Darren Taylor

Aug 12, 2018

Do I need a CRM system? 4 Questions you NEED to ask


Transcript – Do I Need A CRM?

You’ve been in business for a while, you’ve got tons of customers, you really want repeat business, so the question is, is it time for you to get a CRM system? Maybe. Hey there, guys, my name is Darren Taylor of and my job is to give you tips, insight, and opinion on all things marketing. If that’s up your street, you should consider subscribing to my channel. Today, we are looking at CRM systems and whether your business needs one in the interim or long-term or even is there’s a business case for you to have one.

First of all, what is a CRM system? A CRM system stands for Customer Relationship Management System and this is a tool that essentially allows businesses to better and more effectively manage the communications with their customers. This may be managing the kind of product portfolio the customer holds, sort of a snapshot. You can see exactly what a customer has with your business, what business you’ve done with them. It could be for promotions and sales, so it could be, in a way, automating the sales process via e-mail marketing campaigns and integrating that with your company’s data.

It’s essentially a way for you to manage your customers more effectively and generate more prospects in the long term too. An example of some of the most common small business CRMs are things like HubSpot, Zoho, Insightly, things like that. These are the kind of the most common small business CRM systems. Again, going back to my original question, does your business need a CRM system? Well, ask yourself these questions. The first question you need to ask yourself whether or not you need a CRM is, do you have the volume of customers that justifies having a CRM?

If you’re a small business that has only a very small number of repeat customers and a very small number of sales transaction only on an ongoing basis, then you probably don’t need a CRM system. An example of a business like that could be potentially a financial consultancy business who have very specific, very niche clients, and they don’t need to necessarily communicate via e-maill or automate e-mail campaigns over time. These kinds of people who have a very niche-focused business with very, very small customer numbers don’t necessarily need a CRM system.

do I need a CRM
Do you need a CRM – more than likely…

However, like I always do with my videos, I’ll throw a bit of nuance in there as well, and that is, of course, if you have a long sales process and you want to nurture somebody from existing, I guess, knowing who you are in the first instance via maybe a free piece of content and then selling to them later, for that, you will need marketing automation and a CRM to push people through a complex product. If you fit in that category and you’re small, you still probably need a CRM, but if you fit in that category in terms of small customer volume but don’t have a complex sales process or a complex business function or a complex business model, then in that case, you probably don’t need a CRM system.

The second question may seem quite obvious but, do you want repeat business? Now, not every business is geared up to get repeat customers. Some businesses are companies of convenience where somebody would go into the business because of location, it might be simplicity. Think of things like a moving food stand or a food store, for example, that’s always going to be the same market place every single week. They might drive around to different industrial estates and sell hot dogs, for example. That kind of business doesn’t need a CRM because it’s a business of convenience.

Adding people to a mailing list for a hotdog truck isn’t going to be successful. People aren’t necessarily going to go on tour with the hotdog truck following them up and down the country in order to transact with them more frequently. That would not need a CRM. However, if you have a service based business even if it’s location based like a car service garage, for example, a CRM system could be really handy because you could remind people when their cars are due for a service or for an MOT.

You make sure that they stay engaged with your business and don’t go to a competing other business as well. So all of these reasons are why you should have a CRM system if your business is geared up at that side of things and it’s not a convenience based one-off purchase business. Remember, the whole point of a CRM is to keep people engaged with your business whether it’s pre-sales or after sales. If your business isn’t that kind of model, then you might as well forget completely about getting a CRM.

The third thing to ask would be, are you a one-man band, are you somebody working alone as a sole trader and are you the only person operating on your business? If this is the case, you probably don’t need a CRM because you are the sales function, you’re the marketing function, you’re executing as well within your business. You’re doing absolutely everything within your organization and to manage that, you don’t necessarily need a CRM system. Simply because if you’re on your own, the volume of customers you deal with is probably going to be quite low and definitely manageable for you.

If it wasn’t manageable then you’d quickly go out of business because the quality of your work will suffer. If you’re a one-man band and you know, for example, you’re a sole trader who does kitchen repairs or installing kitchens or something like that, the volume of customers you have doesn’t justify a CRM system. Make sure that if you do scale and you get more people employed with you and then maybe have more of a sales pipeline and a marketing strategy and people actually working on your marketing be that a consultant, an agency, or in-house and you hire somebody.

At that point, you might start thinking about getting a CRM because of the economies of scale. You need to scale up your business and to do that, you need the right systems, but before that point, if you’re a sole trader working as a one-man band or one-woman band, then don’t get a CRM system. It’s just going to give you more headaches and another thing to worry about on top of your day job. The next question to ask is a very straightforward one and that is, are you a B2B business because if you are, chances are you’ll need a CRM system and here’s why.

A B2B business deals with companies. Therefore, you need to potentially look at having company data in order to make contact with people and quite often in a B2B business, the sales cycle is a lot longer, there are more decision-makers and more moving parts to the sales process in general. Therefore, you probably need a CRM to stay on top of contact, on top of your lead generation and things like that. Even if you are a small one-man band and you are a B2B business, more than likely, you will need a CRM system.

Another reason B2B businesses need a CRM is because you might want to purchase data in the long-term in order to run a marketing campaign. That can be done with a one-man band because getting B2B data, in the UK anyway, is absolutely fine. You’re allowed to purchase business contact data for business purposes, therefore mass marketing campaigns in the B2B sector are quite commonplace. You’re allowed to reach out to businesses independently. If they’re registered with Companies House, you can use Companies House data. That’s all absolutely fine marketing practices and to manage data sets that large, you need to have a CRM.

Thank you guys so much for watching this video. If you liked it, please leave me a like below. Let me know in the comments if you think your business needs a CRM system and if you’ve considered looking around at getting one, which one are you possibly going to go for. Let me know in the comments below and I’ll be more than happy to give my advice on what I think the best CRM systems are for small businesses for the ones I’ve used and more important than that, don’t forget to subscribe, check out the other content on my channel and I’ll see you guys on my next video.

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