Small business CRM seems to be the new flavor of the online world. There are advertisements galore. Article marketing is on an all time high. Small business CRM vendors too are leaving no stone unturned to ensure that these ads are visible most of the time. But is it really worth it?
 
 Do small businesses really need a sophisticated system like CRM to enhance their performance? Is the investment in a CRM system justified? In simple terms, is CRM a necessity or an exaggerated need? Let’s find out the answer to this million dollar question.

 Case Study: Business A: This is a footwear manufacturer and has been in the business for over 20 years now. There are almost 500 employees working with them. It has an established customer base, fairly recognizable brand value and has relied on conventional old school marketing techniques until now. Their market spans across more than 6 to 7 states within the US. However, in the last 6 to 7 years or so, their sales figures have been declining steadily. Newer and much smaller companies are eating into the market.
 
Case Study: Business B: This is a new company that has been set up just three years ago and is the prime competitor of company A. This company is young and dynamic. The workforce is just 30 as compared to the 500 in business A. But they have been experimenting with software automation since day 1. In the three years, they have collected extensive customer data which includes customer preferences, demographics and much more. They are using tools like CRM, predictive analysis etc which allows them to cut down on costs and improve the efficiency of the business at the same time.
 
The Moral of the story

 While you might have been successful with old school marketing and business strategies, now is the time to incorporate technology into it. If you won’t, then your competitors will and it will give them the much needed edge. So CRM is not an exaggeration. It is a necessity.