Best CRM Software Systems & Providers 2023

In the 1960s, mainframe systems that store and process information became available. With the proliferation of database marketing in the 1980s, the concept of storing databases in computers started gaining traction.

Contact management software, also known as digital Rolodex, was rolled out in the 1980s. Amidst further advancements in software development, Siebel spearheaded the creation of sales force automation. Other systems that handled customer data steadily penetrated the market.

The term CRM was first coined in 1995, and by the late 1990s, CRM started offering SaaS and mobile services. Taking Salesforce’s lead, more and more companies began offering cloud-based services.

Today, CRM is pioneering the shift in creating and delivering exceptional customer strategies. Some current developments include data integration, analytics and automation.

Types of Platforms

Not all CRM systems are created equal. That can make selecting the right software for your situation infinitely more complicated. To help you cut through the confusion, here’s a quick overview of the common CRM platform types you’ll find and what they do:

• Free: Some customer management software is offered free of charge, usually as the entry tier with paid options available. With fewer features, limitations on users and less advanced functionality, free CRM is ideal for smaller companies that don’t have complex needs or large teams. This is different from a free trial, which provides access to paid software for a set amount of time so users can test the customer relationship management system and see if it’s a good fit.
• Open Source: Similar to free CRM, open source CRM doesn’t require a purchase or subscription to use. The main difference is that the source code is available, which provides endless customization options but can lead to drawbacks like security concerns. Support tends to be community-based and doesn’t offer any guarantees you’ll get the help you need.
• Proprietary: This is the most common type of CRM system, requiring you to purchase a license or sign up for a subscription. It’s also the most powerful, though the features available depend on the price tier you choose.

While general CRMs offer standard features that cater to most businesses, many platforms also offer industry-specific CRMs with niche capabilities that enable companies to handle the requirements unique to their field. Real estate, healthcare, insurance, nonprofit and accounting CRMs are some popular examples.

The above list deals mainly with how a product is positioned. However, you should also keep in mind the underlying technology at play, as that can differ from system to system as well. The three main types you’ll run across are operational, analytical and collaborative customer relationship management. Our article, The Different Types of CRM Software, breaks this down in depth, covering what each type of CRM system offers and how it can uniquely benefit a business.

A final consideration is whether you run a B2B or B2C business. The required features change drastically depending on your target audience, so knowing the difference is key. Our article B2B vs B2C CRM offers a comprehensive comparison so you know what each entails.

For a quick comparison of the top CRM software, watch the following video, otherwise, read on!

Who Uses CRM?

CRM solutions are suitable for any size company, regardless of industry. If you have customers and customer data, implementing a CRM platform can boost your business to new heights. The greater the amount of data and customers flowing through your businesses, the stronger your need for a CRM platform.

On the people side, customer relationship management software is mainly used by sales and marketing teams, though some software incorporates help desk capabilities that can aid customer service teams.

On the business side, CRM systems are ideal for companies that:

• Emphasize sales and marketing
• Want to scale customer acquisition
• Enhance the customer experience

Right-sized

There is no such thing as a one-size-fits-all client relationship management software. Small and midsize businesses (SMBs) generally have more intimate relationships with their customers and manage a higher volume of interactions and activities for each customer. SMBs desire a feature-rich customer management software but without the bloat that adds administration and overhead.

Small businesses are also much more agile than large organizations, and therefore need a CRM system that can more swiftly accommodate movement and change. Whether altering how data rolls up, modifying forms, changing business process automation or creating new information reporting, small businesses need the ability to adjust their CRM system without reliance on technical or IT resources.

On the flip side, enterprise customers need more sophisticated security models, collaboration apps and platform tools. Customer relationship management software for large-scale operations has flexibility that accommodates changes to territory management, revised sales plans, complex forecasting, and more sophisticated data management and system integration.

Difference Between CRM, ERP and Marketing Automation

Some ERP and CRM functionalities may overlap, such as automation and revenue generation, creating confusion between the two systems. But they do entirely different things for your business. While ERP is primarily concerned with financial data, CRM centers around managing and logging customer information.

On the other hand, marketing automation tools help streamline marketing campaigns and automate activities like campaign management, communication management and customer segmentation. These solutions focus on people at the top or middle of the sales funnel, like website visitors or email subscribers.

Does that mean you need separate CRM and marketing automation software? The answer is as inconclusive as the ending of Inception. It mostly depends on you.

Most marketing automation systems allow you to sync data with CRMs, ensuring marketing and sales teams are on the same page. But if you’re not looking to invest in two different software, many CRM vendors offer marketing automation as an out-of-the-box functionality.

For a more in-depth comparison, you can check out our articles on ERP vs. CRM and CRM vs. marketing automation.

CRM Strategy: Why Do You Need It?

A strongly designed CRM strategy allows you to build solid personal connections with customers to better identify their needs eventually and provide them with exactly what they want.

Your approach to customer interactions and efforts to build relationships defines the business strategy. You should focus on gathering customer data and analyzing interactions to understand scenarios better, leading to increased sales and revenue. Without a defined plan in place, it’s tough to keep track of touchpoints that might cause a generic customer experience.

How To Use CRM Properly

While CRM software will do most of the work for you, some best practices mentioned below will ensure you’re getting the most out of the system:

1. Update Data: Export your existing data into the CRM system by uploading a CSV file.
2. Customize: Instead of using the CRM solution out of the box, tweak it based on your specific business needs. You can personalize themes, modify workflows, create custom dashboards and reports, determine user access, and set custom fields.
3. Integrate Tools: Different departments need plug-ins to carry out their day-to-day activities. For example, your sales team might need a dialer to call prospects, or your customer service rep might require connections with social media tools to interact with customers. Integrations with your legacy systems will ensure all your operations proceed smoothly.
4. Train Your Team: Your staff is essential to the success of your CRM software. After all, they’re the ones who’ll be using it. Educate your team on the system’s functionalities and equip them with the necessary skill set to use the platform to its fullest.
5. Listen: Gather feedback from end-users of CRM like customers and employees and use it to improve your operations and specific elements.