What Is CRM Software? Features, Types and Cost
Short answer
CRM (customer relationship management) software is a shared database of the people and companies you sell to and the deals you're working on. It records every email, call and meeting, shows each deal's stage in a pipeline, reminds reps what to do next and reports on what will close. Entry plans for the CRMs we rank run from $7 (HubSpot) to $35 (Close) per user per month, and several have free plans.
What a CRM does
Every CRM is built around the same core records, then adds automation and reporting on top:
- Contacts and companies. One record per person and account, with their details and full history.
- Deals and pipeline. Each opportunity moves through stages you define, from first conversation to closed won or lost.
- Activities. Calls, emails, meetings and tasks are logged against the right record, often automatically through email and calendar sync.
- Automation. Rules that assign leads, create follow-up tasks, move deals or send emails, so nothing depends on memory.
- Reporting and forecasting. Pipeline value by stage, win rates, activity by rep and a forecast of what will close this quarter.
Who needs a CRM
A spreadsheet works until it doesn't. These are the usual signs a team has outgrown it:
- More than one person talks to the same customers, and nobody can see the full history.
- Deals stall because follow-ups live in someone's inbox or head.
- You can't say with confidence what will close this month or quarter.
- Marketing hands over leads and can't tell what happened to them.
Founders and very small teams can start on a free plan; growing sales teams usually need the automation and reporting on the second or third tier.
The main types of CRM
- Pipeline-first CRMs focus on moving deals forward with a visual pipeline and activity reminders. They're quick to set up and easy for reps. Pipedrive is the best-known example.
- All-in-one platforms share one database across sales, marketing and service, with deep reporting and customization. HubSpot, Salesforce and Zoho CRM sit here; they suit teams that want one system across departments, and the biggest need an admin.
- Communication-first CRMs build calling, SMS and email sequences into the CRM for inside sales teams that live on the phone, such as Close.
- Flexible-data CRMs let you model your own objects, such as investors or partners, without an admin. Attio is one; they're popular with startups.
How much a CRM costs
Most CRMs charge per user per month, and the entry plan is rarely the one a sales team ends up on: automation, forecasting and custom reports usually sit one or two tiers up. Entry prices for the CRMs we rank, from each vendor's pricing page:
| Tool | Entry price | Plan and billing | Free plan / trial |
|---|---|---|---|
| Salesforce | $25/user/mo | Starter Suite, monthly or annual | Free Suite + free trial |
| HubSpot | $7/seat/mo | Starter, billed annually ($20 monthly) | Free plan (up to 2 users) |
| Pipedrive | $14/seat/mo | Lite, billed annually | 14-day free trial |
| Zoho CRM | $14/user/mo | Standard, billed annually ($20 monthly); USD list price last confirmed Oct 2, 2026 | Free for 3 users; 15-day trial |
| Freshsales | $9/user/mo | Growth, billed annually | 21-day free trial |
| Close | $35/user/mo | Essentials, billed annually ($9 Solo plan for 1 user) | 14-day free trial |
| Attio | $35/user/mo | Plus, billed annually ($44 monthly) | Free plan (3 seats); 14-day Pro trial |
Free plans: Salesforce (free Suite + free trial), HubSpot (free plan (up to 2 users)), Zoho CRM (free for 3 users; 15-day trial), Attio (free plan (3 seats); 14-day Pro trial). Watch for one-time onboarding fees on higher tiers and for add-ons such as AI, calling or extra storage. For a full cost breakdown by team, see our HubSpot vs Pipedrive and Salesforce vs HubSpot comparisons.
How to choose a CRM
- Map your sales process first: stages, who owns which step and what has to be logged.
- Price the plan you'll need in a year, not the entry plan, including onboarding fees and add-ons.
- Check integrations with your email, calendar, phone and marketing tools.
- Run a real trial: import 20 live deals and work them for a week with the people who'll use it daily.
Our CRM shortlist scores each option on six weighted criteria, and our small business guide reweights them for teams of 1 to 20.
FAQ
What does CRM stand for?
Customer relationship management: the practice, and the software, for managing a company's interactions with current and potential customers.
Is there a free CRM?
Yes. Among the CRMs we rank, free options include Salesforce (free Suite + free trial); HubSpot (free plan (up to 2 users)); Zoho CRM (free for 3 users; 15-day trial); Attio (free plan (3 seats); 14-day Pro trial).
What is the difference between a CRM and a spreadsheet?
A spreadsheet stores data; a CRM also logs activity automatically, reminds people what to do next, lets several people work the same accounts without overwriting each other, and reports on the pipeline.
How long does it take to set up a CRM?
A small team can be running on a pipeline-first CRM in a day. Mid-market rollouts with custom fields, integrations and historical data commonly take several weeks.