Throw away your rotary contact card holder and your book of business cards, and put contact management software to work for you. Contact management software is designed to organize business contacts and sales leads, making them easily accessible. Deciding on one of the many contact management systems can be time consuming and frustrating. Learn the contact management software basics to help narrow down your software search.

Open source contact management software allows users access to most or all of the options paid software offers without all of the expense. Web-based contact management requires little to no software and allows access through an Internet connection. Paid, stand alone software often provides more features than the other types and does not require an Internet connection.

1. Save money with open source contact management software.

2. Find a web-based contact management software.

3. Purchase a stand alone contact management system.

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Find open source contact management software

Open source software is often used by companies looking to save money. Most open source software programs are free and do not require a license. Open source software compares with other software in efficiency and features, however these programs may not include every function or service that paid software offers.

I recommend: Find free open source contact management software at Sugar Open Source. Hipergate is a free, web-based contact management system. Compiere is an open source software that is compatible with many different operating systems.

Sign up for a web-based business contact manager system

Web-based systems are growing in popularity because they allow access to contact information from any computer with Internet access. An online contact manager system is commonly used by companies with traveling salesmen or for those who work remotely.

I recommend: NetSuite offers a web-based contact management software that allows you to view all customer interactions and information at once. SalesForce.com is a complete online contact management site that requires no software to use. Salesboom.com is a web-based business contact manager that is compatible with mobile devices such as the iPod and iPhone.

Purchase stand alone contact manager software

Just like other programs you load onto your hard drive, stand alone contact management solutions run without the Internet. This option is often a little more costly, but you receive the entire contact management system along with any customer and technical service offered by the manufacturer.

I recommend: Buy business contact management software directly from Sage Software. Contact Plus provides contact management systems for companies of any size. Integrate files from Microsoft Office programs into Microsoft Dynamics CRM, with the program's fully functional contact management tools.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Most paid contact management systems provide a short trial period so you can evaluate the product before buying.

If you're like most small-business owners, you probably have a less-than-sophisticated approach to contact management. Maybe you have a Rolodex or a Day-Planner, or perhaps you've gone digital and entered your contacts into your Palm or other hand-held device.

But there's a world of technological solutions out there to not only keep track of your important contacts, but also oversee your entire sales process. Depending upon its sophistication and cost, contact management software:

1. Helps you to store and retrieve contact information
2. Lets you synchronize your calendar and contacts with your PDA
3. Allows you to track sales opportunities and make sales forecasts

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Find an off-the-shelf program

Beyond holding names and addresses, off-the-shelf contact management software helps you forecast sales, track prospects, generate call-back reminders, create broadcast e-mails, perform mail-merge tasks for direct-marketing mailings and more.

I recommend: The most popular programs for small business include ACT, Lotus Organizer, Goldmine and QuickBooks Customer Manager.

See what other users are saying

As you research off-the-shelf packages, check out the user feedback on public sites, such as Amazon and CNET. Then download free demos and try each program out before you buy. Make a tech support call to see how helpful the company is.

I recommend: Find user reviews at Amazon, CNET, ZDNet and WinPlanet.

As you grow, consider Sales Force Automation (SFA)

As your sales force grows, consider upgrading to a sales-force-automation (SFA) system. Essentially contact management on steroids, SFA systems feature such value-added features as greater forecasting and tracking functionality, as well as the ability to automate your sales and marketing efforts and analyze results.

I recommend: For a useful guide on choosing a good SFA system, visit BuyerZone. For more information on particular SFA systems, check out Capterra.

Consider a Web-based service

Whatever your size, there's likely to be a Web-based contact management or SFA system that will meet your needs. Web-based systems are great if you and/or your salespeople are on the road frequently and need ready access to prospect info. Costs range from $20 to $65 per user per month.

I recommend: The most well-known Web-based SFA is Salesforce.com, but its pricing structure is best suited to businesses with 10 or more salespeople. CLP's lower pricing may be more attractive to soloists and smaller businesses.

Make do with what you have

If you're trying to keep costs down or you're a solo practitioner, chances are you've already got something that will fill the contact-management bill. Handheld devices like the Palm, Blackberry, Treo or other PDA/mobile-phone combos often come with personal information management (PIM) software. Or if you use Microsoft Office or Lotus SmartSuite, those packages contain usable PIM programs as well. Your e-mail service will also likely have PIM functionality.

I recommend: Find out more about your current software package's contact management capabilities, including sales prospect tracking and mail merge functions, by checking out Microsoft Office or Lotus SmartSuite.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Take a good look at whether you must upgrade. Your current productivity or mobile device software may actually meet your needs.
• •  Match your staff size to your software solution: How many salespeople do you have now? How many do you plan to have two years from now?
• •  Check to see that the software that you’re considering compatible with your current computer system and can handle exports to your Palm or other handheld device.

Automated contact management tools will save you enormous amounts of time, greatly improve your flexibility in doing business on your terms and overhaul some or much of your communication data organization. While the pricing and costs of contact management software vary widely, you can still get lots of features for very little money.

The prices you'll pay depend on several factors like the number of people using it, the complexity of the business contact manager software, number of features and any support package you might purchase separately. Because so many products exist, you've got to perform due diligence to ensure you're making a wise investment. You might even start with free software to see if you get everything you need. To get the best deal for you and your company:

1. Ensure the contact mgmt software you buy integrates with your other business applications.

2. Consider long-term requirements for a customer contact system when budgeting for your purchase.

3. Keep other costs for contact management tools in mind like lock-in periods and extra storage.

Action Steps
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Purchase or download reasonably priced contact management software

Purchasing software products or downloading software appeals to people because of its familiarity and ease of installation. Online client contact management software continues growing in popularity, but you'll truly own the software you purchase or download; once you get it, you never have to pay for it again -- unless you lose it.

I recommend: If you just need sales contact management software for yourself, read more about the Prophet 5 Personal Edition from Avidian. This software builds on top of your Outlook information rather than replacing it. Learn more about Up to Date and Contact 5 from Now Software. With this software, you'll enjoy features that include cross platform (both Mac and Windows), multi-user, designed for Mac OS X, easy to use, web integrated, web publishing of calendars/address books, Palm/PocketPC/Blackberry/iPod/Phone syncing and more.

Try web-based contact management systems

Sometimes server-based contact management solutions can offer the best all-round deal. Rather than purchasing contact management software at a store or from an online vendor, you get to access software installed directly onto a server. You don't have to worry about maintenance and upgrades to the software and because it avoids the production and logistics costs of CDs, you can find some great deals for online contact management applications. Plans range from free to $100 a month, depending on how many in your company will use the software.

I recommend: Check out the pricing on BatchBook from BatchBlue Software. If you are your only employee, sign up for free. Prices then rise incrementally depending on the number of workers you employ: 3, 15, 40 or 100. Relenta offers two simple, per-person monthly or quarterly payment options. This all-in-one software includes features like email, (CRM) customer relationship management, group calendar, mailing list management and task management.

Ensure you know what you're buying before spending any money on contact manager software

To ensure contact management software is worth the investment, make sure it meets or exceeds your expectations first. Take advantage of free trials and look for reviews of different products that interest you.

I recommend: Check out the latest reviews and price ranges for software and online business contact management software at PC Mag. Look for websites like Sage Software that offer free trials, tutorials and even a live, interactive eDemo.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Manufacturers create some contact management tools designed for specific businesses like real estate. If you can afford it, look for contact management systems with customizable features that will fit your particular needs.