Customer relationship management (CRM) is a methodology, software or internet capability enabling a company to record, manage and access information on customer histories and interactions.

On the face of it, it promises businesses the opportunities to turn customer information into increased and sustained sales.

But in recent years it has gained a reputation for failing to deliver customer satisfaction, in part due to the failure of large organisations to offer the personal touch that is so important to business relationships.

"CRM tends to be a topic which people make the mistake of associating exclusively with large companies," says Eilert Hanoa, chief executive of Mamut. "But, ironically, small businesses arguably have the most to gain from the customer insights and processes CRM can deliver.

"CRM, when it's properly approached, can give small businesses a real edge in the marketplace, helping them to retain valued customers and maximise the full potential of every customer interaction."

Mamut offers the following five tips for small businesses looking to establish CRM best practice:

Know what you want to do
CRM failure usually stems from a lack of planning. Set goals and communicate these company-wide before the system goes live. Look to use CRM to gain deeper insights into customer behaviours for marketing and sales plans. These help sales teams to up-sell and cross-sell on a day to day basis. By knowing your customers you better anticipate their needs and preferences.

Management should decide clear goals which CRM can be measured against so tie any CRM strategy to company performance and results, for example, a 10% increase in cross-selling or 10% fall in customer attrition.

Adoption through employee support
CRM requires full cultural ‘buy in' from all staff. Without this it fails. Some workers fail to share knowledge and experience within a CRM system, fearing they'll be less valued to the company afterwards. Reassure staff that CRM is not a threat to their status or position. Through it customer service improves and company performance is boosted, offering greater security for everyone. It's good practice for staff to have access to specialist information via CRM if a particular expert is ill or on holiday.

Designate a CRM steering committee, comprised of advocates, to guide on issues or questions. This responsibility should be written into advocate job descriptions as part of their targets. Timelines should be clear, outlining how CRM ties into long-term company strategy and daily working practice.

Keep IT agile
The solution should take up limited space on IT systems and require little configuration from the IT department. User interfaces should be clear and easy to use so employees can find information quickly. Leading providers often offer CRM as part of a larger package which also contains accounting and payroll packages, providing comprehensive integrated information across all departments. Moreover, the IT department doesn't have to integrate CRM with other packages (saving time and money).

The web is your ally
CRM comes in several models:

• On-premise software doesn't require the Internet but may require installation by IT departments. It often requires physical upgrades and will not always deliver a better user experience but it does give the user total ownership of data and the application.

• Software as a Service (SaaS) models usually require no on-premise installation and are automatically upgraded by the service provider. Unfortunately, though, these depend on provider performance and internet connectivity and may not function in the event of connectivity problems. Customers must always retain permanent access and good security with their data.

• Some vendors adopt a hybrid approach known as Software + Services (S+S). This combines desktop software with internet support from the provider. It delivers the benefits of both models and eliminates their weaknesses. For many growing small businesses this is the most flexible option.

Retain, retain, retain
Enter as much relevant information as possible at all times. CRM success doesn't happen over night and can take six months to produce results. As with most things in life, the more you put in the more you will get out.