As of 2024, Customer Relationship Management (CRM) systems are no longer exclusive to large corporations. Small and medium-sized companies are increasingly adopting software tools to understand their target audiences better and manage customer interactions.
Moreover, a well-selected CRM enables your company to implement Revenue Operations by aligning marketing, sales, and service efforts. With a properly integrated CRM, information flows seamlessly across departments, enhancing collaboration and improving the overall customer experience.
But, because choosing a CRM can be challenging, we have summarized some of the best practices based on over 25 years of experience.
In this article, we've outlined the steps, processes, and key questions that can help in choosing the right CRM for your company.
Why Can Choosing the Right CRM Be Challenging?
Choosing the right CRM system for your company is more than simply picking software off the shelf. Companies often find it difficult to choose a CRM system because:
- Variety of Options: There are many CRM systems available, each offering different features, making it hard to identify the best fit.
- Complex Needs: Businesses have unique requirements in terms of functionality, integration, and scalability, which makes finding a CRM that meets all needs challenging.
- Cost Considerations: CRMs vary in pricing, and businesses must evaluate the total cost, including hidden fees for support, training, and upgrades.
- Integration Challenges: The CRM needs to integrate seamlessly with existing tools and software, and failure to do so can create data silos and inefficiencies.
- Scalability: Companies must choose a CRM that can grow with their business, which adds another layer of complexity in the decision-making process.
Here are the steps, that we also use for our clients, to help choosing the right CRM system and efficiently tackle this challenging task.
Choosing the right CRM System
Step 1: Understand Your Business with a Workshop
Before deciding on a CRM, start with a comprehensive workshop. This step is essential to fully understand your organization’s unique dynamics.
Key factors to review:
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Map Out Your Technical Landscape: Understand your current system architecture to identify potential integration points or limitations. Make a list of all the technology tools where you have information about your customer and services (website, marketing automation tools, ERP system, CPQ system, PIM systems etc). This will help you select a CRM that complements your existing tools and platforms.
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Define Goals and KPIs: Establish clear objectives and key performance indicators (KPIs) for your CRM. We recommend dividing them into short-term and long-term goals. Here are some important questions to ask and categorize:
- Do you want to improve sales efficiency?
- Do you want to enhance customer engagement?
- Do you want to automate marketing?
- Do you want to optimize your service processes?
Answering these questions helps create a common goal for your teams. Additionally, it helps to determine the first to-dos, as you start using your new CRM system.
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Analyze Business Processes: Examine how your teams operate across departments. Mapping workflows helps identify areas where a CRM can add the most value and tailor it to enhance those processes.
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Gather Requirements: Based on the workshop findings, compile a detailed list of CRM requirements, including specific functionalities, integration needs, user experience considerations, and scalability.
Step 2: Conduct a System-Agnostic Evaluation
With a clear understanding of your needs, the next step is to evaluate different CRM systems. Take a system-agnostic approach, meaning do not limit yourself to any specific software provider. Use the requirements gathered during the workshop to assess which CRM solution best meets your needs.
Key questions to address:
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Functionality: Does the CRM offer the features required to achieve your goals?
For example, if improving customer service is a priority, does the CRM include ticketing and support management? -
Scalability: Can the system grow with your business? Review the possibility a CRM system offers to add users or features as needed.
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Integration: How well does the CRM integrate with your existing systems? For example, can it connect seamlessly with your marketing automation tools, your ERP tool, PIM systems etc?
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User Experience: Is the platform user-friendly and likely to be adopted by your team? Consider trial periods and user feedback to gauge usability.
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Cost: Does the CRM offer good value for its price?
Review the total cost of ownership, including subscription fees, training costs, and support. Read more about CRM costs here.
Step 3: Bring your teams and Stakeholders together
Once the evaluation is complete, present your CRM recommendation to all relevant stakeholders. Bringing together marketing, sales, and service teams ensures that everyone understands how the chosen CRM will impact their workflows and contributes to a collaborative decision-making process.
Aligning Teams for Success
Successful CRM implementation requires team alignment.
Key steps include:
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Involve Key Stakeholders: Engage representatives from all departments early in the process to ensure the CRM meets the diverse needs of the organization.
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Facilitate Open Discussions: Encourage discussions about each team’s priorities and challenges, and how the CRM can address their specific needs.
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Establish Clear Objectives: Ensure the CRM’s objectives, such as improving customer engagement or operational efficiency, align with departmental goals.
The Importance of Change Communication
Effective change communication is vital for successful CRM implementation:
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Communicate the Rationale: Clearly explain why a new CRM is being chosen and how it benefits the organization. This reduces resistance and increases buy-in.
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Provide Regular Updates: Keep stakeholders informed throughout the process to manage expectations and address concerns.
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Offer Support and Training: Ensure team members have access to training and resources to ease the transition to the new system.
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Encourage Feedback: Create channels for team members to provide feedback, improving satisfaction and system adoption.
Conclusion
Choosing the right CRM is not just about finding the best software but also about aligning it with your company’s strategic goals and ensuring it can grow alongside your business. To make the right choice, it's essential to first understand your business, answer key questions, and conduct an agnostic system evaluation to identify which CRM systems are best suited to your needs. Lastly, ensure your team is aligned with the goals you want to achieve with the new CRM system.
By following these steps, you ensure your CRM system supports your company both now and in the future.
If you need support in choosing the right CRM system, then contact our CRM team for the first non-binding call.
In the first call, we will review your challenges and help you determine your next steps.
