging to a group of like-minded people or believing in a brand that they feel represents their ideals can lead to increased sales. An ecommerce CRM can improve customer loyalty by helping you create a more personal experience for segment customers.
10. It costs your business five times more to reach new customers than it does to retain current ones.
Here’s another statistic that shows just how much of an impact effective customer service and a strong customer retention strategy has on your bottom line. Sure, CRMs can help you seek out and win new leads...but the bulk of this type of software is designed to reduce customer churn and increase customer satisfaction.
It’s well known that there’s better value in keeping current customers than onboarding new ones—but this statistic is still staggering. CRM software can support customer retention through building custom sales campaigns, integrating with third-party feedback software, empowering case management, streamlining email workflows, and analysing customer history data.
Are you starting to see a pattern? Building relationships with current customers will most likely net you more in sales than seeking out entirely new prospects. Ecommerce CRMs can help you strengthen the relationships you already have in order to boost the likelihood of returning customers, word-of-mouth exposure, and product loyalty.
You’ve probably heard the concept of product “whales” before. Essentially, this means that there will be plenty of people who dabble in your product or service but only a small number of customers will actually spend big time. Ecommerce CRMs can leverage sales data and customer profiles to hone in on likely candidates for big spending and long term purchasing relationships.
CRM software makes it easy to reach out to customers and collect feedback so you have a better idea of what you’re doing right and where you need to improve. CRMs can help you automate parts of this process so that you never miss an opportunity. Customers like to feel heard (and fast!), and if they feel like you’re genuinely interested in what they have to say they will reward you with their loyalty.
Again, this just goes to show how important it is to maintain a loyal customer base, which is a main reason why businesses use an ecommerce customer relationship management system. We’ve already seen that it costs less to keep a current customer than it does to find a new one, and the loyal customers are more likely to spend more. Now, we see that existing customers are also easier to sell to.
16. Loyal customers are six times more likely to forgive a mistake and twice as likely to recommend a business.
There is a lot to be said for customer loyalty. Good customers who believe in your business are not only more likely to make additional purchases, they’re also more willing to forgive an error. Plus, they become a walking billboard for your business and spread your brand through the most powerful marketing channel: word of mouth.
What Do You Think About These Ecommerce CRM Stats?
Did you learn something new? Are you feeling inspired to check out ecommerce CRM systems for yourself? I hope I was able to enlighten you as to how CRM is empowering others in the ecommerce ecosystem.
With this knowledge, you can start to think about what the best customer relationship management solution can do for you. As a start, read our guide to the best ecommerce CRM software available on the market, and make use of these ecommerce CRM strategies.
If you found this useful make sure to subscribe to The Ecomm Manager newsletter for more analysis on emerging trends in the ecommerce world.
If you’re interested in connecting and sharing knowledge with other industry professionals, we are also in the process of creating a vibrant community of eCommerce professionals – join the waitlist for The Ecomm Manager community here!