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Customer relationship management (CRM) software originally was designed to help businesses build and maintain relationships with new and existing customers. Since then, CRM software has evolved from a simple contact management system into a robust tool that helps users manage sales, marketing, point-of-sale transactions, accounting, vendors and other types of operational data all in one easily accessible solution.
From a growth standpoint, CRM helps you find leads, follow up with prospects and nurture them through the sales pipeline. CRM is also used to maintain customer loyalty by storing key information to boost sales â for instance, by personalizing the experience and providing excellent customer support.
This guide will help you choose the right CRM software for your business. If you already know what you need and just want to see our recommendations for the best CRM software, visit our best picks page.
When you’re researching which CRM systems are best for your business, you should take your time to compare several options. This step-by-step checklist can help you ensure you make the best choice for your workflow and team.
CRM costs vary quite a bit, ranging from free tools to those that cost $1,000 per month. Understand your budget before you begin researching the market so you can narrow down your choices quickly. Identify the CRM software outside your price range before you drill down into feature sets and service plans so you don’t waste your time only to find out you can’t afford some of the options you’ve considered.
Create a short list of the CRM features you must have. Understanding what you need can help you identify any software that’s just too limited. You should also consider a second tier of features that would be nice to have but aren’t crucial. During this process, gather feedback from your team about what they need â remember, they’ll be using the CRM software so it should meet their expectations.
If you have relationships with other businesses that are similar to yours or have similar needs, ask them about the CRM software they chose. See if they’re willing to share information about why they made the decisions they did and whether they’re happy with their platform. This insight may help you determine whether your shortlist includes the best providers available.
CRM platforms are evolving all the time as technology improves, so make sure you’re up to date on which vendors are keeping up with the cutting edge of the technology and which are falling behind. Consider the types of integrations CRM platforms provide with other business software you may already be using.
Business websites that review software (like this one) and customer reviews can provide much-needed insight into how well a CRM platform does what it claims to do. Spend some time reading these reviews from multiple sources around the internet. Of course, it’s important to take these reviews with a grain of salt, as not everyone has the same experience. But if you can identify common themes across multiple reviews, there’s a good chance it’s valid feedback.
With a strongly vetted shortlist in hand, it’s time to dive in and see for yourself. Reach out to the companies you’re still considering to set up demo sessions to see the software in action and ask representatives any questions you might have. Many will offer free trials as well, so you can take the software for a test spin. Invite any members of your team who might be interested to participate so they can get a sense of the tools too and offer their feedback.
At the end of this process, it should be pretty clear which CRM software is going to be the best fit for your team. At the very least, your list should be narrowed down to a few solid options that will suit you well.
The cost of CRM software varies greatly. Vendors typically use a subscription-based pricing model. Pricing depends on several factors, such as the number of users and the types of features available.
Generally, you pay a set per-user, per-month fee. Some vendors charge a flat monthly fee for a set number of users, but you may find that to support the number of users you need (and the features you want), you’ll need to buy a more expensive plan or there can be additional fees for things like additional users. Pricing can range from $10 per user, per month, to thousands of dollars per month, depending on your business’s needs.
Don’t have a budget for CRM software? Maybe you’re not sure that CRM software is right for your business, but you’re curious to see what it has to offer. Many vendors offer free trials of their software. There are also free versions of popular CRM software; some are full-featured but limit the number of users or records, while others offer only the bare minimum capabilities.
CRM doesn’t just keep your contacts organized â it offers a bevy of tools to help you boost sales and execute more effective marketing campaigns. Here’s more about the features CRM software offers small businesses:
Are you ready to choose a CRM solution? Here’s a breakdown of our full coverage:
There are many different types of CRM software available, so choosing the right one is key to making it work for your business. Here’s what small business owners advise asking potential vendors:
A CRM platform is an important sales and marketing tool that can improve your ability to generate and nurture leads and find customers. Making the wrong choice, though, can be time-intensive and expensive. By following the checklist and tips above, you can ensure you pick the right platform the first time, helping your business to grow and avoiding some serious expenses.