Select Page

Data Management Tools: CRM for SMBs

Computers, Science and Technology

An image of the silhouettes of business people with three computer screens and binary code, representing the need for data management tools in business.

Managing large quantities of information can be a challenge for small- and medium-sized businesses (SMBs) in today’s highly data-driven world. However, ignoring the data that is available to your business can result in stagnation as smaller companies struggle to keep pace with competitors who are using data well. Data management tools like customer relationship management (CRM) systems help businesses of all sizes put information about customers, vendors, internal processes, and more to good use. But with time constraints and a limited budget, how do you make CRM small business database solutions work for you?

Small Business Database Solutions and Data Management Tools

The global market for CRM topped $48 billion in 2018, accounting for nearly a quarter of all business application spending. And further growth in the data management market is projected in the years to come. Salesforce is the CRM market segment’s clear leader, with 19 percent of the market share in 2018, but there are many options to consider based on your company’s specific goals and needs.

The Role of CRM in Small Business Data Management

If data is the reigning king, CRM is the prime minister, providing structure and guidance to everything that falls under the king’s purview. Salesforce defines CRM as “a technology for managing all your company’s relationships and interactions with customers and potential customers” with a driving goal of improving business relationships.

The benefits of database systems have evolved beyond customer relationship building, though, and many can provide a near all-in-one solution for large-, medium-, and small-business data management. CRM systems can be cloud- or software-based, but whatever the method of delivery, these platforms and applications help businesses gather and organize data, streamline tasks, and produce actionable insights and reports.

Business Use Cases and Benefits of Database Systems

CRM systems are some of the most-used small business database solutions in today’s market. A large part of the appeal is that these applications store more information in one location, creating a comprehensive view of business relationships, interactions, and processes. The analytical and reporting functionalities that are included—or optional—with some CRM systems offer additional value.

The term customer relationship management doesn’t quite capture everything modern CRM systems can do. Many companies use these applications to manage data related to all aspects of business—from customers to vendors, suppliers, colleagues, and other business relationships.

Today’s CRM systems can incorporate email and social accounts, automatically logging important information from interactions. Marketing campaigns can be managed and tracked for efficacy. But sales-focused uses are only the starting point of the benefits of database systems. Use cases for CRM small business database solutions include the following:

  • Customer communication and relationship management;
  • Sales pipeline and forecasting;
  • Evaluation of products and services;
  • Supply chain management;
  • Human resources;
  • Team management;
  • Task management and automation;
  • Reporting and data analytics;
  • Interdepartmental communication and information sharing;
  • Calendar sharing;
  • Marketing campaigns; and
  • Email and social media.

User roles and permissions in CRM systems can be designated to share information with those who need it but not with everyone in the organization. And third-party applications that integrate with your CRM can provide added functionality for billing and accounting, forms and surveys, contract generation, and document signing.

Considerations for CRM Implementation

Pricing of CRM systems is usually per user license with some providers offering free versions with limited functionality or a specific number of free licenses. Salesforce, for example, donates a limited number of licenses of its platform to nonprofit organizations and has a small business plan that begins at $25 a month per user.

CRM pricing can be somewhat complex. Many vendors offer a menu of options or tiered packages, and additional functionality is sometimes provided by third-party applications that require an additional fee, often per license. Additional customizations are often required to accomplish business goals effectively, and these can require a third-party contractor unless you have in-house staff who are knowledgeable in this area. A careful review of what is included in the package you intend to purchase is necessary to ensure your company can achieve its goals without additional, unexpected expenses.

Businesses should also factor in the cost of training employees, any necessary equipment upgrades, and costs to integrate with current systems and hardware. You should also try to gain an understanding of a system’s update and upgrade processes and schedule. If updates cause system downtime or are frequent or extensive enough to limit your employees’ ability to use the system without additional retraining, you could end up with lost productivity and frustrated staff members.

Privacy regulations that apply to your business are another important consideration, particularly for cloud-based CRM services. If you are required to process and store customer data within a specific geographic region—as mandated by Europe’s General Data Protection Regulation, for example—or allow individuals whose information you collect to opt-in or opt-out, you will need to ensure that your CRM system allows you to meet those requirements.

Getting Started with Small Business Data Management Tools

Small business data management can be a big challenge. In order to thoroughly evaluate the cost of CRM implementation and ongoing use, it is critical to understand your use cases. Companies should first map business processes to the available functionalities of the CRM to determine both which system is best and what the full cost will be. Once you understand how your company will use CRM, you will be better equipped to evaluate specific systems in the following areas and more:

  • Features available: Is the solution too robust and complex or too minimal? How much customization will be required to make the system perform the tasks you require?
  • Ease of use: Will the CRM simplify processes or make them more difficult to complete? (You can count clicks to complete a specific process to determine ease of use in many cases.)
  • Support options: Are there additional fees for full customer support? What is the provider’s standard availability and average or maximum response time? Can you contact support by chat, phone, email, etc.?
  • Mobile application: Are features limited on the platform’s mobile app? How does mobile layout and functionality differ from the standard version?
  • Integration and compatibility: Are the apps you need native—built into the platform—or will coding or development skills be required for full integration with your current software and systems?
  • Reports: Do the system’s reporting functions provide the information you need in an acceptable format, or will additional effort or applications be required to create readable reports, charts, etc.?
  • Security and privacy: Does the system use strong password requirements and multifactor authentication? Are permissions flexible and easy to create? Where is your data stored? Who is responsible in the event of a breach of system data?

Many CRM systems offer free trials so you can evaluate the tools available before committing to a full CRM implementation. These trials can be helpful in getting a better idea of how the system functions. Third-party applications also offer free trials that can be useful, but these should be tested in a sandbox environment whenever possible to minimize impacts to the primary system before confirming the app accomplishes what you need.

CRM small business data management tools truly can create positive change in the way your business operates, allowing you to communicate better internally and externally, evaluate products and processes, minimize administration of repetitive tasks, and more. Getting there can be a struggle, especially for small businesses with limited personnel and resources, but these products are worth the attention and consideration of businesses of all sizes.