What Is CRM Software?

What does CRM stand for?

CRM stands for Customer Relationship Management. That sounds like a fancy term – it could be applied to a pen-and-paper rolodex or client purchase history ledger that companies have maintained for decades. But modern CRM software is really so much more than that.

CRM software turns customer data into actionable information to help you find and track sales opportunities and better serve your customers. If a client is unhappy with their service or product, for example, a quick glance at the communication history can prompt you to take action before things take a turn for the worse.

The idea is to have a central location with as much relevant data about your customers as possible, and then use that data to build repeat business. It’s really that simple.

Don’t think if it as a punishing manual task, either. The best CRM software can automate these essential processes for you.

What is Customer Relationship Management?

At its core, customer relationship management – whether software-based or not – is about maintaining and tracking your clientele to better serve their needs, and those of your business. And that means data.

This data may include contact information, or a record of all the interactions you have with those customers – such as phone calls, emails, and (if appropriate for your business) service quotes.

Selling Suits and CRM

It can all sound a bit opaque, so let’s think of a real-world application. I had my first introduction to the importance of CRM when I began my working career by selling suits. A wise veteran of that business advised me to keep a notebook tracking all my major sales and customer information. I used that book to follow-up with customers, talk to them about upcoming sales, and book appointments for future visits.

In my old notebook, I would have single pages dedicated to customers who made large purchases and were likely to need my services on an ongoing basis. Each page would have the person’s name, phone number, and address, as well as what they bought from me and when those transactions happened. Every week or so I would go through the book to see who needed a follow-up phone call, who might be interested in a particular in-store sale, or who I just needed to reconnect with.

This record-keeping was about taking care of my clients’ needs and generating repeat business. For the early 1990s, a notebook was one of the easiest ways to maintain my clientele. But, today, CRM software can do that same job far more comprehensively and intelligently.

CRM Software Solutions

These days, CRM software helps businesses to automate vast amounts of customer data at scale.

Best CRM Software to Choose

There are numerous CRM options out there on the internet, and we couldn’t possibly name them all in the space we have here. If you’re after more detail, we recommend starting with our dedicated Guide to The Best CRM Software. If you’re after a brief overview, there are some major names in the CRM space that everyone looking at this type of software should know about. Take a look at our comprehensive table to get a better understanding of the CRM landscape.

CRM for Sales

While there are some all-around CRM that can handle everything, the reality is that most have a specialty. When it comes to sales, an option like Salesforce is obvious, as it provides a wide range of lead-focused features that can turn your team around. You’ll also want to keep an eye out for business infrastructure features, training options, and business integrations for a CRM for sales, so check out our research below for some more information:

CRM for Marketing

Just to prepare you, marketing CRM often costs a lot more than your average sales or service CRM. That’s because marketing CRM is often laden with automation features that can save you a lot of time but require a lot of work.

When looking for CRM for marketing, it’s important to consider which types of marketing you want to partake in: email, social, paid, or content. Certain options will provide all four — like HubSpot, which is our top-rated pick for marketing — while others focus on only one or two.

Just like with CRM for sales, CRM for marketing can also offer team infrastructure features, training, and business integrations, so keep an eye out for those, and check out our well-research list of the best CRM for marketing below:

CRM for Customer Service

In most cases, CRM for customer service is going to be priced and planned out similar to CRM for sales. You’ll certainly be paying less than you would for CRM for marketing, because the number of features is decidedly less.

For CRM for customer service, you want to take note of the channel by which you can communication with your customers. Ticketing system, social integrations, and feedback options are all important to consider, as some providers will be missing some of these key options.

Security features are another vital factor to consider, as you’ll be dealing with a lot of customer data and information. And as always, team infrastructure and training options can go a long way in helping your team adapt to the new software.

CRM for Small Business

Is customer relationship management software right for your small business?

If you’re having trouble keeping all your customer data organized, or feel you’re not as connected to your customers as you should be then the answer is likely yes.

The idea with CRM software is to track all opportunities – whether that’s leads for new business, or ongoing customer contracts and contact information. That way, you can get a better idea of what your customer’s needs are, since all the data is right in front of you.

It also helps you get a solid sense of how to communicate with individuals, since their conversation history can be captured and made available to everyone from salespeople to customer service reps.

Fortunately, we’ve done a lot of research on the best CRM platforms for small businesses, so you can get started today if you’re interested. Take a look at the table below, and scroll down for a few individual reviews of our top picks.

Should You Use Free CRM Software?

These days you can get a free version of any software product and CRM software is no exception.

It may be tempting to choose a free version that offers all the main features you’re looking for in a CRM platform; however, this isn’t a particularly wise choice.

A CRM service will host all relevant data for your customer base. That’s not something you want to entrust to just anyone, and paying for a service puts a responsibility on the part of the service provider that may not be there with free services.

For a good example of what you can enjoy with free CRM, vs paid-for software, check out our guide to HubSpot (free) vs Salesforce. For more Salesforce specific plans, instead go to Salesforce Pricing.

Plus, with paid services often come enhanced features and greater flexibility to customize the product for your specific needs.

If you really want to transform your business, finding a CRM solution within your budget is often a better choice than the completely free options. The good news? It only takes a moment to fill out our CRM Software Compare Quotes tool – this can match you with tailored quotes from CRM suppliers.

Frequently Asked Questions