What is a CRM? Choosing a CRM and tracking sales for startups

A CRM (customer relationship management) system keeps prospects, customers and every interaction with them in one place. When sales run on spreadsheets, emails and memory, opportunities get lost. A simple CRM lets even a small team sell consistently.

What does a CRM do?

• Keeps contact and company information central.
• Shows which stage each opportunity is in.
• Creates follow-up tasks and reminders.
• Reports sales performance and forecasts.
• Shares data with marketing and support teams.

When do you need one?

When you start managing several prospects at once or more than one person on the team sells. Very early, a simple sheet may do, but migration cost rises as you grow.

Build a sales pipeline

Typical stages:

1. Lead
2. First conversation
3. Needs analysis / demo
4. Proposal
5. Negotiation
6. Won / Lost

Define each stage and its exit criteria. For process design see our B2B sales process guide.

Selection criteria

1. Ease of use: If the team does not use it, data stays empty.
2. Price and scaling: Per-user cost and how it grows.
3. Integrations: Links to email, calendar, invoicing and marketing tools.
4. Customisation: Can stages and fields adapt to your process?
5. Reporting: Forecast and conversion reports.
6. Data security and location: Where personal data is stored and what safeguards exist.

Personal data

Customer data in a CRM is personal data. For notices, retention periods and access rights, see our data protection and AI guide and the legal checklist.

Rules for data hygiene

• Keep one record per person and clean duplicates.
• Define required fields.
• Enter notes the same day after a call.
• Review stalled opportunities in a weekly meeting.

Common mistakes

• Setting up a complex system on day one
• Not training the team
• Entering data and never reporting
• Ignoring personal-data responsibility