Choosing to upgrade or replace the CRM system is not just a technological decision; it also significantly impacts operational efficiency and customer experience.
1. CRM and the Benefits of CRM
1.1. What is CRM?
CRM (Customer Relationship Management) is a system that helps businesses manage all information and interactions with customers from the lead stage to sales, care, and repurchase. For service businesses, CRM is not just "software for sales"; it is also the starting point for the entire service journey.
1.2. The main benefits that CRM brings to businesses
CRM software is an important tool that helps enhance the efficiency of business operations. It minimizes issues such as losing leads due to lack of tracking and managing inconsistent information. When processes are clearly established with automated reminders, sales and customer care teams work more effectively.
CRM also improves customer relationships by keeping a history of calls, emails, and information about their needs. As a result, businesses can manage customer relationships in a more systematic and effective way, no longer relying on employee memory.
2. Criteria for choosing CRM software for service businesses
Criteria for choosing CRM software for service businesses
2.1. Lead management
A good CRM must ensure that businesses can effectively track and categorize leads by source, industry, and potential level. The system must also fully record interactions and notes from the sales team, creating a clear communication history. Additionally, the CRM needs to provide statistics and reports on lead performance such as conversion rates, processing times, and reasons for lost leads.
For service businesses, leads are not only for closing but also important data that helps forecast capacity, allowing for appropriate resource planning and avoiding overload during growth.
2.2. Lead nurturing automation
Automation is a key factor that helps businesses grow without continuously expanding their workforce. A suitable CRM should support automatic email sending, reminders for follow-up schedules based on time or pipeline status. The system should also integrate with Facebook, Zalo, and website forms to optimize interactions, while allowing the setup of multi-scenario lead nurturing workflows such as nurturing, remarketing, and re-engaging cold leads.
More importantly, effective automation is not about sending a lot of messages, but about sending the right content - at the right time - to the right customer group, thereby increasing engagement and improving conversion rates.
2.3. Project management
An important criterion often overlooked when businesses choose a CRM solely from a sales perspective is the ability to manage projects after the contract is signed. For service businesses, the system needs to support task distribution, track progress, and allocate responsibilities according to roles (PM, technical, customer service). At the same time, recording feedback and evaluating performance helps improve service quality.
If the CRM is not integrated with project management, businesses may face the issue where sales are closed but delivery is 'disrupted': the implementation team does not understand customer expectations, progress is delayed without timely alerts, leading to a decline in customer experience.
2.4. Service delivery capability
Distinguishing between 'sales' CRM and 'service management' CRM is very important in the growth process of a business. Service CRM needs to optimize resources, manage schedules, personnel, time, and implementation capacity, while also responding quickly to customer requests such as technical support tickets and warranties. This not only enhances customer experience but also improves the performance of the customer service team.
Without effective management, businesses may encounter three major issues: delayed service due to lack of personnel or incorrect allocation, unstable quality due to lack of standard processes, and difficulties in measuring performance (SLA, processing time, productivity).
3. Some popular CRM management software (commonly used by service businesses)
3.1. Odoo CRM (suitable for service businesses that need 'continuity')
Odoo CRM is suitable for service businesses that need to manage from CRM to Sales, Project, Helpdesk, and Accounting. The strength of Odoo is its ability to integrate data, helping to effectively manage both the sales and implementation processes. This system also meets the need for scalability by allowing businesses to add modules as necessary.
Odoo CRM is very suitable for service businesses that are in the process of scaling and for those businesses that want to manage all operations on a single platform, rather than using multiple discrete software.
3.2. Salesforce
Salesforce is a famous enterprise CRM, known for its flexible scalability, detailed permissions, and customization capabilities to fit complex processes. These features make Salesforce a top choice for many large businesses.
However, this system also has some drawbacks, including high costs, long implementation times, and the need for a specialized operations team to manage it effectively.
3.3. Zoho CRM
Zoho CRM has many advantages including reasonable costs and many available features, making it very suitable for small and medium-sized enterprises (SMEs). This system provides a comprehensive customer management solution with useful tools to enhance operational efficiency.
However, one limitation of Zoho CRM is that if a business wants deeper integration with delivery management and resource capacity, they often have to configure and integrate many different components. This can add extra effort to setting up and managing the system.
3.4. HubSpot CRM
HubSpot stands out with its marketing automation features, effective email sequence setup, and user-friendly pipeline management. These strengths help businesses optimize their marketing strategies and improve their sales processes.
However, when it comes to managing service delivery, businesses often need additional systems for greater efficiency. HubSpot is suitable for sales and marketing teams focused on increasing lead volume.
4. Comparison between upgrading and replacing software
Comparison between upgrading and completely replacing software
4.1. When should old software be upgraded?
Upgrading the current CRM system is often a suitable choice when a business is using a stable solution but is only lacking some features. This is also feasible when the data is still relatively clean and not too fragmented, along with operational processes that are not too complex. The main needs of the business lie in the areas of CRM, automation, and reporting.
The advantages of upgrading include lower costs compared to a complete replacement, less risk during the transition, and quick implementation time. However, the downside is that upgrades often only address the 'tip' of the problem and do not effectively handle the interconnection between departments such as sales, delivery, and accounting.
4.2. When should a complete replacement be considered?
Replacing the CRM system should be considered when the business shows signs such as: the CRM and operational processes being implemented separately, inability to track the customer journey from the lead stage to implementation, acceptance, and warranty. Additionally, if the business cannot manage SLAs, lacks late alerts, cannot measure workload and personnel capacity (capacity planning), or if reporting still relies on Excel and is based on only 1-2 personnel, then replacement is a necessary option.
Replacement helps businesses redesign structured processes, centralize data, and manage seamlessly, making it easier to scale during growth. However, businesses also need to prepare for risks such as implementation time, training needs - changing habits, and especially a clear data migration plan to ensure operations are not disrupted.
CRM: From a sales tool to a service operation platform
In service businesses, CRM is not just a "sales tool" but also the foundation for the entire process, from lead to closing deals, implementing services, and customer care. It is necessary to upgrade or replace CRM based on the size of the business, the complexity of the process, and the need for interdepartmental communication. For fast-growing companies, CRM should be seen as a strategic investment, because if the number of leads increases but the delivery process cannot keep up, the biggest risk is losing customer trust.