How to Reduce CRM Cost: 4 Useful Tips

Customer Relationship Management software or CRM is among the fastest-growing business software in the market.

However, navigating the multitude of vendors, features, and pricing models can be overwhelming, potentially leading to overspending. If you want to learn how to reduce your CRM cost, you’re in the right place.

This guide shows you the expected range of CRM costs and four proven methods to potentially reduce your expenses without harming your customer experience.

Understanding CRM Costs

Analyst calculating CRM cost

Let’s begin by breaking down the pricing of CRM software into three categories:

Starter Price Range (Low):

  • Target users: Typically caters to small businesses and startups with 1-10 users.
  • Cost: Expect per-user, per-month fees ranging from $5-$25.
  • Features: Offers basic contact management, sales pipeline tracking, and email integration.
  • Suitable for: Businesses starting out or with simple CRM needs.

Mid-Range Price (Moderate):

  • Target users: Designed for growing businesses with 10-50 users.
  • Cost: Per-user, per-month fees fall within the $25-$75 range.
  • Features: Expands on basic functions with marketing automation, reporting, and customization options.
  • Suitable for: Businesses requiring more robust CRM functionalities to support growth.

Enterprise Price (High):

  • Target users: Caters to large enterprises with 50+ users.
  • Cost: Per-user, per-month fees can exceed $75, with customized pricing for larger deployments.
  • Features: Offers advanced functionalities like lead scoring, predictive analytics, and integrations with enterprise systems.
  • Suitable for: Large companies requiring sophisticated CRM capabilities and scalability.

4 Ways to Reduce CRM Costs

Here’s how you can reduce your CRM costs without negatively affecting your sales:

1. Focus Only on the Features You Need

It’s easy to get lured by extensive features while selecting your next CRM solution. If you have a small business, the extra price tag associated with such features will do more harm than good.

Carefully analyze how you’ll integrate the CRM into your organization and focus only on the solutions features that you’ll use.

For example, extra features like advanced sales automation, predictive analysis, and in-depth reporting may be unnecessary if you only need contact management and email integration.

Focus on features like workflow automation, contact segmentation, and appointment scheduling to contain the costs.

2. Reduce the Amount of Contacts You Have (If Possible)

If you have contacts in your database that are old or unlikely to convert into customers, archiving or deleting them can be a good option.

Examples of such contacts are ones that have been inactive for over 12 months. Evaluate which of these contacts is to stay and which should you cut down.

Cutting down contacts that won’t result in business will allow you to pay for fewer licenses, but don’t overdo it to avoid missing out on future opportunities.

3. Reduce the Number of Emails You Send

sending emails

Transactional CRM emails for alerts and notifications can rack up costs in usage-based CRMs. Review all the automated emails you have set up and check whether you can cut down the number of trigger emails to reduce costs.

You should also look at the emails that your team manually senses. Are there opportunities to cut down on unnecessary emails as well?

The cost of a single email may not be that high, but over time, they stack and require a budget.

4. Don’t Purchase Unnecessary User Licenses

Most CRM platforms charge per user license, so purchasing too many can greatly inflate the overall costs.

Carefully audit who in your organization actually needs full access vs who needs partial or even occasional access.

Provide read-only or very limited permissions to teams who may only need to view certain contacts or reports.

Buying full-access seats out of fearing the limitations of role-based options will have you pay for far more capability than needed.

Restrict permissions to match job requirements, and negotiation a fair mix of licenses to ensure you aren’t paying full access for employees who may not be needing it.

In Closing

Even as a small business, you can unlock many growth opportunities and improve your marketing campaigns using CRM software. The trick is doing so without breaking the bank.

The four approaches in this guide may not all be applicable simultaneously, but you’ll find at least one of them feasible and applicable to your business.