Managing customer relationships can become more difficult as a small business grows.
Customer information may be stored in spreadsheets, emails, notes, and multiple software tools. This can make it difficult to track conversations, manage sales opportunities, and understand the status of potential customers.
Customer relationship management (CRM) software can help businesses organize customer information and create a clearer system for managing leads and sales activities.
The best CRM software for a small business depends on the size of the team, the complexity of the sales process, and the features the business actually needs.
In this guide, we look at several CRM tools that small businesses may want to consider.
Quick Comparison
| Tool | Best For | Main Strength |
|---|---|---|
| HubSpot CRM | Growing businesses | CRM and marketing tools in one ecosystem |
| Pipedrive | Sales pipeline management | Visual sales workflows |
| Zoho CRM | Flexible business management | Wide range of business features |
| monday CRM | Custom workflows | Flexible and visual customer management |
| Freshsales | Sales-focused teams | Customer and sales management tools |
1. HubSpot CRM: Best for Growing Businesses
HubSpot is widely known for its ecosystem of business, marketing, sales, and customer relationship tools.
Its CRM platform can help small businesses organize customer information, manage contacts, track sales activity, and create a clearer view of customer relationships.
One advantage of using a larger platform is that businesses may be able to expand into additional tools as their needs grow.
HubSpot CRM can be useful for:
- Managing customer contacts
- Tracking leads
- Organizing sales activities
- Managing customer communication
- Connecting sales and marketing activities
Best for
Small businesses that want a CRM platform with the potential to expand into a larger ecosystem of marketing and sales tools.
A minor drawback
As businesses begin using more advanced features and additional tools, the overall system can become more complex.
2. Pipedrive: Best for Sales Pipeline Management
Pipedrive is a CRM platform focused on helping businesses manage sales activities and customer opportunities.
One of its main strengths is its visual approach to sales pipelines. Teams can organize potential customers based on where they are in the sales process.
This can make it easier to understand which opportunities require attention.
Pipedrive can be useful for:
- Managing sales pipelines
- Tracking potential customers
- Organizing sales activities
- Managing follow-ups
- Monitoring sales opportunities
Best for
Small businesses that want a clear and structured way to manage sales opportunities.
A minor drawback
Businesses looking for a broader all-in-one marketing and business platform may need additional tools.
3. Zoho CRM: Best for Flexible Business Management
Zoho offers a wide range of business software, including tools for customer management, sales, marketing, finance, and productivity.
Zoho CRM can be useful for small businesses that want customer management software while also considering other business tools.
The broader Zoho ecosystem may also be attractive to businesses that prefer using connected software from one provider.
Zoho CRM can be useful for:
- Customer management
- Sales tracking
- Lead management
- Business workflow management
- Connecting multiple business tools
Best for
Small businesses that want flexibility and may eventually use multiple connected business applications.
A minor drawback
The number of available products and features can require time to understand and configure.
4. monday CRM: Best for Flexible Workflows
monday CRM uses a flexible and visual approach to customer and sales management.
Businesses can organize customer information, sales activities, and workflows in a system that can be customized for different business processes.
This flexibility can be useful for teams that already prefer visual work management tools.
monday CRM can be useful for:
- Managing customer information
- Tracking sales activities
- Creating custom workflows
- Managing team processes
- Organizing business information
Best for
Small businesses that want a flexible and visual approach to CRM workflows.
A minor drawback
Businesses with very simple CRM requirements may not need extensive customization.
5. Freshsales: Best for Sales-Focused Teams
Freshsales is designed to help businesses manage leads, customer relationships, and sales activities.
A sales-focused CRM can help teams organize customer information and create a more consistent process for managing potential customers.
For small businesses with an active sales process, having customer information in one system can reduce the need to search through multiple tools.
Freshsales can be useful for:
- Lead management
- Customer communication
- Sales activities
- Contact management
- Sales workflow organization
Best for
Small businesses that want CRM software focused primarily on managing sales and customer relationships.
A minor drawback
The best value will depend on which sales features and integrations a business actually needs.
What Is CRM Software?
CRM stands for Customer Relationship Management.
CRM software helps businesses organize information about customers and potential customers.
A typical CRM system may include information such as:
- Customer names
- Contact information
- Company details
- Previous conversations
- Sales opportunities
- Follow-up activities
Instead of keeping this information across spreadsheets, email accounts, and notes, a CRM system can provide one central location.
Why Small Businesses Can Benefit From CRM Software
Small businesses often begin by managing customers with simple spreadsheets and email.
This may work when there are only a small number of customers.
However, as the number of customers and sales opportunities increases, it becomes easier to lose track of important information.
CRM software can help businesses create a clearer process for managing customer relationships.
For example, a CRM system can help answer questions such as:
- Who is responsible for this customer?
- When was the last conversation?
- What is the next step?
- Which leads need follow-up?
- Where is each opportunity in the sales process?
How to Choose CRM Software
Before choosing a CRM platform, think about how your business currently manages customers and sales.
Ask yourself:
- How many people will use the CRM?
- Do we mainly need contact management or sales pipeline management?
- How complex is our sales process?
- Do we need marketing tools?
- Do we need automation?
- Which existing tools need to connect to the CRM?
The best CRM system is not necessarily the one with the most features.
For many small businesses, a simple system that the team actually uses consistently can be more valuable than a complicated platform with unnecessary features.
Start With a Simple Sales Process
If your business is new to CRM software, start with a simple process.
For example, you might organize potential customers into stages such as:
- New Lead
- Contacted
- Qualified
- Proposal Sent
- Customer
This simple structure can make it easier to understand where each customer is in the sales process.
As your business grows, you can add more detailed workflows and automation.
CRM and Automation
CRM software can become even more useful when combined with automation.
For example, businesses may automate certain follow-up tasks, notifications, or customer information workflows.
However, it is usually best to understand your sales process before automating it.
A clear and simple process is easier to manage and automate than a complicated workflow that is already causing confusion.
For more information, you can also read our guide to the best automation tools for small businesses.
Final Thoughts
CRM software can help small businesses build a more organized approach to customer relationships and sales management.
The right platform depends on how your business works and how complex your customer and sales processes are.
Start by identifying your biggest challenges. You may simply need a better way to organize customer information, or you may need a complete system for managing leads and sales pipelines.
Choose a CRM tool that solves your current problems while providing enough flexibility to support future growth.
You can also explore our guides to the best project management tools for small businesses and the best automation tools for small businesses.
Cormeliq publishes reviews, comparisons, and practical guides to help small businesses discover useful AI and SaaS tools.