Managing customer relationships while handling digital content can be complicated for small businesses. You’ve probably heard acronyms like CRM and CMS before, but understanding which system your company should be using—or if you need both—is crucial for growth.
CRM refers to Customer Relationship Management and CMS stands for Content Management System. While their names may sound similar, these two platform types will serve very different purposes within your business. We’ll be going over their main distinctions and helping you figure out where they fall into your business model.
What is a CRM (Customer Relationship Management)?
A Customer Relationship Management system, also known as CRM, is a type of software that helps you manage and improve every interaction you have with your customers and potential customers.
You can think of it as a system where all customer data and processes are centralized. CRM systems generally offer core features such as contact management with detailed customer records, sales pipeline visualization of deals at each stage, marketing automation to target potential customers, and customer analytics and reporting. CRM systems are mostly used by sales teams, customer service teams, and marketers to get a 360-degree view of their customer interactions.
CRM adoption has a measurable impact on your business. According to some insights by nutshell, CRM applications can help your company increase sales by up to 29 percent, increase sales productivity by up to 34 percent, and improve sales forecast accuracy by 42 percent. There are several CRM software providers in the market, like Salesforce, HubSpot, Zoho, and Microsoft Dynamics, each with varying pricing and feature sets to cater to different business needs. For the best fit for you, I’d recommend checking out our article on top CRM tools for you.
When should you use a CRM?
According to Demand Sage, 91 percent of companies with 11 or more employees use CRMs, and 50 percent of companies with 10 or less employees have a CRM. If you’ve reached the point where you’re using spreadsheets and email to manage your customer data, it’s time to move on from the manual systems.
You’ll need a CRM when you:
Have a sales pipeline with more than a couple of leads
Want to automate follow-ups with your customers
Need to track your customers’ journey through different touchpoints
Need team members collaborating on deals
Require sales forecasting based on hard data.
What is a CMS (Content Management System)?
A content management system (CMS) is a software tool that allows you to create, manage, and publish digital content, typically on a website, without having to code from scratch. In essence, it’s your go-to digital publishing engine.
Primary functions of a CMS include a user-friendly content creation/editing interface, website management and administration for non-technical users, content publishing and scheduling, user permissions and workflow, and SEO features and analytics. CMS users are mainly marketing teams, content creators, and web managers who aim to maintain active, consistent, and compelling online presences to attract and convert site visitors.
According to Magecomp, the CMS market is considerable and on the rise, with 64 percent of websites currently running on CMS software. The CMS market size is projected to reach $54 billion by the end of 2025. The leading CMS platforms are WordPress, Shopify, Wix, and Squarespace. The latter three have been especially popular among small businesses looking for an easy managed solution.
When Should You Use a CMS?
Managed options on modern CMS platforms such as Shopify, Wix, and Squarespace have made it easy to build a professional website without having to worry about the technical obstacles that were previously required, especially for small businesses.
Create and manage multiple product pages and landing pages
CRM vs CMS: Key Differences Explained
Although both systems aim to help the business grow, they differ fundamentally in their purpose:
Purpose: CRM is used for customer relationship management and sales optimization; CMS is used for content creation and website management.
Users: CRM is primarily used by sales and customer service teams; CMS is primarily used by marketing and content creation teams.
Functions: CRM provides lead tracking, lead nurturing, and sales pipeline management. CMS offers website publishing, content editing, and design management.
Data: CRM handles data related to customer interactions, purchase history, and sales pipeline. CMS deals with digital content, web traffic, and site performance metrics.
Impact: CRM directly contributes to revenue generation through optimized sales processes. CMS indirectly supports revenue by enhancing brand visibility and generating leads through content.
Analogy: Think of a CMS as the window shopping, and the sales managers inside as the CRM.
The Power of Using Both: CRM and CMS Integration
While CRM and CMS serve different purposes, integrating them creates powerful synergies for business growth.
Integration enables streamlined lead capture, with website forms feeding directly into your CRM.
You gain better customer insights by combining web behavior data with sales information, allowing improved personalization through tailored content based on customer data.
Automated workflows become possible, triggering sales follow-ups from specific website actions.
Enhanced reporting provides a unified view of marketing and sales performance, eliminating data silos.
Why integration matters for business growth
Integration is important for growth because it delivers a smooth experience for your customers, from their first visit to your website all the way to the sale and beyond. When your marketing and sales systems work together, you can cut out manual data entry, reduce lead response time, and make sure no opportunities get lost in translation.
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