September Update: CRMs: What they are, how to choose one, and how to know if you should switch

Like all good answers, this one starts with 2 words: "That depends." 😃

A survey found that only 37% of small businesses are "very satisfied" with their CRM. While a fully implemented CRM can boost your revenue by hundreds of thousands of dollars in the long run, implementing a new CRM can be a significant investment of time, resources, and commitment.

In 2023, Zoominfo found that implementing a new CRM costs companies with fewer than 100 employees anywhere from $3,000 to $20,000.

Outside of the cost, there’s also the transitional period, where you’ll likely receive pushback from some of your team at specific points. It’s natural for your team to feel some frustration, even with buy-in. After all, change is challenging, but once the team gets the hang of it, they’ll wonder how they ever managed without it.

Before you switch, ask yourself these 6 questions:

1 - Are we using our current system to its full potential?

Are there existing features in your current CRM or spreadsheet process that your team could benefit from using? If your team isn’t using the available features now, they won’t likely use them when you roll out the new CRM. If your team isn’t already following up with any of your prospects promptly after they send out a proposal, then a well-structured sales pipeline likely won’t make them start following up. Alternatively, if your sales team is having trouble keeping track of which prospects to follow up with, then a sales pipeline can help them lessen their mental load and be consistent. 

2 - Is your team actually using the features already available in your current system or CRM?

43% of CRM customers are using less than half of the features available to them in their CRM. If your existing system has a feature you want or need and you’re not using it now, you probably won’t magically start using it with a new CRM.

3 - What does my team need to serve our customers well?

Before you sign up for that slick new CRM you just saw in an ad, launch a listening campaign and ask your team what they need. Your perception of their needs may be different from what they actually need. When they tell you what they need, be curious about what they say to ensure you fully understand their requirements.

4 - What does my team need to serve our customers better?

When your team hands off a client or prospect from one team member to another, do they struggle to communicate the history and context of the client relationship? A CRM can help in that handoff process by providing a centralized communication channel and giving the new team member the ability to review all past transactions and communication with the client.

5 - Are there systems I’d like to integrate with that my current CRM does not natively support?

If a particular integration is critical for your business but is not supported in your current system, switching CRMs may be right for you. A rule of thumb is that data should be entered only once, if at all. If data needs be entered more than once, the process requires an update. If linking the CRM to my phone system or website forms means never having to enter basic client data, all the better!

6 - Is there a time of the year best suited for switching?

Depending on your industry or sales cycle, you may have certain times of the year when sales are slower and your team is (mostly) caught up. Switching CRMs can be a significant time investment and will initially cause more work for your team as they learn the new system. If there is a time of the year that’s slower for your business, wait until then to make the switch.