Choosing a CRM for a growing service business comes down to five checks: does it match the way your work flows from enquiry to invoice, will your team use it every day, does it connect to your accounting and email, can you get all of your data out, and does it help you meet your privacy obligations. Features beyond those are secondary. This guide works through each check and ends with a table of selection criteria you can take into a demonstration.
What a CRM is for
A CRM (customer relationship management system) is the one place where a business records who its customers are and what has happened with each of them: enquiries, calls, quotes, jobs, invoices and follow-ups. For a service business, it replaces the mix of inboxes, spreadsheets and memory that works well with a handful of clients and starts to fail as the client list grows.
The signs are familiar. An accounting practice loses track of which clients have returned their documents. A builder quotes a job and nobody follows up. A CRM does not fix these on its own, but it gives everyone the same record to work from.
Must-have features for a service business
- Contacts and companies with a full history of calls, emails, notes and documents.
- A pipeline that shows each enquiry or quote and the stage it has reached.
- Tasks and reminders so follow-ups do not depend on someone's memory.
- Jobs or projects linked to the customer, if you deliver work over time.
- Roles and permissions so staff see what they need and no more.
- Reporting on enquiries, conversion and workload.
- Import and export of every record in a common format.
- Mobile access for people who work on site or on the road.
- Multi-factor authentication (a second proof of identity at sign-in) and an audit log of who changed what.
Marketing automation and chat tools can wait. A CRM that does the basics and is used by everyone is worth more than a larger one that half the team avoids.
Off-the-shelf versus custom
An off-the-shelf CRM is a subscription product you configure. It is quick to start with, the vendor maintains it, and it suits businesses whose sales and service steps look like most other businesses'. The limits appear when your process is unusual and you end up bending the way you work to fit the product.
A custom CRM is built around your process. It suits businesses whose workflow is their advantage, or whose records do not fit a standard contact-and-deal model, such as a recruiter matching candidates to roles or a hotel tracking guests across stays. It costs more to build and has to be maintained, so it has to earn its place.
A middle path suits many growing firms: keep an off-the-shelf CRM and add a custom integration or module for the part that is specific to you.
Integration with accounting and email
Accounting
When a quote is accepted in the CRM, the invoice should appear in your accounting package, such as Xero or MYOB, without anyone retyping it, and the payment status should flow back so the person talking to the customer can see it. Ask whether the link is one-way or two-way, which system is the source of truth for customer details, and what happens when a record fails to sync.
Email and calendar
Emails to and from a customer should be attached to their record automatically, and appointments should appear in staff calendars. Check that the CRM works with the email service you already use.
Where a standard connector does not exist or does not do enough, an integration can be built through the systems' APIs (documented ways for two programs to exchange data).
Data ownership and export
Settle these points before you sign:
- The contract states that the data is yours.
- You can export everything, including notes, attachments and history, not only names and phone numbers.
- The export comes in a format another system can read, such as CSV, or through an API.
- You know where the data is stored.
- You know what happens to the data, and for how long, if you cancel.
Run a test export during the trial. If it is awkward then, it will be worse on the day you need to leave.
Privacy obligations when you store customer data
A CRM is a database of personal information, so privacy law is part of the decision. The Office of the Australian Information Commissioner's small business page says most small businesses are not covered by the Privacy Act 1988, but some are. It defines a small business as one with an annual turnover of $3 million or less.
The same page lists businesses the Privacy Act covers regardless of turnover. They include a health service provider, a business trading in personal information, a contractor that provides services under a Commonwealth contract, a credit reporting body, and a business that has opted in to be covered. A small allied health clinic, for example, is covered as a health service provider whatever its turnover. The page includes a checklist to help you work out your position, which the OAIC notes is not a substitute for legal advice.
If the Act covers you, you must comply with the Australian Privacy Principles. The OAIC says there are 13 of them and that they apply to any organisation or agency the Privacy Act covers. Several bear directly on a CRM, as set out in the OAIC's quick reference:
- APP 5 covers telling people when you collect their personal information.
- APP 6 covers when you may use or disclose the information you hold.
- APP 7 sets conditions on using personal information for direct marketing.
- APP 8 covers the steps to take before personal information is disclosed overseas, which is relevant if your CRM vendor stores or supports data outside Australia.
- APP 11 requires reasonable steps to protect personal information from misuse, interference and loss.
- APPs 12 and 13 cover a person's requests to access and correct their information.
Even where the Act does not apply, the OAIC recommends protecting any personal information you hold. Rules can change, so check the OAIC page for the current position.
Selection criteria at a glance
| Criterion | What to ask | Why it matters |
|---|---|---|
| Fit to your process | Can it follow our steps from enquiry to invoice without workarounds? | A poor fit pushes staff back to spreadsheets |
| Ease of use | Can a new staff member log a call and a follow-up unaided? | A CRM only works if everyone uses it |
| Accounting integration | Is the link two-way, and which system holds the master record? | Removes double entry and billing errors |
| Data export | Can we export everything, in a common format, at any time? | Protects you from lock-in |
| Security | Does it support multi-factor authentication, roles and audit logs? | Supports the security steps APP 11 expects |
| Data location | Where is data stored and supported from? | Relevant to APP 8 and to customer expectations |
| Total cost | What do licences, setup, migration, training and support add up to? | The subscription is only one part of the cost |
How to run the selection
- Write down your process from first enquiry to paid invoice, and mark where things go wrong now.
- Turn that into a short list of must-haves and a separate list of nice-to-haves.
- Shortlist against the must-haves only, then trial each option with the staff who will use it.
- Test the accounting link and a full data export before deciding.
- Plan the migration, the training and who owns the CRM day to day.
Where Comingwave fits
Comingwave is an Australian technology company that provides technology and business solutions to small and medium enterprises. Our business systems and integrations work includes setting up CRMs and connecting them to Xero or MYOB. Where a standard product does not fit, we build custom software, and our data dashboards turn CRM records into reports managers can read at a glance. If you would like help choosing or connecting a CRM, send us an enquiry.
Key takeaways
- Choose a CRM for fit to your process and daily use, not for the length of its feature list.
- Accounting and email integration remove double entry and are worth testing during the trial.
- Confirm in writing that the data is yours, and run a full export before you commit.
- Check the OAIC's small business page to see whether the Privacy Act covers you. Health service providers are covered regardless of turnover.
Frequently asked questions
When does a service business need a CRM?
When follow-ups are being missed, when more than one person deals with the same customer, or when nobody can say how many open quotes there are.
Is a custom CRM worth it for a small business?
Only when your process is unusual enough that standard products force constant workarounds. Many small businesses are well served by an off-the-shelf CRM, sometimes with a custom integration added.
Can a CRM connect to Xero or MYOB?
Many CRMs offer connectors to common accounting packages, and where one does not exist an integration can be built through the systems' APIs. Ask whether the link is two-way and which system holds the master customer record.
Does the Privacy Act apply to my small business's CRM data?
The OAIC says most small businesses, meaning those with an annual turnover of $3 million or less, are not covered, but some are regardless of turnover, including health service providers and businesses that trade in personal information. Use the OAIC's checklist or seek legal advice to confirm your position.
What should I check before signing a CRM contract?
Check that the contract says the data is yours, that you can export everything in a common format, where the data is stored, what happens when you cancel, and what the full cost is once setup, migration, training and support are included.