Excel vs CRM: When to make the switch and top tools to try

Still using Excel as a CRM because you haven't found an affordable alternative?

We get it. Chances are you might not have the budget to invest in a traditional CRM just yet. While Excel is a versatile data management tool. You may find that as your business operations grow, using Excel will start eating into the time you’re needed on other business priorities. 

With all the data you need to manually update, conditional formatting you need to be aware of and data validation rules. All these factors, on top of those repetitive tasks that will add up – will start to get daunting. Especially if you don’t have the proper support you need from your tech stack. 

But fortunately, investing in a CRM doesn’t necessarily mean you’ll be facing a large bill.

In this blog post, we’ll cover: 

• Why small businesses might still use Excel as a CRM,
• Challenges of relying on Excel for CRM,
• Best affordable alternatives to Excel CRM, including folk.

Why do small businesses use Excel as a CRM?

Excel is often a favourite of small businesses who need a place to capture basic contact information. 

Excel’s customizable features and ease of use make it an accessible tool for businesses managing small volumes of customer data. With a simple layout and built-in formulas, it allows users to track leads, manage sales pipelines, and analyze basic customer metrics.

4 Challenges of using Excel as a CRM

While Excel may be a cost-effective solution for small-scale data management, as businesses grow and data becomes more complex, Excel’s limitations will become apparent. That’s when you’ll start noticing how it struggles to meet the demands of a growing business. Here are some common challenges to consider.

1. Manual processes and limited automation

Unlike dedicated CRMs, Excel lacks automated workflows, reminders, and data syncing with other tools.

Most tasks, such as sending follow-up emails or tracking activity, require manual input, increasing the risk of human error. Especially when there are a lot of interactions, notes and reminders to update. 

2. Integration limitations leading to everything, everywhere

Excel doesn’t integrate easily with email, calendars, or other tools, leading to siloed workflows. This means that you’ll be likely to have hundreds of tabs open, a clunky user experience and difficulty when it comes to collaborating with your colleagues. 

3. Data security risks

Sensitive customer data in Excel is more vulnerable to unauthorized access without robust security measures. By using CRMs such as folk, you’ll know that your customer data will be in safe hands. It’s even acknowledged by the SOC2 compliance, so you know folk aren’t just talking the talk. 

4. Collaboration difficulties

From difficulties in real-time collaboration, to constraints in data visualization. You’ll find that even though Excel does have charts and graphs, creating things such as dashboards will require advanced skills and extra time that no-one has. 

3 Best affordable alternatives to Excel CRM 

1. folk

Best for: Sales teams that need an user-friendly CRM

folk is one of the quickest CRM solutions to implement on the market. Resulting in folk being well loved by over 3000 companies around the world thanks to its user-friendly interface and smart integrations. The best thing about folk is its ability to scale with you – it can support solopreneurs, small to mid-size teams and large enterprises. And, comes with reasonable price plans so you won’t have to worry about any surprises. 

Key features

• Contact management with customizable tags and filters.
• Integration with tools like WhatsApp for seamless communication.
• Workflow automation for reminders and follow-ups.
• Shared pipelines for real-time collaboration.
• AI powered messages and sequencing.
• Analytics and reporting.

Price plans

On an annual basis, price plans are as follows.

• Standard: $20/user/month.
• Premium: $40/user/month.
• Custom: Starts from $80/user/month.

HubSpot

Best for: Teams focused on lead generation and marketing automation.

HubSpot is a free, feature-rich platform with marketing tools, email automation, and sales pipeline management. The catch? Upgrading to a paid plan will be costly. Expect additional costs for certain integrations, as well as consultative fees for some. 

Key features

• Free plan with contact management, email tracking, and live chat with HubSpot watermark.
• Marketing automation tools such as email campaigns and landing pages.
• Sales pipeline tracking with deal stages and forecasting.
• Extensive integrations with third-party apps.

Price plans

Ready to scale? Get ready to invest. HubSpot’s Sales Hub plans are steep. 

• Sales Hub Professional: Starts from $90/user/month.
• Sales Hub Enterprise: Starts from $150/user/month.

Pipedrive

Best for: Sales teams that need pipeline visibility

Pipedrive is a sales-focused CRM with a visual pipeline for easy deal tracking. Designed by sales teams, for sales teams. Pipedrive offers a visual pipeline for easy deal tracking.

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Key features

• Visual sales pipeline for tracking deals.
• Customizable stages and activities to fit sales processes.
• Email integration for tracking communication within the platform.
• AI-powered sales assistant for actionable recommendations.

Choosing the right CRM for your business

Transitioning from Excel to a dedicated CRM can feel like a big step, but choosing the right platform depends on your needs. You’ll need to consider:

• How complex is your customer data?
• Do you need features like automation and real-time collaboration?
• Can the platform scale with your business?
• Does it fit within your budget?
• Will you need to upgrade to another platform yet again in a few months time? 

Answering these questions can help you identify the best CRM solution for your business and set you on the path to more streamlined operations.

Why folk is the best alternative to Excel for managing contacts and workflows

With its quick implementation time, folk stands out as an ideal alternative for businesses transitioning from Excel. With its intuitive interface, folk helps streamline workflows and improve collaboration.

• User-friendly design: folk’s simplicity makes it easy for teams to get started without extensive training.
• Automation capabilities: Automate follow-ups and workflows to save time and reduce errors.
• WhatsApp integration: Seamlessly communicate with contacts directly from the platform.
• Scalable for growth: folk grows with your business, offering the tools you need as your operations expand.

Conclusion

Excel offers an excellent starting point for managing customer data, but as businesses grow, its limitations become more apparent. Adopting best practices can help maximize its utility, but transitioning to a dedicated CRM like folk ensures greater efficiency and scalability. Try folk today, free. 

More resources

• 3 essential CRM reports every business needs to drive growth
• Everything you need to know about using AI for lead management
• The ultimate guide to sales email follow-ups: Templates and best practices

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