Introduction
Over the past few years, Customer Relationship Management (CRM) software has played a very important role for large corporations in improving the efficiency and effectiveness of sales, marketing, and customer service. There have been both successes and failures in implementing these very expensive solutions.

The small business community does not have the financial and human resources to implement full scale Customer Relationship Management solutions but needs to find a way to obtain the efficiencies necessary to compete in this very difficult economic environment.

The good news is that there are some excellent low-end CRM software products for small businesses that can be implemented in a short period of time, require a relatively small financial commitment, and provide a high return on investment.

Why Should Small Businesses Use CRM Software?
A small business has the same issues that a large business encounters on a day-to-day basis. You need to market, sell, and support your prospects and clients.

Many of the small firms we deal with have information stored in various formats and locations. You may have an outside sales person using a Palm Pilot, an inside sales person using a manual Rolodex, the business owner using Outlook, and a customer service representative using ACT!. You can see how this can get out of control. As your business grows, the problem compounds itself.

What happens when a prospect or customer calls in looking for information about their account? How does the business owner obtain the information he needs in order to make informed business decisions?

It all begins with a centralized database that is provided by a low-end CRM software product. You want your entire organization to have predetermined access to your prospect and customer database. The effectiveness of your sales, marketing, and customer service function starts at this point.

By having a centralized database, your small business can gather prospect information, track all forms of correspondence, record transactions, run cost effective email and fax campaigns, and have customer information at your fingertips in order to provide superior service. It also provides you with the ability to run reports from a consolidated source of data.

Low-End CRM Software Products
There continues to be a shake-out in the CRM software world, but ACT!, GoldMine, and SalesLogix remain the market leaders in the low to mid-range marketplace. They all sell through a business partner consulting channel that will provide local expertise and support. ACT! and the entry-level version of GoldMine can be purchased through retail channels.

ACT! can be acquired for under $200 per user for the software. GoldMine ranges between $200 - $500 per user. SalesLogix starts at approximately $800 per user. Consulting, training, and support can range from one to three times the software costs.

You may find that SalesLogix has all the features you need along with the flexibility to adapt as your company grows. You need to perform a cost benefit analysis. Are you better off doing a very simple SalesLogix implementation and stretching your budget? Or should you use ACT! or GoldMine for a short period of time knowing full well that you will be disposing of this system in the near future? Keep in mind that your investment in ACT! or GoldMine may be minimal.

The improved information you have, better customer service, and management reports that are provided in ACT! and GoldMine may well be worth the short term investment. The data can be easily transferred from ACT! or GoldMine to another product.

Since these CRM software products provide quite a bit of out-of-the-box functionality and that would reduce customization, these systems can be deployed within a short period of time.

CRM Needs Assessment
Although it may not be necessary to perform a full needs assessment for a small company, you do need to establish what you are trying to accomplish with CRM software. Unless you have someone within your own organization with the time and expertise, it is best to use a CRM Consulting Firm to help you through this process. An experienced CRM Account Executive or consultant should be able to direct you towards the appropriate product within a 4-8 hour fact-finding session.

Features
Here are some of the major features you will find in today’s low-end CRM software products:

Ease of Use – easy to read and intuitive interface.

Customization – Some level of field and screen customization to meet your specific needs.

Scheduling – Multiple calendar views, group scheduling, differentiation between types of activities, alarms, and conflict notification.

Communication – Integration with word processing, faxing, and email.

Searching – Ability to perform comprehensive database searches.

Automated Processes – Automating repetitive tasks.

Import/Export Records – Capability to import and export information easily and quickly.

Synchronization – Consolidate data from field sales, remote offices and Palm Pilots.

Reporting – Ability to run standard and design customized reports.

Customer Service
By having a centralized source of data, you can track all prospect and client activity. All members of your company can access information at their fingertips and have the information required to provide exceptional customer service.

Conclusion
As terrific as these low-end products are, you need to keep the price in perspective and have realistic expectations. Any of the CRM software products mentioned above will provide your small business with a centralized database and the tools required to run a professional sales, marketing, and customer service organization at a very reasonable cost.