How to use CRM software to grow your business

Whatever type of business you run, your ability to effectively manage your customer relationships is vital to your plans to succeed and grow. 

How small businesses store customer information varies massively. In many cases, it is stored only in the heads of the business owner and their staff, with business cards kept in a basic index box or contact names and numbers stored in a mobile phone or scribbled into a little black book (both can easily get lost or damaged).  

Other businesses store customer information in a basic computer spreadsheet, which at least means it can be used more efficiently, shared more easily and stored safely online (which is critical against a backdrop of ever-increasing online threats and data breaches). However, there is a far better way to gather and store your customer data, which helps you to make the most of the value of your customer relationships – one that could also save your business a lot of time and money.

What is a CRM system?

CRM is short for customer relationship management. Far more than a digital address book, CRM software enables businesses of all sizes to store, organise, manage and analyse valuable information about existing and potential customers. Information or data that you can input into CRM software includes:  

• customer contact details  

• communication history (emails, calls and meetings) 

• sales records (purchases, agreements, quotes) 

• marketing activity (campaign engagement, customer preferences, etc) 

• support-related information  

• customer behaviour (eg website visits). 

Did you know? The average cost of CRM software for small businesses ranges from £10 to £50 per user per month, depending on features. Some platforms also offer free entry-level options, which can be great for new businesses.  

CRM business benefits  

CRMs allow you to conveniently log every customer call, email, video and face-to-face meeting – recording the “what, when, how and why” of your contact with all your customers.  

CRM systems conveniently bring together key customer data/information in one place, helping to streamline work processes, while enabling more personalised engagement with customers, no matter how big your business or how rapidly it is growing.

CRM systems can also help you to simplify your day-to-day operations, saving you time and money by automating repetitive tasks, while preventing the loss of potentially valuable sales leads and strengthening your customer relationships. 

CRMs can also enable you to make better-informed business decisions and make your marketing efforts much more successful. They also enable better communication and collaboration between different people and parts of your business. 

Common challenges CRM can solve

• Disorganised data: Customer information scattered across handwritten notes, spreadsheets, emails and out-of-date systems. 

• Lack of knowledge: You know some information about your customers, but not enough information that can fuel more sales. 

• Wasted time: Time-consuming customer administration tasks that slow down you, your people and your need to sell more. 

• Limited potential: Your existing CRM may not be able to grow as your business does, which means it could hold you back.

Good CRM systems address these challenges by creating a single source of reliable customer data/information, while saving you time and money and arming you with valuable knowledge that can help you to sell more and grow your business. 

How to choose the right CRM

Software-based CRM systems differ. There is no one-size-fits-all solution. When researching which CRM solution is right for your business, there are several key factors to consider: 

• Scalability: Can it grow with your business? 

• Integration: Does it connect with your existing tools and systems? 

• Simplicity: Is it easy enough for you and your people to use? 

• Automation: Will it save you time and money by making tasks easier? 

• Analytics: Will it reveal the customer information you really need to know? 

• Value: How does it compare to other options?

Sector-specific CRM examples 

The CRM software solution you choose should also be guided by your sector-specific requirements. For example:

• A retailer may use their CRM to identify and send targeted offers to customers based on their purchase history, preferences or behaviour. 

• Manufacturers often sell through a network of distributors, wholesalers or dealers. CRM software can enable them to track communication history and order patterns for such partners, as well as automate follow-ups for reorders, product updates and service reminders. 

• A construction firm might use its CRM software to track leads and tender bids, log estimate requests and other inquiries from potential clients, manage proposals and follow up on bids and estimates. 

• A haulage firm might use its CRM to automate its customer notifications, by linking to its fleet management system and sending real-time updates via email or SMS to clients about delivery status, delays, etc, keeping customers better informed and reducing communication costs.

  
  

Four popular CRM options

• HubSpot CRM: Offers an all-in-one platform to enable you to better manage your marketing, sales and customer service. Its free CRM tools can help you to track leads, automate customer follow-ups and build stronger customer relationships. Can be upscaled as your business grows. 

• Salesforce: A powerful yet scalable CRM platform that can help small businesses better manage their customer relationships, sales pipelines and service interactions all in one place. Its automation tools and analytics make it easier to track leads and deliver a more personalised customer service. 

• Zoho CRM: Offers an affordable, easy-to-use platform to manage your sales, customer interactions and marketing, all from one dashboard. It helps you to automate routine tasks, track leads and improve customer engagement without needing a large team or budget. With customisable features and strong integration, it will keep pace as your business grows. 

• Pipedrive: Helps small businesses stay organised, with its intuitive, visual sales pipeline and easy drag-and-drop interface. It automates follow-ups, tracks communications and provides clear insights into sales performance, which can save you time and boost your productivity. Simple and scalable.

How to introduce a new CRM solution

If you invest in new CRM software, obviously, you must implement it correctly. So, what does that involve? 

1. Set clear goals Decide what functionality and information you need your new CRM to give you. Rather than “better knowledge of my customers”, be more specific, for example, customer churn rate (ie customers lost during a period), or marketing email click-throughs, lead conversions (ie how many leads became customers), repeat purchases, etc. Set specific, measurable KPIs (key performance indicators) that will give you genuinely valuable insight. 

2. Clean your existing customer data If stored already, before importing into your new system, audit and standardise your customer records. Also delete duplicates and outdated entries, because these will just waste your time. 

3. Get your team onboard Their full involvement will ensure your CRM system serves their practical needs and maximises value to your business. Your people need to realise the importance of your new CRM and fully commit to using and maintaining it. 

4. Provide training and support Provide onboarding sessions and ongoing support. Your people should know how to get the best of out of your CRM and what to do if they have any issues.  

5. Start small, get more advanced Begin with core features provided by your new CRM, then expand into more advanced automation, integrations and analytics, so that you can truly maximise your return on investment. 

   
   

CRM for growth – key takeaways

• A CRM system enables businesses of all sizes to record, manage and analyse all interactions with existing and potential customers. 

• CRM software can allow you to stay closer to your customers, better target them and serve their needs. CRM software can also help you to identify opportunities and respond to change, so you are better prepared for the future. 

• Start by carefully assessing your current CRM (if you have one), think about how and where it could be delivering greater value. Spend time searching for the right CRM software and find out how to use it to its full potential.  

• Customer relationships are vital to the success and growth of your business. Prioritise all your customer relationships and manage them well.