Calculate your budget for buying a Sales CRM Software
Have you been lately trying to finalize a CRM software for your team but unable to figure out how much should you be spending for CRM?

As Businesses differ in size and type of deal value they deal in, It is complex for you to figure out the exact numeric estimate of how much of your allocated budget you must spend for taking up a CRM. Market is filled with CRM which charges from 9 USD per month per user to 500 USD per month per user based on the feature complexity of the Software and Value add provided by the service as per the needs of the Sales Team.

But How much should you as a Sales Manager be allocating your budget for CRM Implementation within your organization?

The answer is difficult and complex! 



But Let us try to find a simple solution to it.

Get an Estimate of Cost incurred by Sales Executive doing Non-revenue generating task:

  • Get an estimated figure of the amount you spend paying your Sales Executive's Annual Salary.
  • With that, try to find your hourly cost rate of your executives.
  • Guess the average amount of time each Sales team member spends in a day doing manual entry of his sales figures into an Excel file to be shared to his Manager or to Reporting analyst who will consolidate it further for the whole team. This could be roughly around 30 minutes a day out of 8 working hours of the resource.
  • Guess the average amount of time each Sales team member spends in a day trying to search or recall or figure out some of the past conversation history with some Client documented in some random email or document which is important for his follow up call. This could again be roughly around 30 minutes to 1 hour per day.
  • Sum up both the time.

Get an Estimate of Cost incurred by Reporting Analysts doing Non-revenue generating tasks:

  • Sales Reporting Analysts doing the task of Reporting and Measurement Analyst is redundant and detrimental for their career. Most of the time these resources are over burdened with the dirty work of following up with each sales executive and getting the sales figures, plugging it in spreadsheet application and drawing pivot tables, bar charts, pie charts, line chart etc and prepare a dashboard for the Senior Management. 
  • By the time Analysts complete this task for a particular week, the next week very soon arrives and his task keeps repeating week over week without an end. This is unproductive since Sales Analysts should be spending time trying to get important insights from Sales numbers which can help them beat revenue targets instead of trying to become a data gathering guy of the Sales Team.
  • Now get an estimated figure of the Salary you pay to your Sales Reporting Analyst annually.
  • Note: Do this step only if your team's sales analyst is involved with the above non-revenue generating activities. If your Sales Analyst is involved with other productive work, you may skip this step, or try to find the hours spent by him doing these non-productive tasks and get estimated Salary getting spend on that part.

Get the Total Estimate:

Total Yearly CRM Budget (Annual Salary of Sales Executive * (Total Time Spent per day doing Unproductive work/ 8 hours per day) *  Total Number of Sales Executives in team) (Annual Salary of Reporting Analysts * Total Number of Reporting Analysts in your team)


The above amount would be the yearly estimate of how much should you be spending on your CRM which is going waste in the Salary of resources doing non-revenue generating tasks.

How much should you be spending monthly per sales staff?

CRM Budget per User per Month = Total Yearly CRM Budget / (12 Months * Total Number of Sales Executives) 

This figure would give you a rough estimate of how much should you be ideally spending per team member on a CRM.

Let me know your thoughts on this.
5 features to look before buying a Sales CRM
Very often CEOs and CMOs of startups who are searching for a CRM for their Sales Team find themselves in a confused state. With numerous CRM applications available in the market, they are in a dilemma to choose from various available options.

To decide which CRM is the best for you, you need to list down the functionalities you expect from a CRM system. After my interaction with multiple people in sales on LinkedIn, I found a number of things which are being expected from a CRM.

Sales Manager [Image Credits]
In short, modern sales teams consider following 5 things to be must have functionalities in a CRM without which a CEO or CMO should never purchase a CRM from any vendor.

1. Deals or Leads tracker.

A Good CRM should have a Deals or Leads tracker within it as a primary functionality. With this functionality, your sales team members should be able to add Deals or Leads into your CRM system so that it can be tracked as it traverses through various stages of the sales process which might be analogous to sales stages of New, Contact Made, Meeting Scheduled, Presentation Made, Negotiation, Won or Lost Deals stage, etc. 

  • This gives a transparent view to the sales manager who can visualize as to which deal is stuck at a particular stage for long and need attention or follow ups. 
  • It also helps forecast the sales for upcoming months based on the number of deals or Leads which are present in the sales pipeline based on the conversion ratio of each stage. 
  • This helps you plan the number of deals required at each stage of sales process to have a steady flow of revenue every month.
  • This also helps Sales Managers prioritize the Deals based on multiple parameters like Deal size or Winning probability, etc.


2. Contact Management Functionality

Your CRM should have a Contact Management functionality which helps you organize the contact information of your clients whom you need to interact with regards to the various deals in your sales pipeline. A good Contact Management feature should allow the sales team members to not only add contacts of people but also contact details of a company with which the deal is in sales pipeline. 

  • Most importantly, the contact management functionality should have a sync with your Deals or Leads tracker rather than acting as a separate functionality in silos. 
  • This feature should allow you to visualize the relationship with contacts and deals. Hence, if you view a contact, your CRM should be in a position to give you information on which all deals you are interacting with that contact, the past conversations you had with the concerned contact and other information about the contact which can help you crack the concerned deal.


3. Sales Reporting & Analytics

Your CRM contains lots of data entered into the system about deals, contacts and associated activities happening on each of them. But as a Sales Manager or a CMO or a CEO, what you need to know is the status in terms of numbers. Hence your CRM should give a bird eye view of where do your sales team stand in terms of sales status. 

  • It can be in terms of numbers of upcoming deals in the pipeline, Deals Won or Lost in a specified time period, Reason for winning or losing the deals, Revenue forecast, Deviation of actual revenue from the forecast or sales goal, etc.
  • This helps Sales Managers act instantaneously as and when they observe any anomaly in the Real Time Reports & Analytics 


4. Multi User functionality

Since CRM is to be used by your sales team it should have functionality to support multiple users. Unlike shared spreadsheets shared among multiple users which has no logs of which user updated the excel file, your CRM should track activities of each individual user. 

  • It should enable the team members to stay accountable for their activities and not avoid accountability while entering status trackers which might happen when people are just editing a single excel file shared at a common location as it happens in a conventional companies which are yet to go Digital.


5. Flexibility in designing Sales Processes

Every business is different both in terms of the way they manage their sales process. Hence your sales CRM shouldn't force you to follow a rigid sales process which is difficult for your business due to complexities involved. 

I believe CRM should empower the sales teams rather than creating difficulties for your sales personnel. This means your CRM should be flexible enough to fit in your sales team within it rather than your sales team trying to fit their already established processes as per the CRM.

  • Hence your CRM should allow you to design and re-design your Sales Stages. 
  • Some Organizations might follow sales stages as New Deal, Contacted, Presentation, Negotiation, Won. 
  • While at the same time another Organization might want to design sales stages as New, Contacted via Phone, Proposal Made, Presentation, Demo,  Negotiation, Contract Preparation, Contract Approval etc. 
  • At the same time, some startup Sales Manager would like to experiment with different sales processes until they hit across a process which works out right for them.

Hence a good CRM should empower the sales managers with the flexibility to design their sales processes as and when they require.


Hence before buying your first CRM, do checkout these 5 must have functionalities for your CRM.
3 Major types of CRM Systems
Recently I got to befriend a student who was keen to learn a few nuances of Marketing. While interacting with him, he fired up a few questions on CRM. In this post, I thought of explaining the Major CRM Systems currently being used in the Industry.

CRM as you must be knowing stands for Customer Relationship Management. From Strategic perspective, CRM is a strategy for processes which involves managing our relationships with customers. This relationship is not just about maintaining database of customer details, rather it involves more of Customer Engagement.

Often, when the term CRM is used by Sales & Marketing professionals, they usually refer to CRM Systems. CRM Systems are basically the Tools or Softwares used by them which helps them execute their Customer Relationship Management strategy.

As per current Industry practices, CRM Systems have been categorized into 3 major types:
7 Must Have Data Fields in your Sales Deal Tracker
While dealing with multiple activities associated with a sales process like Prospecting, Suspecting, Meeting, Closing, etc, you might have came across a situation where you have a lot of sales deals in your pipeline. A few of these deals would be in its initial stages while a few would be somewhere in the middle of the sales process which is just about to complete.