10 things you need to know about CRM software  

Small businesses store customer information in different ways. In some cases, valuable knowledge about who customers are, what they want and how they buy exists only in the heads of the business owner and their team. Contact details are usually stored in a mobile phone, address book or basic card index system. 

Others use computer spreadsheets to record customer details, which makes the information easier to access, share and store securely online. Although better, spreadsheets offer limited value. CRM (customer relationship management) software goes much further by enabling you to better understand your customers and sell more to them guided by what your data tells you. 

If you want your business to start using CRM software or just want to find out more first, here are 10 things you need to know about CRM software. 

1 CRM software isn’t just for big businesses

CRM software enables businesses of all sizes to store, organise and manage valuable information about their existing and potential customers. It keeps all your customer data in one place, making it easier to track interactions, follow up on leads and build stronger relationships that drive sales and growth. The affordability of CRM software places it within reach of the smallest businesses.  

2 CRM software can store lots of valuable data 

Customer contact details are fundamental, of course, but CRM software systems are so much more than glorified address books. Other important data that CRM software systems store includes communication history, with emails, calls and meetings enabling you to track conversations with your customers. CRM systems also contain sales records (ie purchases, agreements, quotes, etc), as well as marketing activity (eg campaign engagement, communication preferences, etc), support-related information, and, crucially, other important aspects of customer behaviour (eg how often they visit your website and which pages they look at). 

3 CRM software might be cheaper than you think 

For very small businesses, entry-level CRM software with basic contact management and sales tracking costs £10-£50 per user per month, depending on features required. Larger businesses that want automation, reporting and integrations with their other software normally pay £50-£100 per user per month. Big companies that also need advanced analytics, AI and customisation pay £100-£1,000+ a month, but higher monthly charges are often for 5-10 users. The more users, features, customisation and scalability, the higher the monthly cost. Cloud-based CRMs are subscription-based, while “on-premises” solutions involve upfront costs.  

4 CRM software can enable you to make more sales 

Logging every customer call, email and meeting is easier with CRM software. And being able to track all interactions enables more personal, better informed conversations with your customers. Better visibility of every customer’s habits, preferences and needs can allow you to build stronger relationships, spot new opportunities and make more sales and increase customer value. CRM can more your marketing more successful, too, because it is based on accurate customer data, enabling you to target the right customers with personalised messaging. CRM data arms you with valuable insight into customer preferences and behaviour, so you can boost engagement, improve response rates and get a better return from your marketing spend. 

5 CRM software could save your business lots of time and money

CRM systems conveniently bring all your customer information together in one place, helping you streamline your processes and work more efficiently. CRM software can also automate repetitive customer-related tasks, reducing manual data entry and enabling better communication and collaboration between team members and different parts of your business. 

6 CRM software can help you overcome common customer challenges

The things you know about your customers could be spread across handwritten notes, spreadsheets, emails and out-of-date systems. Some of the information might only exist in your head, where it can’t help others. You might know some things about your customers and prospects, but there might be huge gaps in your knowledge that prevent you from selling more to them. Time-consuming customer admin might be robbing your business of valuable time and money. CRM software can make a big difference in all of these areas and many more. 

7 Not all CRM software solutions will be right for your business 

CRM software systems vary. One that works well for one business might not for another. There is no such thing as a “one-size-fits-all” CRM software solution, you must do your homework and find the right CRM software solution for your specific needs. It might not be suitable for a business of your size or sector. It may have too many or not enough features or it might not work well with other software your business uses. It could be too complex or you might get better value from another CRM.  

8 Consider these key researching CRM software options?

Scalability is a key consideration. Your CRM software should comfortably be able to accommodate your business growing. Integration is another factor. You also need a CRM solution that integrates well with your existing digital tools and systems. Use needs to be quick and easy enough for you and your people. Its automation of repetitive tasks should save your business lots of effort, time and money. Your CRM analytics should reveal critical data about your customers and prospects. And as with all other things in business, the value your CRM software contributes to your business is a key consideration, and that is not simply a question of choosing the cheapest option. 

9 SMEs in different sectors use CRM software for different reasons

Small UK retailers use their CRM software systems to identify and send targeted offers to customers based on their purchase history, preferences or behaviour. Small construction firms use CRM software to track tender bids, log estimate requests and other inquiries from potential clients. 

Manufacturers that sell through distributors, wholesalers or dealers use CRM software to track communication history and order patterns, while automating follow-ups for reorders, product updates and service reminders. 

Small haulage firms use CRM software to automate their customer notifications by linking to their fleet-management systems and sending real-time updates via email or SMS to clients about delivery status, delays, etc. This keeps customers better informed and more satisfied, while reducing customer communication costs. 

10 Introducing new CRM software can be easier if you follow these steps: 

• Set clear goals: Decide what functionality and information you need from your new CRM software.  

• Clean your existing customer data: If stored digitally, audit and standardise your customer records before importing into your new CRM software. Delete all duplicates and outdated entries. 

• Involve your people: Their full support should ensure that your new CRM software meets their practical needs and maximises your business benefits. 

• Provide training and support: Hold onboarding sessions and give ongoing support. Your people should know how to use your CRM to its full potential and what they should do if they have any problems.  

• Start small, get more advanced: Begin with core features of your new CRM software, then try more advanced automation, integrations and analytics, so you maximise your return on investment.