The primary challenge for numerous small businesses is locating their initial customers. Nonetheless, when the first group of customers arrives, it can be arduous and burdensome to manage both existing clients and guide new customers through the process. Certain small businesses haven’t even established a customer funnel yet due to the overwhelming effort required to meet deadlines and client expectations.
CRMs come into play in such situations. Small business CRM software assists organizations in organizing their sales systems and expanding their customer base.
In this article, we will examine why it is important for every small business to utilize a CRM, what factors contribute to an excellent CRM solution, and which software is suitable for meeting your business requirements.
What Is Small Business CRM Software?
First, let’s begin by understanding the concept of a CRM. A CRM, short for customer relationship management, focuses primarily on managing and monitoring your customers, especially in relation to your sales process.
CRM software is an digital platform that companies utilize to assist them in managing their relationships with customers, as well as other functions in sales, customer service, marketing, and operations.
Not all CRM software is identical. Some are specifically developed for big corporations, whereas others are designed to serve as CRM software for small businesses. This is because even the most superior CRM available may be tailored to suit the needs of a corporation, but may not necessarily be the most user-friendly or affordable CRM system for a small business.
Why Do Growing Businesses Need to Use a CRM?
In today’s world, it is difficult for any business to function without utilizing a digital system to manage their data. These systems and tools, such as CRMs or sales software for small businesses, assist both growing companies and small businesses in keeping up with technologically savvy customers and obtaining a competitive edge.
Despite the availability of advanced customer management software, some small businesses still rely on manual methods such as spreadsheets or spiral notebooks to keep track of their customers. While these simplistic CRM systems can serve as a decent initial solution for small businesses, they will eventually need to upgrade to customer management software that can handle a growing customer base when they intend to expand their business.
What Are the Benefits of a CRM System?
Using CRM tools in a small business offers numerous benefits that aid in streamlining daily operations and enhancing business growth. Here are some examples of how a basic SMB CRM can facilitate the expansion of a small business:
- Stronger Customer Relationships
The ability to share customer data with all team members from one place allows for a consistent positive customer experience, regardless of the person they are interacting with at your company. This enables you to establish stronger relationships with current customers and cultivate potential leads, all from a single location.
- Keeps Your Teams Connected
The project management features offered by top small business CRMs enable individuals in your organization to stay updated on specific tasks without leaving the platform, thereby reducing errors and mishaps caused by delayed or fragmented communication between teams.
- Better Understanding of Your Business’s performance
The saying “What gets measured, gets managed” emphasizes the importance of having concrete data to analyze the performance of a small business. Without this information, the growth of a small business can be hindered. CRMs are tools that offer sales forecasts and detailed analytics, enabling small businesses to serve more customers and operate at higher levels.
- Centralized Database of Information
With a CRM, small businesses have a centralized location to store all their customer-related data and information, eliminating the need for team members to search for information across multiple incompatible systems. CRMs enable easy access to any relevant details about customers whenever needed.
- Improved Customer Segmentation
With the data collected by CRMs on your customers, you can effectively categorize and segment your customer base based on various dimensions. Alongside basic filtering criteria like demographics, CRMs enable you to group your customers using more meaningful information such as their average purchase size or purchase frequency.
- Saves Time and Money
Customer relationship or client management software has a feature that is not widely known, which is the capability to automate various aspects of a business. These aspects include interacting with customers individually, handling administrative tasks, and managing overall operations. By adopting CRM solutions, small businesses are able to maximize their time and subsequently enhance their profitability.
The outcome of this greatly relies on the CRM platform that your small business ultimately decides to use.
What Makes a Great Small Business CRM?
When considering personal opinions, certain small business CRMs may be more effective than others depending on your specific requirements and preferences. However, overall, there are numerous features that are frequently desired by both SMBs and startups.
- Multiple Integrations
If your small business is already using multiple platforms to engage with customers, such as for marketing, sales, or customer support, it is important to find a CRM that can work well with these platforms. The ideal CRM for your small business would be one that easily connects with all of these platforms, essentially establishing a complete digital system for managing your business.
Small businesses often seek out certain types of integrations in their CRMs.
- Phone system
- Livechat/Chatbot program
- Email client
- Digital marketing platforms (e.g. Google Analytics, Facebook Ads)
- Personal/Business calendars
- Invoicing software
- Point-of-sale (POS) systems
- On-the-Go & Cloud-Based Functionality
Small businesses are increasingly dependent on digital tools and platforms for their daily operations. As a result, many popular small business CRMs are now cloud-based software. Additionally, some of these cloud-based CRMs also provide smartphone apps, enabling small business owners and employees to handle customer interactions remotely.
This is especially beneficial for retail businesses or any company utilizing tablets, phones, and other mobile devices to interact with their customers.
CRM solutions for small businesses that have iOS and Android app versions, instead of browser-based apps, enable users to share data and capabilities with other mobile applications. The most user-friendly mobile CRMs are those that are built from the ground up.
- Organizes, Aligns, and Enhances Your Funnel
Many small businesses face a significant challenge in determining the process and organization of their sales funnel, starting from the initial stage to the final stage.
Small business CRM software options that are considered better not only assist in collecting and managing data, but they also utilize it to refine and improve your funnel.
Cross-platform integrations ensure that all teams from different business functions collaborate and utilize the same information consistently throughout the customer journey, consequently preventing confusion with messaging and support tickets.
What Other Criteria Should You Look for in Choosing the CRM for Your Business?
It is advisable to begin searching for a CRM by clarifying your specific business needs instead of comparing small business CRMs based on their features.
When considering various evaluative factors, you and your team will need to think step by step.
- What kind of customers are you serving?
- What added benefits do you want from your CRM?
- What software do you use that would need to integrate with your CRM system?
- What are your current business levels like now, and what do you expect them to be in the future?
- Who is going to use your CRM?
- How much are you willing to spend on a CRM?
Make sure to allocate sufficient time for thorough discussions with your team regarding these questions. Given that implementing a CRM for your small business can be a costly venture, it is crucial to ensure that you choose the appropriate solution that suits your specific circumstances.
After reaching an agreement on these evaluative factors, you will need to follow a series of steps to further refine your options.
Small Business CRM Features to Look for
When you are shopping for a small business CRM, keep an eye out for the following key features.
- User-Friendly Interface
When considering criteria for your CRM, user experience may not be the initial aspect that comes to mind. However, this is often due to the fact that user-friendly CRMs are intuitive and easy to navigate. On the contrary, clunky and challenging CRMs can result in significant frustration. Even the most advanced functionalities are rendered useless if they are difficult to utilize.
- Industry Specialization
These days, there are CRMs designed for specific industries or businesses. Regardless if you are a marketing agency or a realtor, it is probable that you will encounter CRM platforms tailored to meet the distinct requirements of your business. You may discover that using a CRM specific to your industry is most effective for your product or service, as it offers specialized features that generic CRMs lack.
- Customizability
When considering at an individual level, it is beneficial to utilize a CRM that offers complete control over the activation of features and user privileges. Regardless of whether you are utilizing a small business CRM system designed for your particular industry, it is likely that your business requirements differ from others. By having the capability to personalize your company’s CRM, you can eliminate any unnecessary features and maintain a streamlined and straightforward experience.
- Automation
As smart technologies become more prevalent, we are witnessing a growing trend of CRMs integrating AI- and ML-based components and tools into their software. These additional features greatly contribute to enabling your business to operate autonomously and maintain customer communication, even during periods of inactivity.
- Affordability
When evaluating any CRM, it is important to consider the cost as one of the top criteria. This is particularly crucial for small businesses that are in the early stages or operating on a tight budget. It is advisable to concentrate on CRMs that are both cost-efficient and affordable for your business.
- Scalability
When considering a CRM, it may be tempting to choose one that fits your budget at the moment. However, it is important to also consider if the CRM you are considering will be able to accommodate your business growth. Although free or low-cost CRMs may appear suitable for your present circumstances, it is crucial to assess if the CRM you select today will have the capacity to handle the future demands of your business.
- Easy to set up and use
When evaluating CRMs, it is important to factor in how simple it is to use and configure for your business. Although various CRMs may appear impressive and boast powerful features, you may discover that certain CRMs provide a more favorable experience due to their user-friendly interface.
How Much Is a CRM for a Small Business?
The cost of a small business CRM will be determined by three primary factors: the package/tier, the price, and the quantity of users.
The most popular CRM platforms usually have various plans or packages available to suit different needs. If you only require basic features such as contact and deals management, you will likely choose a reasonably priced basic plan. On the other hand, there are comprehensive CRM packages available that offer advanced features like large-scale sales automation.
Typically, CRMs are charged on a monthly basis determined by the number of users within your organization. This implies that the monthly expense for a CRM will equal the base cost of the platform multiplied by the number of individuals from your team who are utilizing it.
When determining the number of CRM users, ensure that you only include team members who require access to perform their tasks. While CRM privileges are necessary for most customer-facing roles, employees focused on production and operations are unlikely to benefit from this software.
Paid plans can range in price from a minimum of $7 per user to a maximum of $99 per user.
Is There a Completely Free CRM?
There are numerous CRMs available that provide free plans to new users. Although these plans are typically simplified versions of comprehensive CRMs, they still offer all the fundamental features required by small businesses for successful customer relationship management.
However, free versions of these “freemium” CRMs may seem somewhat restrictive to certain businesses due to their limited features and usage capacities.
If you want a CRM for your small business that doesn’t cost anything, the best option is to find a solution that offers all the necessary sales tools without pushing you to upgrade to a paid plan. Look for platforms that provide complete access to their sales and marketing features without any extra charges. You might even be able to find a small business CRM that caters specifically to your goals and requirements.
Best CRM Software for Small Businesses
Zoho CRM is the best option overall.
Pricing: There are five options available, including a free version and four paid plans. Payments can be made monthly or annually with a discount.
- Free version with limited features.
- Standard: $20/user/month.
- Professional: $35/user/month.
- Enterprise: $50/user/month.
- Ultimate: $65/user/month.
In their paid plans, Zoho CRM provides the following features:
- Collection, filtering, and management of lead data.
- Email template library.
- Email notifications on opens, clicks, and replies.
- Sales forecasting, activity scheduling, and lead scoring.
- Ability to segment contact lists (Enterprise and Ultimate plans).
- Marketing attribution to measure the impact of campaigns (Enterprise and Ultimate plans).
- Reports and analytics.
- Integrates with over 800 apps including social media platforms.
All paid plans include basic support, but there are restrictions on the duration and frequency of sessions. If you want better support, you can opt for premium assistance for an additional fee. Besides, Zoho provides extra resources such as tutorials, guides, videos, webinars, training programs, and a community forum. For micro businesses, Zoho offers a reasonably priced CRM platform called Bigin, which offers fundamental functionalities.
Salesforce CRM is the optimal solution for small businesses that are experiencing growth.
There are four plans available specifically for small businesses, and all of them have an annual billing cycle.
- Starter: $25/user/month (billed annually).
- Sales Professional: $75/user/month (billed annually).
- Service Professional: $75/user/month (billed annually).
- Marketing Cloud Account Engagement: $1,250/month for up to 10,000 contacts (billed annually).
Salesforce CRM plans offer notable features that include Sales Professional, which is focused on automation, and Service Professional, which provides options for engaging and managing customer cases. Both plans are priced the same.
- Lead tracking and customer management.
- Segmentation of contact lists.
- Email templates.
- Pipeline and forecast management (Professional plan and up).
- Customizable reports and dashboard.
- Mobile app for Android and Apple devices.
- More than 7,000 integrations.
Customer support is accessible through phone, chat, or by completing a callback form. At the Marketing Cloud plan level, help is provided 24/7. Other available resources include guided journeys, workshops, training modules, videos, and an online community.
Freshsales by Freshworks is the best option for those looking for a low-cost solution.
There are four pricing options available: a free version and three paid options. If you choose to pay annually, you will receive a discount on the plans.
- Free version with limited features.
- Growth: $18/user/month (billed monthly).
- Pro: $47/user/month (billed monthly).
- Enterprise: $83/user/month (billed monthly).
All plans come with the same set of features and tools included in their overview.
- Contact management and engagement tracking.
- Sales dashboard with custom sales activities.
- Phone, email, and customer chat capabilities.
- AI chatbot for customer communication.
- Two-way email sync.
- Website integrations for forms and contact tracking.
- Pre-built and custom reports.
- More than 160 app integrations.
During the weekdays, customer support is available around the clock, and the Enterprise plan comes with a dedicated account manager. There are also supplementary resources including blogs, videos, courses, certifications, and an online community.
The best option for customization in a CRM system is Monday Sales.
Sales CRM plans are charged on a per-user basis for Monday. However, to avail of paid plans, a minimum of three seats must be purchased. There is an option to receive a discount if annual payment is made.
- Free version for qualifying students and nonprofits.
- Basic: Starting at $37.50/month (billed monthly).
- Standard: Starting at $51/month (billed monthly).
- Pro: Starting at $90/month (billed monthly).
- Enterprise: Quote-based pricing.
The paid plans for Monday Sales CRM offer a variety of features.
- Website forms to capture leads.
- Customizable notifications.
- Email templates (Pro plan and up).
- Shared collaborative whiteboard for idea generation.
- Lead management (Standard plan and up).
- Email tracking and automations (Pro plan and up).
- A variety of integrations, including marketing, software development, and project management.
Customer support is provided through live chat, email, and callbacks, along with regular small-group training sessions for Monday account holders covering various topics. Users can also access additional resources such as tutorials, guides, blogs, and an online community.
Pipedrive is most suitable for those who prioritize flexibility.
There are five available plans and you can receive a discount if you choose to pay annually.
- Essential: $21.90/user/month (billed monthly).
- Advanced: $37.90/user/month (billed monthly).
- Professional: $59.90/user/month (billed monthly).
- Power: $74.90/user/month (billed monthly).
- Enterprise: $119/user/month (billed monthly).
The following are offered in Pipedrive plans: a feature overview.
- Lead and pipeline management.
- Customizable email templates (Advanced plan and up).
- Automated sales assistant performance suggestions.
- Group emailing and email scheduling (Advanced plan and up).
- Mobile app that is compatible with Android and iOS devices.
- Deal and activity reports at all plan levels; forecasting starting at Professional level.
- Over 400 integrations.
There are additional services available for a monthly fee, which can help in increasing leads, identifying website visitors, and creating email campaigns. Support is provided throughout the day via live chat or email. Further resources include video tutorials, setup guides, webinars, courses, and an online community.
Insightly CRM is the optimal choice for essential functionalities.
The pricing includes a free version along with three paid plans, with the condition that the billing is done only on an annual basis.
- Free version with limited features.
- Plus: $29/user/month (billed annually).
- Professional: $49/user/month (billed annually).
- Enterprise: $99/user/month (billed annually).
A summary of features: Insightly provides a free plan that has limitations on users, records, and features. Additionally, it offers paid plans that come with more benefits.
- Lead management.
- Email templates.
- Contact list targeting.
- Website lead information capture.
- Mobile app.
- Customizable reports.
- Over 2,000 integrations.
Paid plans include the option for email and phone support. In addition, there are a variety of other resources available such as blogs, videos, e-books, demos, and webinars.
