CRM Tip: Beware of the Low License Fee Trap

Some people leap into a particular CRM because it has a cheap (or free) monthly license fee per user. This is not the best place to start!

Think of your CRM ‘journey’ as a three-year process. So, extrapolate your monthly cost over three years. Then think, if your business grows, you will need more people using the CRM, so you will need more licenses. Build in those licenses to the three-year cost. Note – some CRMs come with an entry point of up to 3 or 5 users, which can be advantageous.

The Next Level

Next, almost certainly, if you use the CRM thoroughly, you will likely need to “upgrade” to the next level of license. This is done on purpose by the software companies – particularly by those offering free versions. Often there are “hidden” restrictions in CRMs (that even experienced CRM’ers don’t know about) which mean you need to upgrade to do what you want to do. Look at the next level up from the license fee you are considering and build in at least two years of license cost at that level.

Get Set Up Properly

Lastly, once you choose a CRM, do you really want to spend endless, aching hours trying to set it up? Do you need data to be migrated? Do you want automated tasks from the get-go? Do you want extra fields to suit your business? Dashboards? An experienced CRM implementer (hint: such as myselfJ) can set up your system much more quickly than you can, saving you time and money. Plus, they can train you and provide effective support for you after your “live” date.

In summary, I don’t want to put you off starting off on your CRM journey, because the benefits to your company will be massive, but suggest look beyond the apparently cheap monthly license fee, and consider your investment holistically.