Maintaining good relationships is essential either in terms of retention of existing customers or the acquisition of new ones. Thanks to the CRM system, everything is in one place – a simple and clear instrument panel, which will reveal eg, the history of communication, order status, service interventions, and much more.
According to Gartner, CRM software became the most extensive digital market, and growth continues. If your business is to survive, you will need a clear vision and strategy. For companies thinking about the future, the CRM framework is such a strategy.
What are the CRM benefits?
Thanks to the possibility of CRM solutions to collect and organize data, which are further reliably accessed and used, CRM offers many advantages such as.
- Enhanced contact management;
- cross-team cooperation;
- increased productivity;
- an enhanced sales team;
- accurate sales planning;
- reliable reporting;
- improved sales metrics;
- increase in customer retention and satisfaction;
- increase in ROI marketing;
- enriched products and services.
Benefits of Cloud vs. On-Premise CRM systems
When you use cloud CRM, you access the application through the cloud, that is, the CRM Software vendor manages and owns the hardware and software part of the solution, and you rent the services through the web. CRM vendor provides updates, maintenance, and storage of CRM application data, so-called SaaS solution (Software as a Service).
Advantages of Cloud CRM:
- remote access – data is accessible on different devices, anytime and anywhere (if the user has access to the Internet);
- cost-effective solution – for most companies it is more profitable than on-premise CRM;
- simple and fast deployment – as no hardware installation is necessary, cloud CRM is much easier and quicker to deploy;
- Easy to update and maintain.
On-premise CRM solutions are on your premises, managed, and maintained by your IT department. The CRM supplier only provides technical assistance, support, and training. You are responsible for updating, developing, administering, and maintaining the solution.
Benefits of on-premise CRM:
- control – you have full control over the management of solutions, whether in terms of HW or SW;
- scalability – no limits on database size;
- upgrade flexibility – when you decide to upgrade your system is up to you;
- security – private and sensitive data is entirely under your control in your premises;
- cost-effectiveness – sometimes on-premise solutions are preferable to renting, especially when many people need access to a database;
- integration – in most cases, on-premise CRM is a more flexible solution when it comes to integrating into different applications.
Things to think in TCO (Total Cost of Operations) Calculation
Each solution has its advantages and disadvantages. It is, therefore, essential to consider what is important to you and what your needs are in terms of time.
Key factors include:
- Time horizon – resp. What is the expected life cycle of CRM solutions? For example, for a large company with a multitude of solution users, this is more extended time, so it makes sense to consider an on-premise CRM solution model.
- Affordable IT Resources – If you’re a tech star, resources aren’t a problem for you, and you can build top-of-the-line CRM solutions. Otherwise, the cloud CRM model is a better and more flexible solution for most small and medium-sized businesses.
- Opportunity Cost – How Many People You Know Dedik’s Maintenance Solutions. Consider whether it would be better to have the maintenance provided by your cloud CRM solution provider.
- Uncertainty and risk – what happens if a server fails and your IT expert is on vacation? Obviously, in the case of a smaller team, cloud CRM solutions will be better.