A survey carried out by MarTech has revealed that almost one in five businesses replaced their CRM platform in 2022.
This trend is in line with survey results from 2021, which also saw CRM systems among the top 3 types of marketing technologies being replaced by businesses.
Considering the extent of companies replacing their Customer Relationship Management (CRM) platform, it’s important to ask why this is and whether your business should follow suit or stick with its current system.
To help you better understand why businesses are replacing their CRM platform, YourShortlist has provided this overview of the MarTech survey results and our recommendations for when to consider CRM system replacement.
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CRM platform replacement trends
The MarTech Replacement Survey 2022 asked almost 300 marketers which business software their companies had replaced in the past year.
Around 23% of respondents said they had replaced their CRM packages, marginally less than those who had replaced their marketing automation systems and tied with those who had replaced SEO tools.
Companies can always be expected to replace or update their software eventually. Their needs are constantly shifting in line with the scope of their business and customers. Meanwhile, the state of the market may require a change in approach that can only be implemented through a newer system.
Interestingly, however, this is the second year running that CRM has been placed in the top three results. This trend could mean that companies are more willing to take a risk in changing key software for managing customer relationships and data, such as their CRM platform.
40% of companies said they had replaced marketing software after less than two years of use, while 51% of respondents replaced systems that they had been using for three-to-ten years.
CRM platforms made up 25% of the systems replaced within the three-to-five-year bracket.
While these numbers show the extent and timings of software replacement, it is also helpful for buyers to understand the reasons why people have chosen to switch.
Reasons to switch CRM platform
The MarTech survey report outlined key data on why businesses are choosing to replace their current software.
The main reasons were that businesses require:
- Better features from commercial platforms (53% of respondents)
- Better/easier integrations (24%)
- Cost saving versus homegrown platforms that are too expensive to maintain (14%)
- Cost saving on commercial platforms (16%)
*One thing to note is that some businesses replacing their software had been using homegrown (i.e. developed in-house) software over a commercial app.*
It’s clear from the results that cost is a key reason to replace software. Most business decisions come down to the bottom line, so it can be expected that the simplest factor in determining which software stands the test of time is whichever one is most cost-effective.
It’s interesting that the main reason for replacing software is to access better features. A CRM platform or other marketing system will be designed to deliver on specific functionality and provide value for a business looking to better manage its customer-facing communications and data management.
However, the fact is that most software is not built with every business in mind.
Some systems are tailored to specific industries, whereas others put user-friendliness first over deep functionality. Some systems are limited to a set number of features whereas others are designed to be modular or integrated with other applications.
It is down to the buyer to determine whether a particular CRM package or other software platform meets as many criteria as possible to satisfy the needs of the business.
The most effective way to do this is by identifying key criteria as early as possible in the procurement process, something that YourShortlist can help with.
When should I replace my CRM platform?
As a user or buyer of marketing software within your business, the reasons outlined in the previous section may resonate with your own experience.
When it comes to CRM platform, you may have identified problems with the functionality or maintenance cost of your current system. Or your business may have grown, and you now require integration with additional software that is not currently possible with your CRM platform.
Whatever your experience, there are some universal issues that indicate your business could benefit from upgrading or replacing your customer management system.
Here are 3 telltale signs that your business needs a new CRM platform:
Too many data silos
Your CRM platform should be your central customer-related tool. If your information on leads, customers, and sales is still spread over multiple databases and spreadsheets, you may need to upgrade your CRM to one that is able to be centralised across your entire business.
Lack of integration
You can avoid data silos by integrating your CRM platform with other tools in your technology stack. If you find that your system lacks integrations with other software, then other commercial options on the market may provide a better solution.
An outdated solution
Age doesn’t determine a software’s quality, but if you’ve been using the same CRM platform for over 5 years, it’s worth at least exploring your options. Features that may have seemed advanced several years ago might not come close to those offered by newer tools. And with the rise in cloud-based CRM systems, it can be worthwhile investing in a new platform that will be continually improved and updated through the cloud for years to come.
Finding your ideal CRM platform
Business CRM systems can help your company better understand your customers, improve your sales process, and ultimately grow. But there can be many differences between systems that affect how much value you can achieve from each tool.
The procurement process is never easy and can begin to spiral without knowledge of the market and an outline of your key criteria in place. This is where it helps to have a procurement consultant in your corner to simplify and clarify the CRM market and quickly find the best solution for your needs.
If you’re ready to explore your options to replace or upgrade your customer management system, then the team at YourShortlist can help.
We’re a technology consultancy using procurement best practice and data insights to save companies time and money on finding new software, infrastructure, and managed services.
Our goal is to make it simple, transparent, and cost-effective to find new solutions. We won’t charge you anything, and there is no obligation to purchase from any of our Partners.
If you’re interested in finding out more about what we do, contact us today and a member of the team will be back in touch at a time that suits you.