I found a great article this morning over at SmartMoney.com about the benefits of utilizing CRM software – that's Customer Relationship Management software for you playing at home. (Although, I really refer to it as Customer Retention and Management software.) I wanted to point it out because a number of you have asked about a clear, concise way of managing your client database and keeping track of communications. CRM software is just the ticket!

Many small businesses either don't have CRM software, or are using an outdated system. While you may keep notes on clients in your product database, such as when items were sold, it would certainly behoove you to have a separate, customer management system.

At its most basic level, CRM software is a more comprehensive Microsoft Outlook. While Outlook may be used for managing appointments and emails, CRM lets multiple users collaborate and manage a customer's overall contact history and essentially make notes in the margins. The technology also helps businesses design targeted marketing campaigns, suggest complementary or add-on products based on previous purchases, track customers' purchase behavior overtime and assess what's not working, too.

There are a number of CRM software packages you can utilize – some are entirely web-based, which is extremely useful if some of your staff are telecommute or traveling, and some that are not web-based. Here are a few of my favorite programs:

• Salesforce is the leading workhorse in the CRM industry. I've used Salesforce on a number of occasions, and find it easily accessible and easy to work with.
• On Contact offers a software platform that you can access both on your local network and online.
• Microsoft Dynamics offers a wonderful CRM program as well, complete with Dynamics events, chats, and webcasts, as well as an online community. Great for those who are looking for a little bit of extra support.