International Journal of Science, Engineering and TechnologyAuthors: K. Sai Bharath
Abstract: This research paper explores the financial and operational impact of moving from traditional, paper-based record-keeping to digital Customer Relationship Management (CRM) systems within India’s micro-business sector. While digital transformation is often encouraged, many micro-enterprises in India operate on thin profit margins and find the transition difficult. The study uses a cost-benefit analysis to weigh the initial expenses—such as software subscriptions, hardware upgrades, and employee training—against the long-term gains, including improved lead tracking, faster customer response times, and increased sales. Data was collected through interviews and surveys with 50 micro-business owners across various retail and service sectors in India. The findings reveal that while digital CRMs significantly improve data accuracy and customer retention, the "hidden costs" of technical support and internet reliability remain major hurdles. Many businesses still perceive the transition as a financial burden rather than a strategic investment. The paper concludes with practical recommendations for software providers to create "lite" versions of CRM tools and for the government to offer digital subsidies, helping Indian micro-businesses bridge the gap between manual habits and digital growth.
DOI: https://doi.org/10.5281/zenodo.20284776
