Overpriced CRM Software: What Alternative Solutions for Businesses?

Reducing costs to improve profitability and gain a competitive advantage is a key objective for businesses seeking to survive. It is one of the most drastic and commonly used measures to try and improve financial results. Each year, companies try to “sacrifice” certain operational expenses, with a view to increasing potentially their profits. Many employees find that some of their overly expensive tools disappear or are not replaced. This is particularly the case for CRM software, which has a significant operational cost. According to HubSpot in 2016, 54% of respondents believed that the main reason limiting their use of CRM software was its cost/budget.

“Free” Alternatives to CRM Software

45% of individuals surveyed by HubSpot in 2016 confirmed that their companies used CRM software to store their leads and customer data. Nearly 40% also use Excel or Outlook, 22% Google Sheets, and 21% a manual register. One of the reasons companies still use these alternatives is that they have a negligible or even zero cost compared to CRM software. Indeed, some CRM invoices can amount to millions of euros due to the number of licenses granted, the features, and the quality of the CRM.

CRM software has an astronomical cost because it provides unique functionalities that no other “simple” alternatives offer. They allow for centralizing information and exchanges between sales representatives and clients/prospects, and for better managing your commercial activity with an activity history and interactive and useful dashboards. Excel or Google Sheets will only allow you to record information and sort contact lists. They are much more financially accessible but do not allow for as effective customer relationship management.

Free CRM: the Solution for Better Customer Relationship Management?

Given these costs, free solutions exist. Indeed, some CRM companies have developed free versions intended for small businesses/individuals/freelancers. The Zoho CRM software offers free use for up to three users. For small businesses or young startups looking to reduce their costs, this seems more useful than a simple Excel software.

By opting for a free version of CRM software, employees will be more restricted in their usage. With Zoho CRM, they will not have access to sales forecasting functions, macro data, email Parser, artificial intelligence, detailed reports, or KPIs. However, they will have access to a number of features inaccessible with Excel or Google Sheets: Leads, Contacts, Accounts, Opportunities, Tasks, Events, Notes, CRM View, Social Media Integration, and many other features. Other free CRMs exist, such as Agile CRM, Bitrix 24, or Suite CRM, offering free access to a larger number of users and other features. Ultimately, each company must choose the right free plan that suits its needs.

But it must be acknowledged that these free versions do not offer all the advantages of “premium” versions. Very quickly, large groups find themselves limited with a free CRM. Fortunately, CRM developers offer several versions so that each company can choose the one that suits it, rather than a version full of unnecessary features.

CRM Software: a Growth-Generating Investment?

The complexity and costs of CRM software can be daunting. But companies must have a different vision and project themselves forward rather than analyzing the present moment. The impact of CRM software will not be seen in the short term but rather in the long term. Many companies have proven that purchasing and using CRM software has allowed them to better organize their customer relationships and be a source of incredible long-term growth generation. Indeed, according to Salesforce, CRM software increases sales by up to 29%, productivity by up to 34%, and improves performance forecasts by nearly 40%. Imagine what this could generate for you, as a salesperson, or for your company. According to Nucleus Research, the return on investment for CRM software for every dollar spent is equivalent to $8.71. These statistics, of course, reflect paid CRM software usage.

Conclusion

Obviously, CRM software has a significant operational cost that can sometimes be daunting and make you question its usefulness and necessity. Investing in CRM software can be a risk when considering the low adoption rate in some companies. Opting for a free solution only makes sense for a small startup or a very small business. The solution for larger companies is to restrict the use of CRM tools to those who truly need them (Sales, Marketing) and to choose CRM software and adequate functionalities based on your needs to reduce investment costs. After selecting the CRM tool, regardless of the version, you will need to adopt certain best practices for it to be well integrated and accepted within your company.