Finding the right CRM software for your business can be tricky.
There are hundreds of CRM providers out there. If you pick the wrong one, it could result in wasted time and money due to lost leads, plus the opportunity cost of switching platforms.
That’s where I come in. I’m AJ, and I’ve spent the last decade building a digital agency while learning what works and what doesn’t.
After a successful multiple seven-figure exit with my business, I started Small Business Bonfire. My mission is to help small business owners and entrepreneurs succeed by sharing our expertise.
On that note, I’ve put together this comprehensive guide on how to choose a CRM for your SMB.
Let’s nerd out a little!
Key Takeaways
- Define your settings, including user roles and custom fields.
- Test out the new system and integrate third-party apps.
- Consider both cloud-based and on-premise CRMs before making a decision.
- Compare different solutions to find one that fits your business's needs.
Related Reading: Best Small Business CRM
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Step 1: Understand Your Business Goals Around a CRM
Alright, so you know you need to find the right customer relationship management (CRM) tools. Step 1 in this whole process is to decide what your goals are.
SMART Goal Breakdown
One way to do this is to use the SMART goal framework.
SMART stands for:
- Specific
- Measurable
- Achievable
- Relevant
- Time-based
We’ll give an overview of each to give you a better idea of how to map out your business goals.
Specific
What kind of actions do you want a CRM system to help you with? Are you looking for better customer service or more lead conversions?
Some CRMs have a specific focus in mind, like marketing automation or streamlining your sales pipeline. It’s important to narrow down what you’re looking for so your CRM system can be tailored to exactly what you need.
Measurable
It’s also important to set measurable goals when it comes to choosing a CRM system. Setting objectives like ‘increasing customer retention rate by 10%’ is much more tangible than something vague like ‘improving customer service.’
Achievable
You should also make sure that your goals are realistic and achievable with the help of a CRM system. If the goal is too lofty or too complex, then it’s probably not worth pursuing right now.
Relevant
Your business goals should also be relevant to the type of customers you have or the industry you work in. For example, if you have a lot of customers who are tech-savvy, then your CRM system should be tailored to cater to their needs as well.
Time-based
Finally, set yourself a timeline for achieving your goals. This will help keep you on track and make sure that you hit targets within the right timeframe.
Step 2: Gather Input from Your Team on a CRM System
It’s important to get input from your team when you’re looking for a CRM system. After all, they’ll be the ones using it every day!
Take into account their needs and preferences so that you can find a system that works for everyone. What features do they think are important? Do they have any ideas on how to make the transition easier?
Getting feedback from your team will also help you narrow down your options.
Step 3: Make a List of "Gotta Have" CRM Features
Now that you’ve set your goals and gathered input from your team, it’s time to make a list of essential features for your CRM system.
What do you need the CRM to do? This will depend on the specific needs of your business.
At Small Business Bonfire, we prioritize the following features:
- Contact management & scoring
- Workflow automation
- Customizable pipeline management
- Third-party integrations
Again, this will vary depending on your specific type of business.
CRM Feature Examples
Let’s get into some specific examples of CRM features. We’ll give a brief description of each feature and highlight why it could potentially be important for your business.
Contact Management & Scoring
Contact management allows you to organize and keep track of all your contacts in one place.
You can also assign scores to each contact so that it’s easier to prioritize leads. Some CRMs have AI-powered scoring that will automatically prioritize leads based on their engagement levels.
This feature is great for sales and marketing teams who want to target high-value leads.
Reporting and Dashboards
Reporting and dashboards let you track the performance of your team, campaigns, and other metrics. This is especially useful if you’re looking to maximize efficiency or get a better understanding of customer behavior.
This feature also makes it easy for you to analyze data and make informed decisions based on the results.
Sales Workflow Automation
This feature allows you to automate your sales process and ensure that each step is completed in a timely manner. You can also set up automated emails, tasks, and reminders to keep your team on track.
CRM automation will save time and make it easier for you to maintain consistency across all stages of the sales cycle.
Lead Management
Lead management features will help you keep track of leads and prioritize them based on their potential value.
This is an important feature for any business that wants to maximize conversions and make sure they’re targeting the right customers.
Territory Management
If you’re managing a geographically dispersed sales team, territory management features will help you track each team member’s performance. This will make it easier for you to identify underperforming territories and adjust your strategy accordingly.
Email Marketing
Email marketing features allow you to easily create and send automated emails to customers.
This can be a great way to boost engagement and keep your customers informed about new products or services.
Sales Forecasting
Sales forecasting features help you predict future sales and track performance against goals.
This will allow you to adjust your strategy accordingly and ensure that you’re on track to meet your targets.
Integrations
Most CRMs have a range of integrations with popular business software such as QuickBooks, Zendesk, Slack, and more.
This feature is a must-have, in our opinion, because it allows you to take data from multiple sources and integrate it into one streamlined system. This makes it easier for you to make decisions quickly and efficiently.
Cross Platform Capabilities
It’s important to choose a CRM that has cross-platform capabilities. This will ensure that you can access your data and insights from any device or platform.
This is especially useful if you’re running an international business, as it allows everyone in the organization to stay connected regardless of their location.
Customizations
You’ll want to make sure that your CRM has customization options. This will allow you to tailor the system to meet the specific needs of your business.
For example, you may need to add additional fields or create custom reports and dashboards. Customizations will help ensure that your CRM is optimized for maximum efficiency.
A Mobile App
A great mobile app can make a huge difference in how you interact with your CRM.
Having a mobile CRM will allow you to access data and insights on the go, helping you stay connected and informed even when you’re away from your desk.
If this is a must-have feature for your business, we recommend checking out Freshworks. The CRM tool offers 3 separate apps for sales, customer service, and chat.
Step 4: Make a List of Nice to Have CRM Features
Now that you’ve got your must-haves let’s take a look at some features that aren’t essential but are still awesome.
CRM “Nice to Have” Feature Examples
Let’s go through some great features that we could live without (but we don’t want to).
Team Collaboration Tools
Team collaboration tools are a great way to ensure that everyone in the organization is on the same page.
This could include features such as task management, group chat, and project management.
Storage Capabilities
Having storage capabilities in your CRM will make it easier to store and share files with team members. This could be anything from customer emails and contracts to marketing images.
Make sure that the storage options you choose will be able to handle the size and type of files you need.
Time Tracking
Time tracking isn’t essential, but it’s an incredibly useful feature that can help you better understand how your team is spending their time.
This will allow you to identify inefficiencies and adjust your workflow accordingly.
Built In Chat
Having a built-in chat feature can be incredibly useful when it comes to customer service. This will allow you to respond quickly and efficiently, making the customer experience more pleasant.
Some CRMs like HubSpot or Freshworks allow you to create chatbots with customizable colors, logos, and more. These bots can then automate simple tasks and free up your team to focus on more complex problems.
More Customer Service Capabilities
Finally, you may want to look for a CRM with more customer service capabilities. This could include features such as ticketing systems and automated helpdesk solutions.
These are all great options for businesses looking to improve their customer support and make it easier to respond to customer inquiries quickly and accurately.
Step 5: Decide the Right Type of CRM Solution
There are 3 types of CRM systems out there.
These include the following:
- Operational CRM
- Analytical CRM
- Collaborative CRM
Don’t worry if you don’t know what each of these is. We’ll get into them below.
Operational CRM
An operational CRM is an online system that helps you manage customer relationships.
This includes things like tracking sales, creating campaigns, and segmenting customers. An example of an operational CRM would be Monday.com.
Monday blends sales and marketing capabilities to help you better manage customer relationships.
Analytical CRM
An analytical CRM focuses on understanding consumer behavior and trends.
It gathers data from customer interactions to provide insights into customer preferences and interests.
Analytical CRMs are great for the following business types:
- Retailers
- Restaurants
- Travel Companies
- Banks
A great example of an analytical CRM is Salesforce. It offers robust analytics tools to help you better understand customer behavior and preferences.
Collaborative CRM
Last but not least, a collaborative CRM brings together all the relevant data from different departments in an organization.
It helps teams work more efficiently and reduce the time it takes to complete projects.
This is great for teams that work across multiple departments and need to share information quickly.
A great example of a collaborative CRM is Zoho CRM, which integrates multiple tools and apps into one platform.
Note: You Might be Wise to Look at an Industry Specific CRM
Depending on your industry, you might also want to look into an industry-specific CRM. This type of software is tailored specifically for the needs of a particular business.
For example, if you’re in the healthcare industry, you might want something like Salesforce Health Cloud because it is HIPAA compliant and has features like patient engagement tools.
There is specific CRM software for all kinds of industries, such as:
- Real estate
- eCommerce
- The legal industry
- Marketing
Step 6: Do Your Research on CRM Software
Now the fun part (in our opinion). You get to try out the different products in order to choose the right CRM for your business.
Take your time and do your research. Read reviews, check out demos, watch videos, and ask people who already use the software for their opinions. This will help you make an informed decision on what to choose.
Sign Up for a Trial or Live Demo
Who doesn’t love a good free trial? In our opinion, the best CRMs out there offer some sort of free trial.
This will give you the opportunity to try out the software and see if it’s the right fit for your business.
You can also schedule a live demo with customer support reps to get an in-depth review of how the product works.
We’ve tested hundreds of different software using trials and then signed up if we were impressed. Take it from us, the best way to choose a CRM is to try it out.
Research CRM Pricing
It’s important to pick the right CRM, but you’d want to break the bank in the process.
Do some research and find out the CRM software cost, what kind of features you get with each price tier, and if there are any discounts.
Different CRMs will have different pricing plans, so make sure to compare them before making a decision.
Most CRM software will have their pricing in a very easy-to-find location on their website. Be sure to shop around before making a commitment with your wallet.
Best CRM for SMBs Examples
We can’t talk about CRMs without giving recommendations.
Here are some of the best CRM software (in our opinion) for SMBs:
- Monday.com
- Pipedrive
- HubSpot CRM
Monday.com
Monday.com is great for sales and marketing teams who need to collaborate on customer relationships.
It has amazing features like analytics, project management, and workflow automation that can help you build stronger relationships with your customers.
What’s great about Monday is that it is really 5 tools in one CRM system.
Monday.com offers the following products:
- Monday Dev
- Monday Work Management
- Monday Projects
- Monday Sales CRM
- Monday Marketer
Essentially, all of these products come together to form a comprehensive CRM solution that can help support your entire team. Plus, they have free plans available to take advantage of.
Do you want to learn more about Monday.com? Check out our in-depth Monday review.
Pipedrive
Pipedrive is all about managing your sales pipeline.
It helps you track customer relationships, manage leads, and generate more revenue.
The best part is that it’s super easy to use and has a simple user interface, so you can get up and running quickly. Plus, they have great customer support if you ever need help with anything.
Pipedrive does not offer a free plan, unfortunately, but it starts at just $14.90/month.
Does Pipedrive seem like it could be a good fit for your business? Read more about Pipedrive in our extensive Pipedrive review!
HubSpot CRM
HubSpot is probably our favorite on this list if we had to pick.
It is a CRM suite that encompasses the following hubs:
- Sales Hub
- Marketing Hub
- Service Hub
- Operations Hub
- CMS Hub
Like Monday.com, HubSpot provides a surprisingly robust free plan across the board.
They are more expensive than Monday, but the level of integration and scalability that HubSpot provides is second to none.
We recommend HubSpot if you’re looking to take your sales and marketing to the next level, automate your customer service practices, or just have an all-around solid CRM solution.
One great thing about HubSpot is that they keep all your data in one place versus being spread across multiple systems.
Check out our full HubSpot CRM review to learn more!
Step 7: Select and Implement Your CRM System
Once you’ve done your research and decided which CRM is best for your business, it’s time to implement it.
Depending on the size of your company, this may take a few days or several weeks.
This might seem daunting at first, but once you get into it, you’ll quickly realize how easy it is.
Here are some steps we recommend to get started:
- Assemble your team
- Establish CRM goals
- Identify customer data that needs to be migrated
- Define your CRM settings
- Integrate third-party apps
- Test your new CRM
- Train your team
Assemble Your Team
Avengers assemble! Well, not quite, but it is important to assemble a team of people to help you implement your new CRM software.
Establish the people that will be using the software and make sure they are involved in the process from start to finish.
Establish CRM Goals
After you have your team, it’s important to establish CRM goals.
Ask yourself: What do you want to accomplish by implementing a CRM?
It could be something as simple as better organization, or maybe you’re looking for more leads or higher conversion rates. Define your goals and make sure everyone on the team is in agreement.
Identify Data That Needs To Be Migrated
If you’re switching from an existing CRM, it’s important to identify which data needs to be migrated over.
You may need to export this data into a spreadsheet or other file type and then import it into your new system.
Types of data include:
- Customer data
- Sales history
- Leads
- Deals
Define Your CRM Settings
The next step is to define your settings.
This includes setting up the following:
- User roles
- Custom fields
- Features specific to your business
- Test Your New CRM
Once everything is set up, it’s important to test out the new system and make sure everything is working as expected.
Integrate Third-Party Apps
If you’re using third-party apps with your CRM, now is the time to set those up.
This could include anything from messenger services, payment gateways, or calendar tools.
Test Your New CRM
Once everything is set up, it’s important to test out the new system and make sure everything is working as expected.
Some ways to do this include running a few test scenarios, using fake data to simulate real-life situations, and doing user acceptance testing from members of your team.
Train Your Team
Finally, once everything is set up, it’s time to train your team on how to use the CRM system.
This could be done with a video tutorial or by having an expert on the team go through each feature in detail.
It is essential that everyone is comfortable and familiar with the new system before you can expect it to be properly implemented.
Cloud-Based Vs. On-Premise CRM
When it comes to CRM software, you have two main options—cloud-based CRM or on-premise.
Cloud-based CRMs are hosted by a third-party provider and can be accessed from anywhere with an internet connection.
On-premise CRMs are installed and managed on your own internal servers.
Each option has its advantages and disadvantages, so it’s important to consider what will work best for your business before making a decision.
What Questions to Ask When Choosing a CRM
When evaluating CRM systems, there are several questions you should ask yourself to ensure that you choose a CRM system that’s right for your business.
Some questions to ask include:
- Does the CRM software meet my business needs?
- Is it easy to use?
- How much does it cost?
- How is the customer service?
- Does it offer free software trials?
- Does the software offer marketing tools?
Bonus Tip: Check GDPR Compliance of Your CRM
Before choosing a CRM, it’s important to make sure the system is GDPR compliant.
The General Data Protection Regulation (GDPR) is a set of regulations put in place by the European Union to ensure the protection and privacy of personal data.
Make sure you check with your CRM provider to make sure they adhere to GDPR standards before making a decision.
Customer Relationship Management Conclusion
We’ve gone over how to choose a CRM. Now it’s time for you to start testing CRM vendors and pick the right one that suits your business processes.
With the right system in place, you can streamline processes, gain valuable insights into customer behavior, and increase efficiency across the board.
Do you have any questions? Let us know in the comments below!