Zoho CRM vs Capsule CRM for UK small business

What to take away

Zoho CRM Standard and Capsule Starter both list at £12 per user per month on annual billing, which is £14.40 once VAT at 20 per cent is added.
Zoho CRM Professional lists at £20 per user per month against Capsule Professional at £24, making Zoho the cheaper seat at the mid tier.
Zoho hosts EU customers in a data centre in the Netherlands. Capsule is a UK vendor and states its customer data sits in UK data centres.
Both export contacts, deals and notes as CSV, but notice periods and retention after closure sit in the order form.
Capsule suits a firm that will not maintain configuration. Zoho suits a firm that will.

List prices in pounds per user

Both vendors quote per user per month and discount for annual billing. The figures below are their published UK list prices, excluding VAT. The review methodology for small business CRM explains how products are scored here and when a score is withheld.

List price per user per month, annual billing

Zoho CRM Standard: £12
Zoho CRM Professional: £20
Capsule Starter: £12
Capsule Professional: £24

With VAT at 20 per cent

Zoho CRM Standard: £14.40
Zoho CRM Professional: £24.00
Capsule Starter: £14.40
Capsule Professional: £28.80

Check the list price on the day you buy, because vendors change them. A registered business can reclaim the VAT; the register for VAT guidance explains when registration stops being a choice.

Example: three users on an annual plan

Three users on Capsule Starter cost £432 a year before VAT and £518.40 with it. Zoho CRM Standard gives the same figures, £432 and £518.40.

The mid tier separates them. Three users on Zoho CRM Professional come to £720 before VAT, or £864 with it. The same three users on Capsule Professional cost £864 before VAT and £1,036.80 with it.

Seat price alone puts £144 a year between the two mid-tier picks. Setup hours sit on top of that.

Where your data is held

Hosting region matters more than a feature list when you hold client records. Zoho CRM runs a European data centre in the Netherlands, and accounts taken out through its EU portal are hosted there. Your plan and contract decide what residency you receive.

Capsule is a UK company and states that customer data is held in UK data centres. Both vendors use sub-processors, so ask for the current list before you import anything.

Your firm is the controller, not the vendor. The ICO's guide to the UK GDPR sets out the accuracy and storage limitation principles that decide what you keep. The questions to put in a CRM demo cover region, export and notice, and save a second round of emails.

Configuration effort and fit for a service firm

Zoho CRM is a platform, and its Standard edition sits below tiers that add quoting, automation and reporting. Capsule covers contacts, a pipeline, tasks and email logging, and stops there.

The choice turns on how much configuration your firm will keep up in month four, when the first enthusiasm has gone.

Which CRM to start with

Two to five users, simple pipeline?

Yes

Capsule

Zoho CRM

A two-person consultancy or a trades firm usually wants the smallest tool that holds a pipeline and a follow-up date. Capsule's restraint suits that shape of business. A firm selling retainers, with a part-time marketer and an accountant asking for reports, tends to outgrow it.

What it takes to leave either product

Both products export contacts, deals, notes and tasks as CSV, and both allow that export during a trial. Test whether custom fields and attachments arrive with the file.

Notice periods follow the billing term. An annual plan renews on its anniversary unless you cancel beforehand, and a monthly plan ends with the month. Ask for the exact window in the order form before you sign.

Retention after closure is the other half of the exit. A limited company must keep accounting records for six years, so export before the account closes; GOV.UK's guidance on running a limited company lists the records that duty covers.

Confirm these before signing:

Export format for contacts, deals, notes and attachments.
Whether custom fields, pipelines and automations come with the file.
Notice period, and the last date to serve it.
Days the vendor keeps your data after closure.
Written confirmation of the hosting region and sub-processor list.

An export also exposes how much duplicate data you have carried. Our CRM data cleaning checklist sets out the order to work in before a migration.

Common questions

Which is cheaper for a UK small business?

On entry editions the two tie at £12 per user per month before VAT. At the mid tier Zoho CRM Professional is £4 per user per month cheaper than Capsule Professional, which is £144 a year for three users.

Can I be sure my data stays in the UK or the EU?

Zoho's EU data centre is in the Netherlands, and Capsule states UK data centres. The region depends on the plan and the portal you sign up through, so get it written into the contract.

Which is easier to leave?

Ease of exit depends on the file you receive and the notice in your order form, not on the vendor's size. Both give a CSV export, so test it during the trial.

Do I need to be VAT registered to buy either product?

No. You can buy either product without being VAT registered. You must register once taxable turnover passes the threshold HMRC sets.