The Best CRM Software of 2021

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. 

CRMs run the gamut from lightweight services intended for quick and easy customer relationship 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 down the road, these concerns are often overblown. Higher tiers of service and add-on features are nearly always available. Also, while more features and functionality may seem inherently better, too many options within a system can be overwhelming, make the implementation process longer and more complicated, and cost more than necessary.

If you already know what you're looking for and why you need it but want to narrow down your options, begin by asking 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 something that can be used out of the box, or do we want to do lots of customization ourselves? If we do want to customize our own system, how much API access do we want?
• Who will be the primary software admins, and what comfort level do they have in that role?
• How much are we willing to spend, either per user or on an annual basis?

Whatever your needs are, list them out in addition to the answers to these questions. Also list any integrations you need (including proprietary legacy software, if applicable), and ask the CRM company how such integrations are achieved before you choose a product. In some CRM systems, for example, 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 can make sure you're getting the most out of the program. These 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. Workflow automation takes the tiny details and extra work off of your plate and allows your sales tasks to run smoothly.

Reporting Tools

Reports help you understand the state of your sales and marketing work. Information like the number of leads or sales you get within a certain timeframe or how many outbound calls your team makes 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 in a clear way. Well-organized, easily accessible data on current and potential customers will 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 dashboard, reports, extensions and plugins to your liking. This creates a more flexible, comfortable user experience for you and your team. 

Integrations

Third-party integrations connect your CRM software to other programs you use, which saves you the time of switching between apps and manually inputting data you've already stored in other software.

The best way to determine the features you require in a CRM is to list what you want to be able to do with it. Technology should never be adopted simply 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.

By outlining your needs ahead of time, you stand a much better chance of getting a product that does what you need without overpaying for features you'll never use. You can always upgrade – a company will never refuse to sell you more features in the future, so address your most pressing needs first and go from there. Keep in mind that when you're not a customer yet, nearly everyone you talk to is a sales rep, so treat their advice accordingly.

In our quest to find the best CRM software available, we tested full-featured solutions and lightweight cloud products side by side so you can decide what's best for your business. There are advantages and disadvantages to either type of CRM software. As with any business software, the more features and functionality a product has, the more in-depth the implementation process is. Additionally, highly customizable systems often require more knowledge to set up than out-of-the-box solutions, which are designed for small, less tech-intensive teams. However, while lightweight systems are easier and cheaper to implement, businesses that are expanding may outgrow such systems quickly. 

Once we assessed the most desirable features CRMs offer small business owners, we compiled a list of more than 65 established CRM software companies. In the first elimination round, we compared factors like pricing, CRM tools, small business focus, customer service and customer satisfaction to establish the 25 strongest contenders from the initial list.

Next, we vetted our top 25 CRM companies against each other to select the ultimate winners. We created a numeric score based on features available (assessing four different categories of features in all) and also noted qualitative differences in areas like standout features, training and implementation resources, ease of use, speed of setup, design, cost of additional features, selection and ease of integrations, tiers of service available, and level of technical skill required for high-level use.

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 a marketing automation and 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.

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

What kind 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 decisions about buying your product. 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 staff 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.

Additionally, you can 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 that you need to reach out to them.

Is Google Analytics a CRM?

No, Google Analytics is not a CRM; it is a web analytics tool that helps businesses assess the effectiveness and reach of your company's marketing. 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 to consumers.

How many types of CRM are there?

There are five kinds of customer relationship management software. Here are the differences that separate each type of CRM:

1. An operational CRM helps you market to your audience based on the data you collect from them.

2. Analytical CRM software provides business foresight through customer data.

3. Collaborative CRMs allows businesses to share customer information interdepartmentally (e.g., customer service department, sales, etc.) based on customer interactions.

4. Campaign management CRMs are often described as 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.

In the last two decades, it's become harder to answer the question "what is CRM software?" It's grown from a glorified digital contacts repository to a powerful tool that businesses of all sizes can use to manage goals and tasks interdepartmentally. By aligning sales, marketing and inventory assets, CRM makes it easier for businesses to grow strategically and sustainably.

The proliferation of user-friendly and cloud-based CRMs has led to the adoption of CRM across many industries and increased innovation among competing software companies. Today, the landscape is dominated by feature-rich, easy-to-use CRMs that offer scheduling features, streamline the email marketing process and offer visual data reports. For small business users, the priority is often ease of implementation, and companies have picked up on that. Easy-to-use systems for small businesses without extensive in-house tech expertise have become the holy grail for SaaS providers, CRMs being no exception.

Increased demand for such solutions has led to industrywide growth. IBM reported in its corporate blog that, as of 2017, CRM was a $36 billion industry, with Adobe (27%), Salesforce (21%) and Microsoft (20%) leading the market share, and that 87% of all CRM systems marketwide live in the cloud. The trend of moving from natively hosted software to cloud systems is evidence of the changing tide in business software, away from strictly enterprise-level systems and toward customizable solutions that businesses of all sizes can use.

The right CRM can have a great impact on your business. Sanket Abhay Desai, digital marketing consultant for ItsOnlineMarketing.com, found HubSpot very beneficial. It improved his customer conversions by 7% and is the CRM of his choice.

"Its marketing module makes marketing automation very seamless," he said. "HubSpot's marketing component called Workflow helps structure drip campaigns and follow-ups very easily. Testing different landing page templates and CTAs within Workflow is also very easy and intuitive."

Rameez Ghayas, digital marketer at PureVPN, also thinks the best CRM programs are straightforward and agile, easily allowing users to focus on their customer relationships instead of data entry. When Ghayas was seeking a quality CRM, he considered how fast and easy setup was, ease of use, level of maintenance required for the program to remain up to date, seamless integration, and customer intelligence features to show you which leads are hot. It is for these reasons that he currently uses automated sales CRM Salesflare.

"You won't have to manually input data anymore, as Salesflare integrates with your email, calendar, phone, social, web, company databases, etc.," Ghayas said. "It's a sales CRM that fully automates customer info and timelines."

Stephanie Riel, marketing automation consultant for RielDeal Marketing, uses HubSpot for similar reasons.

"I like that there are a plethora of free tools and resources, including contact management, tasks and activities, reporting, and more basic tools," she said. "Their interface is also very user-friendly for those without much previous CRM experience. It is a great introduction to CRM for small business owners that scales at a moderate price point for the functionality."

Riel said HubSpot's real-time support is also amazing. "Their team is accessible and helpful as you're using the system."

Before she chose a CRM, Riel tested out Salesforce as well and found the interface difficult to navigate and confusing. She said she also had trouble receiving help from its support tools.