CRM Vs Spreadsheets: Which is best for your business?
When it comes to tools that help track your sales and manage your customer data, there are many options available, but they usually fall into one of two categories: CRM or spreadsheet. Most businesses start off using the simplest one, a spreadsheet, but as the business grows, they find themselves considering a Customer Relationship Management (CRM) system instead.
But which one is better for your business? We’ll be breaking it down in this blog.
What we’ll cover:
What is a CRM?
A Customer Relationship Management (CRM) system is software that is designed to help businesses manage their interactions with customers and prospects throughout the customer lifecycle. They centralise your data, automate workflows, track communications, and provide reporting tools to help teams make more sales and retain customers.
Learn more about our CRM recommendations: EspoCRM and SugarCRM.
What are spreadsheets?
Spreadsheets like Excel and Google Sheets are affordable, accessible data management tools that many small businesses use instead of a purpose-built CRM system.Â
They are used to track:
- Customer contact information
- Sales pipelines
- Invoices
- Inventory
Spreadsheets are a popular starting point, particularly due to their low price point, but they often struggle to scale when companies grow.
Spreadsheet vs CRM comparisons
Ease of setup
Spreadsheets
Spreadsheets are easy to create and customise to your needs. Extensive training is not usually required for basic use.
CRM
CRM systems often require more complex setup, customisation, and training when compared to a spreadsheet. However, many CRM’s offer templates, onboarding guides, and CRM partners who can help to implement your new system.
Scalability
Spreadsheets
Small teams with simple processes will find that spreadsheets work perfectly fine for them. However, as your database grows, spreadsheets can get messy, overwhelming, error-prone, and very hard to manage.
CRM
Most CRMs are built to scale with your business and will continue to keep your data organised and structured, no matter how big you grow.
Automation
Spreadsheets
Automations in a spreadsheet are very limited unless you use advanced formulas.
CRM
Even the simplest CRM systems have the capability to automate:
- Follow-up emails
- Task reminders
- Lead assignment
- Workflows
Reporting
Spreadsheets
While creating a report in a spreadsheet is possible, they often lack the complexity needed for large data sets.
CRM
CRM systems such as SugarCRM offer advanced reporting tools, which allow you to create customised reports and dashboards to display analytics such as sales performance, conversion rates, and revenue forecasts.
Collaboration
Spreadsheets
Collaboration is possible when using cloud-based tools, but version control, permissions, and data consistency can become issues when using spreadsheets.
CRM
CRMs are built with collaboration in mind. With the right permissions, everyone can see customer history, notes, and updates in real time.
Cost
Spreadsheets
Spreadsheets are usually low-cost or free.
CRM
You’ll likely pay a monthly or yearly licence or subscription fee (often per user) for your CRM system, with costs varying depending on features. Some CRMs offer a free version of their system, but they are usually limited in terms of features and scale.Â
When are spreadsheets the right choice?
Even though spreadsheets are very limited in terms of features, they are still valuable if:
- You are a solo entrepreneur
- You have a small customer base
- Your budget is very tight
- You have a simple sales process
They work for those in the early stages of business.
When is a CRM the better option?
If you’ve started off with a spreadsheet when you first set up your company, you might be starting to see that as your business has grown, you’re beginning to outgrow your spreadsheets.
You’ll know it’s time to switch when:
- Your spreadsheets and data are becoming overwhelming
- You’re losing track of interactions
- Multiple team members are handling customer interactions
- You want to automate repetitive tasks
- You want to integrate with other tools
- You need more complex data relationship capabilitiesÂ
A CRM system is a big investment, but when used effectively, it will quickly pay for itself.
If you have outgrown your spreadsheets and are looking for a CRM solution that is right for your business, get in touch with one of our CRM experts today.
