7 Common Mistakes People Make When Setting Up a CRM

Kamil Kluziak
20 Feb 2023
6 min read
man slouched, worried sitting in a couch

Are you struggling to make the most of your Customer Relationship Management (CRM) system? Are you finding it difficult to increase your conversion rate despite investing in a CRM? You're not alone. 

We have outlined here some of the most common mistakes business owners make when setting up a CRM. Read on to know if you are making these same mistakes and what you can do about it.

Mistake #1: Not Defining Goals and Objectives

Without clear goals and objectives, it's easy to get lost in the data and lose focus on what's important. 

When setting up a CRM, it's important to define what you want to achieve with it. Do you want to increase sales? Improve customer satisfaction? Streamline your marketing efforts? Once you have your goals in mind, you can tailor your CRM to help you achieve those goals.

If you're struggling with this, reach out to us here. We help you choose the right features and functionalities for your CRM based on your goals, so you can make the most of your investment.

Mistake #2: Not Using the CRM

Believe it or not, one of the most common mistakes people make when setting up a CRM is not using it. Yes, you invest in one and then forget about it! 

I know it sounds funny when we are talking about it from a one-person company perspective, but if we talk about a business that has a marketing department, sales department, obviously, there is friction. Because if you are setting up a new CRM, you're adding a new tool that will require a learning curve. Don’t let that stop you, though.

A CRM is only effective if you're actually using it. 

Here are some of what you are missing out on.

  1. Efficient organization: A CRM can help streamline and organize all aspects of your business, from customer information to sales pipelines, which leads to increased productivity and efficiency.
  1. Improved customer experience: With a CRM, you can track customer interactions and preferences, leading to better personalized service and a more positive customer experience.
  1. Higher conversion rates: A CRM can help optimize the sales process by automating follow-ups, tracking leads, and identifying areas for improvement, ultimately leading to higher conversion rates.

If you're not using your CRM, you're wasting time, money, and opportunity. You are missing out on valuable data and insights that can help you improve your conversion rate and help you make better business decisions.

Mistake #3: Not Adapting the CRM to Your Own Needs

Another common mistake people make when setting up a CRM is using a generic pipeline that doesn't suit their specific needs. 

They're not changing the pipeline to their particular situation

The generic pipeline goes like this…

They have a market qualified lead- MQL, then it goes to sales qualified lead -SQL .

Then there is the initial call or a quote where the prospective customer didn't like it, like it, and then closed, right? 

That might be working for you, but from my perspective as a person running Google Ads for companies where we sit in their CRMs and help them, that's not enough. It's much better when you have different steps in place in the pipeline. Really break it down. 

What I mean is that it is very important to understand WHY the lead was disqualified. Is it because of certain decisions, like it was too expensive for them or they went with the competitor? 

Second thing is also to be able to understand different steps.

So for example, create a different step if you need to acquire certain details from your clients. By doing so, you can see why people are not willing to give you more information before you're able to contact them. Combine all these data so when your team is working on all those deals, you'll be able to have a much better insight in the situation and are more likely to close sales.

If you want to make your business a data driven system, try to expand, try to adapt the pipeline to what you're doing. Try to collect as much data as possible, not only for the person who is running your paid campaigns, but also for yourself to make informed business decisions. 

Mistake #4: Not Integrating Other Tools and Platforms

Integrating your CRM with email, telephony, calendars, marketing, and customer support tools can provide a complete view of customers and processes, boost collaboration, and prevent siloed data.

Here are three negative effects of failing to integrate other tools and platforms with CRM:

  1. Poor Data Management

If a company doesn't integrate its CRM with other business tools, it can lead to siloed data. This means that employees may be working with incomplete or outdated information, which can result in poor decision-making and customer service. 

For instance, if a sales team doesn't have access to the latest marketing campaign data because it's stored in a different platform, they may target the wrong audience or offer outdated promotions.

  1. Reduced Productivity

Without integrating platforms, employees may need to manually enter data into different systems. This not only wastes time but also increases the likelihood of errors. 

For example, if a customer service agent needs to switch between different platforms to access customer information, it can slow down their response time and decrease productivity.

  1. Missed Opportunities 

Without integrating platforms, a company may miss out on potential opportunities to improve customer engagement and sales. 

For example, if a company doesn't integrate its CRM with its social media channels, it may miss out on valuable customer interactions and feedback. This can lead to missed opportunities to engage with customers and improve the overall customer experience.

It's essential to ensure that all business tools are integrated to maximize the benefits of your CRM. Doing so makes your CRM a central hub of information where you are able to get a single source of truth from all your marketing and advertising efforts.

Mistake #5: Failing to Clean Data 

Data is like a superpower for businesses, but it's only helpful when it's accurate and complete. Using outdated or incorrect data can lead to bad business decisions, and nobody wants that!

The quality of your CRM platform depends on the quality of data it stores. So if you're filling it with old, false, or incomplete information, you're going to have a bunch of issues like duplicate records, missing fields, and other wonky stuff. These affect your customer records, give inaccurate reporting, lost leads, and missed sales opportunities. Plus, it can hurt your brand reputation and customer support.

The good news is that you can fix bad data! Before importing records into a new instance, take a moment to clean it up. If the data is already in the records, your CRM has a functionality to fix it. Most modern CRM solutions have features to help you identify duplicate records, merge them, and make sure all necessary fields are filled out.

Mistake #6: Ignoring Data Privacy

Neglecting data privacy when setting up a CRM can be a big mistake for businesses. Customers expect their information to be kept private, and failure to do so can lead to lost trust and a damaged reputation. Additionally, non-compliance with data protection laws can result in hefty fines. Lastly, cyber attacks can result in theft of data, financial losses, and legal consequences.

To avoid these issues, businesses should prioritize data privacy by implementing strong security measures and complying with data protection laws. By doing so, they can safeguard their customers' information, avoid penalties, and maintain a positive reputation.

Mistake #7: Not Getting the Insight of Your Sales Team

It's important for business owners to involve their team members when setting up a CRM. Why? Well, because the folks who are in the thick of things - dealing with customers, handling sales and marketing strategies, etc. - have some pretty valuable insights!

By working together, business owners and their team members can identify the most important data to track, figure out the best ways to organize and visualize that data, and come up with workflows that make sense for everyone. When team members feel like they're a part of the process, they're more likely to buy in and use the new CRM system effectively. And that can lead to increased efficiency, productivity, and revenue for the business.

So, don't be shy about asking for your team's input when setting up your CRM. It's a win-win situation - you get a system that works for everyone, and your team members feel heard and valued.


Avoiding these common mistakes is crucial if you want to make the most of your CRM investment. If you are struggling with any of these, we are here to help. Click this link to get in touch with us today.