Small Business CRM Meaning & Definition

Small business customer relationship management is the cultivation of client communications, marketing, and sales through technology that’s specifically designed for a small business. Many small businesses won’t benefit from a heavy-duty CRM software because they don’t have the staff to manage its technicalities, and they can’t afford the prices. Small business CRM, however, is tailored to meet a smaller organization’s needs.

Customer relationship management provides businesses with comprehensive data about their customers so that they can sell services or products based on what customers actually want. CRM helps businesses offer better customer service, cross-sell and up-sell more effectively, retain existing customers, and understand their customers more clearly. Although the phrase customer relationship management is most commonly used to describe business-customer relationships, CRM systems also manage business contacts, clients, and sales leads. They’re typically flexible platforms that offer a variety of services for improving sales

Recommended reading: What Is CRM Software?

The difference between enterprise and small business CRM

Typically, CRM applications are considered enterprise applications software designed for large companies with many modules. Software solutions for large businesses often require multiple employees or even teams to implement and use successfully. That level of data analysis and software management could require IT personnel to handle, and small businesses typically don’t have that available. Enterprise CRM often includes business intelligence and analytics features for processing large amounts of customer data from multiple applications. For companies that sell goods, it often also has enterprise management features such as inventory tracking.

CRM software designed for small businesses, on the other hand, is sometimes more customizable and flexible, especially in pricing. This allows a small company to choose only the features they need and payment they can afford. Small business CRM may also process smaller amounts of data so that businesses aren’t overwhelmed with customer information. Ideally, it should be easy to learn and use so that IT staff don’t need to constantly be available to solve technical issues or teach a team how to use the platform.

Small business CRM features

CRM platforms offer a wealth of functions for businesses. These are just a few highlights:

  • Notifications upon any customer interaction (through business accounts, emails, social media, etc)
  • Applications that developers can design to connect with existing software ( is a fantastic example of this)
  • Integrations with other business apps
  • Cloud hosting services
  • Automation of time-consuming, rote tasks to free small business employees to work on other things

Two small business CRM software to note here are HubSpot and HubSpot is one of the most popular marketing and CRM options for smaller organizations. Businesses can choose which segments they want to control costs., despite being known for its project management, also offers a CRM platform with exceptional integration capabilities and sales and customer management.

Top 5 CRM questions

1. What is CRM?
2. What is social CRM?
3. What is CRM dashboard?
4. What is enterprise application?
5. What is small business ERP?



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Jenna Phipps
Jenna Phipps
Jenna Phipps is a contributor for websites such as and Enterprise Storage Forum. She writes about information technology security, networking, and data storage. Jenna lives in Nashville, TN.

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