Does Your Small Business Need a CRM?

Ever returned to a hotel you previously stayed at, and they gave you everything you asked for from last time? Your hypoallergenic pillow was waiting for you, they asked if you would like a dinner reservation just like you always do the first night, and there were extra hangars because you always need them. None of this would be possible if the hotel didn’t have a customer relationship management (or CRM) system in place.

Would your clients be impressed if you remembered all the details about their last conversation, last purchase, or preferences? If so, your business might benefit from a CRM system.

Businesses that have 30 or more clients may benefit from a system that allows you and your employees to enter detailed information about each client interaction they have. It can work for both current clients and prospects. A CRM is at its core a robust customer database. It contains master file information on each customer or client, such as name, company, address, contact info, and custom fields. It is also transaction-driven in that you can log activity such as calls, meetings, proposal dates, and more.

A good CRM system can also integrate with your other internal systems, such as your accounting or POS system. In some CRM systems you can see invoice and payment history, so that when a client calls you can see whether they owe you money or what goods they may be calling about.

There are literally hundreds of CRM systems to choose from. The gold standard for large companies is SalesForce.com; however, some small businesses use it as well. SugarCRM is the largest open source CRM, meaning its programming code is available to the public. ZohoCRM is one of the largest small business CRMs and offers a suite of products for small businesses. And Act! is also very popular and plays well with social media.

Before choosing a CRM, decide what you want it to do and how you will be using it. One of the most important aspects of profiting from a CRM is to make sure it gets used, and that takes some habit-changing from you and your staff. Once you have your requirements, you can evaluate what’s available, and choose the one that works best for you.

When your clients start talking about how great your service is and how much attention you pay to the details they care about, you’ll know your CRM is paying off.