Best CRM for Small Business 2020

Choosing the right Customer Relationship Management (CRM) system is crucial for the success of any small business. In 2020, the CRM landscape offered a plethora of options, each with its own strengths and weaknesses. This article dives deep into the best CRM solutions available that year, providing a comprehensive comparison to help you make an informed decision, even with the benefit of hindsight. We’ll explore features, pricing models, integrations, and overall suitability for different types of small businesses. While the year has passed, the core functionalities and principles of these CRMs remain relevant and can still inform your choices today.

Why Your Small Business Needs a CRM

Before we delve into the specific CRM solutions, let’s first understand why a CRM is essential for small business growth. In the early stages, it might seem like managing customer relationships with spreadsheets and email is sufficient. However, as your business expands, this approach becomes increasingly unsustainable. A CRM provides a centralized platform to manage all your customer interactions, streamline your sales process, and improve your marketing efforts. Here are some key benefits:

Improved Customer Relationship Management

At its core, a CRM helps you build and maintain stronger relationships with your customers. By centralizing customer data, you gain a 360-degree view of each interaction, allowing you to personalize your communication and provide better service. This leads to increased customer satisfaction and loyalty.

Streamlined Sales Process

A CRM automates many of the tasks associated with the sales process, such as lead tracking, opportunity management, and quote generation. This allows your sales team to focus on what they do best: building relationships and closing deals. A well-implemented CRM can significantly improve sales efficiency and conversion rates.

Enhanced Marketing Efforts

A CRM can be integrated with your marketing automation tools to personalize your marketing campaigns and track their effectiveness. By segmenting your audience based on their demographics, interests, and purchase history, you can deliver targeted messages that resonate with them. This leads to higher engagement and better marketing ROI.

Better Data-Driven Decision Making

A CRM provides valuable insights into your business performance through reports and dashboards. You can track key metrics such as sales pipeline, customer churn rate, and marketing campaign ROI. This data helps you make informed decisions about your sales, marketing, and customer service strategies.

Increased Efficiency and Productivity

By automating tasks and centralizing information, a CRM can significantly improve the efficiency and productivity of your team. Employees spend less time searching for information and more time focusing on their core responsibilities. This leads to higher employee morale and a more productive work environment.

Key Features to Look for in a CRM

When evaluating CRM solutions, it’s important to consider the features that are most relevant to your specific business needs. Here are some key features to look for:

Contact Management

This is the foundational feature of any CRM. It allows you to store and organize all your customer contact information, including names, addresses, phone numbers, email addresses, and social media profiles. A good contact management system will also allow you to track customer interactions, such as emails, phone calls, and meetings.

Lead Management

This feature helps you track and manage your leads from the moment they enter your sales funnel until they become customers. It allows you to qualify leads, assign them to sales representatives, and track their progress through the sales pipeline.

Opportunity Management

This feature helps you manage your sales opportunities, including the value of the opportunity, the probability of closing, and the expected close date. It allows you to track the progress of each opportunity and identify potential roadblocks.

Sales Automation

This feature automates many of the tasks associated with the sales process, such as lead routing, email follow-up, and task creation. This helps your sales team to be more efficient and productive.

Marketing Automation

This feature helps you automate your marketing campaigns, such as email marketing, social media marketing, and website personalization. This allows you to reach a wider audience and generate more leads.

Customer Service

This feature helps you manage your customer service interactions, such as support tickets, phone calls, and live chat sessions. It allows you to track customer issues, assign them to support representatives, and resolve them in a timely manner.

Reporting and Analytics

This feature provides you with insights into your business performance through reports and dashboards. You can track key metrics such as sales pipeline, customer churn rate, and marketing campaign ROI.

Integrations

This feature allows you to connect your CRM with other business applications, such as accounting software, email marketing platforms, and e-commerce platforms. This streamlines your workflow and eliminates the need to manually transfer data between systems.

Mobile Access

In today’s mobile-first world, it’s important to choose a CRM that offers mobile access. This allows your sales team to access customer data and manage their sales activities from anywhere.

Customization

Every business is different, so it’s important to choose a CRM that can be customized to meet your specific needs. This includes the ability to add custom fields, create custom reports, and automate custom workflows.

Top CRM Solutions for Small Businesses in 2020

Now that we’ve covered the key features to look for in a CRM, let’s take a look at some of the top CRM solutions that were available for small businesses in 2020. These platforms represent a good mix of affordability, features, and ease of use.

Salesforce Essentials

Salesforce is a well-known name in the CRM industry, and Salesforce Essentials is their offering designed specifically for small businesses. It provides a streamlined interface and essential features for managing sales, marketing, and customer service. While it’s a scaled-down version of their enterprise platform, it still offers a robust set of tools for growing businesses.

Key Features of Salesforce Essentials:

• Contact Management
• Lead Management
• Opportunity Management
• Sales Automation
• Customer Service
• Reporting and Analytics
• Integrations with other Salesforce products and third-party apps
• Mobile Access

Pros of Salesforce Essentials:

• Robust feature set
• Scalable platform
• Strong integrations
• Excellent customer support

Cons of Salesforce Essentials:

• Can be expensive for very small businesses
• Steeper learning curve compared to some other CRMs
• Customization options can be overwhelming for beginners

Salesforce Essentials was a good choice for small businesses that needed a powerful and scalable CRM platform. However, its complexity and cost could be a barrier for some.

HubSpot CRM

HubSpot CRM is a popular choice for small businesses due to its free version and user-friendly interface. It’s a good starting point for businesses that are new to CRM and want to get started without a significant investment. While the free version has limitations, it provides a solid foundation for managing contacts, leads, and deals.

Key Features of HubSpot CRM:

• Contact Management
• Lead Management
• Deal Management
• Task Management
• Email Tracking
• Meeting Scheduling
• Reporting and Analytics
• Integrations with HubSpot’s marketing and sales tools

Pros of HubSpot CRM:

• Free version available
• User-friendly interface
• Strong integrations with HubSpot’s other tools
• Good for inbound marketing strategies

Cons of HubSpot CRM:

• Limited features in the free version
• Paid plans can be expensive
• Focus on inbound marketing might not be suitable for all businesses

HubSpot CRM was a great option for small businesses looking for a free and easy-to-use CRM. However, businesses that needed more advanced features would need to upgrade to a paid plan.

Zoho CRM

Zoho CRM is another popular CRM solution that offers a wide range of features at an affordable price. It’s a good choice for small businesses that need a comprehensive CRM but don’t want to break the bank. Zoho CRM also offers a variety of integrations with other Zoho products and third-party apps.

Key Features of Zoho CRM:

• Contact Management
• Lead Management
• Opportunity Management
• Sales Automation
• Marketing Automation
• Customer Service
• Reporting and Analytics
• Integrations with other Zoho products and third-party apps
• Mobile Access

Pros of Zoho CRM:

• Affordable pricing
• Wide range of features
• Strong integrations with other Zoho products
• Customizable platform

Cons of Zoho CRM:

• Can be overwhelming for beginners
• Customer support can be slow to respond
• User interface can feel dated compared to some other CRMs

Zoho CRM was a solid choice for small businesses that needed a feature-rich CRM at an affordable price. However, its complexity and customer support could be a challenge for some.

Pipedrive

Pipedrive is a sales-focused CRM that is designed to help sales teams close more deals. It has a simple and intuitive interface that makes it easy to track leads, manage opportunities, and automate sales tasks. Pipedrive is a good choice for small businesses that are primarily focused on sales.

Key Features of Pipedrive:

• Contact Management
• Lead Management
• Opportunity Management
• Sales Automation
• Email Integration
• Reporting and Analytics
• Mobile Access

Pros of Pipedrive:

• Simple and intuitive interface
• Sales-focused features
• Affordable pricing
• Good for tracking sales activities

Cons of Pipedrive:

• Limited marketing automation features
• Customer service features are not as robust as some other CRMs
• Reporting can be limited compared to other options

Pipedrive was a great option for small businesses that were primarily focused on sales and needed a CRM that was easy to use and affordable.

Freshsales (now Freshworks CRM)

Freshsales, now part of Freshworks CRM, is a CRM designed to be user-friendly and offer a comprehensive suite of features for sales and marketing. It integrates well with other Freshworks products, making it a good choice for businesses already using their other solutions.

Key Features of Freshsales:

• Contact Management
• Lead Management
• Opportunity Management
• Sales Automation
• Email Marketing
• Built-in Phone
• Reporting and Analytics
• Integrations with other Freshworks products

Pros of Freshsales:

• User-friendly interface
• Comprehensive feature set
• Built-in phone functionality
• Strong integrations with other Freshworks products

Cons of Freshsales:

• Can be expensive for some small businesses
• Some users have reported issues with customer support
• The sheer number of features can be overwhelming

Freshsales was a solid option for small businesses looking for a comprehensive and user-friendly CRM, especially if they were already invested in the Freshworks ecosystem.

Choosing the Right CRM for Your Business: A Step-by-Step Guide

Selecting the right CRM is a significant decision that requires careful consideration. Here’s a step-by-step guide to help you navigate the process:

1. Define Your Needs and Goals

Before you start evaluating CRM solutions, it’s crucial to define your specific needs and goals. Ask yourself the following questions:

• What are your biggest challenges in managing customer relationships?
• What specific features do you need in a CRM?
• What are your budget constraints?
• What are your long-term growth plans?
• What integrations do you need with other business applications?

The answers to these questions will help you narrow down your options and choose a CRM that is the best fit for your business.

2. Research and Compare CRM Solutions

Once you have a clear understanding of your needs and goals, it’s time to research and compare CRM solutions. Start by reading reviews and articles online, and then narrow down your list to a few potential candidates. Take advantage of free trials and demos to get a feel for the software and see if it meets your needs.

3. Consider the User Experience

The user experience is a critical factor to consider when choosing a CRM. If the software is difficult to use, your employees will be less likely to adopt it, and you won’t realize the full benefits of the system. Choose a CRM that is intuitive, easy to navigate, and visually appealing.

4. Evaluate the Pricing Model

CRM pricing models can vary significantly, so it’s important to evaluate the costs carefully. Some CRMs charge per user per month, while others offer a flat monthly fee. Be sure to factor in the cost of implementation, training, and ongoing support when comparing pricing models.

5. Check for Integrations

Integrations are essential for streamlining your workflow and eliminating the need to manually transfer data between systems. Make sure that the CRM you choose integrates with your other business applications, such as accounting software, email marketing platforms, and e-commerce platforms.

6. Read Customer Reviews

Customer reviews can provide valuable insights into the real-world performance of a CRM. Read reviews on reputable websites and pay attention to both the positive and negative feedback. Look for trends in the reviews and see if any of the concerns raised are relevant to your business.

7. Take Advantage of Free Trials and Demos

Most CRM vendors offer free trials or demos of their software. Take advantage of these opportunities to test out the software and see if it meets your needs. During the trial, be sure to involve your team members and get their feedback.

8. Consider Scalability

As your business grows, your CRM needs will likely evolve. Choose a CRM that can scale with your business and accommodate your future growth. Look for a CRM that offers flexible pricing plans and the ability to add more users and features as needed.

9. Evaluate Customer Support

Even the best CRM software can have occasional issues. When you need help, you want to be sure that you can get timely and effective support. Evaluate the customer support options offered by the CRM vendor and make sure that they are responsive and knowledgeable.

10. Make a Decision and Implement the CRM

After you’ve carefully evaluated your options, it’s time to make a decision and implement the CRM. Work with the vendor to develop a detailed implementation plan and provide training to your employees. Be patient, as it can take time to fully implement and adopt a new CRM system.

CRM Implementation Best Practices for Small Businesses

Implementing a CRM system successfully requires careful planning and execution. Here are some best practices to follow:

1. Define a Clear Implementation Plan

Before you start implementing your CRM, develop a detailed implementation plan that outlines the goals, timelines, and resources required. This plan should include:

• A clear definition of the project scope
• A list of key stakeholders and their responsibilities
• A timeline for each phase of the implementation
• A budget for the implementation
• A plan for data migration
• A plan for user training
• A plan for ongoing support

2. Migrate Your Data Carefully

Data migration is a critical part of the CRM implementation process. Make sure to clean and validate your data before migrating it to the new system. Use a data migration tool to automate the process and minimize errors.

3. Provide Comprehensive User Training

User training is essential for ensuring that your employees adopt the new CRM system. Provide comprehensive training to all users on how to use the system effectively. Offer different training formats, such as online courses, in-person workshops, and one-on-one coaching.

4. Customize the CRM to Meet Your Needs

Most CRM systems can be customized to meet your specific business needs. Take the time to configure the system to reflect your sales process, marketing campaigns, and customer service workflows. Add custom fields, create custom reports, and automate custom workflows to optimize the system for your business.

5. Integrate the CRM with Other Business Systems

Integrate your CRM with your other business systems, such as accounting software, email marketing platforms, and e-commerce platforms. This will streamline your workflow and eliminate the need to manually transfer data between systems.

6. Monitor and Evaluate Performance

After you’ve implemented the CRM, monitor and evaluate its performance regularly. Track key metrics such as sales pipeline, customer churn rate, and marketing campaign ROI. Use this data to identify areas for improvement and optimize the system for your business.

7. Get Feedback from Users

Solicit feedback from users on a regular basis. Ask them what they like and dislike about the system and how it can be improved. Use this feedback to make ongoing improvements to the system and ensure that it continues to meet the needs of your business.

8. Provide Ongoing Support

Provide ongoing support to your users. Create a help desk or knowledge base to answer common questions and resolve technical issues. Designate a CRM administrator to be the point of contact for all CRM-related issues.

The Long-Term Value of CRM for Small Businesses

While the initial investment in a CRM system may seem daunting, the long-term benefits can be significant. A well-implemented CRM can help your small business to:

Increase Sales Revenue

By streamlining your sales process, automating tasks, and providing valuable insights into your customers, a CRM can help your sales team to close more deals and increase sales revenue.

Improve Customer Retention

By providing personalized service, resolving customer issues quickly, and building stronger relationships, a CRM can help you to retain more customers and reduce customer churn.

Enhance Marketing Effectiveness

By segmenting your audience, personalizing your marketing campaigns, and tracking their effectiveness, a CRM can help you to improve your marketing ROI and generate more leads.

Increase Operational Efficiency

By automating tasks, centralizing information, and integrating with other business systems, a CRM can help you to increase operational efficiency and reduce costs.

Gain a Competitive Advantage

By providing better customer service, streamlining your sales process, and improving your marketing effectiveness, a CRM can help you to gain a competitive advantage in your industry.

Conclusion

Choosing the right CRM for your small business is a critical decision that can have a significant impact on your success. By carefully evaluating your needs, researching different CRM solutions, and following the implementation best practices outlined in this article, you can choose a CRM that is the best fit for your business and help you to achieve your goals. While the CRM landscape has undoubtedly evolved since 2020, the fundamental principles and features discussed remain relevant. Consider this guide a foundation for your CRM selection process, adapting your specific needs and budget to the current market offerings. Remember to prioritize user experience, scalability, and integration capabilities to ensure long-term success with your chosen CRM solution. A well-implemented CRM is an investment that will pay dividends for years to come, helping you to grow your business and build stronger relationships with your customers. It’s also important to note that many of these CRMs offer free trials and demos, allowing you to test the waters before making a final commitment. Take advantage of these opportunities to ensure that the CRM you choose is the right fit for your needs. Furthermore, don’t underestimate the importance of training and ongoing support. A CRM is only as effective as the people who use it, so make sure your team is properly trained and has access to the resources they need to succeed. Finally, remember that a CRM is not a magic bullet. It’s a tool that can help you to improve your business processes, but it requires a commitment to using it effectively. Be prepared to invest the time and effort necessary to implement and manage your CRM successfully.