CRM Software FAQs – Your Complete Guide to Choosing the Right CRM

Tired of paying $100/user/month for CRM features you don't need?What if you could get tailored CRM software at 1/4 the price?

Most business owners waste thousands on rigid platforms like Salesforce, Hubspot, Zoho that never quite fit. That's why we created this guide - this FAQ guide is for you. We answer the most common CRM-related questions to help you make an informed decision—especially if you need affordable, customizable CRM software.

1. What Are the Three Types of CRM?

Businesses use different CRM systems depending on their needs:

• Operational CRM – Automates sales, marketing, and customer service tasks (e.g., lead tracking, email campaigns).
• Analytical CRM – Focuses on data analysis to improve customer insights (e.g., sales trends, customer behavior).
• Collaborative CRM – Enhances teamwork by sharing customer data across departments (e.g., shared contact notes, team alerts).

Why does this matter? If you need automation, choose Operational CRM. If you need deep analytics, go for Analytical CRM. For better team coordination, Collaborative CRM works best.

2. What Are the 3 C’s of CRM?

The 3 C’s framework helps businesses build strong customer relationships:

• Customer – Understanding their needs and preferences.
• Company – How your business serves them efficiently.
• Competitors – Staying ahead by offering better service.

Practical Tip: A good CRM helps you track all threeensuring you retain customers while outperforming competitors.

3. What Are the 4 Key Elements of CRM?

A well-built CRM includes:

1. Customer Data Management – Stores contact details, interactions, and purchase history.
2. Customer Interaction Tracking – Logs calls, emails, and meetings.
3. Sales & Service Automation – Manages leads, deals, and support tickets.
4. Customer Support Tools – Helps resolve issues faster (e.g., chatbots, ticketing systems).

Why is this important? Without these elements, your CRM won’t be as effective.

4. What Are the 4 C’s of CRM?

This model focuses on improving customer engagement:

• Customer Experience – Ensures smooth interactions.
• Conversation – Keeps communication clear and consistent.
• Content – Provides useful information (e.g., product guides, FAQs).
• Collaboration – Ensures teams work together seamlessly.

Example: A CRM with shared notes and automated follow-ups improves all four C’s.

5. What Are the 5 E’s of CRM?

This framework maps the customer journey:

1. Entice – Attract prospects (ads, social media).
2. Enter – First contact (website visit, inquiry).
3. Engage – Nurture leads (follow-ups, demos).
4. Exit – Final decision (purchase or drop-off).
5. Extend – Encourage repeat business (loyalty programs).

Pro Tip: A CRM helps track each stage, so you convert more leads into customers.

6. What Is the CRM Cycle?

The CRM cycle ensures no customer falls through the cracks:

1. Reach – Find potential customers.
2. Acquire – Turn leads into buyers.
3. Convert – Close sales efficiently.
4. Retain – Keep customers happy.
5. Loyalty – Encourage referrals & repeat sales.

Without a CRM? Manual tracking leads to missed opportunities.

7. What Are the 4 P’s of CRM?

Different experts define them differently, but commonly:

• Planning – Strategy for customer management.
• People – Training staff to use CRM effectively.
• Process – Standardizing workflows (e.g., sales pipelines).
• Platform – Choosing the right CRM software.

Alternative View:

• Product – What you offer.
• Process – How you deliver it.
• Policy – Rules for customer handling.
• People – Team executing it.

8. What Is a Workflow in CRM?

CRM workflows eliminate manual busywork by automating key processes like follow-up emails, lead assignments, and support ticket alerts. For example, when a prospect submits a contact form, the system can instantly route them to the right salesperson - ensuring no opportunity falls through the cracks.

9. What Is a CRM Database?

It’s a centralized system storing:

• Basic Info – Names, emails, phone numbers.
• Interactions – Calls, meetings, purchase history.
• Demographics – Age, location, income (for segmentation).

Key Benefit: No more lost or scattered customer data.

10. CRM vs. Marketing Automation – What’s the Difference?

Do you need both? Yes, if you want end-to-end customer management.

11. CRM vs. CMS – How Are They Different?

While a CMS (like WordPress, Shopify) powers your website's content, a CRM (like Salesforce, Zoho) powers your customer relationships. Think of it this way: your CMS helps visitors find information, while your CRM helps your team find and nurture leads. One manages pages and posts, the other manages people and relationships - and smart businesses use both to work smarter.

12. Why Does Your Business Need a CRM?

• Organizes customer data in one place.
• Boosts sales with lead tracking.
• Improves customer service with quick access to history.
• Saves time by automating tasks.

Without a CRM? You’re relying on spreadsheets and memorywhich leads to errors.

13. How Much Does a CRM Cost?

When evaluating CRM solutions, pricing varies significantly between mainstream platforms and customized alternatives.

Standard CRM Pricing (Zoho, HubSpot, Salesforce):

Most popular CRMs charge per-user subscription fees, typically ranging from $20to $100+ per user, per month. While these platforms offer robust features, costs escalate quickly for growing teamsmaking them expensive for small and mid-sized businesses.

Budget-Friendly Alternative (123TWS CRM):

For businesses needing affordable flexibility, 123TWS provides two cost-effective options:

1. Cloud-Based Subscription – Just ₹1230/month (flat rate, not per-user)
2. One-Time Payment Plan – A single investment with full customization

Unlike rigid enterprise CRMs, 123TWS eliminates recurring per-user fees while offering tailored workflows, industry-specific features, and scalable architecture.

Which is better for you?

• Choose Zoho/HubSpot if you need out-of-the-box features and don’t mind ongoing costs.
• Opt for 123TWS if you prefer long-term savings, customization, and no user-based pricing.

14. Will Employees Actually Use CRM Software?

Yes, employees will embrace CRM software—but only if it's designed with their needs in mind. First, the system must be easy to use, featuring an intuitive interface that doesn't require extensive technical knowledge.

Second, it should save time by automating manual tasks like data entry and follow-up reminders, proving its value in daily workflows. Third, security features like role-based access controls ensure sensitive data stays protected while giving each team member appropriate permissions.

15. What Are Niche-Specific CRMs?

Some industries need specialized features:

• Real Estate CRM – Tracks property inquiries.
• Dental CRM – Manages patient appointments.
• Travel CRM – Handles bookings & itineraries.
• Photography CRM – Schedules shoots & client galleries.

Need a tailored CRM? 123TWS builds custom CRM solutions for unique business needs.

Final Thoughts: Need a CRM That Fits Your Business?

While all these factors drive adoption, proper training remains essentialeven the best CRM software won't succeed if employees don't understand how to leverage its full potential. When implemented thoughtfully, a CRM becomes an indispensable tool rather than just another system to learn.

If off-the-shelf CRMs are too expensive or inflexible, 123TWS offers:

• Affordable pricing (no per-user fees).
• Full customization (matches your workflow).
• One-time payment option (save on subscriptions).

Contact 123TWS today for a CRM that grows with your business!

Pro Tip: Check Our crm software solutions detail blog