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1. SALESFORCE

Salesforce’s revenue as of 2019 was $13.28 billion. The North America region accounted for 71% of the revenue, while Europe and Asia Pacific region accounted for 29%. We have updated row 3, columns C — N of the attached spreadsheet with more information. However, specifics regarding the number of customers in each region, the number of customers in each size group, the revenue earned from each customer size group, and the revenue Salesforce Essentials were publicly unavailable.

Salesforce’s Financials

2. HUBSPOT

Hubspot is an American developer and marketer of software products for inbound marketing, sales and customer service. It was founded in 2006 by Brian Halligan and Dharmesh Shah in the Massachusetts Institute of technology. It reported revenues of up to $674.9million in 2019.The company launched Hubspot CRM free in 2014. The CRM product tracks and manages the interactions between a company and its customers or prospects. More information on Hubspot is included in the attached spreadsheet.

  • We found the total number of customers of Hubspot to be 73,400 as stated in one of our sources. However, it proved difficult to locate the number of customers in North America, LATAM, EMEA and APAC.
  • We noted that the United States held the majority of customers who used Hubspot.
  • HubSpot revenue for the quarter ending June 30, 2020 was $0.204B, a 24.72% increase year-over-year but as it was difficult to find the number of customers in each region it was also difficult to state the revenue it got from the four regions.
  • We found the monthly pricing of Hubspot stated clearly in its website for starter, professional and enterprise customers.
  • For the customer reviews, we scoured through many review sites and traced the most dominant pros and cons as stated by the customers of Hubspot.

3. ZOHO

The information on Zoho CRM can be found in row 5 of the attached spreadsheet.

Findings

  • In 2019, Zoho generated a revenue of $448.2 million$16.5 million from sales in India and $431.7 million from global sales.
  • Over 150,000 businesses use the solution, including Amazon Indonesia, Netflix, Suzuki, Bose, hotstar, and Purolite.
  • According to customer reviews on G2 and Capterra, Zoho CRM’s main competitive advantage is low pricing.
  • Reviewers also praise robust customization capabilities. Additionally, they think the solution is easy to set-up and use for small and medium businesses that don’t need to use more advanced features.
  • At the same time, the most frequent complaint is poor user experience and user interface, which are repeatedly described as outdated, bleak, non-intuitive, and confusing, especially for users that need a lot of customization.
  • Multiple customer reviews also claim that Zoho CRM has poor customer service. According to them, the company’s representatives tend to not understand the problem and not offer sufficient solutions.
  • Additionally, many negative reviews mentioned not enough data security, features that aren’t polished enough as the company tried to develop many capabilities at once, as well as a lack of solutions for common issues. Customers are also not satisfied with Zoho CRM’s analytics.
  • While the information on revenue generated by micro-, small, and medium businesses is not available, Zoho CRM’s most popular pricing plan is enterprise, which is among the most expensive ones. It also has special pricing plans for micro- and small businesses, with the former being free of charge for up to three user accounts.

4. FRESHWORKS

Freshworks serves about 220,000 customers. More information has been populated row 6, columns C-N in the attached spreadsheet.

Summary

  • Freshworks has a total revenue of $200 million.
  • Freshworks’s “Blossom,” “Garden,” “Estate,” and “Forest” plans cost $12, $25, $49, and $79 per user, per month, if billed annually, respectively.
  • Freshworks’s “Blossom,” “Garden,” and “Estate” plans cost $19, $35, and $65 per user, if billed monthly, respectively.
  • Freshworks’s customers reviews on G2 and Capterra offer mixed reactions. Some customers feel that the products are reasonably priced, while others feel that the products are overpriced.
  • Freshworks’s features include sales force automation, marketing automation, customer support, and reporting & analytics.
  • Based on the available customer reviews on G2 and Capterra, one of Freshworks’s main strengths is that the products are easy to use because of the simple user interface. Another strength is that Freshworks’s products can be integrated with other needed tools that can help a business grow bigger and stay organized. On the other hand, one of Freshworks’s weaknesses is that the CRM software is poorly optimized for mobile phones and sometimes takes even longer to open on Android phones.

5. PIPEDRIVE

Pipedrive is a tech startup, and it has gained more than $90 million in funding, and in 2018, it was valued at $300 million. The company has more than 90,000 customers in 170 countries. More information for Pipedrive has been populated in row 7 of the attached spreadsheet.

Monthly Pricing

  • Pipedrive has four different subscription options for its customers; the essential plan costs $12.50 if billed annually and $15 per user if billed monthly, its advanced plan is priced at $24.90 (billed annually) and $29 per user if billed monthly.
  • Pipedrive’s professional plan costs $49.90, if billed annually and $59 per user if billed monthly, and its enterprise plan is priced at $99.00 per month.

Pricing Reviews

  • Customer reviews on Capterra and G2 offer a mixed opinion about Pipedrive’s pricing; for some customers, the pricing is the best thing about Pipedrive; for others, the pricing is relatively expensive. There are multiple customer reviews on Capterra that appreciate the pricing policy of Pipedrive.

Product Features

  • Pipedrive offers all kinds of sales force automation features, such as contact and account management, partner relationship management, opportunity and pipeline management, task/activity management, territory and quota management, product and price list management, quote and order management, and customer contract management.
  • The product also offers marketing automation features like email marketing, campaign management, and lead management. Pipedrive also facilitates mobile user support, and it also offers reporting and forecasting features along with a fully functional dashboard.

Strengths

  • One of the most important strengths of Pipedrive is its user interface, which is easy to use and can be integrated with a number of applications. Multiple customer reviews suggested that in comparison to other CRM tools like HubSpot and Salesforce, Pipedrive is pretty affordable.

Weaknesses

  • The main weaknesses highlighted in the customer reviews are poor functionality and limited CRM features, and lousy customer service. According to Pipedrive customers, the customer support team isn’t helpful at all; it has a week-long response time, and there is no coordination between the engineering and customer service desk.
  • Pipedrive customers on Capterra stated that they are dissatisfied with the functionality of Pipedrive and that the app lacks important CRM features.

Additional Details

  • Enlyft analyzed data on 2,886 companies that used Pipedrive in the past five years. According to the data published by Enlyft, Pipedrive is most often used by small-sized companies that have 10-50 employees and $1-$10 million in revenue.
  • “Nearly 44% of Pipedrive customers are in the United States, 11% of the customers studied by Enlyft were from the United Kingdom, and 7% are in Brazil.”
  • According to Enlyft, of all the customers of Pipedrive that were analyzed, a majority (62%) are from the small scale companies (<50 employees), 9% are from large corporations (>1000 employees), and 28% are from medium-sized companies.”

6. COPPER

Copper serves approximately 10,000 customers. More information has been populated in row 8, columns C-N in the attached spreadsheet.

Summary

  • Copper has a total revenue of $41.64 million.
  • Copper’s “basic” plan costs $19 per user, per month, if billed annually and $24 per user, per month, if billed monthly. The “professional” and “business” plans cost $49 and $119 per user, per month, if billed annually, respectively.
  • Copper’s customers reviews on capterra offer mixed opinions about the company’s pricing. Some customers enjoy value for money by using the products, while others find the products really expensive and believe there are better, cheaper options out there.
  • Copper’s product features include sales management, account & contact management, email, task & calendar management, collaboration & automation, customizability, integrations, and security & controls.
  • One of Copper’s strengths, based on the available customer reviews, is workflow automation.
  • One of Copper’s weaknesses, based on the available customer reviews, is the inability to recover accidentally deleted records. Another weakness is that Copper’s products cannot integrate with other softwares.

7. ZENDESK

More information on CRM Company Zendesk, columns C-N has been populated in the attached spreadsheet. Below are some highlights and key findings.

Summary Of The Findings

  • Zendesk Sell has over 150,000 customers. The company recorded an annual revenue of $816.4 million in 2019.
  • Zendesk Sell has four monthly pricing plans based on different packages. Teams pay $19, professionals pay $49, enterprises pay $99, and elites pay $199.
  • Zendesk Sell is a CRM software designed to provide sales teams with efficient and quantifiable insights to help them improve productivity. Among the features include sales force automation, marketing automation, customer support, mobile and social support, as well as reporting and analytics.
  • The two main advantages of Zendesk Sell are ease of use and setup, as well as quality of support.
  • Customer reviews posted on Capterra offer mixed reactions regarding the pricing plans offered by Zendesk Sell. While some customers posit that there is value for money, others feel it is quite pricey.

8. INSIGHTLY

Insightly serves 1.5+ million users and 25,000+ businesses. More information has been populated in row 11, columns C-N in the attached spreadsheet.

Summary

  • Insightly has a total revenue of $26 Million.
  • Insightly’s “Plus,” “Professional,” and “Enterprise” plans costs $29, $49, and $99 per user, per month, if billed annually, respectively.
  • Insightly has both positive and negative pricing reviews on G2 and Capterra. Some customers feel that the company’s CRM products are affordable, while others feel that the price can be somewhat high.
  • Insightly streamlines business processes; models, captures, and manages dataset; builds and deploys custom apps in minutes; and designs dashboards and tracks important metrics.
  • Based on the available customer reviews, one of Insightly’s strengths is its ability to run on mobile devices, laptops, and personal computers and that data can be synchronized through many other applications like Gmail and office 365. Another strength is the company’s product ease of use. Most customers rated Insightly’s ease of use 5/5 stars.
  • One of Insightly’s weaknesses, based on the available customer reviews, is that a good number of customers find the products expensive.

9. AGILECRM

AgileCRM offers marketing, sales, and service automation to approximately 20,000 customers. More information for AgileCRM has been populated in row 15 of the attached spreadsheet.

Summary

  • AgileCRM provides sales tracking, marketing automating, 2-way emails, contact management, and web analytics. The company brands itself as an All-in-One CRM solution, encompassing marketing, sales, and customer service. However, many reviewers noted that the features are not entirely integrated, and the sales, marketing, and service areas are disconnected.
  • It has 20,000 customers and an estimated revenue of $3 million (2016). AgileCRM offers four subscription options: Free, Starter ($8,99), Regular ($29,99), and Enterprise ($47,99).
  • The company does not provide a breakdown of its clients by region. However, using G2 reviews as an estimate and basis for triangulation, the following percentages can be triangulated:
    • Out of 274 reviews, 137 were from North America (50%), 82 from the EMEA region (30%), 43 from the APAC region (16%), and 12 from Latin America (4%).
    • Applying these estimates to the provided number of customers (20,000), 10,000 would be from North America (50%), 3,000 from the EMEA region (30%), 1,600 from the APAC region (16%), and 400 from Latin America.
    • Unfortunately, G2 classifies companies as small businesses (fewer than 50 employees), mid-market (51-1000 employees), and enterprises (over 1,000 employees). Based on the same 274 reviews, most AgileCRM customers are either micro or small companies (86%), followed by mid-market companies (11%), and enterprises (3%). As such, 17,200 customers would possibly fit the micro and small company description.
  • Based on reviews, customers are satisfied with the company’s pricing, particularly small businesses (fewer than 100 employees). Multiple users named “pricing” as the main reason why they chose the company. Most reviewers gave AgileCRM’s “Value for Money” a 5/5 rating.

10. ONTRAPORT

Ontraport’s annual revenue is $12 million. Additional information regarding the requested company information has been filled in the attached spreadsheet in row 13.

Summary

  • Although the total number of customers Ontraport has not been mentioned, the company stated that they serve thousands of customers in more than 60 countries.
  • Ontraport offers four pricing plans for different businesses.
  • Basic — Small businesses that are growing are charged $79 per month.
  • Plus — Businesses growing from start-ups to scaled are charged $147 per month.
  • Pro — Scaling businesses that need to manage everything are charged $297 per month.
  • Enterprise — Businesses that are already established and need customization charged $497 per month.
  • The company offers various product features, like reporting and analytics, email marketing, online marketing, and lead management.
  • According to customer reviews, the company offers robust and flexible automation features at favorable prices. One such company that recommends Ontraport’s price and features is Jay M, a marketing and consultant company.
  • Based on customer reviews, the company has a 96% customer satisfaction rate. In 2017, the company was awarded the Customer Service Department of the Year award for Computer Software. Customer reviews highly accredit the company for the huge investment returns they are getting and are recommending Ontraport’s automation system.
  • Another key strength of the company is that it’s relatively easy to use their system. Brook, a customer, claimed that “I like how easy it is to create a sequence of events from start to finish–a page for customers to visit, a form to fill out, an email to send them upon form submission, a page to be routed to, a campaign of future …”
  • A look at the company’s reviews indicates that its biggest weakness they regularly add new features, which confuse customers. Another weakness is customer complaints regarding software malfunction once in a while.

11. SUGARCRM

SugarCRM is the world’s first no-touch, time-aware customer experience solution with over 2 million users in 120 countries across six continents. We have completed row 14, columns C to N of the attached spreadsheet with more information on the SugarCRM company profile. Below is a summary of our findings and an explanation of the research methodology to better understand why some requested information could not be obtained.

Summary

  • SugarCRM serves over 2 million individuals and has over 200 partners across 120 countries on six continents.
  • According to customer reviews, SugarCRM is a cost-effective option compared to its competitors, and that the price is its biggest selling point. The CRM solution has all the essential CRM features of other CRM providers at a lower price.
  • As per numerous customer reviews on both G2 Crowd and Capterra, while SugarCRM is not the most expensive CRM solution, its price is too high for small businesses with less than ten employees.

12. KEAP

The requested information for row 15, columns C-N can be found in the attached spreadsheet and a summary presented below.

Summary

  • Keap has over 250,000 customers. The company’s 2020 revenue is $84 million.
  • Keap Grow costs $40 per month while Keap Pro costs $75 per month. Infusionsoft costs $100 per month.
  • Keap has both positive and negative reviews on Capterra.com with regard to pricing. While some customers opt for Keap because of it low price others felt that its products are overpriced.
  • Keap’s products features include CRM (client management), email marketing, messages, appointments booking, sales process tracking dashboard, marketing automation, quotes sending, invoices and payments, data integration, and reporting and insights.
  • One of Keap’s strengths based on the available customer reviews is its excellent customer service. Most positive reviews have given the company a five-star rating on customer service.
  • Another strength lies in the company’s products features. Most positive reviews applauded Keap’s number of features.
  • One of the weaknesses identified is the fact that Keap’s products are difficult to use. Ease of use has mainly been given a low rating.
  • The high cost of the products as observed by some customers is a weakness. Relative to the competitors, some customers fee that Keap’s products are costlier.

CRM for SMBs – Market Size

We have calculated the market size of CRM solutions for small and medium-sized businesses (SMBs) to be $20.09 billion. After an extensive search through publicly available research reports and CRM usage statistics, we have concluded that there is no precompiled information on the market size of CRM for SMBs in the public domain. All of the reports containing this information are paywalled. Therefore, we have triangulated a proxy and provided our calculations and assumptions below.

Helpful Findings

  • The global market size of CRM for SMBs was calculated to be $20.09 billion.
  • According to a survey of 254 companies, small businesses (11 to 50 employees) make up 21% of all CRM buyers while medium enterprises (51 to 200 employees) comprise 14.5% of all CRM buyers.
  • CRM Buyers by Enteprise Size
  • US Customer Relationship Management Market Size by Enteprise Size

Research Strategy

To identify the market size of CRM solutions for small and medium-sized businesses (SMBs), the research team first searched through research reports from credible research sites such as Markets and Markets, Grand View Research, Gartner, Globe Newswire, and Market Watch, among many others. While these sources provide the size of the CRM market, further bifurcations into the market size by enterprise size, industry, or geographic region are hidden behind a paywall, and one has to purchase the report to access them.
We then expanded our scope to consider media sites for statistics and commentary on the CRM market. Such sites include Forbes, Small Biz Genius, Select Hub blog, Enterprise Tech Success, among others. None of the statistics or media commentary provided the breakdown of the market size according to the size of the enterprises.

Calculations and Triangulation

As a last resort, we decided to triangulate the market size of CRM for SMBs using the available data, albeit limited. This Grandview Research Report provides the market size for the global CRM solutions, segmented into large enterprises and SMBs though no specific values are assigned to each. To calculate the current market size of CRM for SMBs, we first had to use an online Reverse CAGR calculator to find the projected market size for CRM solutions in 2020 using the market size for 2019 ($40.2 billion) and the expected CAGR of 14.2% from 2020 to 2027.
We found the market size for CRM solutions in 2020 to be $45.91 billion. Since the bar graph presented the market size for both large enterprises and SMBs, we assumed that it was drawn to scale and measured the length of the bar representing 2020. The entire bar (market size for 2020) measured 1.6 cm, while the SMBs portion measured 0.7 cm. If the entire bar represents 100%, then the SMBs portion represents: 0.7 cm X 100% / 1.6 cm = 43.75%
From the above calculation, it means that SMBs represent 43.75% of the total CRM solutions market size. Therefore, the market size of CRMS solutions for SMBs for 2020 is: 43.75 / 100 X $45.91 billion = $20.09 billion.

CRM for SMBs – Market Size Details

After an exhaustive search, we were able to find data regarding the segmentation of CRM software that is offered to small and medium-sized (SMBs) by product offerings, pain point, current methods, business segment of buyers, buyer company size by employees, and buyer budget. Please note, due to the availability of data in this space specifically focused on small and medium-sized businesses, we expanded the research past the general 24-month criteria to provide the most current data from 2016. Details of our findings have been provided below.

Product Offerings Segmentation

  • According to research, the top 3 segments of product offerings for SMBs are contact management (88%), interaction tracking (80%), and scheduling reminders (75%).
  • Segments:

Offering Segments

Pain Point

  • According to research, the top 3 segments of pain points for SMBs are organization and efficiency (39%), tracking (20%), and no current system in place (15%).
  • Segments:Pain points

Current Methods

  • According to research, the top 3 segments of current methods for SMBs are manual methods (72%), other CRM system (20%), and proprietary system (9%).
  • Segments:Current Method

Business Segment

  • According to research, the top 3 segments of businesses for SMBs are other segments (27%), real estate (18%), and manufacturing (12%).
  • Segments:Business Segment

Company Size

  • According to research, the top 3 segments of company sizes for SMBs are 2-5 employees (21%%), 1 employee (15%), and 6-10 employees (14%).
  • Segments:Employees

Buyer budget

  • According to research, the top 3 segments of company budget for SMBs are $70-75 per user per month (23%), $60-65 per user per month (20%), and $100-195 per user per month (20%).
  • Segments:Budget

Threats to the CRM Industry

Three threats to the CRM industry are intense competition, aging systems and artificial intelligence.

1. Competition

  • The CRM industry does tend to be dominated by major players, and when new market entrants come along, there is usually speculation that one of the big vendors will purchase them.
  • Vendors specifically targeting SMBs are growing well and can pose a threat to the bigger players. Other non-CRM vendors are also actually trying to move into similar spaces as CRM vendors.
  • While current CRM systems do a relatively good job of tracking internal sales, there are many external processes that happen outside the CRM and offer a wealth of information.
  • Additionally, marketers used data from 15 outside sources in 2019, up from 12 the year before. CRM systems will need to keep up with this push for external data to be integrated into systems.
  • These integrations allow companies to take advantage of more data for deeper insights. CRMs that cannot keep up or meet this need will not be successful in the highly-competitive environment of CRM.
  • As the market grows rather astronomically, customers have higher and greater demands for their CRM platforms.

2. Aging systems

  • Another threat to the industry is aging systems. Similar to above, companies that do not continue to update and innovate in the face of new technology will quickly become obsolete and lose traction in this highly competitive environment.
  • Patching legacy applications is quite difficult, so many companies leave these systems vulnerable, opening them up to security risks.
  • Additionally, more and more CRM systems are moving to the cloud, meaning security becomes vital to protect sensitive, confidential data.
  • CRM vendors must communicate to their customers the importance of regular updates and best practices.
  • SMBs are more likely to have security risks, as they tend to lack the knowledge and manpower to keep up with the latest strategies. They are also more likely to be targeted by hackers.

3. AI

  • AI can be a tool but also a threat to some CRM systems. AI offers to ability to automate systems, offer automated assistance and deliver personalized interaction.
  • However, all these things can also lead to AI being used too heavily. Companies that rely too heavily might end up put up a distance between the customer and company.
  • AI must be used effectively to serve the customer rather than fully replace important functions.
  • Forbes reports that many CRM customers are actually dissatisfied with the current capabilities and functions of AI, especially among SMB customers.
  • SMBs feel that AI is too expensive and does not deliver on promises.
  • All in all, it will take time for AI to be leveraged properly and fully, especially for SMBs who may be more tentative in this new technology.
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