Here are some advantages and disadvantages of web based CRM vs. on-premises CRM.
- Quick deployment: web browsers are standing by.
All your authorized employees need to do to tap web based CRM solutions is open their web browsers and sign on. If they have a secure Internet connection, they have what they need to get up and running.
Today's web based CRM solutions tend to have intuitive interfaces and require less training than you'd expect. Many systems offer the ability to customize the interface on the fly to your organization's needs.
- Powerful motivation for new features
Another benefit to web based Customer Relationship Management is that there's a strong incentive for your vendor to continuously improve the system. Web based CRM is a highly competitive service. Pressure is fierce to strengthen features like analytics and customization. Your vendor is highly motivated to invest heavily in product improvement, and carefully manage the roll out of new features for you. You in turn are free to focus your attention on accelerating your business.
- High accountability for better service
You get up and running with your vendor's web based CRM solution quickly. You can drop it quickly. In terms of day-to-day service, your vendor has the highest incentive to monitor your needs, respond fast and keep you happy each month.
- Better integration and security.
Thanks to XML-based web services, it's now easier to integrate your on-premises systems and data with web based CRM solutions hosted on the web. However there can still be data integration challenges in deployment, with web based or on-premises systems.
When it comes to security, it's understandable that many companies are reluctant to park customer data with an off-site CRM provider. However a number of companies also realize that their valuable data may well be safer off their premises. After all, how many organizations -- especially small and mid-size ones -- back up their data often enough? How many have an adequate system in place to swiftly recover from a fire or other disaster? Responsible ASP's are more likely to have better disaster-preparedness plans.
- Lower initial cost and risk.
On-demand CRM solutions let you get started with very little investment. Forget the long development cycles. Forget the added expense of expanding your in-house data center capability. Also, you're not locked in as tightly as you would be had you invested in software licenses. On-demand CRM offers you the chance to test drive CRM and begin to measure its benefits and ROI. If CRM isn't living up to your expectations, you can quickly walk away. If it is delivering, you can quickly roll out the system more widely.
- But consider: service continuity
One area to be concerned about is system availability. What's the uptime track record of a prospective on-demand CRM provider? What are their service-level targets? How has system availability been affected by the need for maintenance?
- Another consideration: long-term costs
It's also critical to compare long-term costs. You'll typically see substantial initial savings deploying on-demand CRM vs. developing an in-house system. However the cost projection for years 2-5 can yield a different picture, especially if the CRM system is rolled out widely. For a number of organizations, on-premises CRM may prove the more efficient choice.
- Another consideration: are you too big or specialized?
With web based CRM, larger companies or specialized companies may not be able to get the customization, variety of functions and ability to manage complex data that they would through installed software. This is a key area to explore.
Check the offerings from some of the On Demand CRM Vendors who can provide web based CRM. Or weight the value in some of web based CRM's On Demand CRM Customer Success Stories.
