10 Signs that Your Startup Needs a CRM
Are you a startup that has found yourself wondering if you need a CRM? In this blog post, we will help you understand what a CRM for a startup is and how implementing one can transform your startup into a thriving business.
7 min read
Apr 06, 2021
The secret to building a successful startup is building solid customer relationships. A Customer Relationship Management (CRM) system is a kind of software that collects and keeps customer information in one central location, giving you a holistic view of each customer in real-time. Through better understanding your customers and their needs, you are more likely to gain returning customers and referrals, resulting in overall business growth. So if you are a startup looking to increase conversion rates, build customer loyalty and improve customer satisfaction, then Customer Relationship Management software is the right choice for you.
Along with building customer relationships, the key to running a successful startup is productivity. When starting out, startups often have limited resources and budget, meaning they need to find efficient ways of working; CRMs provide an overview of your sales and marketing pipelines, allowing for streamlined workflows, automation of time-consuming tasks, and effective management of day-to-day activities, optimizing productivity and profitability.
Despite knowing this, as a startup with a minimal budget, you still may be hesitant to take the leap. To help you decide, here are ten reasons to use a CRM for your startup.
1. You Like Organization
Spreadsheets are great for keeping basic data, but let’s face it, when it comes to managing sales pipelines, due to the need for multiple spreadsheets for different tasks, they can become limiting. CRMs provide a visual overview of the sales pipeline, giving your team an understanding of exactly where you are with each deal and helping you to navigate deals through the pipeline with ease. Along with keeping your pipeline organized, CRMs enable you to store and categorize customer information in one central location, making it easy to keep your customers satisfied by quickly identifying and responding to their needs.
2. You Find Yourself Wasting Time On Mundane Tasks
As a startup, you need to be doing a million things at once, including all the mundane tasks such as booking meetings, gathering customer information, and sending out follow-up emails. With so much to be across, sometimes tasks fall through the cracks; however, through automation, no task is missed. Along with automatically compiling data, CRMs implement workflows that auto-schedule nurturing emails, follow-up meetings, and general updates, ensuring that your customers feel supported. By automating time-consuming yet essential tasks, CRMs free up time for you and your team to focus on building relationships and closing deals.
3. You Want Your Teams To Collaborate Better
Startups work best when their team members are working together. When data is stored across multiple tools, data management can be inconsistent with data getting either doubled up or missed altogether. With real-time data and records of each customer interaction kept together in one database, the whole company is able to get a 360 overview of the customer enabling the team to work together to improve customer experience and overall satisfaction. CRMs act as a central hub for your team, providing an added layer of flexibility and visibility that enables your team to collaborate remotely from anywhere in the world. They can do everything from storing and sharing data to managing workload to conducting conference calls, making for seamless collaboration and better cross-team cooperation.
4. You Are Looking To Grow The Business
The aim of every startup is growth, and to achieve this, you need to know where to allocate your resources to get the best results. CRMs provide an overview of your sales pipelines, giving you a comprehensive understanding of each deal and what needs to be done to get the deal over the line. Along with an overview, sales CRMs are great at increasing productivity by streamlining processes and automating tasks, such as quoting, emailing, and gathering customer data. By collecting data, CRMs can provide valuable insights into your customers, helping you personalize interactions, making your contacts feel like they are valuable customers.
5. You Want To Understand Your Customers Better
Sales CRMs For Startups are equipped with the latest technologies to identify customer trends and equip you with the knowledge to maximize your profits. Through data collected from a multitude of marketing platforms such as social media networks, phone calls, emails, and webforms, CRMs distinguish quality leads, identifying those who have the highest possibility of being converted to a sale, enabling you to adapt your sales strategies and better focus your resources. Along with identifying high-quality leads, the data collected by CRMs provides you with the knowledge to align your pitches with your customers’ needs and preferences to accurately target and convert prospects, driving sales.
6. You Want To Provide A Premium Service For Your Customers
Customers are at the center of every business, and when they have an issue, they expect it to be resolved quickly. CRMs provide a comprehensive view of your customer and past interactions with them, meaning everyone in your team can quickly and efficiently address any issues that they may have. As it is more cost-effective to keep customers than to acquire them, having a central place for all interactions to take place allows you to build and support long-term customer relationships resulting in higher retention and overall satisfaction.
7. You Want to Optimize Your Decision Making
CRMs are valuable tools for data analysis enabling you accurately forecast and confidently develop strategies to drive profits. When entering the market, a startup needs a unique way of standing out and communicating with their audience; by collecting and analyzing data, such as conversion rate, churn rate, average sales cycle length, and average deal size CRMs provide insight into what is working and what is not, enabling you to allocate resources and quickly adapt strategies.
8. You Want To Store Your Data Securely
As a business, you are responsible for keeping your customers’ data secure. CRMs are one of the best tools for startups as they have multiple features to ensure that your clients can rely on you for keeping their personal information safe; these include two-factor authentication, encryption, and database protection measures. Along with security features, you can enable role-based access, making specific data only accessible to those with authority, ensuring that sensitive data doesn’t fall into the wrong hands, or leave with any staff if they choose to.
9. You Want To Integrate All Your Software
When launching a startup, most founders feel like there isn’t enough time in the day; that is where integration comes in. Connectivity increases productivity, and as the right CRMs are equipped to integrate with a range of other software, startups are able to streamline operations. Everything from marketing to accounting to project management can be integrated with your CRM, showing you where it is best to invest your time and money and what needs to be done to promote growth.
10. You Want To Scale
The best part of a CRM for startups is its ability to adapt as the business scales. Startups often start out with limited budgets, teams, and resources; however, they often grow quickly. CRMs offer different levels of service and customizable features, providing you with the infrastructure to support and enhance growth, within your budget. With data stored and managed in a central system, onboarding and training new hires is seamless, as they can quickly get an overview of the business and its goals.
The first step in creating a startup is coming up with a brilliant idea, the next step and arguably the hardest - is executing it. When launching a startup, you need to be across sales, marketing, and customer service. With so much to do and so many different clients to be across, deals can fall through the cracks. The good news is there are technologies that can make managing customer relationships easy. Investing in a CRM for startups can streamline processes, automate tasks and provide valuable insights into your customers, saving you both time and money.