by Tami Cannizzaro, CMO of Thryv
The importance of a customer relationship management (CRM) software is something you may already know about as a small business owner. If trying to manage your business with spreadsheets is too overwhelming, a CRM probably sounds like salvation to you.
Let’s say you’ve decided your business needs a CRM (or your existing CRM needs an upgrade). How do you set it up correctly?
You’ll also want to consider how you’ll use your CRM on a daily basis. The bells and whistles 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 Goals before Using Your CRM.
The most important thing you need to know to successfully set up your CRM is what business needs it should fulfill. The way you implement your CRM should depend on your goals, not the other way around.
Identify what short- and long-term goals you want to achieve. Keep them in mind as you set up your CRM. Maybe you want to tackle organizing your contact list first. Then you can start working on sending marketing campaigns from your CRM.
In order to successfully use a CRM for your small business, you’ve got to implement it smartly. And that means making sure your CRM rollout aligns with your business goals. Failing to do this is the top dog of common CRM mistakes. Why? Because a bad implementation can lead to poor user experience for your entire team down the road.
Mistake 2: Not Involving Your Staff.
If you alone are using your CRM, you’re free to set it up and use it as you see fit. But if you employ staff, it’s a good idea to make them part of 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?
- How much 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 to have access to it, while also limiting access where needed.
Another thing to consider is how to get your staff up to speed on your CRM. Make sure you offer employees training 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 errors.
Ever had to clean up your contact list? Maybe you found duplicate or incomplete client records. These create clutter in your CRM. When your staff knows how to properly enter client information, it cuts down on clutter.
Maintain a good standard for staff to follow when using CRM software. Be available to answer questions as needed, and provide refresher trainings 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, it’s only as good as the quality of the information in it. Your CRM should also help streamline the cleanup process.
Do these things to keep your CRM spotless:
- Can your CRM automatically remove or merge duplicate contacts? Use that feature.
- Can you edit fields in client intake forms? Remove unneeded fields to speed up data entry.
- Can you customize CRM reporting templates so you only see relevant data? Do it.
The more you customize and automate your CRM, the easier it is to avoid turning it into a ‘data dumpster.’
Pro Tip: You may not 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 reports. They’re invaluable for any business owner who wants to understand how the business is performing.
Unfortunately, not all business owners leverage CRM reporting. In fact, only 20% of small business owners use analytics and reporting on a weekly basis — yikes!
If you’re using reporting features, give yourself a pat on the back! A good CRM is 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 helps immensely.
No matter your industry, there are three key reports your CRM should regularly provide:
- Sales and revenue reports — To know 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, text, or social media campaigns are performing.
If you’re not sure what reporting your CRM offers, dig in. Reach out to your CRM vendor’s customer support for help with pulling reports and analyzing them.
Mistake 5: Not Thinking About the Future.
Ask any small business owner—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 it scale with your business or become a roadblock? Your CRM needs to grow alongside you.
Ask yourself:
- Do you plan on expanding to multiple locations?
- Will you increase staff?
- Will your client base grow?
- Does your current CRM have limitations that could hinder growth?
If your business is outgrowing your CRM, don’t fight to make it fit. A CRM should make running your business easier — not harder.
If you’re considering a new CRM, pick one that scales with your business. For instance, CRMs like Thryv let you start with a plan sized right for your needs — and easily upgrade when you’re ready.
Tami Cannizzaro is a widely respected marketing leader who has held senior executive roles at some of the most influential, category-defining companies in the world including IBM, eBay, Oracle, Forcepoint and Thryv. As Thryv’s Chief Marketing Officer, she is responsible for propelling the company’s SaaS revenue growth and reinforcing its position as the premier marketing and sales platform for efficient small business growth. Tami has devoted her career to leading breakthrough marketing initiatives and building traction for new technology.