The right customer relationship management (CRM) system can help your company achieve its revenue goals. It automates workflows, boosts sales efficiency, and unifies customer data. Indeed, the best CRM software for small businesses gives sales and service teams tools to improve the customer experience.
Still, not all platforms are easy to use or suitable for industry-specific needs. Learn how CRM tools differ between vendors and plans, what to look for in a CRM system, and how to evaluate your top picks.
How we evaluate CRMs
Guide to CRM software providers
Small business CRM investments can deliver big returns. The best CRMs put your customer data into a single database and help turn that information into actionable insights, resulting in better customer experiences, increased productivity, and more sales.
But there are over 1,000 customer relationship apps to choose from, including different types of CRM systems for niche industries and various business models, goals, and needs. And finding a CRM that’s easy to use and affordable can be challenging.
This guide walks through how to choose the right CRM for your small business. Explore features and pricing alongside tips for comparing top CRM solutions.
What is CRM software?
CRM software is a sales and customer relationship management tool. It tracks contact and interaction details, becoming your main source of truth about clients and leads.
A small retailer might use a CRM system to track repeat shoppers across different sales channels and run targeted loyalty campaigns. Meanwhile, real estate agencies can match clients to property listings and manage conversations and bookings.
Types of CRM platforms for small businesses
Starting with the right type of CRM can help you accomplish goals faster without feeling overwhelmed by unnecessary features.
The types of CRM software fall into four general categories:
- Operational CRM: Many small businesses start with this type of CRM. It focuses on increasing efficiency in marketing, sales, and service operations.
- Analytical CRM: For growing businesses, this system offers customer segmentation and predictive analytics, helping teams analyze and act on customer data.
- Collaborative CRM: Top-rated CRMs typically provide collaborative features, which are standard with this type of CRM. It enables sales, service, and marketing teams to manage multichannel customer interactions.
- Strategic CRM: This version enables organizations to monitor the lifetime value of their customer relationships.
What to look for in a CRM in 2025
Most low-cost CRM tools are cloud-based. For small teams looking for affordable customer data platforms, having access to sales, service, and marketing tools from internet-connected devices remains crucial in 2025. And it comes as no surprise that the best CRM platforms offer features powered by artificial intelligence (AI).
This factor is a big selling point for small and midsized businesses (SMBs) looking to automate sales activities and personalize customer experiences. According to the latest U.S. Chamber of Commerce report “The Impact of Technology on U.S. Small Business,” 46% of respondents are already using it to develop customer insights, and the number of SMBs leveraging AI to manage customer relationships increased by 10% year over year.
AI can also help with a major challenge faced by small businesses: the learning curve. G2’s “State of Software” report found that AI-enabled products typically “scored higher” in the “ease of use” category.
How to choose the best CRM for your small business
Before comparing top CRMs, decide what success looks like and how the right tools can clear (or automate) your path.
The best CRM software for your business should:
- Align with your team’s workflows.
- Support industry-specific needs.
- Have a user-friendly design.
- Integrate with tools your staff uses daily.
- Scale to meet your business and customer expectations.
Identify your business goals
Begin your CRM selection process by deciding what outcomes your new technology will achieve. Do you want to improve sales conversions or automate repetitive tasks? Or strengthen customer relationships and drive repeat sales?
According to Gartner’s CRM buyers’ market research, 40% of SMBs switch CRM tools to improve efficiency, while 31% cite feature limitations with their current system. Customer experience enhancements, productivity, and efficiency gains also fueled CRM technology purchases for decision-makers surveyed by Forrester.
For instance, your sales reps may need help prioritizing and following up with leads. A CRM solution with lead management tools can score leads and help your sales team track their progress through the sales funnel. It might alert employees when it's time to follow up and allow managers to assign sales tasks.
Consider the following goals:
- Shorten the sales cycle using CRM pipeline tools.
- Increase lead follow-up rates by implementing task automation.
- Improve email campaign conversion rates using segmentation features.
Consider your industry and team needs
The right solution for your business depends on your business model, team preferences, and regulatory needs. Business-to-business operations need deal-stage tracking and account-based sales tools, whereas a business-to-consumer retailer might prioritize loyalty programs and marketing automation.
Companies that handle personally identifiable information may require a healthcare CRM that complies with the Health Insurance Portability and Accountability Act (HIPAA) standards. Likewise, there are niche CRM systems for real estate agents and financial firms.
Consider the value of the AI tools, especially if they require add-on fees. These features may flag leads, analyze sentiment, or optimize outreach times.
Must-have CRM features for small businesses
The best CRM software for your business doesn’t necessarily need every bell and whistle. Look for the dashboards, workflows, and features that suit your needs today, and check the prices and tools of other tiers to ensure the system can scale with your team.
Key CRM tools
All CRM systems include core features for storing customer information, tracking interactions, and managing leads. Many also support task and email management.
When choosing CRM software, consider the following essential features:
- Contact management: This core feature centralizes customer profiles and interaction history. It helps teams manage follow-ups and avoid duplicate records. Some CRMs offer basic contact lists, while others have auto-enrichment tools that pull data from social media and sync with email.
- Lead and pipeline tracking: Use this function to visualize deal stages and act fast on opportunities. Compare CRMs and subscriptions by looking at how many pipelines you can track, the level of customization per stage, and the types of automated reminders.
- Task and sales activity management: Sales CRMs may tie tasks to stages or contacts, whereas others treat them as separate from deals. Being able to monitor who does what and when keeps everyone accountable and on top of daily activities. Look for shared calendars and recurring task features.
- Third-party integrations: Top CRM platforms connect to the tools your team uses daily, like business phone systems, email, and marketing software. Some require Zapier or APIs. Focus on integrations for your core tools.
- Document management system: Even basic CRMs typically support image files or PDF uploads, whereas advanced ones allow document version control and secure sharing. If your industry uses contracts, proposals, or invoices, prioritize features that link these documents to deals or tasks.
- Mobile CRM apps: If you have sales teams in the field, look for mobile apps that offer full editing and offline access for Android and iOS devices. These features allow users to update deal status on the go. Advanced tools like location tagging or voice-to-text notes can be helpful for solopreneurs as well.
- Reporting capabilities and dashboards: The best CRM software offers real-time performance and pipeline health insights. Entry-level tiers may show activity logs, whereas high-end systems display key performance indicators and provide sales forecasting tools.
Advanced CRM features for growing businesses
Higher-priced CRM systems typically allow for more customization and workflow automation. For growing teams, sales automation, predictive insights, and cross-channel support can help them take it up to the next level.
Compare advanced and AI-driven CRM tools, such as:
- Sales forecasting: These tools predict revenue based on historical trends, pipeline information, and sales rep performance. Some platforms use AI, show visual trendlines, and provide confidence ratings.
- AI recommendations: Consider the value of the AI tools, especially if they require add-on fees. These features may flag leads, analyze sentiment, or optimize outreach times.
- Advanced workflow automation: These automations handle multiple steps, making them a great choice for deal approvals or onboarding. Compare the workflow builders for ease of use and functionality.
- Omnichannel communication: Some CRMs unify and log email interactions, allowing users to access them from the CRM inbox. Others show a unified conversation view for calls, texts, social messages, and more.
- Chatbots and AI assistants: The best CRMs now offer or integrate with automated bots and generative AI assistants for your website and social channels. Look for tools that log conversations to your CRM and automatically connect customers to live reps.
- Advanced analytics and attribution: To understand what works and do more of it, ensure your CRM accurately links sales activities to revenue. See if it offers real-time updates and lets you filter dashboards by campaign, sales rep, or channel.
How much does a CRM cost?
According to Gartner, the average CRM budget is $87 per user per month, with the top five industries budgeting $73 to $117 per user monthly. Similar research from Capterra finds that 71% of SMBs seeking CRM tools budget $35 to $105 monthly.
Still, there are several low-cost and free CRM tools for small businesses. Starting with a cheaper solution that works well and offers an affordable step-up plan is an excellent way for small teams and startups to kick off their business development strategy.
CRM pricing and plans
In general, the costs of CRM software fall into these tiers:
- Free CRMs: Solopreneurs, startups, and very small teams can use basic sales tools to manage customer relationships.
- Entry level ($10 to $30 monthly): Small businesses looking for core CRM functionalities can access basic reports, lead management, and basic automation at this price point.
- Midtier ($30 to $80 monthly): Growing businesses wanting customizable dashboards, AI tools, multistep sales automation, and integrations benefit from stepping up to midtier CRM plans.
- Enterprise ($80 to over $300 monthly): Large companies needing extensive customization and dedicated support typically require enterprise-tier packages.
Several CRM providers charge extra for AI functionalities. These costs, along with data storage, automation, or AI feature caps, can increase your monthly fees. Although you can often use self-service tools for onboarding, many CRM companies charge additional fees for professional implementation, data migration, or training.
How to compare CRM tools
Create an evaluation checklist and a shortlist of solutions to compare. Then, the best way to assess CRM software is through hands-on testing. Use the vendor’s help center, mobile apps, and integrations to see how it works in real life.
Understand your requirements
Get the features your small business needs by speaking with teams who will use the software. This is a vital step, considering Gartner’s conversations with CRM software buyers and current platform users show a disconnect between their top priorities.
Nearly all businesses focus on sales automation, whereas everyday users rate contact management as the most essential CRM feature. However, both are important and should be evaluated during trials.
Develop a CRM feature checklist and ask your crew to mark them as mission critical, nice to have, or not needed. Go through your vendor list and come up with questions to ask during the demo, including how they assist with implementation and integrations. Power users should check out the provider’s support documentation for frequent sales tasks and identify any concerns or ambiguous statements about what the software can do.
Compare top CRM platforms and reviews
Once you understand your goals, features, and budget, you can start narrowing your options. This is where you can dig into how each CRM system handles your core workflows. Focus on the ways each platform syncs with existing tools, automates task assignments, or qualifies leads.
Consider these tips when evaluating CRM software solutions:
- Ask for recommendations. Your professional network can offer valuable insights based on hands-on experience. Their feedback often reveals unique perspectives or tips and tricks when it comes to CRM integrations, implementation issues, or hidden costs.
- Read professional reviews and roundups. Examine third-party research that involves user testing. These provide deeper insights into how the software functions. They may discuss how the features help service teams handle customer requests or point out issues with the user interface.
- Check user reviews. Look at verified user feedback across multiple platforms like G2, Capterra, and TrustRadius. Filter results by company size or industry to see how similar-sized businesses review, and rate a CRM’s usability, support quality, and features.
- Review mobile app feedback. Check user ratings on the App Store and Google Play to see how sales reps and field teams describe the CRM app’s performance. Pay attention to mentions of offline functionality, problems after updates, or feature limitations.
- Test vendor support. Contact them through chat, phone, and email. Ask a technical question or request help setting up a feature and then track how fast and well they respond. This will give you an idea of what to expect post-purchase.
- Take demos and trials seriously. Have questions ready to ask during demos and tasks ready to assign to staff during trial periods. Prioritize testing how well the CRM handles standard workflows, such as moving contacts in a pipeline or notifying teams about deal updates.
How do you onboard a new CRM?
Planning your CRM rollout early can help you avoid downtime. In fact, you should ask vendors about CRM implementation before you even sign on the dotted line. Many CRM providers offer onboarding assistance for a fee or include it at no additional cost in higher-tier plans. Confirm what services come with your subscription and check out training materials before signing up.
When you onboard with a new CRM, these are the typical steps:
- Define your objectives. SMART goals are specific, measurable, achievable, relevant, and time-bound.
- Transfer data. Export data from spreadsheets or another CRM to your new software. Vendors may offer automated or manual data migration options.
- Set up workflows and integrations. Configure your pipelines, custom fields, and automation rules. Then connect email, calendar, and other important integrations.
- Enable user training. Schedule onboarding sessions or assign self-paced tutorials to team members as needed.
- Track software adoption and optimize. Monitor CRM usage, particularly automations and workflows, collect feedback, and refine settings.
Sean Peek contributed to this article.
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