by Patricia Rollins, Executive Director, Marketing, Try
The importance of customer relationship management (CRM) software is something you may already know as a small business owner. If trying to run your business with spreadsheets is too overwhelming, a CRM probably seems like a solution for you.
Let’s say you’ve decided that your business needs a CRM (or your existing CRM needs an upgrade). How to configure it correctly?
You will also need to think about how you will use your CRM on a daily basis. The features are great, but if you’re not using all the features in your CRM, what are you really paying for?
If you’re wondering how to best implement and use your CRM, we’ve got 5 common CRM mistakes to avoid and what you should do instead.
Mistake #1: Not identifying your objectives before using your CRM.
The most important thing you need to know to successfully set up your CRM is to know what business needs it needs to meet. How you implement your CRM should depend on your goals, not the other way around.
Identify the short and long term goals you want to achieve. Keep them in mind when setting up your CRM. Maybe you want to organize your contact list first. You can then start working on sending marketing campaigns from your CRM.
In order to successfully use a CRM for your small business, you need to implement it smartly. And that means making sure your CRM deployment aligns with your business goals. Failing to do so is the number one common CRM mistake. For what? Because poor implementation can lead to a poor user experience for your entire team in the long run.
Mistake 2: Not involving your staff.
If you use your CRM alone, you are free to configure and use it as you see fit. But if you employ staff, it’s a good idea to involve them in the implementation process.
Ask yourself these questions:
- Will your staff use the CRM in any way?
- How many staff members will need access to it?
- What freedom will they have to access its features?
Answering these questions gives you a better idea of how to best use your CRM. It should support as many users as you want, while limiting access if necessary.
Another thing to consider is how to get your staff up to speed on your CRM. Make sure you provide training to employees before they start using it. If possible, obtain training materials directly from the CRM software company.
Once you’ve implemented your CRM and trained your team, establish best practices so they use it effectively and avoid unnecessary mistakes.
Have you ever had to clean out your contact list? Perhaps you have found duplicate or incomplete customer files. These create clutter in your CRM. When your staff knows how to enter customer information correctly, it reduces clutter.
Maintain good standards for staff to follow when using CRM software. Be available to answer questions if necessary and offer refresher training periodically, especially when new staff members join the team.
Mistake 3: Not keeping your CRM free of dirty data.
Part of the responsibility of having a CRM is keeping it clean. Remember, information is only as good as the information it contains. Your CRM should also help streamline the cleaning process.
Do these things to keep your CRM impeccable:
- Can your CRM automatically delete or merge duplicate contacts? Use this feature.
- Can you edit client intake form fields? Remove unnecessary fields to speed up data entry.
- Can you customize CRM report templates so you only see relevant data? Do it.
The more you personalize and automate your CRMthe easier it is to avoid turning it into a “data dumpster”.
Pro tip: You don’t always prevent bad data from entering your CRM, so it’s wise to schedule regular cleanups: twice a year is a solid benchmark.
Mistake 4: Not making the most of your CRM’s reporting features.
Let’s take a moment to talk about CRM reporting. They are invaluable for any business owner who wants to understand how their business is performing.
Unfortunately, not all business owners use CRM reporting. In fact, only 20% of small business owners use analytics and reporting on a weekly basis – yeah!
If you use the reporting features, congratulate yourself! A good CRM is much more than just a contact manager. Reporting is what makes it powerful, especially for small businesses. You need to make informed decisions as your business grows, and reporting is extremely useful.
Regardless of your industry, your CRM should regularly provide three key reports:
- Sales and Revenue Reports — Find out how much money your business is making.
2. Customer Reports — To manage your contacts and understand engagement.
3. Campaign Analytics Reports — To see how email, SMS, or social media campaigns are performing.
If you’re not sure what your CRM offers, dig in. Contact your CRM provider’s customer support for help extracting reports and analyzing them.
Mistake 5: Not thinking about the future.
Ask any small business owner and they’ll tell you they want more control over their business. A CRM helps by simplifying daily operations and saving time.
But how flexible is your CRM? Will this grow with your business or become a barrier? Your CRM must evolve alongside you.
Ask yourself:
- Are you planning to expand across multiple locations?
- Are you going to increase the workforce?
- Will your customer base expand?
- Does your current CRM have limitations that could hinder growth?
If your business has outgrown your CRM, don’t struggle to adapt. A CRM should make running your business easier, not harder.
Patricia Rollins is executive director of marketing at Trya global AI-powered marketing platform for small and medium-sized businesses. Patricia’s career has focused on providing entrepreneurs with the technology and tools they need to thrive. Known for combining creativity and data-driven strategy, she creates momentum for technologies that expand possibilities.
