Software > Start-Ups > Six tips for choosing CRM software for start-ups

Six tips for choosing CRM software for start-ups

As a founder, you have developed an innovative business idea and now want to implement it successfully with your newly founded company. You have decided that the basic equipment of your start-up business should also include customer relationship management (CRM) software. But which CRM software comes into question now? Is there ONE suitable solution for customer relationship management? What is the best way to find the right CRM solution for your start-up?

Core functionalities of a CRM system

Each CRM offers a set of core functionalities that are designed to optimally support the user in sales. These include:

  • creation and maintenance of contacts (any type of business contacts, customer contacts, partners, suppliers, etc.)
  • saving the contact history
  • creation of conversation notes
  • saving e-mails to contacts
  • appointment management
  • task management
  • structured mapping of the sales process in phases

Where is a CRM used?

CRM solutions are basically used to improve business relationships or customer relations. A CRM system is usually the central platform from which customer service, sales, marketing or even project management operates.

Customers, business partners, but also suppliers as well as all other contacts of a company want to be adequately looked after. Leads value an individual approach. For this, it is crucial that entrepreneurs know their customers and have their collected contact data and related information available in a central and manageable way.

The important details on the respective contacts provide an insight into the needs and behaviors of customers and also give an indication of any problems that may arise. Start-up companies can use these insights to target these contacts individually.

CRM systems in sales

CRM solutions enable start-ups to visualize the sales pipeline through special features. Teams can schedule and handle calls, meetings and follow-ups, capture notes and more. Sales reports can be generated and sales performance can be assessed.

CRM systems in marketing

The functionalities of a CRM system offer marketing the possibility to track the entire customer journey. The customer base can be segmented and marketing measures can be developed and implemented for specific target groups. In addition, it is possible to better link collected data from the website, etc. with a CRM and to conduct targeted e-mail marketing after an appropriate evaluation.

CRM systems in customer service and partner management

Customer service can use CRM functions, for example, to store customer preferences, to track linked transactions (newsletters, etc.), or even communicate important information about purchased products from the customer to sales and marketing. In partner management, CRM can be used as a meeting and note-taking tool and supports appointment scheduling or even tracking adherence to appointments.

Tips for the selection

Tip - Mapping sales processes and creating specifications

The most important question, however, is which processes or functions should the software be able to map? The more precisely and thoroughly you deal with the processes, the more precisely you can describe which functions you expect from the software. Also consider how you want to structure, visualize and evaluate the sales process. Here you need to acquire important data and insights about your customers. Usually, a so-called specification sheet is created here, which describes these requirements.

Tip - Interfaces

When selecting a CRM, you should definitely pay attention to the available interfaces. These interfaces can then be used to exchange data with other systems such as an ERP system, the web store or even shipping service providers. This may not seem quite so essential at the beginning of a start-up business, but it is important for the future development of your company. It is a decisive advantage if the data of such an important system as the CRM can be exchanged with other systems.

Tip - Set budget

Set a budget for the selection and decide on the basis of defined selection criteria. Must-have and nice-to-have features are important for a pre-selection of CRM programs. Depending on the scope, requirements and number of users, a CRM can be quite expensive. Depending on the system, costs can be less than 1,000 or well over 100,000. The introduction, consulting and implementation of the software can range from €500 to €1,000 per day. Often these services (introduction, consulting and implementation) are also offered as a lump sum at prices of around €5,000 to €10,000.

However, a start-up certainly does not need the most comprehensive CRM right from the start of the business. It is especially important to look at the range of functions and the expansion options in terms of functions and user licenses. Also note that although an open source CRM is free to download, you are then responsible for all activities and issues related to installation, updates, and maintenance and security. These costs are often higher than initially thought.

Tip - Operation of the software - user friendliness

If possible, test the software before you decide on a CRM. Make sure that the input screens are clear and the operation is as intuitive as possible. Is the data input simple and coherent?

Further questions for the evaluation of a CRM software are for example:

  • Can you adapt the software to individual requirements, e.g. add or hide fields or menu items?
  • Are search and retrieval functions available?
  • Is telephone and e-mail integration available so that you can communicate with customers directly from the CRM?
  • Is there a comprehensive user and rights system?
  • Is location-independent access to the software possible?

Tip - Data protection and data ownership

If you're setting up your start-up in the EU, when choosing CRM software, make sure the solution meets the requirements of the General Data Protection Regulation. If you choose a SaaS CRM solution, make sure that the server is located in an EU country. This has the advantage that the requirements of the EU GDPR are met.

The core functionalities that the CRM should include for GDPR-compliant data processing include:

  • answering questions about personal data (right to information)
  • deletion of personal data (right to be forgotten)
  • logging of personal data collection, modification, etc.
  • obligation to provide evidence for the storage of personal data
  • data economy and data portability
  • right to restriction of processing
  • right to object
  • access control

Tip - Service and support

When choosing a CRM provider, you should also pay attention to the services and support offered. Look at the following aspects, among others: What service level agreements (SLA) are standard? Is it sufficient? Is there e-mail support? Is there a ticket system? What are the response times?

Summary

Think carefully about which core functionalities the CRM software should map. Create a specification sheet and consider the necessary interfaces to other systems and pay attention to the service and support of the CRM provider. Selection criteria that are as precise as possible make it easier for you to compare CRM systems.

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