How to make a CRM in Excel without investing money | Free template + 4 recommendations

If you want to improve the sales process in your business, but you cannot invest a lot of money, understanding how to make a CRM in Excel can be the solution.

Everyone knows Microsoft's spreadsheet software, but few know the myriad of things that can be done with it, including creating a CRM. Using an Excel CRM format, it is possible to optimize customer tracking and retention at a low cost.

Truth be told, you are likely to see improvements in your business performance in a short time. However, we must warn you that if you are looking for a more practical and ready-to-use option, it is very difficult to replace professional software.

Back to the topic, if you have limited resources and your company is quite small, you can start improving your customer relationships through a CRM in Excel. In this article, we will teach you how it works, everything you need to know to do it yourself, and how to use it effectively.

How does a CRM work in Excel?

If this is your first approach to Customer Relationship Management, you may be wondering how a CRM works . If you already know a little more, you will wonder how it is possible to achieve that all these functions and layers (data collection, data management and data analysis) can be incorporated into an Excel.

Simply put, an Excel CRM template allows you to manage customer relationships through the features of Microsoft Excel, which will help you organize and manage contact information, interactions, and sales processes.

The truth is that you can create specific spreadsheets for each stage of the sales process, assign custom fields, and regularly update the information for each client or contact.

This type of CRM becomes an attractive option for small companies or those in the early stages of digitalization that are not yet ready to implement a more advanced CRM system.

You just need to fill in the corresponding fields, and you will be able to automatically obtain the information you require, adjusting the template as your business needs change.

This way, your team gains the ability to centralize important data, streamline workflow, and ultimately facilitate better customer service and a better sales experience.

4 advantages and 5 disadvantages of creating a CRM in Excel

Now, like all business software, there are advantages and disadvantages to a CRM . Among them we find the possibility of automating processes and increasing productivity, but

We also ran into the initial implementation cost and the learning curve.

In the case of a CRM in Excel, these benefits and limitations vary, taking into account that we are talking about a much simpler and less scalable product.

Let's see what are the pros and cons of a CRM format in Excel. 

Advantages of using Excel as a CRM

Implementing a template-based Excel CRM offers multiple benefits, especially for small businesses that are beginning to digitize their operations. Here are four advantages that we can mention:

1. Familiarity and Accessibility
   Most people, from students to professionals, are familiar with Excel. This makes it easy for you and your team to adapt to an Excel CRM without the need for complex training. Plus, Excel has numerous online tutorials and resources, which reduces the learning curve.
2. Cost-Effectiveness
   Excel is a cost-effective alternative for businesses looking for a customer relationship management system without incurring the high costs of specialized software. Many small businesses already have Microsoft Office, and the web version of Excel is free. Even if you need a subscription for the desktop version, it is still more affordable compared to a professional CRM.
3. Customizable
   One of the great things about Excel is its flexibility and customizability. You can design your CRM based on the specific needs of your business, creating custom fields for different clients or configuring the sales pipeline according to your team’s workflow. Plus, you can adjust pre-existing templates to perfectly fit your processes.
4. Integration with other Microsoft Office applications
   As part of the Microsoft ecosystem, Excel integrates seamlessly with other Office suite applications such as Outlook or Word. This allows you to manage and share information more easily and provides a more holistic approach to customer relationship management. You can, for example, link Excel sheets to emails in Outlook or create reports and letters in Word using CRM data.

Disadvantages and limitations of a CRM in Excel

While an Excel CRM template can be an economical and practical solution for small businesses, there are certain limitations that should be considered:

1. Limited Scalability
   Excel is not designed to handle large volumes of data. As your customer base grows, managing information in an Excel file will become more complicated and error-prone. Specialized CRM systems are designed to scale with the business, something Excel cannot optimally offer.
2. Collaboration and Version Control Challenges
   Collaborating on an Excel file can be complex, especially if you have a team that needs frequent access to the CRM. Version control issues and data discrepancies are common when multiple people update the same file. While cloud collaboration options exist, the experience is not as seamless or effective as in a dedicated CRM.
3. Lack of Automation
   Unlike a professional CRM that can automate processes like updating data, sending reminders, and analyzing metrics, Excel relies on manual input. This means you or your team will have to constantly update data, which can be tedious and error-prone. Lack of automation also limits task tracking and automatic communication sending.
4. Data Security and Privacy
   Excel files do not offer the same level of security as a professional CRM platform. Information in a spreadsheet can be exposed to unauthorized access, and any member with access to the file could delete or copy data without restrictions. Additionally, Excel does not have advanced backup options, and in the event of a system failure, you could lose valuable data.
5. No Audit Trail
   Unlike CRM systems, Excel does not allow for detailed logging of changes. If multiple users have access to the spreadsheet, it will be difficult to know who made changes, when, and what specific changes were made. Lack of an audit trail can be a problem in customer management, as it makes it difficult to track and control updated information.

How to make a CRM in Excel: Template or custom?

If you have decided to create a CRM model in Excel , you can choose between two options: download a pre-designed template or build the CRM from scratch. Below, we explain both options.

First option: download a CRM template in Excel

The easiest option is to download Excel templates for CRM. There are various free CRM Excel template options, such as the one we offer here on the blog. Since they are pre-designed, they only require you to enter your data.

In our template you will find several suggested basic fields, which you can also customize according to your needs. If you have a small team and are looking for a quick implementation, this may be the ideal option.

Second option: create your own CRM in Excel from scratch

On the other hand, if you prefer to customize the CRM according to the specific needs of your business, creating one from scratch in Excel will allow you to design a system tailored to your needs.

Here is a detailed guide to structuring it effectively:

Instructions for creating a CRM in Excel from scratch

As we have already mentioned throughout the article, to have a CRM on a small budget, Excel is a highly customizable alternative with certain automation functions that save time and money.

While this is not a system that offers great scalability, it does allow small businesses to begin to establish better relationships with their customers.

To create your own CRM template in Excel, follow these steps and recommendations:

1. Create an Introduction Tab

Before you start organizing data, it's helpful to add an introductory tab where you explain the purpose of the CRM. On this tab, you can include a brief description of each sheet or tab to orient users, especially if other team members will be using it.

2. Add a Glossary

A glossary helps unify the terminology your team will use, which is essential for clear communication. Here you can define terms and labels that classify customers by status, such as “lead,” “in negotiation,” “won,” “lost,” and more. This way, all collaborators will be aligned in terms of interpreting these statuses.

3. “Clients” tab

Among the main features of a CRM, the clients tab or database management is the most important, as it gathers the basic data of the contacts. Through this tab you can communicate more easily, carry out detailed follow-ups and even prepare automatic marketing campaigns.

To do this, set up a table with columns like:

• Priority : Indicates the urgency of each contact (high, medium or low).
• Name of the client or company .
• Business Type : The industry or sector in which the client operates.
• Website and LinkedIn : Links to your digital platforms for easy access.
• Telephone, country and address .
• Comments : Space to write down important observations or notes.

This table will serve to keep a detailed record of all important contacts, whether they are in the lead acquisition phase or a business relationship has already been initiated.

4. “Established Contacts” tab

Once you initiate communication with a contact, organize this information in a dedicated sheet. Here you can add:

• Contact name and associated company .
• Assigned to : Name of the collaborator in charge of managing the contact.
• Percentage of completion and probability of closure : This data helps to evaluate the probability of success and monitor progress.
• Potential sale value and estimated closing date : These fields allow you to make a forecast about the value and timing of the sales opportunity.

This structure makes it easy to track each contact in detail and its status in the sales cycle.

5. “Sales Tracking” tab

This sheet is useful for managing your sales pipeline. Some recommended columns are:

• Name of the deal or project .
• Description and potential value .
• Stage in the sales pipeline : From “initial contact” to “closed – won” or “closed – lost”.
• Last contact date : To identify when the last interaction was.
• Closing Probability : A percentage estimate of the probability of success.

This tab allows you to view and prioritize ongoing deals, optimizing time and resources for each opportunity.

6. Analysis Tab

Data analysis is essential for making informed decisions. Create an analytics tab where you can observe the performance of your sales process and your customer relationships. Here you can use:

• Pivot Tables : A pivot table allows you to summarize customer and sales data, showing key metrics such as total closed sales, number of customers by industry, or progress through each stage of the sales cycle.
• Charts : Visually represent your sales data with bar or line graphs to observe trends and evaluate team performance.

Application of advanced formulas and functionalities

To make your Excel CRM more efficient and user-friendly, apply these formulas and functions:

• Conditional Formatting : Use conditional formatting rules to highlight relevant information. For example, you can set up a rule so that cells with a last contact date greater than 30 days are highlighted in red, indicating that it's time to reconnect.
• COUNTIF formula : If you want to keep track of leads at each stage of the sales cycle (e.g. “in negotiation,” “closed – won”), use =COUNTIF(range; criteria) . This will help you monitor the status of leads quickly.
• Data Validation : To ensure that users enter consistent data, set up drop-down lists. For example, you can create a list to select each customer’s stage in the sales cycle, such as “potential,” “in negotiation,” “closed.”
• IFERROR function : If you use formulas and want to avoid visual errors in empty cells, add the IFERROR function . For example, =IFERROR(Formula, “”) will display a space instead of an error message if the cell contains no data.

How to run a CRM in Excel: 4 best practices

The last key step in the mission of using a CRM is knowing how to maintain it over time. You can design a very nice system and everything, but if you don't dedicate yourself to making it functional, it's as good as nothing.

For our part, we bring you these 4 recommendations for running a CRM in Excel:

1. Regular Update : Make sure data is kept up to date as any omissions or outdated data can affect customer management.
2. Team Training : Despite Excel's simplicity, train your team on how to use CRM efficiently. A clear guide or training session can help everyone use it consistently.
3. Backups and Security : Excel does not offer the advanced security levels of a dedicated CRM. Make frequent backups of your file and set passwords to prevent unauthorized access.
4. Permissions and Access : If you use Excel in the cloud, be sure to define access permissions to limit who can view or edit sensitive information.

Having a CRM in Excel can be an effective solution to organize and manage customer relationships in the first steps of a company towards digitalization. Although you will be able to avoid the cost of implementation, we must tell you that you will have to spend a lot of time building a functional environment that is worth the effort.
Therefore, make sure you get the most out of it, but also try to recognize when it is time to opt for a CRM software that accompanies your growth and helps you minimize administrative efforts. If you find yourself on that path, talk to our experts and we will advise you for free to choose a professional option at a good price.