When it comes to customer relationship management (CRM) software, the conversations are complicated.
On one hand, Forrester has described the technology as bloated and over-engineered with too many features that most companies won’t use.
On the other, PwC describes it as a smart way of aggregating data and gathering up customer insights to create better business and consumer experiences. Both believe that with the right approach and strategy, particularly with AI, CRM is still a powerful tool that can change the conversation.
Despite its challenges, CRM is still one of the most proven technologies when it comes to delivering commercial value.
Companies do see measurable improvements in sales visibility, pipeline forecasting, customer retention and cost control.
The solution gives them an anchor point at a time when economies are disrupted and markets fragmented, and it is particularly useful as budgets are tightening in anticipation of financial fluctuations.
Which is useful as the world is facing persistent inflation, higher interest rates and only a partial recovery after the 2025 slowdowns, says the IMF.
Companies need the value that CRM can bring, but they need to build this sustainably because budgets are under pressure.
Most organisations are extremely cautious about large-scale CRM investments because of the operational costs, the ongoing licensing spend is giving them pause.
And this has created a market where companies want CRM and like what it can do, but can’t afford the ‘all at once’ model traditionally associated with most CRM implementations. It’s a tension that can be resolved with a more modern approach to CRM.
It’s become modular.
Which is a far smarter route. Starting with essential capabilities that are relevant to the business and then expanding the solution as the business case strengthens, it is entirely possible to become penny-wise with CRM.
Just opt into stripped-down footprints or potentially invest in hybrid alternatives without compromising on the technology’s ability to drive customer and stakeholder delight.
What the economic climate has done is effectively change the way companies approach their investment in technology, and the ways in which the CRM companies offer their solutions.
A more sustainable and modular CRM roadmap avoids a heavy upfront investment and instead focuses on building value in layers.
The foundation is a core CRM system that can deliver an immediate and practical benefit across a consolidated customer database, an integrated communication history, and basic sales or service workflows.
You can get a functioning sales or service CRM system up and running in 24 working hours. The system will give you the basics you need to start improving customer visibility and operational efficiency.
From there, you can scale at your own pace. Modules can be added on as demand and ROI allow – marketing, field service, project operations and customer insights can sit dormant until you’re ready to switch them on through licensing.
The underlying architecture is already there, you just enable and configure new capabilities when time and budgets are right.
Another aspect of this trend is the rise of low-cost, lightweight CRM products that promise simplicity. The problem is, they quickly become limiting. You adopt the platform to save money but end up outgrowing what it can handle within a very short time.
Many of these platforms eventually force companies back into spreadsheets and manual workarounds which are the exact inefficiencies CRM is meant to eliminate. Instead of implementing a CRM, you’ve implemented a series of Excel workbooks.
By contrast, an incremental CRM built on an enterprise-grade platform gives you room to expand and enjoy next-generation functionalities, like AI.
This technology has fundamentally changed the economics of CRM with copilots and AI-driven automation reducing the admin load and allowing you to achieve extraordinary productivity. It also directly reduces licensing requirements and operational costs as fewer users are needed to achieve the same results.
As CRM becomes an intelligence layer and moves away from just being a database, the cost-to-value ratio changes and allows you to redirect savings into additional CRM capability over time.
This is further supported by the relationship you have with your implementation partner.
Trust is critical, especially with a modular approach, because you need to know what your CRM will deliver over time and within expectations.
The right partner will make strong architectural decisions and understand your business and this is so important with CRM because you are always balancing ambition with budgets.
So, don’t leave CRM behind or give up on what it could be. Instead, take it slow and modular with an incremental, relationship-centred, value-driven roadmap. Then it will stay strategic and an asset.
