Turn Connections into Customers: Why CRMs Are the Missing Piece for Founders

"The purpose of a business is to create and keep a customer." — Peter Drucker

There is not a day that goes buy where at least one new ad or tool shows up in my social media feed or my email or via text. In a time when there are so many "shiny objects" and new "tech toys" it is more important than ever to keep the main thing, the main thing.

The main thing is and always will be the customer. The extent to which we do a great job understanding, communicating with and serving our customers, the better our businesses will become. But customer relationship management is not a tool, it is a system. When we refer to a CRM in the context of a tool, we are referring to a tool that provides automation and intelligence to the "system" that you use to manage customer relationships.

"Bad data is worse than no data at all." — Charles Babbage

The most important thing to know about a CRM (or any marketing tool for that matter) is that the tool supports your system.? Putting in the effort up front to truly understand how your business will manage relationships will ensure that you are collecting the right data. With the right data we make better decisions. With better decisions, we can execute and evaluate changes more effectively and save time. This flexibility will allow us to build business systems that scale. Scalable systems give us the speed that we need to grow quickly. So make certain that you have taken the time to understand your customer relationship system before you enter the market for a CRM or other marketing automation tool.??

The second most important thing you need to know is that while a CRM has many capabilities that may help your business, it does not cover all of the areas that you need to have a successful, customer-centric business.? Make certain that you have established a baseline business framework that considers all of the key customer-facing points in your Revenue Operations.? I’ve hosted a whole event describing this process entitled Unlocking Scalability - The Founder's Framework for Marketing Investments .? You can watch the replay here .??

Ideally, your customer relationship system is one that is focused on providing a well-thought out, organized approach for not only converting leads to customers but maintaining the trust that lead to the initial purchase throughout the customer life cycle. This means that every customer touch point should be at least identified. We're not looking for perfection here, However, we should have a level of awareness that allows us to always focus on the next highest priority when it comes to serving the customer and managing our marketing investments.

I’ve learned the importance of this approach the hard way by going all out on lead generation efforts only to discover that my sales process was not effective or that I did not have a properly defined target audience.? Without having a solid foundation you will likely spend hours on research of tools, implementation and training only to find that your CRM capabilities rival that of a very expensive version of a spreadsheet.

Now that we’ve gotten that out of the way let’s get into the details.?

What is a CRM?

A CRM, or Customer Relationship Management tool is software designed to help businesses track and manage interactions with current and potential customers. Think of it as an organized digital database of everyone you connect with: leads, customers, suppliers, and even partners. It helps you capture details, organize interactions, and streamline the communication that builds customer relationships.

Example:

Say you own a small spa. A CRM could help you track all clients who’ve come in for appointments, manage follow-up emails or texts, and even remind you of their birthdays if you want to add a personal touch.

What Does a CRM Do?

1. Centralizes Customer Data: Imagine all your customer information—like contact details, previous communications, and notes about preferences—in one accessible place. This eliminates the need to jump between emails, spreadsheets, and sticky notes, making it easy to find information quickly.
2. Improves Lead Management: Leads are potential customers, and managing them well can make the difference between growth and stagnation. With a CRM, you can track where each lead came from, when you last contacted them, and what’s next in terms of follow-up, so no one slips through the cracks.
3. Automates Follow-Ups: CRMs can automatically send follow-up messages (email, text, etc.), so if someone inquires about your services, the CRM can help you respond promptly without the need for manual reminders.
4. Insights on Customer Behavior: Over time, a CRM can help reveal patterns in customer behavior. You might find, for example, that your best sales often come after two follow-ups. Knowing this can help refine your approach and focus on the actions that lead to conversions.

How Does a CRM Actually Help You Get Customers?

CRM systems support lead management in several ways:

• Automated Reminders and Follow-Ups: Research suggests that responding quickly to new leads increases conversion chances. A CRM can automatically remind you to follow up after a set time. For example, if you’re running a small event planning business, following up promptly with people who inquired last week can lead to quicker bookings. CRMs with advanced workflow features can even send the reminders for you and text you when the leads respond.?
• Personalized Customer Interactions: A CRM lets you personalize communications by remembering details about your leads or customers, which helps build rapport. Small details like knowing past interactions or previous purchases make clients feel valued and more likely to choose you again.

Use Case - Health & Wellness

A local gym started using CRM tools to keep track of everyone who visited for a trial day. By sending a personalized message two days after each trial, the gym increased its new memberships by 15% in the first quarter.

CRMs: More Than Just Contact Management

While contact management is a big part of CRMs, they also include other features valuable to small business growth:

1. Sales Pipeline Tracking: A pipeline tracks the stages from initial contact to a sale. Some CRMs visually organize leads into stages, such as “New Lead,” “Contacted,” and “Ready to Purchase,” which helps you focus on leads close to converting.
2. Task Management: CRMs let you assign tasks to specific team members or create reminders for yourself. If a lead expresses interest in a follow-up meeting in a month, the CRM can create a reminder so you don’t forget.
3. Reporting and Analytics: Data is powerful, and some CRMs offer reports on your most effective channels, the average time it takes to convert a lead, and more. This information can help you adjust your strategies based on what’s working.

Use Case - Spas & Salons

A local salon used their CRM to automate appointment reminders and follow-up messages. As a result, they saw a significant reduction in no-shows and increased customer retention because clients appreciated the follow-ups.

How to Pick the Right CRM and Start Benefiting

For founders at the growth stage, choosing a CRM depends on:

1. Ease of Use: The CRM should be simple to set up and easy for you or your team to use.
2. Automation Features: Look for automation that fits your needs, like automatic follow-up emails or task reminders.
3. Scalability: Choose a CRM that can grow with your business and adapt as your needs change.

Starting Steps:

1. Identify Key CRM Features for Your Needs: If managing appointments is crucial, ensure your CRM has reminders. If tracking the sales process matters, pick one with pipeline management.
2. Set Up and Learn: Start with basic functions and gradually add more. Many CRMs offer trial periods, so experiment with features to see how they improve your workflow.? Some agencies like Get Crystalized Agency offer Done-for-You systems with core features that can get you started right away without investing your personal time on setting everything up.?
3. Look for Support: For Do-It-Yourselfers, some CRMs offer onboarding resources that help you start using the tool effectively.? CRMs with a robust community can introduce you to other founders like you and you can help each other learn.

Conclusion

A CRM system supported by the right CRM tool simplifies and improves customer interactions, saving you time and helping build relationships that drive growth. By centralizing data, automating follow-ups, and tracking customer behavior, a CRM system can be an essential tool for founders at the growth stage.

About the Author?

Juhl T. Lenard is Founder and Chief Marketing Technologist at Get Crystalized Agency. Get Crystalized Agency delivers Boss Assist. Boss Assist is a done-for-you, curated suite of marketing tools designed to empower growth-stage founders on the path to scalable success. Anchored in the robust HighLevel platform, Boss Assist covers essentials from lead management and sales tracking to social media and SMS integrations, adapting as your business needs evolve. Through our Boss Boost program, founders can unlock new features, exclusive discounts, and branded merchandise, adding flexibility without needing to upgrade to the next tier. With Boss Assist, your growth is streamlined, affordable, and built around the tools you need, when you need them.

Not sure where to go next? Why not grab our free?Pipeline Marketing Technology Blueprint! Take a 5-minute assessment to receive a detailed explanation of the tools best suited for your growth stage, plus a roadmap for future stages to help you plan ahead. Click here to get started now!