When running a startup business, having loyal customers is indispensable. Loyal customers will continue patronizing your products and services even if you don’t advertise to them. They save you money on marketing and sales efforts and even boost your profits by up to 95%. Loyal customers can also bring in more customers through referrals.

But how can you encourage existing customers to come back?

Simple: by building and nurturing your business relationship with them. CRM solutions are one of the technology solutions that can help you do that. For example, Podium allows you to manage communication with existing and potential customers from one Inbox. So when a customer sends you a concern, you can easily respond and ensure their needs are met.

CRM systems are packed with features for streamlining customer interactions and improving customer satisfaction. In this article, we will discuss 8 of the best CRMs for startups.

What is a CRM for startups?

CRM or customer relationship management systems help you manage your customer’s contact information, create customer segments, and streamline business processes. You’ll often see big companies using this system, but startups can leverage it as well.

These days, you can find CRM platforms specially designed for startups. These systems are packed with features designed to help you grow and are often on the more affordable side to fit your budget.

Why Startups Need CRM Software

As a startup, getting a CRM platform may not be your priority. But you should still consider investing in one, and here are a few reasons why:

1. Efficient Lead Management

Startups need a constant stream of customers to grow. Effective lead management will help you ensure that the leads you find will turn into paying customers.

You can manually manage leads but it will be time and resource-consuming. A lot of steps go into the process. You need to keep constant tabs on new inquiries, pair leads with your sales rep, and record all their interactions, among other processes.

Most CRM systems are packed with functionalities that will help you with each step of lead management. It allows businesses to capture leads, store lead information, and track lead progress throughout the sales funnel.

2. Accelerated Sales Growth

In addition to increasing conversion rates, CRM systems can help startups build sustainable customer relationships, boost customer loyalty, and increase employee productivity. All of these can result in more sales.

3. Proactive Customer Service

CRM systems often feature communication tools, like text messaging and web chat. These tools will broaden your communication channels, allowing your leads and customers to get faster and more convenient access to help anytime and anywhere.

Additionally, CRM systems usually centralize notes on previous customer interactions, making it easier for your team members to identify and anticipate problems.

4. Scalable Growth Potential

As your startup grows, so will the size of your team, your customer base, your processes, and your business needs. A good CRM offers easy scalability, which means it conveniently expands its functions as your business grows.

5. Strategic Decision-Making

The analytics and reporting functionalities of CRM tools provide young businesses with actionable data. You’ll be able to see the hard data on customer engagement, sales metrics, close rates, and more, taking the guesswork out of your decision-making.

6. Personalized Customer Experiences

Seventy-one percent of consumers these days want personalized experiences. CRM systems help you meet this customer expectation. Some startup CRM systems, like Podium, allow you to personalize your messages and interact with your leads and customers.

Top 8 Best and Most Cheap CRM Software for Startups

Here are some of the best CRM software for startups:

1. Podium

Podium’s user-friendly CRM tool comes with text messaging capabilities designed for small businesses in various industries, including automotive, home services, retail, healthcare, dental, and professional services. From communication to payment processing, the platform has everything you need to streamline customer interactions and grow your startup.

Features

Contact Profiles
Personalization
Feedback Management
Web Chat
Text Marketing
Automatic Lead Routing
Reports and Analytics
Integrations (connect with nearly 200 applications)
Public API

Pros

Send payment requests to customers via text. Since text messages have a high open rate, the recipient is more likely to read your message
Get more reviews from all your customers. Send customers a review request text and use a Google Review Link Generator

Cons

No free plan available. But like many other CRM systems, you can try Podium for free within 14 days

Pricing

Essentials – $248/month; up to 3 members; 1,000 contacts
Standard – $409/month; unlimited users; unlimited contacts
Professional – $599/month; unlimited users; unlimited contacts

2. HubSpot

HubSpot is one of the best-known customer relationship management systems for young businesses, partly because you can access a suite of features for free. It offers tools for keeping track of your contacts, leads, and sales activity in a single place.

Features

HubSpot CRM features fall into four categories: Marketing, Sales, Customer Service, and Operations. Here are a few of the functionalities included in their free plan:

Shared Inbox
Facebook Messenger Integration
Slack Integration
Email Scheduling
Website Themes
User Management
Pipeline Management
Company Insight
Dashboard and Reporting tools

Pros

Affordable option for startups
Easily connect it to other business software
Premium plans include advanced functionalities you can find useful as your startup grows

Cons

Available functionalities in the free plan are quite limited
Professional plan is on the pricier side

Pricing

Free Tools – $0
Starter – $30/month (billed monthly); includes two users
Professional – $1600 per month (billed annually); includes five users
Enterprise – $5000 per month (billed annually); includes ten users

HubSpot also allows users to customize CRM suite plans. You can add users and other features if you need to.

3. SugarCRM

SugarCRM may not be specifically designed for startups, but it offer a plan that small businesses are likely to afford. The platform offers a deep feature set, including contact management, lead generation, and 24-hour support.

Features

Sales Automation and Forecasting
Contact management
Marketing lead generation
Centralized storage
Unlimited studio customization
SugarCRM mobile
On-premise or cloud deployment
Reporting and dashboard
Third-party integration

Pros

Customizable (e.g., custom fields, modules, relationships, layouts, and even codes).
Renewal console called Sugar Sell for businesses engaged in subscription-based sales—his solution has a powerful AI engine capable of creating accurate predictions even with incomplete data.

Cons

Not the most user-friendly CRM tool, as there’s a significant learning curve for new users
Startups may not need most of the functionalities yet
Expensive

Pricing

Sell – $49/user/month (minimum of 3 users); sales automation tools
Serve – $80/user/month (minimum of 3 users); customer service tools
Market – $1000/month; 10k contacts (additional $150 per month for additional contacts); unlimited users
Enterprise – $85/user/month (minimum of 3 users)

Note: The vendor offers different pricing plans for Sell CRM.

4. Nextiva

Nextiva is a CRM designed to help businesses of all sizes handle customers’ interactions across several communication channels, including video, phone, and SMS, from a single platform. It also offers customer service and team collaboration tools.

Features

Threaded conversation
Call pop
Chat
Sentiment analytics
Custom automation
Third-party integrations

Pros

Bring all communication channels together in one place
Mix and match plans, which means you can avoid paying for functionalities that your team won’t use
Collaborate by offering several team collaboration functionalities like audio and video conferencing, easy access to the calendar, one-on-one messaging

Cons

Expensive for startups that need less than five user accounts
The cheapest plan includes only the basic functionalities
You need to upgrade to their high-tier plans to access most third-party integrations

Pricing

Nextiva’s pricing plans start at $30.95/user/month for up to four users.

5. Pipedrive

Pipedrive is a cloud-based CRM focusing on sales pipelines, making it an ideal solution for small sales teams. It uses a Kanban card system to give you a visual overview of each deal in the system. Features for identifying the best chances to close deals are also available.

Features

Visual sales pipeline
Customizable pipeline
Team collaboration
Activity reminders
Lead segmentation
Contact history
Revenue forecasting
Third-party integrations
Reporting and dashboard

Pros

The system can automate repetitive tasks, allowing your team to concentrate on closing more sales.
The straightforward user interface makes Pipedrive one of the best CRMs in terms of ease of use.

Cons

You cannot use the platform for anything that isn’t sales-related.
Key features, like automation and two-way email syncing, aren’t accessible on their basic plans.

Pricing

Five plans are available: Essential, Advanced, Professional, Power, and Enterprise. Pricing starts at $12 per user per month. Everything comes with a free 14-day trial.

6. monday

monday started as a work collaboration platform. But over the years, they’ve developed and introduced more tools, including a CRM. monday’s CRM is designed for sales and customer-facing teams. It helps you track leads and customers, manage the sales pipeline, and boost your sales.

Features

Email sync and tracking
Mass emails
Activity management
Sales forecasting
Sales Pipeline
Lead capturing
Contact management
Marketing automation
Performance tracking
Integrates with 100+ apps

Pros

monday sales CRM has a mobile application, giving your sales and marketing teams access to customer data on the go.
monday sales CRM offers customizable dashboards you can build in real-time
You get access to their 24/7 customer support even with their cheapest plan.

Cons

All paid plans have a three-seat minimum
No forever free plan available
The platform offers a ton of customization options. Users may spend more time changing settings than actually using the softwar

Pricing

Basic – $10/seat/month
Standard – $14/seat/month
Pro – $24/seat/month
Enterprise – By quote

monday sales CRM pricing is structured by the number of users or “seats”. The pricing above is for three seats, which is the minimum across all tiers.

7. Keap

Keap is an all-in-one CRM platform you can use to automate your small business marketing and sales process. With a broad range of workflow templates and the ability to create custom workflows easily, you can use Keap to automate nearly every stage of a customer’s sales journey.

Features

Sales automation
Integrated email builder
Email templates
Contact manager
Lead scoring
Integrations

Pros

Customizable templates and workflows
Automated lead capture
Easy and free data migration
U.S.-based support, customer success manager, and 24/7 chat

Cons

Price can be a bit steep for startups
Free data migration process is limited

Pricing

Three plans are available. The price starts at $159 per month for two users.

8. Streak

Streak is a CRM designed with Google workplace applications in mind. It’s also the only CRM that’s fully integrated with Gmail, saving you time from switching back and forth between these apps.

Features

Sales
Project management tools
Task management
Custom views of the pipeline
Email tracking
Business development
Social media integration

Pros

Pairs with Gmail and Google Workspace easily
Automatic call logs
Access data on the go

Cons

Lacks features usually found in a full-fledged CRM
Built exclusively for Google, so it isn’t ideal if you are using another email service provider like Outlook, a free email from Microsoft
Reporting is only available in paid plans

Pricing

You can get Streak as a free CRM. If you want more advanced functionalities, you can choose from four paid plans. The starting price is $15 per user per month. A 14-day trial is available, but only on one of their paid plans.

What features to look for in a CRM software for startups?

To pick the right CRM tool for your startup, you should pay close attention to the most important features CRM software should have. It includes the following:

1. Lead Management

Lead management features, like Podium webchat, will make it easier to find potential customers and nurture them until they become your loyal buyers.

2. Communication Tools

Search for a CRM that offers unified communication, like Podium. The ability to view, read, and respond to lead and customer messages from a single inbox will make your team more effective and efficient.

3. Reporting and Analytics

Reporting and analytics features are what you’ll need to get valuable insight into your customer data and find out whether your sales and marketing efforts are paying off.

4. Sales Pipeline Tracking

If you’re using a CRM for sales, pipeline tracking should always be on your list of vital features. Sales pipeline tracking will let you track the journey of each lead and customer and provide you with a better idea of future revenue.

5. Integration and Customization

Find a CRM that integrates with solutions your company uses. It will make your workflow more seamless. For example, Podium offers integration with email solutions so you can still carry out email marketing if you want to without constantly switching apps.

Meanwhile, customization options will ensure your business requirements are met.

6. Cost

As a startup, you should not blow your money on premium tools that your team does not need yet. Find something that is affordable but highly functional. Podium plans are reasonably priced, and the features are perfect for startups on a budget.

Take Your Startup to the Next Level with Podium’s CRM and Growth Solutions

If you’re ready to take your startup to the next level, Podium has the CRM, growth, and communication solutions you’ll need to accomplish your goal. It provides one inbox for all your lead and customer conversations from every communication channel. There’s no need to switch apps to respond to text messages, reviews, Facebook messages, chat, and phone calls.

The platform also offers review management tools, payment processing solutions, and integration with tons of third-party applications. Try it for free today and see how Podium CRM can revolutionize the way you do your business.

CRM for Startups FAQs

Q: Does a startup need a CRM?

A: Yes, startups need a CRM because they are in a constant state of growth and iteration. A CRM simplifies customer service, marketing, and sales processes. It can help improve your customer retention and engagement, allow you to understand your customer needs better, and find solutions to customer concerns fast.

Q: What CRM do startups use?

A: They use a CRM for startups, like Podium, which has features designed for young businesses. There are often no bells and whistles so the price stays within your reach. Some CRMs for startups are even free.

Q: How much does a CRM system cost for a startup?

A: There are paid and free CRM systems for startups. Free CRM may be ideal if you just want to give CRM a try. Otherwise, it might be better to go for the paid plan since they often include more than just basic features.

8 Best and Most Affordable CRM for Startups in 2023

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