# What Is CRM Software? | Capterra > Learn all you need to know about CRM software—from the different types, benefits, and key considerations when choosing CRM software. Source: https://www.capterra.com/resources/what-is-crm-software --- Customer Acquisition and RetentionSales & Business Development # What Is CRM Software? Written by: Lauren Spiller Lauren SpillerAuthor Lauren Spiller is a senior content writer at Capterra, covering sales and CRM with a focus on retail and customer experience. After receiving an MA in rhetor... [See bio & all articles](https://www.capterra.com/resources/author/lspiller/) and edited by: Kathryn Todd Kathryn ToddEditor Kathryn Todd is a senior editor at Capterra. She specializes in editing data-driven research reports that cover the latest technology trends. She has almost ... [See bio & all articles](https://www.capterra.com/resources/author/kathryn-todd/) Published August 5, 2024 8 min read Table of Contents - [What is CRM software, and why is it important?](#what-is-crm-software-and-why-is-it-important) - [Types of CRM software](#types-of-crm-software) - [Key features of CRM software](#key-features-of-crm-software) - [Benefits of CRM software](#benefits-of-crm-software) - [Considerations when looking for CRM software](#considerations-when-looking-for-crm-software) - [Ready to start your search for CRM software?](#ready-to-start-your-search-for-crm-software) ## Learn all you need to know about CRM software. If you’re searching for [customer relationship management](https://www.capterra.com/customer-relationship-management-software/) (CRM) software, you likely work in sales, marketing, or customer service for a customer-facing business, and you have more data than can easily be tracked in a spreadsheet. You’d also likely benefit from the automation or streamlining of tasks or processes that can be tedious or repetitive when done manually. Mike Aldrich[\[1\]](#sources), a seasoned professional with over 30 years of experience in sales, knows firsthand the value a CRM platform can provide. He’ll help us cover the basics of CRM software so you can begin your search with a better understanding of this technology and how it can benefit your business. ## What is CRM software, and why is it important? CRM software helps small business sales, marketing, and customer service professionals manage interactions with current and potential customers. It provides a centralized platform where businesses can store, organize, and access customer information and interactions. It also automates lead management, opportunity tracking, and sales process forecasting. _Dashboard view of CRM platform_ [_Salesforce Sales Cloud_](https://www.capterra.com/p/61368/Salesforce/) A CRM tool, like the one shown above, provides reporting and analytics capabilities to generate insights into customer behavior, sales performance, and marketing effectiveness. These tools are important because they cut down on the time it would take to track customer data manually, so your staff can spend more time on critical tasks like customer outreach and issue resolution.  Do note, however, that a CRM system is only as effective as the customer data you put into it. Aldrich says that making sure your data is as up to date and accurate as possible is like changing the oil in your car: “If you don’t, it’s going to break. If you change it regularly, it’s going to last a long time and be a valuable asset.” Fast facts about CRM software investment - Over the past year, 23% of software buyers in our 2024 Tech Trends Survey purchased a CRM solution that they intend to use permanently.[\*](#methodology) - 51% expect a positive return on investment (ROI) from their CRM within 12 months. - 24% said that CRM software is a top priority for their yearly budget. ### Who uses CRM software? Marketing, sales, and customer service teams use CRM software to store and organize customer data, streamline sales pipelines, and optimize outreach. See the chart below for a breakdown of industries that CRM software reviewers on Capterra come from.[\[2\]](#sources) ## Types of CRM software Most CRMs are all-in-one or operational CRM tools, meaning they include functionalities for sales, marketing, and customer service professionals alike. But some CRMs are geared more toward certain users than others. Sales automation systems are one such example that help sales professionals automate tasks like lead tracking and contact management. _Ticket tracking feature shown in CRM platform_ [_Zendesk Suite_](https://www.capterra.com/p/164283/Zendesk/) Buyers who work in customer support and service might opt for a CRM that focuses on the creation and routing of tickets to appropriate departments, like in the example shown above. Marketing team members will likely find the best CRM software for them to be a marketing CRM tool that offers more functionality in email marketing and marketing campaign management. **Looking for a CRM system that supports a specific industry? See below for examples:** - [Real estate CRM software](https://www.capterra.com/real-estate-crm-software/)  - [Construction CRM software](https://www.capterra.com/construction-crm-software/) - [Financial CRM software](https://www.capterra.com/financial-crm-software/) - [Healthcare CRM software](https://www.capterra.com/healthcare-crm-software/) - [Insurance CRM software](https://www.capterra.com/insurance-crm-software/)  - [Nonprofit CRM software](https://www.capterra.com/nonprofit-crm-software/) - [Social CRM software](https://www.capterra.com/social-crm-tools-software/) ## Key features of CRM software Key features of CRM software include contact management, interaction tracking, and lead management. Task and email management features are common as well. For the three most critical [CRM features](https://www.capterra.com/resources/crm-software-features/) according to Capterra software reviewers, see the table below: Feature Description % of reviewers who rate it as critical or highly important Contact management Manage, organize, and store contact information, such as names, addresses, phone numbers, and social media accounts. 90 Activity dashboard View the status of ongoing processes, identify current incidents and track past activities 85 Interaction tracking Track the interaction history by documenting conversations with customers and contacts. 83 Aldrich echoes the importance of interaction tracking features in your CRM system: “If you wonder why you’re not getting business from a certain client,” says Aldrich, “you can refer to an email you sent a year ago to see if you tried to sell them something they didn’t want, or there could be a different reason.” See below for an example of what these features look like in action. _Interaction history feature shown in CRM platform_ [_Capsule_](https://www.capterra.com/p/124041/Capsule/) ## Benefits of CRM software Our 2023 Business Structure Survey lists increased sales (32%), an easily maintained contact database (24%), and customer retention (21%) as the top cited benefits of CRM software among business development professionals who find CRM effective.[\*\*](#methodology) One of the CRM benefits Aldrich likes most is the 360-degree view he gets for each of his accounts, which helps him game plan for future sales. The table below lists a few more benefits of CRM software as well as excerpts from CRM software reviews on Capterra.[\[2\]](#sources) Benefit Description Review excerpt Easily integrates with your ecosystem of software CRM systems are easy to integrate with other marketing tools, such as sales, social media, calendar, and email solutions, enabling seamless CRM data sharing between systems. _“The tool is completely customizable and has very advanced marketing integrations within the cloud.”_ –Sarah H., media director, marketing and advertising Supports customization Most CRM tools offer customization capabilities for specific user needs. Users can customize the software interface, create unique workflows or automation rules, and configure dashboards and reports to capture relevant KPIs, among others.  _“The ability to design and customize the system to my needs helps our organization work better and move faster in changing environmental conditions.”_ –Oded O., project manager, civil engineering Enables small-business growth CRM software is specifically valuable for supporting and growing small businesses, especially all-in-one solutions that can serve as a foundation when businesses are just starting. _“I can customize fields, workflows, and dashboards to suit my business needs. Plus, it grows with my business; I can easily scale up and add more features as required.”_ –Adnan A., owner, electrical/electronic manufacturing Click [here](https://www.capterra.com/customer-relationship-management-software/#top-crm-benefits-identified-by-users:~:text=Top%20CRM%20benefits%20identified%20by%20users) for even more CRM software benefits. ## Considerations when looking for CRM software ### Budget Most CRM solutions on the market are priced per month, with a typical entry-level plan costing around $1,292 per month.[\[3\]](#sources) These systems include the core functionality of contact management, lead management, and interaction tracking. Premium subscriptions cost about $17,664 per month and typically include features like unlimited users, sales funnel creation, and advanced reporting. Thirty-eight percent of respondents in our 2024 Tech Trends Survey who already use CRM software expect to spend between $1,000 and $10,000 on these tools in the next 12 months.[\*](#methodology) * * * **The inside scoop on CRM software budgeting** One common misconception among new buyers is that they can’t afford a CRM, says Capterra advisor managerMichael Ziemba.[\[4\]](#sources) “These systems will often have tiered pricing depending on whether they’re entry-level or premium. It's really important to just get in there and see what functionality you need. It might be more affordable at first than buyers think.” As far as how to determine a budget for a CRM solution, Ziemba urges buyers to think about how many times they’ve lost a sale or had a potential customer slip through the cracks because there wasn’t enough information on them. A low conversion rate is also a good indicator that you should reevaluate your existing solution and justify a budget from there. * * * ### Deployment options Most modern CRM solutions are [cloud based](https://www.capterra.com/resources/how-to-choose-a-crm-for-your-small-business/#:~:text=A-,cloud%2Dbased%20solution,-is%20easier%20to), which are easier to implement since you don’t need a server or technical expertise in house. One drawback of a cloud-based CRM is you’ll be dependent on the technical expertise and customer service of your chosen vendor. However, this often means the tool is more affordable since the vendor houses the hardware necessary to run the system as well as provide technical support. ### Challenges According to Aldrich, one of the biggest challenges of using a CRM system is taking the time to maintain it. “You have to put the time in,” he says. “Start your day by logging in and looking at your dashboard so you know which tasks to prioritize. It’ll show your progress toward your monthly, quarterly, or annual sales goals, and which deals you expect to close soon.” “End your day by updating your notes with anything that happened—events, presentations, who you spoke to—and close out the deals that aren’t going anywhere. If you aren't diligent with your CRM strategy, it becomes this great big paperweight on your desk that doesn't do anything." Mike Aldrich Sales professional ## Ready to start your search for CRM software? [Capterra Shortlist](https://www.capterra.com/customer-relationship-management-software/shortlist/) identifies the top CRM systems based on user ratings and popularity, helping small businesses find the best CRM software for their needs. We even offer a [comparison tool](https://www.capterra.com/resources/capterra-software-comparison-tool/) so you can see how your favorites stack up against each other. Once you’ve found a tool you like, download our How To Identify and Budget for Software Guide below. This eBook shows you how to plan a budget as well as understand and compare pricing models. It also explains total cost of ownership as well as pricing packages and ranges. Fill out the form below to learn more. **_Note:_** _Questions and responses have been edited for brevity and clarity._ **_Note:_** _The screenshots of applications included in this article are examples to show a feature in context and are not intended as endorsements or recommendations._ * * * **Survey methodology** **\*Capterra’s 2024 Tech Trends Survey** was designed to understand the timeline, organizational challenges, adoption & budget, vendor research behaviors, ROI expectations, and satisfaction levels for software buyers. The survey was conducted online in July 2023 among 3,484 respondents from the U.S., U.K., Canada, Australia, France, India, Germany, Brazil, and Japan, with businesses across multiple industries and company sizes (5 or more employees). Respondents were screened to ensure their involvement in software purchasing decisions. **\*\*Capterra's 2023 Business Structure Survey** was conducted in April 2023 among 244 U.S. respondents to learn more about sales strategy and framework, and challenges faced by sales leaders. Respondents were screened for a business development or sales role in a business with 1,000 employees or fewer. Sources 1. [Mike Aldrich](https://www.linkedin.com/in/mikealdrich/), LinkedIn 2. **Capterra reviews data:** Capterra reviews are collected from verified users for individual software products. For this report, we analyzed reviews from May 31, 2023, to May 31, 2024. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 3. **Capterra software pricing data:** Only products with publicly available pricing information and qualified software products within the category, as of Nov. 29, 2023, are included in the pricing analysis. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 4. [Michael Ziemba](https://www.linkedin.com/in/mziembatx/), LinkedIn * * * ### Was this article helpful? * * * ## About the Authors [### Lauren Spiller](https://www.capterra.com/resources/author/lspiller/) Lauren Spiller is a senior content writer at Capterra, covering sales and CRM with a focus on retail and customer experience. After receiving an MA in rhetoric and composition from Texas State University, Lauren has pursued a career that allows her to help others through writing. Lauren’s research and writing for Capterra is informed by nearly 300,000 authentic user reviews and more than 15,000 interactions between Capterra software advisors and CRM or sales software buyers. Lauren also... [### Kathryn Todd](https://www.capterra.com/resources/author/kathryn-todd/) Kathryn Todd is a senior editor at Capterra. She specializes in editing data-driven research reports that cover the latest technology trends. She has almost a decade of experience writing and editing content to help small businesses stay ahead of trends and find the best tech solutions for their needs. Kathryn holds a bachelor's degree in English Language and Linguistics from Sheffield Hallam University in the U.K. When not editing content herself, she enjoys reading content other people have... ### RELATED READING - [XLAs: How Experience‑Level Agreements Improve Help Desk Performance](https://www.capterra.com/resources/xlas/) - [Measuring What Matters: Setting KPIs for Help Desk Performance](https://www.capterra.com/resources/help-desk-kpis/) - [Guide to CRM Software Pricing Models](https://www.capterra.com/resources/customer-relationship-management-software-pricing-models/) - [CRM Integration Explained: Meaning, Methods, and System-Level Examples](https://www.capterra.com/resources/crm-integrations-help-your-business/) - [CRM cloud vs. on-premise: Which is better for your business?](https://www.capterra.com/resources/crm-cloud-vs-on-premise/) - [Key Indicators That Your Help Desk Needs a Knowledge Base](https://www.capterra.com/resources/help-desk-knowledge-base/) - [AI in CRM: 5 Steps To Stay Competitive](https://www.capterra.com/resources/ai-in-crm-strategies/) - [CRM Compliance: Data Privacy and Security Concerns of AI](https://www.capterra.com/resources/crm-compliance/) - [Help desk buyer insights: How businesses choose customer service tools](https://www.capterra.com/resources/help-desk-buyer-insights/)