Introduction
Managing customer relations and sales data are the key aspects of a successful business.
Interestingly, different organizations have their take on data management.
Most businesses start their journey over spreadsheets and move to a CRM to manage sales data more effectively. On the contrary, we have organizations that use spreadsheets to manage customer data as they scale.
While it’s a great move to save software cost, managing thousands of customers on a spreadsheet can become challenging.
This brings us to the ultimate question: While spreadsheets and CRM manage customer data similarly, which tool is better?
In this blog, we will compare CRM vs. spreadsheets. Continue reading to learn about the differences between CRM vs. spreadsheets and role of the best CRM software for sales teams.
What Is A CRM?
CRM stands for Customer Relationship Management, referring to a type of software that businesses can use to:
- Improve customer services
- Increase your productivity
- Get a 360-degree view of your contacts
- Improve your sales process
- Store all customer information
Today we have excellent CRM software tools like HubSpot, Zoho CRM, and Salesforce that introduce new and innovative features. What’s more? These CRM host your data in the cloud, eliminating the risk of losing data in the long run.
What Are Spreadsheets?
Spreadsheets are simple data management tools that are excellent for storing data. They’re often available for free (like Microsoft Excel and Google Sheets), and most users are familiar with how they work.
Spreadsheets offer many filters to extract the required data from different columns. For instance, filter clients by specific location, gender, or age. Similarly, spreadsheets can also be used to sort clients based on acquisition channels, allowing business owners to assess marketing performance.
CRM vs. Spreadsheets: Key Differences
Both CRM and Spreadsheets are excellent tools for data management. Interestingly, however, they’re equally different regarding their limitations.
Spreadsheets offer limited capabilities for centralizing customer data, making it challenging to maintain vast data sets. On the contrary, CRM allows your sales team to automate repetitive tasks, get better customer insights, and reduce manual efforts, eliminating the scope of error.
However, there are several key differences between these data management tools. Let’s learn more about them in this section:
| Basis of Difference | CRM | Spreadsheet |
| Data Organization | CRM offers a centralized database, ensuring a single secure location for customer data. | Spreadsheets provide data in a fragmented manner. They don’t store customer data in one place. |
| Automation | Great option for automating everyday repetitive tasks like follow-ups and data inputs. | Require manual intervention for data input. Doesn’t offer any automation to users. |
| Scalability | CRMs are easy to scale. As your business grows, you can integrate different modules to streamline various aspects. | Spreadsheets are unwieldy. They don’t offer any integrations or scale with your business. |
| Collaboration | CRMs are excellent tools for collaboration. They allow your team to participate in ongoing operations in real time. | While spreadsheets are also a good option to collaborate, they’re prone to version control issues. |
| Reporting and Analytics | Thanks to the amount of data they store, CRMs are excellent for advanced reporting and analytics. Businesses can get complete customer insight, such as their purchase habits and preferences, from a CRM. | Spreadsheets offer limited access to reporting and analytics. Based on the input data, users can leverage spreadsheets to filter out necessary information like age, gender, or location, among other factors. |
| Integration | CRMs offer multiple integrations to streamline different aspects of a business. | Spreadsheets lack seamless integration, limiting a business from automating operations. |
Now that you understand the core differences between CRM vs. spreadsheets, let’s examine why the latter is inadequate for sales management.
Why do Spreadsheets Fall Short for Sales Management?
#1 Prone to human error:
Spreadsheets require manual data entry, exposing them to the risk of errors. A single wrong input, missing data, or incorrect formula could result in a significant business error.
#2 Time-consuming to update and maintain:
Like any manual task, entering data into a spreadsheet is tedious, especially with growing sales data. Such inputs take away the time your sales team could spend on other core operations.
#3 Lack of real-time data access:
Spreadsheets don’t provide live updates, making it challenging for your team to access real-time sales data or customer insights. The lack of such data further delays business decision-making.
#4 Inefficient for managing large datasets:
Unlike its counterpart, spreadsheets are inefficient at handling vast data sets. They make data structures more complex, resulting in inefficient customer relationships.
#5 Poor security for sensitive customer data:
Spreadsheets lack advanced data security features, exposing your essential customer data to different third parties.
Benefits of Using a CRM for Sales
- Centralized Data: CRM provides a single database to store customer interactions and data. It ensures updated information for your team, improving collaboration and customer service.
- Automation: CRMs help automate repetitive tasks such as follow-up reminders, data entry, and customer segmentation. This allows your team to focus on core tasks and reduce human error.
- Scalability: CRM software is designed to scale alongside your business. Whether a growing startup or a solo entrepreneur, you can scale your CRM as data volume and customer interactions increase.
- Task Management: CRMs have many built-in task management tools that help you stay organized with your operations. They allow you to assign tasks to team members, set reminders, and ensure timely follow-ups.
- Contact Management: A CRM simplifies contact management. It provides robust features that allow your sales team to store contact information, track customer interactions, and manage communication history efficiently.
- Sales Pipeline Tracking: CRMs provide visible sales pipelines that allow you to monitor the progress of prospects and opportunities. This makes it easy to track your sales pipeline and discover bottlenecks.
- Reporting & Analytics: CRMs simplify reporting and analytics with advanced features. They allow you to track key performance indicators, generate detailed reports, and gain valuable insights that streamline operations.
How to Choose the Right CRM for Your Sales Team?
Choosing the best CRM for the sales team can be challenging, especially when you don’t know the factors involved. Let’s look at the steps involved in choosing the right CRM for your team:
Step 1 – Identify your business needs and goals:
You can’t find the perfect CRM unless you know your business needs and goals. So, before listing customer relationship software, ensure you’re clear about your requirements from the CRM.
Step 2 – Consider ease of use and customization:
Your CRM should be easy to use. When looking for the perfect CRM, you’d want software that’s easy to learn and start with. Additionally, you must also check the customization options available in the software.
Step 3 – Evaluate pricing and scalability:
Pricing and scalability are crucial factors to consider when choosing your CRM. Consider the pricing (setup, installation, and future operations). It will give you an idea of the money you’ll require while scaling your business.
Step 4 – Look for integrations with existing tools:
Does your CRM provide seamless integrations with your existing tools? Look for a CRM ready to integrate with other working software in your ecosystem.
Step 5 – Read reviews and request demos:
Reviews and demos are perfect for analyzing whether a CRM suits you. Whether you’re finalizing a CRM software for manufacturing or want a software for other complicated operations, take the time to read about your chosen software. Its positive and negative aspects will play a crucial role. Lastly, don’t forget to request a demo before your final purchase.
Common Misconceptions About CRMs
- CRMs are too expensive:
Many believe CRMs are too costly! However, affordable options like SolvCRM start at just $9 per month, giving you the best CRM for the sales team without burning a hole in your pocket.
- CRMs are only for large enterprises:
CRMs are an excellent option for small and medium businesses alike. They offer streamlined operations, allowing you to scale your business effortlessly.
- Spreadsheets are good enough for small businesses:
While spreadsheets are suitable for storing data, they limit your operations to a great extent. Spreadsheets don’t offer automation, scalability, or real-time insights.
Conclusion
Traditional spreadsheets have several drawbacks when it comes to running a business. Over time, we discovered that utilizing Excel as a CRM becomes more challenging, if not impossible, as your company expands.
Have trouble working with spreadsheets? It might be time to change!
SolvCRM allows you to manage better data about your customers, prospects, and money. Sign up for long-term business success with the best CRM software for sales teams.
Connect with our experts for a free trial today.
Jigesh Shah
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