CRM in China: How to Choose the Right CRM for Your Business
Updated on |By QPSoftware
The right CRM in China connects to the channels your customers use, WeChat first, and handles their personal data under Chinese law. Some Western CRMs run in China through a local operator, Chinese CRMs fit local teams, and a custom CRM makes sense when neither fits your processes.
Key takeaways
- In Greater China, Salesforce is sold and operated by Alibaba Cloud, and Microsoft Dynamics 365 by 21Vianet.
- A CRM for China should connect to WeChat or WeCom, where customer relationships are managed day to day.
- The PIPL applies to the personal information of people in China, including when it is processed abroad, and has rules for cross-border transfers.
- Chinese CRMs such as Big Cat, OKKI CRM and Kingdee fit teams that work mainly in China.
- A custom CRM is worth it when no product fits your process, as with MYKE for LVMH Watches & Jewelry.
Optimizing business processes and retaining customers is critical for every company in a competitive market, and CRM software has become a must-have for companies that want to grow.
The options are almost endless, but not every solution will work for your organization. Consider the option to customize the software, its scalability, its costs and its business value, and above all your business needs: if you operate in the Chinese market, the CRM must suit your operations and your clients in China.
This guide explains what CRM software is, which CRM solutions are used in China, and when custom CRM development is the better option.
What Is CRM Software?
Customer Relationship Management (CRM) software is a tool that helps companies collect, organize and access customer data, to coordinate efforts between team members and provide better customer support. CRM software connects the different departments of your organization and shares valuable real-time information about customers.
For instance, CRM software can collect data from sales, marketing and customer service and keep it organized. This information is then used to optimize business processes and retain customers.
How Can Companies Benefit From CRM Software?
With CRM software, a company becomes more productive, and its customers receive a personalized experience.
Data entry is automated, which saves your team time for other important tasks. Real-time data at hand lets your company communicate better with customers and strengthen your relationship with them. The insights you gain from a CRM help you understand your customers’ needs and organize your strategy to meet them.
A CRM solution can bring more leads, higher sales and profitability, and better customer retention. It makes your business healthier and gives you an advantage over your competition. It is also the base of a consistent customer experience across channels, as described in our guide to solutions for the omni-channel customer journey.
Do Western CRM Tools Work in China?
Some do, but not all of them are the right choice. Some CRM software has no Chinese version, or no connection with Chinese platforms and payment methods. In that case, data collection may not be as thorough as it should be, and the CRM loses much of its usefulness for your business.
The large vendors have adapted to the market through local operators. According to Salesforce’s China site, all Salesforce products in Greater China are sold and operated exclusively by Alibaba Cloud, and deployed in mainland China to meet data residency requirements. Microsoft Dynamics 365 is operated in China by 21Vianet.
Where the data is stored matters too. China’s Personal Information Protection Law (PIPL), adopted on August 20, 2021, applies to the processing of personal information of people in China, including processing outside China to provide them with products or services, and it has a chapter of rules on providing personal information across borders. Our PIPL compliance guide explains what it means for foreign companies.
Western CRM Solutions Used in China
Here are the Western CRM solutions to consider for your business in China.
Salesforce
Salesforce has a dedicated offer for China. Its products for Greater China are sold and operated by Alibaba Cloud, deployed in mainland China, and integrated with Chinese platforms such as WeChat and WeCom, and with local payment services.
Microsoft Dynamics 365
Microsoft’s CRM software, Dynamics 365, offers advanced data collection features. It is highly customizable and comes with many features that help increase sales, enhance customer service and improve overall operations. In China, Dynamics 365 is operated by 21Vianet, with applications that include Sales, Customer Service and Field Service.
SAP
SAP’s CRM software can be used by both B2B and B2C companies, to manage marketing, service, commerce, customer data and sales.
Oracle
When this article was first written in 2019, Oracle presented its CRM as the CRM software of tomorrow, designed to address the many challenges a modern business faces. The Oracle CRM solution is very advanced, and suits large organizations with a large customer base and sophisticated operations.
HubSpot
When this article was first written in 2019, HubSpot worked in China and let global companies manage their operations through a single system, but it had no Chinese version, so your team in China had to be comfortable with English. Check its current language options before you choose it.
What Is a WeChat CRM System?
WeChat stands as the most important social media platform in China, and it has become one of the most relevant marketing channels in the country. A WeChat CRM is a practical way to bring this social platform into your customer management: it follows your customers on WeChat and lets you react accordingly, building a very personal relationship with them.
Today, the customer management side of WeChat goes through WeCom, Tencent’s enterprise platform. Employees add customers on WeChat directly from WeCom, manage customer groups of up to 500 members, and hand their customers over to a colleague when they leave the company. WeCom’s app marketplace also offers third-party CRM, ERP and HR systems, and in China, Salesforce integrates with both WeChat and WeCom. Brands can also collect customer data through a mini program built by a WeChat Mini Program developer.
Chinese CRM Software
In addition to Western CRM software, some local Chinese solutions can be a viable choice for your business.
Big Cat
Big Cat (大猫) is a Chinese marketing automation platform designed for B2B marketing: lead development, nurturing and customer retention, through automated email campaigns and customer segmentation. When we first reviewed it in 2019, its core features were similar to HubSpot’s, but it offered fewer of them than many Western CRM tools, which made it less flexible.
Xiaoman Technology (OKKI CRM)
Xiaoman Technology (小满科技) now offers OKKI CRM, a brand under Alibaba International (阿里巴巴国际站), designed for B2B export companies, with AI features for customer profiling and sales pipeline monitoring. It primarily targets Chinese companies. When we first reviewed it in 2019, it was not intuitive for Western users and did not support English.
Kingdee
Kingdee (金蝶) is another local player. Its international site presents its business management software in 14 languages, which helps if you have an international team. When we first reviewed it in 2019, it was easy to use and well integrated with local platforms.
Custom CRM Solutions to Operate in China
Whatever CRM software you choose, you will likely find it lacking in some respects. To get the most out of it, some customization is needed.
Customizing CRM software means making it a better fit for the specific needs of your business, in a variety of ways. You may need additional fields that the platform does not support, to collect the specific data your business wants. You may need to integrate your existing marketing and sales automation tools to create a scenario specific to your business, or to connect the platform with non-CRM tools and services that make your operations more effective.
Sometimes the right answer is a CRM built for you. LVMH Asia Pacific turned to QPSoftware to create MYKE, a custom-built CRM for LVMH Watches & Jewelry. Deployed in more than 30 stores throughout China, Taiwan and Hong Kong, MYKE’s database includes more than 50,000 users. Customer information is shared between Zenith, Hublot and TAG Heuer, with access levels by store, brand and market, and KPI reports measure retail store performance. The full project is described in the MYKE CRM case study for LVMH Watches & Jewelry. Reports like these are where a CRM meets business intelligence in China: dashboards that combine CRM, sales and store data.
How to Choose the Right CRM in China
- List your business needs: sales, marketing and customer service, and the data each team must collect.
- Check the channels: the CRM should connect to WeChat or WeCom, and to the Chinese platforms and payment methods your customers use.
- Check where the data is stored and how it crosses borders, under the PIPL.
- Check the languages: a Chinese version for your team in China, an English one for your headquarters.
- Weigh customization, scalability and costs, then decide whether to customize an existing CRM or build your own.
What Should You Do Next?
The benefits of a CRM platform are clear: companies that invest in this technology can expect higher sales, better customer satisfaction and enhanced productivity.
If your business in China needs a CRM solution, contact QPSoftware. A digital agency in Shanghai founded in 2009, with more than 200 projects delivered, we analyze your business model, suggest the best CRM solution for China, and customize the tool to your needs. As a CRM development company in China, we can also build it for you, as we did for LVMH Watches & Jewelry.
Frequently Asked Questions
Which CRM is best for B2B in China?
It depends on your team and your channels. Salesforce and Microsoft Dynamics 365 run in China through local operators and suit large international companies. Chinese options serve B2B needs too: Big Cat focuses on B2B marketing automation, and OKKI CRM targets export companies. When none of them fits your sales process, a custom CRM connected to WeChat and WeCom is worth considering.
What is a WeChat CRM system?
A WeChat CRM system manages the relationship with the customers who reach your brand on WeChat. In practice, it runs through WeCom, Tencent’s enterprise platform: employees add customers on WeChat, manage customer groups, and hand customers over to a colleague when they leave. It can be used on its own, connected to a CRM such as Salesforce in China, or linked to a custom CRM.
What should you consider when choosing a CRM in China?
Start with your business needs and the data your teams must collect. Then check that the CRM connects to WeChat or WeCom and to local payment methods, where it stores personal data under China’s Personal Information Protection Law, and whether it offers a Chinese version for your local team. Finally, weigh customization, scalability and costs against building a custom CRM.
