Today’s Marketplace

In today’s marketplace, businesses need every competitive advantage they can get. That’s why many companies are turning to customer relationship management (CRM) software to help them gain a competitive edge.

Companies that succeed in today’s dynamic business environment understand the value of data and how it can be used to drive business results. CRMs are one of the most effective tools for managing all interactions with customers and prospects. Let’s take a closer look at what CRM is and why your business needs it.

CRM 101

What is a CRM?

A CRM is a Customer Relationship Management system. It is a technology for managing all of your company’s relationships and interactions. Sound vague? If it does, that is because it is. CRMs are built and used by businesses for a variety of reasons. Many CRMs are designed with a pre-built framework that can be used out-of-the-box to address common needs. Some of these configurations are setup for general best-practices and others are industry specific.

Who are CRMs for?

CRMs can be designed for any industry, including real estate. The beauty is a CRM is that they can be tailored to a specific business’ needs. If you answer yes to any of the following questions, your business could likely benefit from the adoption of a CRM platform.

Would you benefit from a system that will help you…

• tracking your leads and lead flow?
• locate prospect and client data
• manage projects and/or delegate tasks
• track communication with employees, customers, and vendors
• nurture relationships to provide value to a customer
• convert information into actionable, reportable data

If you answered yes to any of the above, a CRM could be for you. In reality, a CRM is just a database of information that makes connections between different record types. Any business that is looking to leverage technology to increase efficiency, should employ a CRM system.

How much does a CRM cost?

Pricing for CRMs vary greatly depending on the features, integrations, automations, and more. Most CRMs follow a typical SaaS (software as a service) tiered pricing model, where there are varying tiers or levels offered and an account (customer) can select an option that works for them. Then, as the account’s business scales, the technology they are adopting can scale with it too. Pricing per seat (or per license) is generally anywhere from $15/license/month up to $75+/license/month.

As you explore different CRMs, you may stumble across some CRMs that use a Freemium pricing model. With this model, you are able to register to use the CRM at no charge, but are often limited in terms of time, features, or both. Their goal is to essentially give you a live, working demo of their platform, in hopes that you will become vested in their platform and adopt usage (and additional seats). As previously mentioned, these plans are often viewed as free to get started, but you’ll need to be cautious about CRMs offering a freemium pricing model because you may outgrow them quickly. For this reason, we always encourage businesses to consider the anticipated cost of the platform at different stages of adoption – 1 month, 3 months, 6 months, 1 year, and 3 years. Consider the features you’ll desire, the number of licenses you’ll hold, and ultimately whether or not the platform is something you can afford.

Why do I need a CRM?

Many businesses have complex business strategies that can be summarized into one simple phrase – grow the business as large as you can, as quick as you can, and as efficiently as possible. A CRM system will help you meet this goal as they help businesses streamline processes, increase profitability, and manage interactions customers.

When people talk about CRMs, they are usually referring to a tool that helps with managing contacts, monitoring sales, increasing productivity, and more. CRM tools can now be used to manage a wide variety of information and relationships. They are spreadsheets on steroids. Taking the proper time to setup a CRM and properly map out the relationships you may be trying to manage in your head will save you countless hours in the future.

When Should I Implement a CRM?

Yesterday. We’ll I’m kidding. Okay, maybe not – just half-kidding. The honest answer is that most struggling businesses fail to have proper processes for managing tasks and data. As a result, it is never too early to implement a CRM. Like most aspects of your business, the CRM doesn’t need to be polished into the product that it will be five years from now. Start small. Start with something that will make a meaningful impact in your business. Then, over time, you will begin to transition more data into your CRM to help guide your day-to-day activities and decision making. The longer you wait, the more difficult the project and transitioning will become.
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In Conclusion

As a small business owner, you’ll need to understand that you might find yourself struggling to manage day-to-day operations of your business. If you feel this way, know you aren’t allow. It is not uncommon for business owners and mangers to be consumed with checklists, spreadsheets, and other random tools that end up consuming your life. This is because many processes and procedures needed to successfully scale your business. While is is easy to be flooded with tasks and get into the routine of running on the hamster wheel, be sure to set aside time to setup the correct business processes – starting with a CRM.