How to choose the right CRM software

With so many CRM solutions available, it can seem like a daunting task to confidently choose the right software to implement for your business.

The goal of a CRM system is to streamline customer management to improve efficiency, customer retention, and access to analytical data. There are key factors to consider when selecting a CRM platform, including allocated budget, feature requirements, and market experience.

Let's dive into the essential planning you need to do before committing to a CRM:

How to choose a CRM software

1. Set your budget

It is crucial to understand what percentage of the overall budget should be allocated to a CRM investment. While most software plans offer monthly billing, a company can get discounts if it commits to an annual or even bi-annual subscription.

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

• Total users: How many users do you expect to have on the platform?
• Billing cycle: Does a monthly or annual subscription work better for your business?
• Installation fee: Does the provider require a one-time software installation fee?
• Function Add-ons: Are there additional features you need in your CRM that are behind a premium paywall?

It's common for vendors to offer a free version of their CRM, which is usually a limited version of the software in terms of number of users, features, and storage. If you're not sure about committing to a longer contract, starting with the free version is a good way to test the software with your workflows before committing to a premium plan.

2. Define growth objectives

CRM software is a scalable solution designed to grow with your business. There are vendors that specialize in small business solutions, while others offer plans that span from midsize businesses to large enterprises.

Before committing to a provider, keep in mind that you're not necessarily looking for a plan that fits the current scale of your business, but rather the growth you expect. Otherwise, you risk having to change providers because the first one becomes too small for you.

3. Know your sales process

A CRM system should improve, strengthen, and optimize your sales process once you create a cycle. Transferring an existing sales process to the platform is much faster and easier to implement than trying to create one on the fly. From there, users can customize or create new workflows, stages, and automations to improve the specified sales process.

For example, your company's lead generation process should seamlessly transfer to a CRM. Leads can be entered manually through cold calling by sales reps, or your CRM can integrate with your company's website to funnel new leads from site visitors or web forms. The best CRM providers can manage and automate this data.

4. Consider your industry

There are general CRMs and industry-specific CRMs, but it's worth noting that many general CRMs also offer special functionality to meet the specific needs of specific industries.

When researching potential CRM solutions, I recommend checking to see if a generalized CRM like HubSpot, Freshsales, or Pipedrive offers any unique customizations that fit your industry requirements. Pipedrive offers customizations for B2B or marketing, hospitality, and retail industries, to name a few.

If your industry is highly specialized, a tool designed with your clientele and business style in mind might be the best choice. For example, a CRM provider designed for nonprofits will highlight donation tracking capabilities, and a healthcare CRM provider will feature data and HIPAA compliance.

5. Prioritize based on characteristics

Not every business will use a CRM tool for the same purpose or workflows. While one company may want to improve its marketing efforts, another will need advanced AI features for lead generation or a way to streamline all customer support and after-sales management.

Since CRM needs vary by company size, intended use, or even job role, prioritizing CRM features makes it easier to choose the best solution for you. Whether you need a tool with detailed reporting dashboards or the ability to generate landing page templates, make a list of essential features to help narrow down which vendors offer those 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 apps. Before committing to a CRM tool, confirm its compatibility with the other software and tools you already use. For example, whether it integrates with your email provider for email campaigns or internal messaging apps like Slack or Microsoft Teams.

Vendors with strong integrations include:

7. Understand your technical expertise

If you're implementing a CRM tool for the first time, it's important to remember that the software will be introduced to a variety of team members with different levels of experience. The employees who are most likely to use a CRM system are those in non-technical roles, such as sales reps, marketing analysts, and support agents.

The best way to ensure a smooth implementation is to choose software that is intuitive and easy to use for any skill level. Look for a CRM solution with good user reviews for ease of installation, as well as software that offers in-app tutorials for onboarding. Consider best practices to ensure you get the most out of your CRM tool.

CRM Features

CRM software is a feature-rich solution that typically includes a mix of basic and advanced tools. Whether you focus on marketing, collaboration, or AI tools, here are some of the key features you should look for in any CRM software:

• Marketing tools: Integrate social media and reach high-value potential customers through insightful marketing campaigns.
• Pipeline Management: Track where each ongoing deal is in your pipeline and what the next steps are to move forward.
• Activity Tracking: Monitor what type of interaction leads have had and the last touchpoint entered by a sales rep.
• Sales Automation: Automate repetitive sales tasks, such as follow-up emails, and create custom workflows.
• Reports and analysis: View customized dashboards for important sales metrics, such as revenue tracking or campaign performance.

CRM Pricing

While CRM pricing is typically set per software user, some vendors have unique pricing structures or don't disclose their pricing upfront. When researching vendors, I recommend signing up for free trials or demos whenever possible. Reaching out to the sales team for the CRM solutions you're most interested in is the best way to break down billing tiers and cycles.

Below are some factors that can affect the price of a CRM tool:

• Team size.
• Geographic location.
• Function complements.
• Billing cycle (annual vs. monthly).

Frequently Asked Questions (FAQ)

What are the different types of CRM?

The four types of CRM are analytical, operational, marketing, and collaborative. Every CRM solution falls into at least one of these categories, and some can be identified in more than one.

• Analytical CRM: Deliver robust data reporting for business strategy.
• Operational CRM: Prioritize customer relationships with automations and workflows.
• Marketing CRM: Prioritize marketing campaign tools with powerful integrations and comprehensive reporting.
• Collaborative CRM: Offer omnichannel communication for both internal and external use.

What are the criteria for selecting a CRM?

I review and evaluate all CRM software using a rubric and methodology that defines key criteria to consider. My criteria include price, key features, customizations, integrations, ease of use, and customer support. I recommend weighting these categories based on their importance to your business.