Using CRM Tools to Manage Opportunities

If you've been in business for a while, you may have quite a bit of information about your current clients and prospective clients, but if it's in a spreadsheet or a paper file, it may be hard to use. Until recently, making the switch to Customer Relationship Management (CRM) software was expensive-only big companies could easily afford to do it. Now, though, the cost of CRM tools has dropped, making them accessible for all small businesses.

How it Works

While you may have been using an address book on your computer to keep track of client information, a CRM tool can go far beyond the basic contact information an address book can hold. You can add notes about particular representatives who work with your clients, and personal details like birthdays-just in case you want to send a card. You can also add records of when you've talked to a client and what you've discussed. Some tools offer the ability to add email messages directly to your client's file, so you can see the trail of communication as soon as you click on that client. Other tools offer options for adding email, as well as telephone and face-to-face communications manually. Those records can help you make sure your client is getting exactly the product or service he needs, as well as troubleshoot any problems.

The Benefits

Adding CRM tools isn't just a question of making sure that you can communicate with your clients, though. It's also useful for your own internal efforts. Most CRM tools have some level of analysis built in, so you can generate reports about your clients, which products or services they're purchasing and who's been helping them through the sales process. You can also use the information in your CRM database for invoicing and similar tasks.

Some CRM tools are specialized. Salesforce.com, for instance, is built specifically for a sales staff. Tools to help your clients manage information for themselves, as well as for you to communicate with them through every step of ordering, billing and more, are available through Salesforce. In contrast, Gist.com focuses primarily on learning more about prospective clients: when you add a new individual or company to Gist, the site searches Google and social media sites to bring together a whole profile for you to use when contacting that person or company. Sage's ACT! offers a third option, letting you connect your CRM to other tools like Microsoft Outlook or QuickBooks. You can have all the information you need for tasks like setting appointments or generating invoices exactly where you need it.

Types of Tools

CRM tools come in two varieties: web-based applications and software you install on your computer. If you need to share customer information with other members of your office, choosing an online application can give you a head start on keeping information up-to-date. Where you might need to synchronize information between different desktop applications, web-based applications offer real-time updates from different users. If your co-worker adds a new phone number to your client's file, you can immediately see it with an online tool. Most CRM tools now offer at least some sort of access to your information through smart phones, like a BlackBerry or an iPhone, so you can retrieve information wherever you are. Such an option can also prove useful if you need to get information to a sales person who is out visiting clients.