Contact Management Software: Features, Benefits & Top Solutions

Contact management goes beyond organizing names and numbers in a spreadsheet. It also includes tracking interactions and measuring progress in addition to managing customer contacts. A contact management tool helps you do this seamlessly.

However, if it’s not effectively adopted in the workflow, the tool manages you instead of your contacts. In addition to a reliable contact management tool, you need a well-thought-out plan so you can put in place an executable process to encourage adoption.

The contact management software aggregates customer data, while the processes help automate workflow. This drives improvements in sales and marketing efforts.

In this article, we’ll dive into contact management software and cover best practices to help you use the tools effectively.

What Is Contact Management Software?

Contact management software organizes, stores, and tracks customer information in a centralized database. This information contains phone numbers, emails, social media profiles, or referral information that helps businesses connect with clients.

It frees up businesses from making administrative changes manually, such as updating sales interactions or follow-ups. To keep up with the tracking, such systems often have integrations with customer relationship management (CRM) software.

How contact management software differs from CRM software

Traditionally, contact management is more about storing and organizing customer information to use it for future interactions. CRM concentrates more on pipeline tracking combined with lead generation and marketing automation features.

Modern CRM software providers offer a contact management tool as a part of their package, making it easier to track customer information in a centralized manner. Similarly, various email productivity solutions deliver contact management included in their features. But do conversations with clients happen over email only?

In real-world scenarios, client conversations span beyond emails or phone calls to chat, social media, and even text messaging. Communication software like Nextiva combines all these channels together, integrating with a CRM to aggregate interactions across all channels as inputs to update the CRM system accordingly. This helps businesses manage customer relationships effectively, regardless of the platform on which they’re nurtured.

Here’s an overview of how contact management software is different from CRM software:

Contact Management Software	CRM Software
Keeps track of names, phone numbers, and emails	Manages all customer interactions and sales steps
Works like a digital address book	Organizes customer interactions, sales, and follow-ups
Offers a simple list of customer contacts with notes	Includes tools for sales, marketing, and customer support
Includes limited notes on customer conversations	Allows detailed record of emails, calls, and meetings
Usually works by itself	Connects with email, social media, and other tools
Does not offer much automation	Can automatically send reminders and follow-ups
Works for small businesses or individuals	Works for teams and larger businesses needing full customer care

According to Jon Ferrara, the CEO of Nimble, CRM and contact management aren’t so different. CRM is a database with input and output. Based on the input and output, a CRM keeps on updating. The database here assumes the role of contact management.

The difference between the two products is fading as contact management systems deliver features to track interactions, automate workflow, and follow up promptly. The tool offers some of these features, while some become functional through integrations.

Why Do Businesses Use Contact Management Software?

There are various reasons why users rely on contact management software. It’s not something new. Professionals managed this with a Rolodex in the past. They have evolved to take up a digital form as contact management software. New features came in with the evolution, delivering new benefits to users.

Improving customer experience and support

A contact management software centralizes all customer communication data. This helps businesses quickly absorb the context needed to add personalization to customer interactions.

Since everything is in one place, there’s less time spent on collecting insights, and the responses automatically become quicker.

72% of customers say AI-driven personalization will impact e-commerce businesses and their customers the most.

The contact management software updates contact records based on interactions and customer actions. It makes it easier to track customer journeys and helps agents to deliver better support when it’s needed the most.

Increasing sales and marketing efficiency

Tracking customer interaction and actions supplies CRM tool inputs to trigger automated follow-ups and email campaigns. This automates the workflows required to engage customers in real time, reducing the manual heavy lifting.

According to Salesforce, CRM usage has shown a 34% increase in sales productivity.

Contact management tools increase the efficiency of sales and marketing campaigns by delivering high-touch engagement to prospects or leads with a higher potential to convert.

The analytical capabilities of contact management software allow the sales team to track engagement metrics and take the proper steps to optimize them.

Reducing manual data entry (and human error)

Contact management tools easily replace spreadsheets and outdated databases. Therefore, you don’t need to manually update the “sheet” after every quick interaction with the client. Most importantly, your time is invested in strategically following up with the customer rather than doing administrative work.

Since the records get updated in an automated fashion, the chances of human error are reduced. There is a lower chance of data points or records being duplicated. You’re confident that customer records are accurate, which makes your decisions reliable and well-informed.

Streamlining team collaboration

A centralized database for all team members makes it easier to access real-time customer data. This is especially helpful when working collaboratively on a deal as a team. Virtual team communication becomes simpler.

If you’re selling to an enterprise customer, you might have several stakeholders in a deal. Every stakeholder’s needs differ, and they expect you to clarify their doubts and clear up their confusion before proceeding. For example, a potential customer’s IT department leader might be curious about security, whereas a different team member might ask questions about the features included.

Having a centralized customer database helps you to pursue such deals collaboratively.

Best Practices for Using Contact Management Software

Below are a few best practices for using contact management software in your workflows. These will help you gain the most ROI from your software purchase.

Keep your contact database organized

An organized contact database helps you sort contacts and target them more effectively. It’s best to categorize contacts based on their stages in the customer journey or whether they’re potential or existing customers. You can also sort them based on how close they are to making a purchase. However, isn’t this the same way anyone would categorize contacts to prioritize them effectively?

With a contact management tool, you can categorize contacts more methodically, using factors beyond their proximity to conversion, such as their industry. This will help you optimize your messaging to suit their unique needs and expectations.

You can easily add such categorization in an organized customer database and sort customer data. Make sure this data is updated from time to time and that you review it periodically to ensure you’re not missing out on any updates.

Integrate with CRM and marketing automation tools

Even though contact management software can stand alone, you should connect it with a CRM platform and marketing automation tools. Through these integrations, you drive value, as it helps make your workflows more effective and efficient.

As the customer navigates their life cycle in a company, their status is updated in your records, allowing you to assist them better. You get triggered notifications that come up when customers make interactions of value, such as when interacting with a chatbot to compare features of different paid plans. Based on such events, email marketing automation tools help you schedule automated emails and messages to engage customers proactively.

Train your team on your system

A well-organized contact management system is only as good as the team that uses it. Support teams should also know how to use these systems effectively, not just in sales.

For a customer, it’s one unified journey with your company rather than fragmented experiences with different departments. If the support or customer success team is in the loop and can access the conversations before conversion, they will better understand customers’ expectations. After onboarding, if there are any issues, the support teams would be well-equipped to deliver truly valuable assistance. This adds to the customer experience, reflecting on your net promoter score and referrals later.

Start with a clear training plan covering your software’s basic functions. Teach your team how to add new contacts, edit existing records, and categorize information properly. When your team understands the system’s capabilities, they can use it to its full potential.

Automate follow-ups and reminders

Establish automation on task management and reminders to help you make the most of opportunities when they’re ripe. Such reminders keep you on your toes when it comes to closing customers who are near to crossing the purchase line, and you don’t miss significant interactions.

Set reminders for key sales activities such as sending emails, making phone calls, or scheduling meetings. For example, after a sales call, you might set a reminder to send a thank-you email or provide additional product information. Automate these tasks to free up time to focus on more strategic work, such as building relationships or closing deals.

Use analytics to optimize performance

Contact management software often comes with built-in analytics tools that help you track key metrics. These metrics include customer engagement rates, response rates, and the progress of your sales pipeline.

Review these metrics to see which strategies are working and which need adjustment. For instance, if you notice that a specific segment of your contacts has a low response rate, you might experiment with different messaging or follow-up techniques for that group.

8 Top Contact Management Software Solutions

Contact management software acts like a digital address book, letting you store, update, and track contact information quickly. Here are some solutions available on the market:

1. Google Contacts

Google Contacts is a free and simple tool that works with your Google account. You can add names, phone numbers, email addresses, and notes about each person. Google Contacts syncs automatically with Gmail and Android devices, so your contacts stay updated no matter where you are.

Key features of Google Contacts:

• Ease of use: Works well for individuals and small businesses.
• Simple automation: Syncs with your Gmail and Android devices.
• Organization tools: Let you create labels to sort contacts by different categories.

2. Microsoft Outlook CRM

Many people use Outlook for both work and personal email. Its contact management tools let you add detailed information about your contacts, such as addresses, birthdays, and social media links. You can set up categories and folders to sort contacts by personal or professional groups.

Key features of Microsoft Outlook:

• Integrated email and calendar: Combines your email, calendar, and contacts in one place.
• Detailed contact info: Lets you add tons of details about each contact.
• Organization tools: Uses folders and categories to keep contacts organized.

3. HubSpot CRM

HubSpot CRM helps you store, track, and update customer information in real time. It provides a complete view of every customer interaction, including emails, calls, and meetings.

Key features of HubSpot CRM:

• Free option: Provides a free version that is powerful for small businesses.
• Real-time updates: Shows every interaction with your customers, giving you a complete picture.
• User-friendly dashboard: Makes it easy to track sales and follow-up tasks.

HubSpot CRM integrates seamlessly with Nextiva’s unified communication platform, helping you aggregate contact data from all customer channels and use it strategically.

4. Zoho CRM

Zoho CRM makes it easy to sort contacts by different criteria, such as lead status or industry. You can set up automated reminders to follow up with contacts and use analytics to see how well your sales process works.

Key features of Zoho CRM:

• All-in-one integration: Combines contact management with sales and marketing tools.
• Automation: Automates reminders and follow-ups, saving you time.
• Analytics: Comes with built-in reports to track your sales and customer engagement.

Integrate Zoho CRM with Nextiva to deliver a memorable customer experience (CX) regardless of the channel customers use to reach out to you.

5. Nimble

Nimble gathers information from social media and other online sources to give you a fuller picture of each contact. It’s especially useful if you want to add a personal touch to your customer interactions.

Key features of Nimble:

• Relationship building: Shows your recent interactions, helping you maintain strong customer relationships.
• Simple contact view: Offers a comprehensive view of each contact’s details.
• Easy updates: Automatically updates contact list information from online sources.

6. Salesforce

Salesforce offers powerful tools that help you manage not only your contacts but your entire customer relationship. It delivers robust contact management features to track customer interactions and manage sales opportunities.

Key features of Salesforce:

• Customer data organization: Stores all your customer details, such as names, emails, phone numbers, and more. You can easily search for and update any contact.
• Interaction tracking: Records every interaction to help you see the full history of each customer.
• Easy customization: Allows salespeople to customize fields, reports, and dashboards. This means you tailor the system to match your business needs.

7. Freshsales

Freshsales combines the essentials of a CRM tool with intuitive design, making it a strong choice for small to medium-sized businesses.

Key features of Freshsales:

• Built-in communication tools: Includes a built-in phone system, email integration, and chat to connect with your customers directly from the platform.
• Lead scoring and AI: Uses AI to score sales leads, helping your team focus on the contacts that are most likely to become customers.

8. Insightly

Insightly combines contact management with project management features. It helps you keep your customer data organized and manage projects and tasks all in one place.

Key features of Insightly:

• Project management integration: Includes project management features, unlike some other tools. This is especially useful if you manage projects alongside your customer relationships.
• Task and follow-up management: Lets you set follow-up deadlines to ensure you stay in touch with your customers regularly.

Integrate Contact Management Software With Nextiva

Contact management seamlessly connects customer data with the business communication system. It allows you to improve efficiency, sales, and CX. With Nextiva, you get a fully connected system that will enable you to engage customers efficiently at scale across different channels.

Nextiva integrates with contact management solutions and CRM solutions like Salesforce, Zoho, and others.

This ensures no customer interaction is missed on any channel, helping you get the most real-time data available to assist customers in their journeys.

Ready to simplify contact management? Learn more about Nextiva’s solutions today. 👇