The Best CRM Software of 2022

CRMs run the gamut from lightweight services intended for quick and easy customer relationships and lead management to powerhouse systems with integrated e-commerce solutions and advanced analytics.

While many small business owners worry that they'll sign up for a product that doesn't offer enough functionality later, these concerns are often overblown. Higher tiers of service and add-on features are nearly always available. Also, while more CRM features and functionality may seem inherently better, too many options within a system can be overwhelming, as they can extend the implementation process and make it more complicated and expensive.

If you already know what you're looking for but want to narrow down your options, ask yourself and your team these questions:

• Should we have workflows with built-in multilevel approvals?
• Will we need to email clients directly from the CRM? What sales tools do we need?
• Do we want software we can use immediately after setup, or do we want to do lots of customization ourselves? If we do want to customize the system, how much API access do we want?
• Who will be the primary software admins, and what is their comfort level in that role?
• How much are we willing to spend, either per user or on an annual basis?

In addition to your answers to those questions, list the integrations you need (including proprietary legacy software, if applicable) and ask the CRM company how you'd achieve such integrations with its software before you choose a product. For example, in some CRM systems, integration with an outside solution is as simple as clicking a few boxes; in others, you must use a third-party tool (like Zapier) to click your way through the integration. Some even require hands-on coding to make integrations happen.

It's important to understand which key functions a CRM should offer so you get the most out of the program. Here are some of the most important features:

Automation

You want to use a program that automatically executes actions based on data in the program. For example, when a customer fills out a form, your CRM should automatically send the message to the appropriate sales representative. After the message is received, the CRM should send a notification that the message was received or opened. Workflow automation takes the tiny details and extra work off your plate and allows your sales tasks to run smoothly.

Reporting Tools

Reports help you understand how well your sales and marketing efforts are paying off. Information like the number of leads or sales you get within a certain time frame or how many outbound calls your team has placed can help you improve your processes. Moreover, it allows you to make more informed decisions about your company.

Customer Data Management

Understanding your customer is a big part of your business's success, and customer data management features help you organize that information. Well-organized, easily accessible data on current and potential customers can help you build better relationships, which ultimately has a positive effect on your business.

Customization

When a program is customizable, you can pick the features you want in your package and arrange your dashboards, reports, extensions and plugins to your liking. This flexible workflow creates a comfortable user experience for you and your team.

Integrations

Third-party integrations connect your CRM software to other programs you use, which saves you from having to switch between apps and manually input data you've already stored in other software.

Bottom Line: To determine the features you need in a CRM, list what you want to do with it. Never adopt technology just because it's current or common, but because it solves a specific problem. If you cannot outline in detail what you want to do with your future CRM system and why you want to adopt one in the first place, you may not be ready to implement it.

1. Define your budget.

CRM costs range from free to hundreds of dollars per month for enterprise-level solutions. Determining your budget before you begin researching your options saves time by eliminating CRMs that are too expensive, plus it keeps you from making an impulse purchase.

2. Write a feature list.

Review the basic CRM feature list above, then determine the additional functionality you need to support your sales processes and strategies. Note which tools and features are deal-breakers and which ones would be nice to have but aren't mission-critical.

3. Ask around.

Your business network is a great place to get referrals from current CRM users. Ask your colleagues what they like most and least about their CRM.

4. Research the market.

Visit several business advice websites for an overview of popular CRMs, pricing and features. Trade associations and membership organizations related to your industry are also great places to learn about solutions designed specifically for your type of business.

5. Check out reviews.

Be sure to read a variety of user reviews about each CRM you're considering. Look for patterns in their comments to learn their pain points and standout features from people who use them every day.

6. Try out your favorites.

Most popular CRM vendors offer free trials as a hands-on way to get to know their products. Try as many as you can to develop a good understanding of their capabilities and how they compare to one another, and don't hesitate to ask questions.

Tip: Free trials may highlight a CRM's best features only. Try all of the tools you may need, not just the most prominent ones.

7. Make your selection.

When you're confident you've done your due diligence, it's time to make a final decision. Before you pull out the checkbook, be sure to negotiate the price. Most CRM software for small businesses has set pricing based on features and the number of users, but it never hurts to ask.

A major benefit of using CRM software is to gain an understanding of what your customers want from your business. This keeps you from wasting time guessing what their needs are.

A CRM system gives you the tools to organize all of your customer data in one place. It ensures you have a full picture of your current and potential customers, their needs, and detailed records of what you have discussed with them in the past.

CRM software is a great way to strengthen those consumer relationships and personalize the way you market to them. It is also a big help to your marketing, sales and customer service teams, letting them organize customer data more efficiently and move through their sales tasks quickly. 

What is the estimated time frame to implement a CRM solution?

Ideally, implementing a CRM should be fast, but several factors may prolong the process, like how well your team adapts to the program, how much you want it to integrate with other programs you use and how much data you need to transfer into the software. Depending on the system, implementation can take anywhere from six weeks to four months, and training can take up to two weeks.

What is the difference between marketing automation and a CRM platform?

With marketing automation, users can schedule and manage marketing campaigns, like email campaigns and business-to-consumer interaction. A CRM platform is more of a database and contains information on your customers, like how long they've been working with your company, their purchase records, phone conversations and records of their email correspondence with your sales or customer service representatives. Some CRM platforms offer marketing automation options. 

What are examples of CRM software?

Any tech solution or program that assists businesses with their client management and communication is considered a CRM. Leaders in the CRM software industry include Salesforce, Zoho, HubSpot and SugarCRM.

Why is CRM software important for a small business?

Incorporating CRM software into your business is vital to your company's consumer relationships. It allows you to personalize the way you market to your clients, it tracks communications with your clients and it provides tools to organize the data efficiently. Building customer connections is key to the growth of your business, so it's important to have a system in place to develop and manage those relationships. 

What does CRM offer to marketing, sales and customer service teams?

A CRM helps your sales and customer service teams enter contact information about your customers and track their interactions with your business. Additionally, it can help your marketing team manage marketing campaigns and find sales opportunities.

What type of customer information is being collected?

In a CRM system, the information from customers includes phone numbers and addresses. Some systems record phone conversations, allow for discussion notes and track follow-up appointments. A CRM also provides marketing, sales and customer service information, like targeted marketing campaigns and customer insights. 

What steps should your sales team follow when a lead is assigned to them?

When a lead is assigned to your sales team, research the person or business to assess whether they're a worthy sales prospect. This is how you should prioritize your leads. Then, if the lead is a business, find the person within it who will make the final decision about buying your product or service. Schedule a meeting with the appropriate individual and discuss what your prospect is looking for to see if you can fill a need for them.

What is a CRM implementation process?

The CRM implementation process happens when the platform you choose is ready to install. The process includes setting up the software with your company's preferences and transferring the information you may have in a different CRM solution. Additionally, you want to make sure the CRM integrates properly with any other programs it will interact with, such as your email marketing service, social media networks, online calendars, business phone system and customer success software.

The final stage of the implementation process is properly training all of your employees in how the CRM platform works. If the actual users don't understand all the ins and outs of the software, the CRM will never show its true worth. It is critical to spend the necessary time getting every one of your employees who will be using the platform up to speed on how it works.

After the CRM has been up and running for a few weeks, you should revisit how it is operating to make sure it is meeting all of your needs and your employees are comfortable with it, and then address any trouble spots.

How do you build good relationships with customers using your CRM?

Make sure your CRM is storing all of the key data points on your customers. This will allow you to tailor all your interactions to their specific needs. Customers want to feel special; they don't want the companies they work with to treat them as just another sale. A CRM allows you to make sure you remember previous conversations, have all of the relevant contact information and know where each customer is in the sales funnel. This means that the next time you connect with a customer, you can focus on the next steps without revisiting information that has already been explained.

You can also set your CRM to remind you when it is time to connect with a potential customer. For example, if you tell a contact you are going to call them in three weeks, instead of just adding it to your calendar, you can have your CRM send you reminders or set tasks so you can reach out to them when promised.

Is Google Analytics a CRM?

No, Google Analytics is not a CRM; it is a web analytics tool that helps businesses assess the effectiveness of their marketing efforts and understand their customers' behavior. It provides data associated with consumers' online activity and interaction with your brand, product or service. A CRM can use the information gathered from Google Analytics, though, to assist your company's marketing efforts.

How many types of CRM software are there?

There are five kinds of CRM software. Here are the key points that separate each type:

1. Operational CRMs help you market to your audience based on the data you collect from the software.
2. Analytical CRMs provide business foresight through customer data.
3. Collaborative CRMs allow you to share customer information interdepartmentally (e.g., between your customer service department and your sales team) based on customer interactions.
4. Campaign management CRMs are often described as both analytical and operational systems. These solutions are ideal for assisting with sales and marketing campaigns based on collected client data.
5. Strategic CRMs integrate with other apps, such as Mailchimp, to run marketing campaigns. These systems use collected customer data to inform business decisions about how to execute marketing campaigns.