After trying multiple free demos and reading online reviews, you’ve just found the best CRM platform for your business. But now you’re stuck trying to make the most of your new software.
Even the best customer relationship management system is only helpful with the best practices in place.
Hi, I’m AJ! Over the last decade, I scaled and (recently) sold my business for multiple seven figures.
I’ve compiled this guide to help small business owners feel confident and implement the best CRM processes.
Unsure where to start? Let’s dive in!
Key Takeaways
- CRM best practices improve efficiency, save time, save money, and create more data-driven decisions.
- Understanding your business's weak points ensures you choose the best CRM software.
- Several CRMs provide free trials, allowing you time to see if the program fits your team.
- CRM customization allows you to make the tool your own and add details necessary to success.
Related Reading: Small Business CRM
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1. Find the Perfect CRM (Customer Relationship Management Software)
Finding the best software is the first step to implementing the best practices for your CRM. This step may seem easy.
However, there are integral points to consider before choosing customer relationship management software.
Step 1: Understand Your CRM Needs
There are numerous CRM systems available, and they’re designed for different needs.
For example, some programs are designed for customer service needs, while others focus on the sales pipeline.
Analyze where your business struggles and find a CRM system that meets those needs.
Step 2: Check CRM Features
The next step in your early CRM strategy should be reviewing CRM features.
You know what you want your new CRM to do to help your business. You need to find a CRM system with features to get the job done.
Step 3: Test Drive a CRM
Most CRM platforms offer free trials, and taking advantage of these test periods is essential.
After finding a CRM system you believe will integrate well with your business, you must actually test it out.
Make the most of your trial period and carefully note the pros and cons you observed while using the software.
CRM Examples
You might be new to CRM best practices and need to familiarize yourself with the most popular software.
I recommend the following companies; I’ve used each of them at some point in my career to build a high-functioning CRM strategy:
- Monday (best for small businesses on a tight budget)
- Salesforce (best for larger companies with several departments and employees)
- HubSpot (several focuses to choose from depending on your needs)
2. Create a CRM Software Implementation Plan
CRM best practices demand an implementation plan. Without one, there’s a higher chance you’ll blow through money and valuable time.
Yes, CRM tools are powerful. But an implementation plan ensures your company uses the software faster and correctly.
Step 1: Set Your CRM Goals & Timeline
First, set your goals and the desired timeline. How long do you want it to take to implement your new CRM?
Regarding CRM goals, refer to why your business needs CRM software.
Is it to drive more sales? Build customer relationships? Both?
Lastly, ensure your goals and timeline are realistic! The biggest mistake I’ve made is setting overly ambitious goals that were impossible to reach.
Step 2: Choose a CRM Implementation Team
Next is choosing an implementation team.
This team’s responsibility is motivating and teaching other employees how to use your business’s CRM solution.
Implementation teams introduce and show your team how to use CRM solutions correctly.
Step 3: Layout a CRM Implementation Budget & Schedule
A CRM implementation is essential because it helps your business do the following:
- Set and achieve small goals
- See which department is responsible for which tasks
- Ensure implementation doesn’t cost a fortune
- Ensure everybody stays on track
- Have a clear picture of the end goal
Implementation plans don’t have to have set time and budget constraints. I’ve found it more beneficial to create ranges.
3. Set Well-Defined CRM Goals
CRM best practices also involve setting clear CRM goals. There are several routes your business can take regarding the focus of your goals.
CRM Goal Examples
Some goals you can consider for your CRM solution include the following:
- Boost customer retention
- Shorten the sales cycle
- Boost sales
- Decrease CAC
I’ll briefly define each of these goals.
Increase Customer Retention
Increasing customer retention means you improve the chance that a customer becomes loyal to your brand.
Repeat customers are less expensive to obtain and can boost profits!
Shorten the Sales Cycle
You make sales in a shorter time when you shorten the sales cycle.
If you notice it takes your sales reps months to close a deal, this is an excellent goal to have.
Increase Sales
Increasing sales is one of the primary goals of CRM systems.
How much would you like to improve sales? Are there new revenue streams you’d like to explore?
These questions are crucial if you want your CRM system to boost sales.
Decrease CAC (Customer Acquisition Cost)
Customer acquisition cost is the money you spend to obtain a new customer.
CRM tools decrease this expense if you find your company spending considerable money to get a new customer.
4. Customize Your CRM
One of the CRM best practices people often forget about is customizing their CRM. The critical detail here is to only focus on essential areas that need customization (especially in the beginning).
Step 1: Create Custom Workflows
Utilize your CRM solution to your advantage by creating custom workflows.
CRM workflows are steps your business takes to complete a regular-occurring process, like making a sale or responding to customer support requests.
Analyze your business operations and implement workflows that make sense.
Step 2: Create Custom Dashboards
CRM customization also allows you to create unique dashboards.
A CRM dashboard is a centralized place of the necessary information, including:
- Company goals
- Sales tracking
- Tasks your team needs to achieve
- Reminders
Dashboards present data in graphs and charts and improve business efficiency because each team member sees the necessary information.
Step 3: Create Custom Drag and Drop Features
CRM features like drag and drop let you customize your workflow.
Drag and drop capabilities allow users to move content blocks around and quickly create unique processes or add to an existing block.
5. Clean Your CRM Customer Data (And Keep it Clean)
Cleaning your CRM databases is a CRM best practice that leads to excellent decision-making.
Cleaning and organizing your essential customer data before implementing a CRM is as important as maintaining CRM data cleansing after implementation.
Step 1: Fix Formatting Issues
First, ensure your data entry points are formatted and categorized correctly.
Data quality is essential, so double-checking your information is worth it in the long run.
Step 2: Merge Duplicate Records
Next, ensure your CRM data has no duplicates, which can lead to confusion and poor data entry standards.
There’s no benefit in keeping duplicate records, so clean these up before data migration.
Step 3: Delete Bad Leads
The final step is deleting “bad” leads. These leads refer to customers who last communicated a while ago or have flat-out denied service.
CRM systems ensure effective leads, so getting rid of the dead leads clears space in your records and ensures you only have what you need.
6. Use CRM Automation Wisely
Creating automations is a CRM best practice business owners love because they save time and allow employees to focus on essential tasks.
Step 1: Automate Follow-Ups
CRM solutions can automatically follow up with leads your sales team reaches out to.
Rather than reps contacting these customers, your software can automatically send an email or text, strengthening customer relationships.
Step 2: Setup Rescheduling
Another common automated task your CRM solution can perform is rescheduling.
Rescheduling automation sends an email a few days before a meeting and asks if the customer needs to reschedule, saving time when customers don’t show up.
Step 3: Create Tasks in Pipeline Stages
The final task I recommend you automate is tasks throughout the sales process.
Creating tasks in the pipeline stages results in a better chance of closing sales and improved customer experience.
7. Train Your Team Effectively
One of the most common reasons CRM solutions fail is that users don’t know how to use the program or don’t understand the benefits.
CRM best practices demand ample time to train your employees, ensuring your company uses your CRM fully.
Step 1: Create a CRM Training Plan
The first step to training employees efficiently is creating a CRM training plan.
This plan should include the following:
- Training timeline
- What each user and department needs to know about the software
- Soft launch period
- Meetings for employees to ask questions
- Progress points when your team meets training goals
Step 2: Schedule & Conduct Training Sessions
Remember the CRM implementation team I mentioned earlier? Well, here’s where it’s their turn to shine.
Ideally, your implementation team will schedule and conduct training sessions with your employees.
The type of training may vary based on the department. However, as a boss, you should understand how to use each element in your CRM platform.
Step 3: Evaluate Results
The last step is simple. Continually analyze and track your training results.
I recommend checking these results weekly to ensure everybody learns and meets progress checkpoints.
Remember, employees may take longer to embrace change and learn new software.
8. Leverage CRM Reporting
Good CRM practices are associated with the way you leverage your CRM reports.
CRM data is extremely valuable, and understanding how to read and utilize CRM metrics is critical for the future of your business.
Step 1: Decide the Essential Business Metrics
Each CRM tool produces different reports, and you must decide which metrics you want to analyze within your business.
Some of the most common CRM reports include the following:
- Sales forecasts
- Sales conversion rates
- Progress towards goals
- Performance by team member
- Email engagement performance
Step 2: Create a Custom Weekly Report
After determining which metrics your business needs to measure, creating weekly reports based on these statistics is essential.
Fortunately, most CRMs allow you to automate this step. All you need to do is plug in the information you want on the report.
9. Create the Perfect CRM Dashboard
Part of every CRM strategy is creating the best dashboard possible.
The key here is to ensure your dashboard doesn’t contain too much information, which can overwhelm and confuse users.
Step 1: Discuss KPIs With Your Team
KPIs are key performance indicators your business tracks because they impact your business operations the most.
Some examples of KPIs include the following:
- Target new customers
- Revenue growth
- Customer satisfaction
- Profit margin
- Revenue per client or sales rep
- Client retention rate
Step 2: Create Your Dream CRM Dashboard
Once you decide on the KPIs, it’s time to create an ideal CRM dashboard.
A perfect dashboard is easy to read and gives employees access to all the information they need quickly.
Your dashboard should be simple yet effective, with the most critical data first.
10. Leverage Your CRM Analytics
CRM analytics are incredibly detailed and are an excellent way to get a clear picture of everything happening within the company.
Step 1: Track CRM Analytics (Reports/Dashboards) Over Time
A great way to see if your marketing and sales efforts produce beneficial results is by tracking your reports and dashboards monthly.
CRM analytics give your valuable insights, ensuring you make future decisions based on accurate data.
Step 2: Review Metrics with Your Team Weekly
Good CRM practices mean you should regularly review reports and analytics with your team.
Meeting with members from different departments is essential to ensure everybody knows what’s happening.
Additionally, collaborating with your team ensures everyone feels heard.
11. Audit & Update Your CRM Quarterly
Updating your CRM may seem like one of the obvious CRM best practices.
However, many organizations don’t do it, eventually causing their CRM strategy to fail.
Step 1: Review Step 5 (Clean Customer Data)
Go through your customer data quarterly and update it as needed. It’s possible mistakes happened, and there are duplicate entries or missing information.
Set aside time to practice excellent data management skills and keep your information current.
Step 2: Actually Do It
Again, this point may seem obvious. But it’s important to actually do the work!
I recommend putting quarterly data cleaning in your calendar. That way, you will remember it.
Offering incentives for completing data cleaning is another effective and motivating tactic.
12. Connect Your Third-Party Integrations
Efficient CRM practices mean using third-party integrations.
CRM integrations make your employees’ life easier, streamline tasks, and improve communication.
Step 1: Review the Software You’re Using
Before choosing third-party integrations, look at everything your CRM vendor offers.
Analyze the features you desire but are missing from your CRM tool.
Third-party integrations can fill the gaps to improve marketing efforts, customer portals, data validation, etc.
Step 2: Research Integration Workflows
Once you decide which integrations to use with your CRM tool, it’s time to research the integration workflow.
Most integrations are straightforward, but it’s essential to understand how they work with your CRM before training employees.
13. Use Your CRM to Align Teams
The right CRM connects your team and improves communication.
I’ve seen companies where sales departments and marketing teams don’t even talk to one another!
CRM adoption leads to a more cohesive team.
Step 1: Discuss CRM Importance With Sales & Marketing (Together)
The first step to aligning your team is discussing the importance of the right CRM with everybody in your company.
Explain the numerous benefits of an effective CRM system and get your team excited about using it!
Also, express how the software makes everybody’s life easier,
Step 2: Create a Data-Focused Culture
Implementing CRMs doesn’t mean you have to change your business model, but you may need to change your culture.
CRMs generate data that improve business processes, and learning how to read this data is critical!
Ensure your team understands the importance of data to drive decisions and eliminate guesswork.
Step 3: Teams Review Metrics/Performance Weekly
Having a unified team is only possible with weekly meetings.
Ensure your departments meet regularly and discuss their progress towards goals. These meetings do the following:
- Provide an excellent opportunity to exchange ideas
- Improve communication
- Offer opportunities to provide feedback
14. Utilize AI Tools
The last of the CRM best practices is to utilize AI tools to streamline business operations and save time.
AI is a powerful tool when used correctly!
Step 1: Review Your CRMs AI Tools
Most premium CRM plans include some AI tools, so it’s essential to review which ones your software has.
Some examples of AI tools include the following:
- Automate repetitive tasks
- Organize customer information
- Create unique written content
- Track customer interactions
Step 2: Implement AI Tools Into Your Processes
Once you understand the AI tools available, it’s time to use them.
When implementing AI tools into your CRM workflow, remember that it may take some time to get used to.
If your initial trial doesn’t make things more efficient, that’s okay!
Why Utilize CRM Best Practices?
I’ll outline a few reasons you need to know how to use your CRM solution effectively.
Save Your Small Business Time
First, using a CRM tool correctly saves a lot of time.
Although it takes time to integrate CRM, the software streamlines tasks for marketing, customer service, and sales teams in the long run.
Save Your Small Business Money
A primary reason CRM adoption is so common is that it saves businesses money.
For instance, CRMs give sales representatives data about the sales lifecycle and customer information, allowing them to make data-driven decisions.
In return, your reps are more efficient and are less likely to make costly mistakes.
Streamline Your Small Business’s Efforts
CRM best practices ensure tasks are streamlined.
For instance, AI tools automate repetitive tasks and customer segmentation, allowing teams to focus on more important tasks that improve the business.
Increase Your Team Collaboration
Following CRM best practices improve team collaboration and encourages more communication between departments.
To provide the best customer experience, your entire company needs to operate as one.
Create a Culture of Data Transparency & Performance
Lastly, a CRM tool promotes data transparency and encourages goal setting.
Everyone in the company has access to the necessary data, giving them a clear picture of company operations.
Employees are more likely to trust your decision-making when they feel they can access the same information you do.
Wrap Up
CRM best practices improve overall business efficiency because you make the most of your CRM tool.
The best CRM practices require time to implement and ongoing training. However, the long-run results are worth it.
Did you notice a best practice that we missed? Let us know in the comments section.
Good luck implementing a CRM tool!
Frequently Asked Questions
The four Ps of CRM are planning, people, process, and platform.
The ten rules of CRM are: understand CRM implementation, know different types of CRM tools, communication, involve IT, prioritize sales team buy-in, align sales, marketing, and customer service, develop a training plan, integrations, ensure flexibility, and continuous management.
The seven Cs of CRM includes customer centricity, company culture, customer experience, customer data, customer journey, consumer experience, and consumer expectation.
The five keys to successful implementation are aligning CRM tools with business strategy, considering data types/metrics, setting goals and expectations, establishing an implementation plan, and recording KPIs.
The three pillars of CRM are people, processes, and technology.
The five components of the CRM framework include product/service, process, people, technology, and measurement.
The main factor in CRM is the customer experience.
The CRM framework is the strategy companies use to manage their customers.
The key tools for CRM are an implementation plan, a schedule and budget, training, ongoing data management, and using third-party integrations.