How to Choose the Right CRM Software

There are so many CRM Solutions Available, confidently choosing the right software for your business can seem like a daunting task.

The purpose of a CRM system is to simplify customer management Improve efficiencybetter customer retention, and access to analytical data. There are some key factors to consider when choosing a CRM platform, including your allocated budget, feature requirements, and market expertise.

Let’s dive into the basic planning you should do before using a CRM:

How to Choose CRM Software

1. Set a budget

It’s critical to understand how much of your total budget should be allocated to your CRM investment. While most software plans offer monthly billing, businesses can receive discounts when they commit to an annual or even semi-annual subscription.

Here are some factors to consider when choosing a CRM based on cost:

• Total number of users: How many users do you expect the platform to have?
• Settlement cycle: Which is better for your business, a monthly or annual subscription?
• Setup Fees: Does the provider require a one-time software installation fee?
• Functional add-ons: Do you need additional features in your CRM that are behind a paywall?

Suppliers usually provide Free Tier Their CRMs are usually limited versions of the software in terms of number of users, features, and storage. If you’re not sure whether you want to commit to a long-term contract, starting with a free version is a great way to test the software in your workflow before committing to a premium plan.

2. Clear growth goals

CRM software is a scalable solution designed to grow with your business. Some vendors specialize in Small Business solutions, while others offer solutions ranging from mid-sized businesses to enterprise.

Before you choose a supplier, consider that you’re not necessarily looking for a plan that matches your current business size, but rather your expected growth. Otherwise, you run the risk of needing to switch to a new supplier because your first one can no longer keep up with your business growth needs.

3. Understand your sales process

Once you have a CRM system in place, it should enhance, strengthen, and streamline your sales process. cycleTransferring an existing sales process to the platform is much faster and easier to implement than trying to build one. From there, users can customize or create new workflows, stages, and automations to enhance a given sales process.

For example, your company’s lead generation process should transfer seamlessly into your CRM. Leads can be entered manually by sales reps over the phone, or your CRM can integrate with your business website to capture new leads from website visitors or web forms. The best CRM providers can manage and automate this data.

4. Consider your industry

There are general-purpose CRMs and industry-specific CRMs to choose from, but it’s worth noting that many general-purpose CRMs also offer special features to meet the specific needs of a particular industry.

When researching potential CRM solutions, I recommend checking whether generic CRMs like HubSpot, Freshsales, or Pipedrive offer any unique adaptations that fit your industry’s needs. Pipedrive offers adaptations for B2B or marketing, hospitality, and retail industries, among others.

If your industry is highly specialized, it’s best to choose a tool that’s oriented toward your customers and business style. For example, a CRM provider built for nonprofits will highlight its donation tracking features, while a CRM provider built for healthcare will have data and HIPAA Compliance.

5. Prioritize by functionality

Not all businesses will use CRM tools for the same purposes or workflows. One business may want to improve its marketing efforts, while another needs rich AI capabilities for lead nurturing or to streamline all customer support and post-sales management.

Since CRM needs vary by company size, usage intent, and even job role, prioritize CRM Features Make it easier for you to choose the solution that’s best for you. Whether you need a tool with an insightful reporting dashboard or the ability to generate landing page templates, make a list of essential features to help narrow down which providers offer these priority features at the best price.

6. Review your current technology stack

A CRM tool is only as good as its ability to integrate with native and third-party applications. Before using a CRM tool, confirm its compatibility with other software and tools you already use. For example, does it integrate with your email provider for email campaigns or internal messaging apps like Slack or Microsoft Teams.

Providers with strong integration capabilities include:

7. Know your technical expertise

If this is your first time implementing a CRM tool, it’s important to remember that the software will be introduced to team members with varying levels of expertise. The employees most likely to use a CRM system are in non-technical roles, such as sales representatives, marketing analysts, and support agents.

The best way to ensure a smooth implementation is to choose software that is intuitive and easy to use, suitable for any skill level. Look for a CRM solution that has good user reviews, is easy to install, and offers in-app getting started tutorials. Consider Best Practices Make sure you’re making the most of your CRM tools.

CRM Features

CRM software is a feature-rich solution that typically includes both core and advanced tools. Whether your focus is marketing, collaboration, or AI tools, here are some essential features to look for in any CRM software:

• Marketing Tools: Integrate social media to target high-value prospects with insightful marketing campaigns.
• Pipeline Management: Track where each active deal is in your pipeline and the next steps to move it forward.
• Activity Tracking: Monitor the type of engagement a lead has and the last touchpoint entered by a sales rep.
• Sales Automation: Automate repetitive sales tasks, like follow-up emails, and create custom workflows.
• Reporting and analytics: View customized dashboards of important sales metrics, such as revenue tracking or campaign performance.

CRM Pricing

although CRM Pricing It is usually set per user of the software, but some providers have unique pricing structures or don’t disclose their pricing upfront. When researching providers, I recommend signing up for a free trial or demo whenever possible. Contacting the sales team of the CRM solution you’re most interested in is the best way to break down billing tiers and cycles.

Here are some factors that may affect the price of a CRM tool:

• Team size.
• Geographical location.
• Functionality add-ons.
• Billing cycle (annual or monthly).

FAQ

What are the different types of CRM?

Four CRM Type These include analytics, operations, marketing, and collaboration. Every CRM solution falls into at least one of these categories, and some may fall into more than one.

• Analytical CRM: Provide powerful data reports for business strategy.
• Operational CRM: Prioritize customer relationships through automation and workflow.
• Marketing CRM: Prioritize marketing campaign tools with powerful integrations and regular reporting capabilities.
• Collaborative CRM: Provide omnichannel communications for internal and external use.

What are the criteria for selecting a CRM?

I use a rubric to review and evaluate all CRM software. Methodology Define the key criteria to consider. My criteria included price, core functionality, customization, integrations, ease of use, and customer support. I recommend weighting these categories based on how important they are to your business.