Salesforce Usage Report 2020
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If you’re not completely sure whether you should invest in a customer relationship management (CRM) solution for your business in 2020, then you may want to consider the following statistic related to CRM. According to Nucleus Research—an information technology research firm, CRM provides an $8.71 return on investment (ROI) for every dollar spent.
The IT research firm further reveals that productivity is increased by more than 14 percent when mobile access to CRM is provided to the salespeople. With CRM mobile adoption and CRM mobile users increasing every day, it will be sensible of businesses to hire a mobile app development company to ensure mobile access to their CRM for users.
These are just some of the reasons the global CRM market had soared to over $48 billion by the end of 2018, according to Gartner. During the year, the global CRM market experienced a growth of over 15 percent. Gartner also found that, of the overall spending on CRM in 2018, more than 72% was spent on SaaS solutions. The research and advisory firm predicted this to increase to 75% in 2019.
Perhaps, the most interesting finding of Gartner was that Salesforce had more than 19% share of the CRM software market in 2018. This share was based on the spending by the vendor, and the total revenue worldwide. SAP in second place was some way off from Salesforce, with only an 8.3% market share. Following is a snapshot of the table that ranks CRM software based on their spending and total revenue worldwide.
(Above is a table showing the share of the CRM software market in 2017 and 2018 based on the spending by vendor and total software revenue worldwide [Image Source])
From the above table, we find that Salesforce is the leader in the CRM software market with a 19.5% market share. SAP comes in second place with am 8.3% share; Oracle is fourth, Adobe takes the fifth spot while Microsoft comes in sixth place. The remaining 58.8 percent market share is distributed among several other CRM software.
While the share of SAP and Microsoft remained constant in 2018 while marginal improvement in market share was experienced by Oracle and Adobe, Salesforce experienced the greatest growth in the year; it grew by 1.2%. While this growth may seem small in terms of percentage, it has seen Salesforce increase in revenue worldwide by almost $1772 million. That’s huge.
What is Pushing Salesforce’s Adoption and Revenues Higher?
The increase in revenue has been possible because of the growing popularity of Salesforce CRM. In fact, Salesforce is easily the most popular CRM platform today. This is because Salesforce can provide great insight into customer preferences and their purpose of visiting websites.
Additionally, the CRM platform allows organizations to store key information related to business contacts. This includes their user information, the industry they belong to, the products they sell, and the contacts they have within the company.
Salesforce has been the stand out CRM platform over the past decade or so. More than a thousand companies have implemented the Salesforce CRM platform to date. The companies that have deployed Salesforce vary from start-ups to Fortune 100 companies. Many of these companies have taken outside help to ensure successful Salesforce implementation.
According to Statista, Salesforce’s revenue increased to $13.28 billion in 2019 from $10.54 billion in the previous year. Following is an illustration of this:
(Above is a graph showing Salesforce’s revenue from 2010 to 2019 (in billions) [Image Source])
From the above table, we find that Salesforce’s revenue has increased from $1.31 billion in 2010 to $13.28 billion in 2019, an increase of $11.98 billion in the space of nine years. While Salesforce has experienced steady growth in all of these nine years, its revenue growth has really taken off since 2014.
So, what has made this growth possible? The 2020 State of Salesforce study provides some valuable insights. The study is based on data collected from more than two thousand customers spread across the globe.
According to the vast majority of the surveyed respondents, their primary reason for investing in Salesforce was to integrate data sources and get a 360-degree view of the customer. Another interesting finding of the study or survey is that Salesforce’s adoption has increased even since the acquisition of MuleSoft by the company. More than 15% of the respondents have already adopted MuleSoft, while over 50% say they are planning to do the same in 2020.
If you don’t know what MuleSoft is, then you will find the following information useful.
Knowing MuleSoft—The Integration Platform Pushing Salesforce Adoption and Usage Higher
In March 2018, Salesforce acquired MuleSoft for a reported fee of $6.5 billion. An integration platform for on-premise and cloud-based enterprise and SaaS applications, MuleSoft is being used by Salesforce to allow its customers to more easily access business data wherever it may be stored.
How has MuleSoft fared since being acquired by Salesforce? It helped the company to generate a revenue of $431 million in the last quarter of 2018, which was $56 million than what Salesforce predicted. MuleSoft has performed better than expectations simply because it is helping to change the cloud ecosystem—for good. So, what good is MuleSoft bringing to both the cloud and Salesforce’s ecosystem?
When we talk about integration platforms for SaaS, SOA, and APIs, there’s no platform better than MuleSoft. By using this integration platform, businesses can connect their devices, applications, and data, whether they exist in cloud computing environments or on-premise.
Prior to Salesforce’s acquisition of the platform, MuleSoft had more than 1200 customers. This included the likes of Airbus, Accenture, Mastercard, Barclays, and other corporate giants. Only from this, you should get an idea of how ‘big’ the MuleSoft platform is in stature. This is the reason the acquisition of MuleSoft by Salesforce made headlines everywhere. However, there were still some people who questioned why Salesforce paid such a ‘big amount’ for acquiring MuleSoft.
This is a question that is still asked by people new to the MuleSoft integration platform. If you’re one of them, then the following is some important piece of information for you.
The Problem that MuleSoft’s Integration Cloud Solves
MuleSoft provides businesses with an integration platform to connect their data, applications, and devices across the public as well as a private cloud. Companies that want to move to the cloud and need a powerful way to manage all the unconnected sources of data across their organization make up MuleSoft’s core customer base.
For these companies, MuleSoft’s integration cloud is a powerful solution that can manage all of their integrations at a large scale and with consistency. The next-generation of application integration, MuleSoft’s integration cloud connects applications in the cloud with one another as well as with legacy and on-premise applications.
Additionally, it ensures connectivity to the cloud and SaaS services while allowing safe access to on-premise applications. Above all, MuleSoft’s integration platform allows users to build a hybrid integration model by integrating cloud-based services with each other and with the on-premise business applications for solving the problem of cloud silos.
With the above in mind, there should be no doubt in anyone’s mind that MuleSoft represents the future of integration technology and that it will soon replace the outdated or traditional integration platforms. However, to make sure that they are not left behind by the competition, businesses adopting MuleSoft must ensure its proper integration with their relevant mobile applications and get their salespeople trained to use to MuleSoft platform.
To achieve the first objective of ensuring proper integration of MuleSoft with relevant mobile applications, Businesses need to hire dedicated developers or the top app development companies that have previous of this. With help from the app development companies, you can effectively integrate MuleSoft with your mobile applications.
Knowing Salesforce Einstein—The Set of AI Technologies Ensuring Salesforce Customer Success
Another reason for the increase in the adoption, use, and revenue of Salesforce in the last few years is Salesforce Einstein. Currently, more than 50% of Salesforce customers had either started deploying the AI tools provided by Salesforce Einstein or were considering deploying them in 2020.
For those of you who are not aware of Salesforce Einstein, it is a set of AI technologies developed for the Salesforce Customer Success Platform. This AI technology enables users to analyze Salesforce data with the help of algorithms. Today, this technology is available across Salesforce’s core cloud products.
With the analytics capability of the Salesforce Einstein platform, businesses or Salesforce customers can unlock critical insights related to both sales and service. In fact, we already see the impact of this.
According to The Total Economic Impact™ Of SalesforceEinstein Analytics study conducted by Forrester Consulting for Salesforce, Salesforce Einstein analytics improved the actionability of insight and business user experience to enable manager productivity savings of $2.95 million.
The study further found that, by enabling greater automation of these functions, Einstein analytics allowed businesses to achieve productivity savings of more than $1 million in administrative assistance and reporting support. It also improved customization to increase business analyst efficiency by 50% and helped achieve an incremental profit of over $6 million by improving business insight and coordination. Following is an illustration of this:
(Above is an infographic showing the findings of the Total Economic Impact™ Of Salesforce Einstein Analytics study [Image Source])
The above infographic illustrates the key findings of the Total Economic Impact™ Of Salesforce Einstein Analytics study that we mentioned above. Additionally, it shows that the businesses using Salesforce Einstein analytics experience an average ROI of over 350%. Moreover, the payback period was less than three months.
From these findings, it should be clear why the popularity and adoption of Salesforce Einstein—which is pushing the usage of the Salesforce platform higher—is growing by the day. Perhaps, you would want to get to know Salesforce Einstein better. Well, we’re going to help you with that. Here is Salesforce Einstein explained.
Understanding How Salesforce Einstein Works
Salesforce Einstein is a Salesforce platform that allows the processing of sales data using AI technology. Businesses can use this AI technology of Salesforce to absorb and process information. This results in accurate predictions and suggestions tailored to the unique needs of the customer.
Sales representatives stand to benefit a lot from the Salesforce Einstein technology. The technology makes it easy for them to access data science features. This increases their efficiency and makes them more capable of handling customers.
An interesting feature of Salesforce Einstein is myEinstein. MyEinstein allows users to design and publish their own predictive and intelligent applications. This enables users to customize the solution to the specific requirements of their business.
Salesforce developed the Einstein platform to provide users with comprehensive and up-to-date insights into customers and sales prospects. The users that the Einstein platform is targeted towards include the sales and marketing departments of companies.
A series of purchases were made by Salesforce to make Salesforce Einstein a reality. These purchases allowed Salesforce to integrate deep learning and machine learning analytics into its platform. This helped Salesforce to enhance its cloud products.
An example of these enhancements is the Einstein integration, which provides customer data insights to users. This allows companies to deal with any customer service issues proactively. Additionally, companies can use Salesforce Einstein to improve their bottom line. This is because the technology allows them to predict where a prospect is in the sales cycle and which communication channels they will respond to.
The Salesforce Einstein technology was launched across all of Salesforce’s most popular SaaS platforms. Today, the AI technology of Salesforce comes with a range of features. Following are some of the most popular Salesforce Einstein features:
1. Einstein Prediction Builder
One of the most popular features of Salesforce Einstein is the Einstein Prediction Builder. This Salesforce Einstein feature allows users to develop custom AI models to make predictions about the Salesforce field. They only need to identify the field they want to predict and choose the data they want to use. The Einstein Prediction Builder feature was introduced in the summer of 2018.
2. Einstein Bots
Einstein Bots is another interesting feature of Salesforce Einstein. Customers can use this Salesforce Einstein feature to develop chatbots powered by CRM data and historical service. This allows them to respond to frequently asked customer queries through Service Cloud. For example, users could set up a bot to automate order status tracking and refund request. Like the Einstein Prediction feature, the Einstein Bots feature was also launched in the summer of 2018.
3. Einstein Forecasting
Einstein forecasting allows sales reps to use their historical CRM data to make accurate forecasts. This unique tool uses self-learning algorithms to understand the forecasting behaviors of individuals and teams. This allows it to come up with valuable insights into future sales.
4. Einstein Discovery
The fourth and final Salesforce Einstein feature on our list is Einstein Discovery. The best thing about the Salesforce Einstein feature is that it helps to boost productivity. Einstein Discovery can be used to discover relevant patterns in your data. This data can be present inside Salesforce or outside of it. Additionally, you can use the platform to get simple AI insights and suggestions for big problems. You can take the relevant action once you have this information.
These are the four most popular Salesforce Einstein features. With the most popular Salesforce Einstein features discussed, let’s quickly review the biggest benefits of Salesforce Einstein for organizations.
The Benefits of Salesforce Einstein for the Different Functions of An Organization
Salesforce Einstein is an amazing technology, and there should be no doubt about that. Below are some of the ways in which it can benefit the different functions of an organization.
Benefits of Salesforce Einstein for Sales
Salesforce Einstein can help sales reps to focus on the most important tasks and win more business. It can do this through Predictive Lead Scoring, Automated Activity Capture, and Follow-Ups. Predictive Lead Scoring ranks leads based on their likelihood to convert. Automated Activity Capture eliminates multiple data entry by syncing Salesforce with calendar and email. Finally, Follow-Ups are automatic reminders that relieve sales reps from finding out who hasn’t responded to them.
Marketing
Salesforce Einstein makes marketing easier with features such as:
- Predictive Content and Recommendations
- Sentiment Insights
- Automated Custom Classifiers
- Machine Discovered Segments
Predictive Content Recommendations recommend the best product to users based on the past behavior of customers. Sentiment Insights analyzes customer sentiment and tone in more than ten languages. Automated Custom Classifiers categorize the data related to customers’ thoughts about your product. Finally, Machine Discovered Segments allow users to target and customize their marketing message effectively. It does this by analyzing the available customer data to find the most valuable audience.
Business Analytics
Salesforce Einstein provides the best data and insight to enable great business decision-making. It does this through the following features:
- Smart Data Discovery
- Smart Data Prep
- Continuous Feedback Loop
Smart Data Discovery allows users to investigate all possible combinations in a dataset. This helps them to obtain detailed and useful insights from a large dataset. Smart Data Prep allows users to modify and enhance data before extracting insights by providing automated recommendations. Finally, users can interact with data in real-time with Continuous Feedback Loop. In addition to this, Salesforce Einstein can also prove useful for customer service and support.
Is Salesforce Moving Towards a Mobile-Dominated Future?
The State of Salesforce Study found that more than 60% of the respondents currently use Salesforce mobile, while over 85% have plans to expand their adoption of Salesforce’s mobile platform. Additionally, more than half of the respondents that currently do not use Salesforce mobile said that they have plans to adopt the mobile platform soon.
For most of the respondents that were either using Salesforce mobile and had an interest in using it, the biggest advantage of this platform was that it helped them to boost their productivity. In fact, a quarter of the respondents revealed that they were more productive on mobile devices than on desktop. This is demonstrated by the Q1 FY19 Financial Update Report of Salesforce that reveals that 21% of the total Salesforce revenue during the first quarter of 2019 came from App cloud Sales. Following is an illustration of this:
(Above is an infographic showing the % of revenue that came from different Salesforce CRM products during Q1 of 2018)
From the above infographic, we find that 21% of the total Salesforce revenue during the first quarter of 2018 came from App Cloud sales. We further find that the percentage of Salesforce revenue that came from Sales Cloud sales during Q1 of 2018 was 34%. Service Cloud Sales made up 30% of the revenue, while15% came from Marketing Cloud sales.
This trend has continued into 2019 with findings of Statista showing that Sales Cloud was the greatest revenue generator for Salesforce in 2019, with its contribution being more than 30% of the total 13 million generated by Salesforce during the year. In the second place was Service Cloud, followed by ‘Salesforce Platform & Other,’ which includes revenue from App Cloud sales. Following is an illustration of this:
(Above is a graph showing Salesforce revenue (in millions) from 2015 to 2019 by cloud service offering [Image Source])
From the above graph, we find that Sales Cloud was the biggest revenue generator for Salesforce in 2019 with over 30% revenue contribution. Next was Service Cloud, with over 25% revenue contribution. Salesforce platform and others were the third biggest contributors with over 20% revenue contribution; this included revenue from App Cloud sales. The CRM product of Salesforce that generated the least revenue during 2019 was the Marketing cloud with less than 15% revenue contribution.
Perhaps, the most important thing to note from Statista’s findings showing Salesforce revenue by cloud service offering is that the revenue from the Salesforce platform and other has increased significantly from 2018. In fact, the biggest jump in revenue in 2019 compared to the previous year has been in this Salesforce offering. This indicates that businesses or Salesforce customers are now increasingly looking to move towards Salesforce mobile. This means that a good number of businesses are already preparing for a mobile-dominated Salesforce future, which is inevitable.
Therefore, businesses that haven’t adopted Salesforce mobile yet should immediately look to hire an app development company that can help them to effectively integrate Salesforce with their mobile apps and successfully transition to Salesforce mobile. There are many top app development companies or qualified team for Salesforce development with previous experience in this that can help ensure a smooth transition.
How to Ensure Successful Salesforce Implementation
Regardless of which Salesforce service offering is being adopted, organizations will find the solution to be of little benefit if it’s implemented properly. By proper implementation, we mean appropriately integrating and deploying the Salesforce service offering according to your business model. You can ensure this by understanding what’s needed for successful Salesforce implementation.
The cloud computing capabilities of Salesforce are a major reason why it is such a powerful platform for businesses. In the last few years, traditional CRM has been increasingly replaced in organizations with Salesforce solutions. In fact, today, it is the preferred CRM platform for businesses worldwide. This is because Salesforce enhances productivity and makes customization easy.
While Salesforce has a lot of benefits for businesses, these benefits can only be realized with proper Salesforce implementation. If you’re in charge of Salesforce implementation at your organization, then you must know and understand what’s needed for successful Salesforce implementation.
Once you understand the relevant processes, you can communicate this to the rest of the organization. This will help to ensure the successful implementation of Salesforce in your organization. So, what is required for successful Salesforce implementation? Following are the steps to follow:
1. Create a Blueprint
The first step to ensure successful Salesforce implementation is planning your implementation. You can achieve this by creating a blueprint of everything you desire and want to accomplish. Create an outline of all the key implementation responsibilities with an estimated timeline. Next, list down everything that needs to occur for you to accomplish your goals and everything else in the blueprint.
2. Set Realistic Function and Time Expectations
One of the best things about Salesforce is that you can easily add features to the platform when required. There’s no need for you to buy an app or feature that you may never use. You can get more information on this from one of the app development companies that you have easy access to.
Coming back to the topic, you can start by buying the features you need initially and then build from there. This will allow you to cut unnecessary features, which makes it easier to manage team and management expectations.
You must communicate the Salesforce implementation goals to your team and management. Also, inform them how the features being purchased help the company. This will ensure that you set realistic function expectations. You must also set realistic timeline expectations.
There is no point in rushing the process because you can’t do that. Trying to cut corners initially will only create bigger problems later on. Therefore, you should have a realistic timeline for Salesforce implementation and stay focused on it.
3. Implement in Parts
There are two ways to implement Salesforce. You can either implement everything at once or implement the platform in bits and parts. This means buying and implementing smaller or limited versions of Salesforce. You can expand Salesforce across the organization over time.
4. Design for the Data
Data is essential for successfully using the Salesforce platform. Therefore, you should look to establish a data model for the Salesforce implementation. You can do this by determining the information you want, the information you have, and the information you need. Also, make sure to build in flexibility for future data that you may need.
5. Educate Your Team
Salesforce is a relatively new platform. It is also very technical. Therefore, you should expect your team to be up-to-speed with Salesforce right from the start. Your team’s lack of understanding of Salesforce can create a huge shortfall in your organization if you are not careful. This makes it crucial for you to train and educate your team about Salesforce. This will allow them to deal with any changes that may occur from the start of the implementation to its end.
6. Determine the Key Players
This is very important. Typically, the key players in Salesforce implementation include Salesforce users, admins, and key decisionmakers. However, other people could be involved in the implementation as well. Once you know the key players, talk to them to better understand their business processes, needs, and expectations from Salesforce.
You may need to look at your sales, marketing, customer service, and IT team since they are likely to use the Salesforce platform. Create a specific list of key players with names, roles, and why they are involved in Salesforce implementation.
7. Share the Implementation Plan with End-Users
One of the most important steps in successful Salesforce implementation is sharing the implementation plan with end-users. Therefore, you must communicate how you will approach Salesforce implementation to end-users, which includes customers.
It is important to communicate the implementation plan with end-users because the success of the CRM initiative depends on them. So, what should you communicate to end-users? Workflow and scope of work. Keep them update throughout the implementation process. In fact, include the end-users in the implementation process, as this will provide you with some real insight.
Additionally, you will encourage support and feedback by clearly and frequently communicating the implementation progress with the user community. Also, incorporating the feedback will increase your chances of successful Salesforce implementation.
8. Work with Salesforce Implementation Partner
Whether you want to ensure the successful integration of Salesforce with your apps or simply want to get Salesforce implementation right, you may want to consider working with a Salesforce implementation partner. An example of a Salesforce implementation partner would be a mobile app development company with experience in Salesforce implementation or Salesforce’s integration with mobile business applications.
It is easy for organizations to lose focus when implementing Salesforce as the implementation of Salesforce is a very complex process. However, Salesforce implementation partners, such as app developers with experience in Salesforce implementation, have the knowledge and skills to take Salesforce from a mere concept to a buzzing reality.
Successful Salesforce implementation is no easy feat. However, you can make things easier with the steps mentioned above and a Salesforce implementation partner such as a mobile app development company.
The Advantages of a Salesforce Mobile App for Businesses
Regardless of how you perform the implementation, implementing Salesforce in your organization can provide you with many benefits. However, the capabilities of Salesforce’s desktop version are limited by its lack of portability. This can be a real concern if your sales and support teams spend a good part of the workday outdoors.
While this was a real headache in the past, you can now overcome this problem easily thanks to the Salesforce mobile app. This mobile app is part of the mobile CRM offered by Salesforce. Mobile CRM offers all the features of a desktop version and so much more. Due to its portability and other advantages, mobile CRM or Salesforce mobile has quickly become the preferred choice of many Salesforce users. This trend is only expected to grow in the future.
According to Nucleus Research, the mobile capabilities of CRM have helped organizations to improve their productivity by more than 14 percent. This increase in productivity has been possible due to the development of device-specific and customized applications that are designed to get the most out of the specific device being used. Additionally, in a 2012 study, the Aberdeen Group revealed that mobile access to CRM had helped 24% more of its sales reps to achieve their sales quota.
Another interesting statistic related to mobile CRM or Salesforce mobile is that more than 40% of CRM users access their CRM using either a Smartphone or tablet. Following is an illustration of this:
From the above findings, you can get some idea of why mobile CRM, which includes Salesforce mobile, is now being preferred over the desktop version by a vast majority of the CRM/Salesforce users. If you’re still in doubt about the benefit of investing in the Salesforce mobile app and hiring a mobile app development company for it, then the following are some major advantages of Salesforce mobile adoption that Salesforce mobile users have experienced.
1. Personalize the Sales Pitch
With the Salesforce mobile app, salespeople can access the Salesforce database at any time and from any place. This ensures 24/7 access to the information stored on the CRM, which allows sales reps to personalize their sales pitch or presentation. With a personalized sales pitch, the sales reps have a higher chance of converting qualified leads into buying customers.
2. Ensure the Availability of All Required Data on Your Phone
For long, sales reps have desired instant access to a client’s data without having to switch on a laptop, connect with a hotspot, or ask for the Wi-Fi code. This has now become a reality with mobile CRM that provides the sales reps with a mobile app that has all the tools and data needed by the reps, and they are immediately accessible.
3. Get Access to More Accurate Information
Immediately after the acquisition of a mobile CRM, you can enter data into the CRM. This means that whenever your sales reps successfully close a sale on-the-go, they can immediately enter that information in the CRM. In other words, mobile CRM allows you to update the database with the latest information in real-time.
4. Customize the CRM as Per Your Needs
With mobile CRM, you can customize your Salesforce CRM. With help from Salesforce consulting company, you can customize the Salesforce mobile app as per your own needs or as per the needs of your sales or marketing team. Simply remove what you don’t need and add what you need to the app before visiting a client for a meeting or sales presentation.
5. Get Offline Capabilities
The mobile version of Salesforce CRM comes with offline capabilities or features. For instance, you can store data on the Salesforce database with the mobile app even when you’re not connected to the internet. As soon as you connect to the internet, the new information added will be automatically updated.
This list is not exhaustive, and there are many more advantages of a Salesforce mobile app for businesses. However, the benefits of Salesforce mobile mentioned above are the biggest reasons for you to hire a mobile app development company to ensure your business’s smooth transition to mobile CRM.
Conclusion
From the above information, we find that the usage of mobile CRM and Salesforce mobile is on the way up. Therefore, it makes great sense for businesses to invest in the development of a Salesforce mobile application. There are several advantages to this, and some of them have been discussed above.
Also discussed in this guide are the biggest factors pushing Salesforce’s adoption and revenues higher, the latest additions to the Salesforce platform MuleSoft and Salesforce Einstein, the benefits of Salesforce Einstein for the different functions of an organization, and whether Salesforce is headed towards a mobile-dominated future.
Our Review Process
Our writers spent more than 25 hours researching the adoption and usage of both the desktop and mobile versions of Salesforce. To come up with the information and statistics presented above, they read through the research of top sites. This research process makes the information provided by us reliable.
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