CRM for Home Business: Must-Have or Luxury?

Customer relationship management is a concept familiar to many business owners. It stands for a client-centric approach based on advanced data storing, processing, and sharing. Usually, it relies on special CRM applications that work with data, help employees, analyze customer info, and even may predict behavior. With spending over $48.2 billion in 2018, the CRM market remains the largest among all enterprise-grade software sectors.

Some experts say that customer-focused solutions work for large businesses only. Others insist that these tools are vital for any company, including the smallest home firms. We can’t agree or disagree without proper research. Let’s conduct it!

CRM Usage and Benefits

First and foremost, remember that CRM isn’t a specific software app, it’s a concept and approach to customer interactions. However, there are different applications that help businesses to integrate this concept. Further, we will use the abbreviation CRM in both cases: for business approach and software.

Put simply, any CRM tool focuses on three tasks. Firstly, it supports customer-centric strategies by collecting and analyzing info. Secondly, it centralizes client data and makes it more accessible, from phone numbers to customer journey details. Thirdly, it automates marketing, sales, and service processes such as lead management or report creation.

General benefits of CRM applications are as follows (note that they may change depending on your business goals and industry-specific limitations):

• Advanced customization – the main point that defines the range of features.
• Cloud and mobile – modern tools can work on any platform without downloads.
• Ease of use – proper CRM solutions are intuitive, simple, and user-friendly.
• Powerful analytics – include customer pattern, behavior, and trend analysis.
• Role-based accesses – help to set a seamless workflow with high security.
• Several integrations – include social media connection and third-party apps.

Ultimately, a reliable CRM strategy helps to reach two goals: attract new clients and retain the existing ones. The thing is that customers appreciate the personalized approach. When you know the preferred communication channel and don’t call people who hate phones, when you remember birthdays, when you see which products/services each client likes — all these tiny details improve relationships and turn regular clients into brand advocates.

5 Cases When You Need a CRM

Often, a company (either a large transcontinental corporation or a home-based business) can’t grow and attract new clients because it reached its no-CRM limit. Using the points below, you can quickly check if you need custom CRM for your business. The list isn’t exhaustive, but it provides basic ideas to start with:

• You can’t find core customer data. Yeah, this precious email address must be in another email. Or in this Excel database. Or your accountant remembers it… When you realize that you can’t find information, it’s better to keep it all in one place.
• You can’t manage the leads. When businesses grow, they start attracting more and more prospects. A CRM application can sort leads, prioritize them, send to sales representatives, and record all the essential details.
• You can’t react to client questions quickly. Various issues arise regularly, and customers contact support centers to address them. It’s pretty convenient to see a complete client picture when solving each case. Such an approach boosts speed and efficiency.
• You want to manage valuable accounts. Some companies rely on two categories of users: regular ones and VIPs. To deliver the best experience to the valuable clients, it’s better to use CRM solutions that improve personalization.
• Your business will scale soon. Lastly, if you don’t know whether the company will handle new clients or not, we’re sure that you need a CRM app. It will grow with your team, support unique needs, and solve new challenges.

5 Cases When You Don’t Need a CRM

Similarly to the circumstances in which business requires CRM apps, there are situations when your company shouldn’t invest in this approach. Many enterprises grow without CRM implementation; don’t hurry on purchasing a new software. Firstly, study the next list, too. It also focuses on basic things to help you understand the factors behind CRM integration:

• You can’t use CRM apps. It happens. Some entrepreneurs lack the required organizational skills and can’t work with CRM-based data properly. In this case, it’s better to look for alternatives — traditional spreadsheets or new staff.
• You don’t have repeat purchases. Some businesses focus on one-time sales only. Hence, they don’t have to invest in remarketing and keep in touch with clients. As long as it’s one of the essential CRM benefits, the strategy becomes less effective.
• You get few leads and are okay with it. Often, new or even seasoned companies get a small number of leads regularly. This situation is typical for some ultra-specific businesses, not for the mass market. Thus, they can work without CRM apps successfully.
• You have several clients only. This point is a combination of two previous ones. Businesses that have only a few big clients (technological B2B teams in aerospace, for instance) already know everything about partners and don’t need extra tools.
• Your business is in its infancy. Individual traders or small groups that only begin operating can grow without CRM apps. It’s a typical situation for the majority of startups that start their business journey.

Summing Up

Concluding the mentioned cases, we can only say that each entrepreneur should decide individually whether his/her business requires a modern CRM application or not. Size is just one of the factors, not the most essential one. Often, SMEs or small home-based businesses can benefit from CRM apps greatly, but they also can succeed without these solutions.

At the end of the day, we suggest starting with a comprehensive analysis of your business. Reread this guide, write down the cases that are typical for your company, study other resources. A CRM system aggregates and structures core data, so it becomes easier to work with customers. But it also requires some investments. Are you ready? Only you know.