Is This True: Having a CRM is Essential for a Small Business?

I recently heard a marketing consultant, during one of his lectures, tell his audience that it was not essential to have a CRM for one’s painting (insert your industry) business. This statement was made because someone in the audience asked him what CRM he recommended. The marketer did not recommend a CRM and just said, “I do not care what you use for a CRM…Excel would work fine or even a pencil and a pad.” I get what the consultant was saying. This was in the context of hunting for new leads and reaching back out to past clients. The marketer had the idea that sometimes a CRM can be overkill and a time waster for salespeople.
I recently talked to someone who hired their first salesperson and asked if he had a CRM to keep track of his prospecting, lead generation, and sales pipeline? I, then, encouraged the owner to try a CRM for a few weeks and get the sales guy to commit to using it. Fast forward a few weeks, the owner ended up firing the salesperson. The decision to let him go was largely due to the fact that the CRM did not lie. The salesman was lazy, and he could not continue to get by the owner now that the CRM was giving him reports. A CRM has been a wise choice for me because it really does help keep me on task. I do the bulk of the selling at my job. However, I do not prospect and sell everyday. It is just my industry. It is every now and then. An estimator for a painting company should be prospecting and/or selling each day. That is why a CRM is vital for a sales staff. Because my sales is not full time, I still use a CRM to help with the next steps and my long sales cycle. I sometimes have proposals that can take weeks if not months to sell. Sometimes prospects will come back 6 – 12 months later and sign up. I can go into my CRM and within seconds have their information at my fingertips.
Is a CRM Really Necessary?
I have seen companies use a rolodex system, files/folders, CRM, Excel, Email, and Post-It notes to keep track of reminders, next steps, sales process, and their customers. Should your company invest the time and resources by using a Customer Relationship Management (CRM) program? I know some of you will not be shocked when I say that a contracting business should use a CRM. Why? I think it helps keep your business on track, focused and more sellable down the road. It also provides better accountability with your team.