Should Small Business Buy a Customer Database Or CRM Solution

[abdurrazzak1898]

Over the years I have been asked this question numerous times, and my response has changed. 10 years ago my answer would be customer database purely on the sheer complexity and the poor ROI (return on investment) that CRM offered small business. Most small business initially rely on word documents, spreadsheets, shared folders, outlook express and paper files. As the business evolves it becomes difficult to access the necessary customer information when required, thus customer service is compromised and growth is limited due to labour intensive business processes. At this stage most small businesses will search for a better solution for buy canada business database.

So what options are out there? - Tailor made customer database, off the shelf customer database, in-house CRM and hosted CRM.

Customer databases - are great tools they enable rapid access of customer information but one of the problems is that every business has different information requirements. Meaning you are forced to look at tailor made solutions or expensive off the shelf customisation. Another issue is that most customer databases are limited to storing very basic information, i.e. you can't store faxes, emails, sms letters, quotes...etc. Even the ones that can, they force you to perform everything manually, wasting valuable human time. The next major frustration is the data in your database is limited to your database you can't use it to generate documents, letters or messages and are very limited to interfacing it to other in-house system and other external systems.

CRM the answer to customer database limitations! - CRM solutions are designed to be customised to each individual business, either by the administrator or by external developers (The key is to find a CRM Solution that can be customised by you). They also provide numerous tools to interface to other systems such as accounting, retail and messaging systems. The only issue is the COST; most CRM solutions promote numerous systems and very expensive integration. The major benefits that some CRM Systems provide are workflow management, business automation and electronic documentation generation. All these tools ultimately enable you to Maximise customer satisfaction, business performance, profitability and customer relationships.
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