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 purpose of a CRM system is to streamline customer management for improved efficiency, better customer retention, and access to analytical data. There are key factors to consider when selecting a CRM platform, including your allocated budget, feature requirements, and in-market expertise.
Let’s dive into the essential planning you should undertake before committing to a CRM:
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How to choose CRM software
1. Set your budget
It’s critical to understand how much of your overall budget should be allocated toward a CRM investment. Even though most software plans offer monthly billing, a business can get discounts when they commit to an annual or even biannual subscription.
Here are some factors to consider when choosing a CRM based on cost:
- User total: How many users do you expect to have on the platform?
- Billing cycle: Does a monthly or annual subscription work best for your business?
- Set-up fee: Does the provider require a one-time software set-up fee?
- Feature add-ons: Are there additional features you need in your CRM that are behind a premium paywall?
It’s common for providers to offer a free tier of their CRM, which is generally a limited version of the software in terms of number of users, features, and storage. If you’re unsure about committing to a longer contract, starting with the free version is a good way to test drive software with your workflows before committing to a premium plan.
2. Define growth goals
CRM software is a scalable solution that is designed to grow with your business. There are providers who specialize in small business solutions, while others offer plans that bridge from midsize companies to enterprises.
Before committing to a provider, consider that you’re not necessarily looking for a plan that matches the current scale of your business, but rather the growth you expect. Otherwise you run the risk of needing to transition to a new provider because you outgrow your first.
3. Know your sales process
A CRM system should enhance, strengthen, and streamline your sales process once you build out a cycle. Transferring an existing sales process onto the platform is far quicker and easier to implement than trying to build one as you go. From there, users can customize or create new workflows, stages, and automations to enhance the specified sales process.
For example, your company’s lead generation process should transfer over into a CRM seamlessly. Leads can be input manually from sales reps cold calling or your CRM can integrate with your business 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 both generalized CRMs and industry-specific CRMs available, but it’s worth noting that many generalized CRMs also offer special functionalities to match the specific needs of niche industries.
When researching potential CRM solutions, I recommend checking to see if a generalized CRM like HubSpot, Freshsales, or Pipedrive offer any unique adaptations that would fit your industry requirements. Pipedrive offers adaptations for B2B or marketing, hospitality, and retail industries to name a few.
If your industry is highly specialized, a tool built with your clientele and business style in mind might be the best way to go. For example, a CRM provider built for nonprofits will highlight its donation tracking capabilities, and a CRM provider for healthcare will have data and HIPAA compliance.
5. Prioritize based on features
Not every business will use a CRM tool for the same purpose or workflows. While one business may want to improve marketing efforts, another will need rich AI features for lead nurturing, or a way to streamline all customer support and post-sale management.
Since CRM needs vary based on company size, intent of use, or even job role, prioritizing CRM features makes it easier to choose the best solution for you. Whether you need a tool with insightful reporting dashboards or the ability to generate landing pages templates, make a list of essential functions to help narrow down which providers offer those priority features at the best price.
6. Review your current tech stack
A CRM tool is only as good as its ability to integrate with native and third-party applications. Before committing to a CRM tool, confirm its compatibility with the other software and tools you already use. Examples include if it integrates with your email provider for email campaigns or internal messaging apps like Slack or Microsoft Teams.
Providers with robust integrations include:
- HubSpot: 1,500+ integrations
- Insightly: 1,000+ integrations
- Freshsales: 700+ integrations
7. Understand 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 an array of team members with different levels of expertise. The employees most likely to use a CRM system are in non-technical roles, such as sales reps, marketing analysts, and support agents.
The best way to ensure smooth implementation is to choose software that is intuitive and easy to use at any skill level. Look for a CRM solution with good user reviews on ease of installation, as well as software that offer in-app tutorials for onboarding. Consider best practices to ensure you’re getting the most out of your CRM tool.
CRM features
CRM software is a feature-rich solution that typically comes with a mix of core and advanced tools. Whether your focus is on marketing, collaboration, or AI tools, here are a few foundational features to look for in any CRM software:
- Marketing tools: Integrate social media, and target high value leads through insightful marketing campaigns.
- Pipeline management: Track where each ongoing deal is in your pipeline and what next steps are to move it forward.
- Activity tracking: Monitor what type of engagement 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.
- Reporting and analytics: View custom dashboards of important sales metrics like revenue tracking or campaign performance.
CRM pricing
While CRM pricing is generally set per user of the software, some providers have unique pricing structures or don’t disclose their pricing upfront. When researching providers, I recommend signing up for free trials or demos whenever possible. Contacting the sales team of the CRM solutions you’re most interested in is the best way to break down the billing tiers and cycles.
Here are some factors that can affect the price of a CRM tool:
- Team size.
- Geographic location.
- Feature add-ons.
- Billing cycle (annually vs. monthly).
Frequently asked questions (FAQs)
What are the different types of CRM?
The four types of CRM are analytical, operational, marketing, and collaborative. Every CRM solution falls under at least one of these categories, and some might identify as multiple.
- Analytical CRMs: Offer robust data reporting for business strategy.
- Operational CRMs: Prioritize client relationships with automations and workflows.
- Marketing CRMs: Prioritize marketing campaign tools with powerful integrations and general reporting.
- Collaborative CRMs: Offer omnichannel communication for both internal and external use.
What are the criteria to select a CRM?
I review and evaluate all CRM software using a rubric and methodology that defines key criteria to consider. My criteria include price, core features, customizations, integrations, ease of use, and customer support. I recommend weighting these categories based on their importance to your business.
