What is CRM and how to choose it?

What is a CRM system?

A CRM application or software is a customer relationship management (CRM) tool for customer records. In this system, both existing and new customers are recorded. The main function of a CRM system is to provide a complete overview of how a company makes money and how it can make even more money.

Advantages of the CRM system

• Records of current customers
• An overview of new customers, what stage of acquisition they are in
• Summary of all customer communications including activities undertaken, files sent and and documents received
• Measurement of the success of the acquisition and reasons why the deal did not go through
• Customer segmentation
• Indicators of where we source customers from
• Monitoring of salespeople and their activities

What are the types of CRM systems?

Software is divided into two main groups - on-premise (installed on a computer) and cloud (online). The trend is away from installed applications and gradually moving towards online tools.

Advantages of an online CRM system

• Available anywhere with internet access
• Ability to add new features to the system without user interaction
• Remote support
• Data security and backup
• Price (more in the chapter How much does a CRM system cost)

We further differentiate CRM according to localization. You can choose a CRM system created in the Czech Republic or a foreign system. Although it may seem that it is better to choose a Czech tool, foreign systems are already localized into the Czech language - you will not be able to tell that it is a foreign CRM system. In addition, foreign CRM systems often have more customers, so the cost of development is split between them and the CRM can be more cost-effective. At the same time, foreign systems offer advanced features and the possibility of connecting to other systems used in the business.

In addition to ready-made systems, it is also possible to get a customized CRM. Before choosing this option, you need to consider the following:

• Do I have experience in software development? You need to develop an excellent assignment for the developer.
• Do I want to not only develop but also maintain the system? Systems become obsolete quickly. Windows 95 no longer will also not meet user requirements in 2023.
• Am I willing to pay for the development of the system? The cost of customized development is in the hundreds of thousands of crowns to tens of millions.
• Am I sure the developer will still be available in two years? If you are not sure that the development company will exist or have the capacity, this risk is very high. When developing software, it is not possible to change the development company.
• Do I want to deal with hosting my system? Do you have the capacity and knowledge regarding system hosting?

An alternative to custom development is to use existing solutions with possible customization (setup according to needs). It is common that ready-made solutions offer the possibility to add additional fields according to the customer's needs.

How to choose a CRM system?

Before choosing a CRM system, it is necessary to define expectations - what I want from the system and why I want to implement it. The most common reason is a greater overview of the business activities of salespeople. Another reason is substitutability - it is possible to replace the salesperson in times of vacation/sickness, or to follow up his cases when he leaves the company. Increasing business or finding out why we are not selling as much as competitors can also be a reason.

After defining the expectations comes the selection of the main features that the system offers. Don't be lured by the thousands of features the system can do. The main criterion should be that the CRM is user-friendly for the user-salespeople themselves. You can read about the top five features that help salespeople the most here.

How to proceed

1. Define the reason why you are choosing the system
2. Write down the features or at least the main things that are important to you
3. Try multiple systems - every CRM system today offers a version to try
4. Ask about the experience of real users of the CRM system
5. Consult a CRM system implementation partner (see the manufacturer's website)
6. Give it a try to a salesperson and get feedback
7. Select a system and have it professionally set up - you will save a lot of time that you would have invested testing for dead ends
8. Start using the system and after a month evaluate if it is meeting your expectations (you need to have real data in the system, so at least a month)

What can your implementation partner help you with?

• Suitability of the system for you
• Basic system setup for testing
• Professional setup for your needs
• User training
• Support in use and in case of additional questions about the system

For easier selection, you can use our CRM system selection guide. After entering basic information about your company and your business, the guide will recommend 3 systems that are worth considering.

How to implement a tool in your business and not get burned?

Choosing the right CRM starts with. Successful implementation of a CRM system is dependent on its usage. People are often a major factor in why a new company tool doesn't take off. Involve prospective users in the selection of a CRM system and get their feedback. Let them use the system (here we recommend using the advanced CRM system setup from the implementation partner). Monitor the first days and weeks to make sure they are working properly with the new tool.

If you feel that you are not working with the CRM system correctly, check with customer support or a partner.

How much does a CRM system cost?

The cost of a CRM system is divided into 3 parts - the initial cost of setting up the system, the license and support/maintenance. For cloud-based systems, the cost of implementing (initial cost) ranges from tens of thousands of crowns to the lower millions.

In most cases, the license price is calculated according to the number of users of the systems. The price per user ranges from hundreds of crowns to lower thousands of crowns per month per user.

Support and maintenance - in the case of cloud services, the price is already included in the price of the license. In the case of robust large systems or "customized" systems, this price in is in the order of tens of thousands to hundreds of thousands of crowns per year.

PRICE OVERVIEW OF THE MOST COMMON CRM SYSTEMS

Why pay a monthly price for a license?

The advantage of paying monthly fees is primarily that you are paying for the up-to-dateness of the systems and the new features that the programming teams add. At the same time, this also covers the cost of hosting and data security as well as backups of the systems. If you choose a system that continues to evolve, you know that in 5 years you won't have to change your CRM system because the current one is out of date.

Free CRM system

You may also come across systems on the market that are free. If they fit your needs, you can use them. But beware of a few things:

• Is the system really free, or is only a limited part of the system free?
• Is there a limited period of time when the system is free?
• Can you only use the CRM system, or is it part of other software that you already have to pay for?
• Does the system offer unlimited data storage?
• Can you export the data and take it away at any time?
• Does it really meet your needs and help salespeople in their business?

What does the manufacturer of the system make money on for free? A bargain now may be bought out dearly in the future. The programmers are not developing the system for charitable purposes.

CRM system reviews

The best reviews are given to you by people who actually use the system. Ask the CRM system or implementation partner for references and ask in person.

If you don't have this option, we recommend looking at public references on international review sites:

• Capterra
• G2
• Gartner

TRY THE FASTEST GROWING CRM FOR SMALL AND MEDIUM SIZED BUSINESSES