Is a cloud based CRM system right for your company?
It's hard to see a future of install disks and elaborate IT infrastructures in small to mid sized businesses. We want smaller, thinner, lighter and more mobile. Many laptops no longer have a removable disk drive. We download everything. Apple's last two operating systems were only available on line as downloads. The world is full of apps, instead of desktops and servers. We have SmartPhones and tablets that can do it all.
So with that info under our hats, what does the future of Customer Relationship Management software look like? Will you host your own data on your server, on your network? Or will you just log on to the internet and get your work done? There are pros and cons for each approach. I'll give you my view after nearly 20 years in the contact management and CRM business. Then we'd welcome your thoughts or input.
Pros and Cons - Premise Based
The selection of premise based CRM is getting smaller. Today there are only a handful of solid choices. ACT! is the granddaddy of them all, but over the years it has had issues and today is mostly suitable for small non-demanding installations. GoldMine has a 20 year history and has evolved into a very full featured product that provides a myriad of features for the small to midsized network. Maximizer continues to evolve and has become a hybrid solution, meaning it can be hosted or locally installed. SugarCRM, Sage and MS CRM also offer hybrid solutions.
Pros premise based:
Data - You know where your data is. If your internet connection goes down you are still in business. If the internet went down, you'd still have your valuable info.
Capabilities and features - In the case of GoldMine, there are many features that on line systems don't offer without significant extra fees; customization, duplicate checking/merge purge, complex imports, global replacement of data, advanced reporting options, etc. (see 80 reasons to love Goldmine)
Use of existing IT infrastructure - If you have a developed network, the premise based solution can make sense.
Cost - Premise based gives you a relatively fixed cost. You pay for the software and then typically pay a low annual update and maintenance fee.
Cons:
Start up costs - Initial cost of software, installation and possible IT hardware investments can be high.
Software headaches - Windows updates, software compatibility issues, etc. can waste time and money and slow down the organization waiting for a fix.
Pros and Cons - Cloud Based
Pros:
Fast start up - Typically you can be up and running immediately following admin setup.
Mobility and flexibility - Cloud based systems are usually accessible from any mobile device or browser. Just log in.
No ongoing IT requirements
Lower startup cost
Cons:
Never ending cost - For as long as you use the cloud based service you will have a monthly charge per user, whether they log in to the system or not.
Service costs - Can be high to manipulate your data or customize beyond the built in admin functions. This varies by system but we have heard some amazing numbers for seemingly "simple" customizations or support requests.
Speed - Your response time is directly related to the speed of your internet connection.
Features - Most cloud based systems offer a package of features to start; reports, dashboards, modules and basic storage levels, but may add significant up charges to add features needed to complete your system. These per user fees can really add up over time.
Basic cost comparison for a 10 user system - GoldMine vs. $50 /user/ month system Excludes customizations, consulting and training. We will make the assumption that these costs would be required either way and would be similar.
1st year cost
GoldMine Software (New seats) - $695 x 10=$6950 Annual Update and Maint - $1390
Installation and setup - est. $1000 Total = $9340 or $934 per user
Cloud based - 10 users x $50 per month X 12 months = $6000 or $600 per user
2nd year cost
GoldMine Annual Update and Maint - $1390 or $139 per user
Cloud based - 10 users x $50 per month X 12 months = $6000 or $600 per user
2 Year Cost
GoldMine $10,730 or $1,073 per user
Cloud based $12,000 or $1,200 per user
Important keys to success or failure whichever way you go....We've learned over the years that more CRM programs fail than succeed. (Disappointing and expensive). Why?
Basically because it's not just about buying, or subscribing to CRM software. It's what you do with the software you buy.
You have to have a plan. Who MUST use it? How will they use it? What will they track and enter? How and what will you measure with reports? What are the short, medium and long term goals? Will management lead this program or will they feel that it's for everyone else? Will you invest in ongoing training and coaching for at least 6 months?
Hopefully this info will help you in your decision making. To talk about your situation and get a guided tour of a CRM system that fits your needs, CLICK here or call us at 847-382-4500 or visit our website.
