What are the Advantages of Implementing a Cloud CRM System?
What are the advantages of a cloud CRM system?
Cloud CRM (Customer Relationship Management) is an IT product that provides a CRM system that focuses on customer relationship management as a cloud service.
CRM systems are designed to improve customer satisfaction by increasing the response speed and analyze customer needs for product development and marketing; by managing all kinds of information about customers, including customer information, case information, past response history, etc.
Since cloud CRM is provided as cloud services, many implementation benefits come to mind. In this article, I will explain the actual benefits of implementing it.
Table of contents:
- Advantages of cloud CRM
- What are the disadvantages of cloud CRM?
- Key points to consider when choosing a cloud CRM
Advantages of Cloud CRM
Let's look at the benefits of cloud CRM while comparing it to CRM systems deployed on-premises.
Low initial investment
Compared to on-premise CRM, cloud CRM tends to have a much lower initial investment. The reason for this is the need for infrastructure procurement. In the case of on-premise CRM, you need to procure infrastructure such as servers, OS, middleware, etc., to install the packaged software and build the platform. On the other hand, cloud CRM uses a CRM system via an Internet browser, so there is no need to procure dedicated infrastructure. So, the initial investment required for this is significantly reduced.
Speedy to full-scale operation
Since most cloud CRMs are packaged and maintained to be ready for immediate use, there are many cases where you can go live within three months of implementing a cloud CRM by matching your business requirements to the cloud CRM. Even when customization is required, it is much faster than implementing an on-premise CRM.
Since cloud CRM is standardly multi-device support, you can use the CRM system from your desk in the office, or you can use a CRM system using a smartphone or tablet on the go. You can also safely take customer information anywhere so you can respond quickly to urgent sales and business negotiations.
Become a part of BCP
The need for a Business Continuity Plan (BCP) has increased dramatically. In recent years, the threat of cyber-attacks and terrorism has increased in addition to natural disasters, so it is essential to create a BCP and be prepared to continue business under any circumstances. The data managed by cloud CRM is typically distributed across multiple data centers. So, not only can it be used as part of BCP, but it can also be expected to have the effect of strengthening security.
Reduction of the operational burden through automatic updates
The maintenance, operation, and management of cloud CRM are left to the CRM software vendor. So, there is no need for the user company to deal with system updates, etc. And the system is always updated automatically, which significantly reduces the operational burden and allows the user to devote extra resources to IT strategy.
High scalability of resources
As your business grows, you will need to expand your CRM system. However, scaling out and scaling up servers is not an easy task due to the procurement and maintenance costs involved. With cloud CRM, you can easily and quickly scale resources by changing plans and adding storage capacity, significantly reducing response costs. It's also flexible enough to handle the need to shrink your CRM system.
Reduction of running costs
With features such as per-user billing and reduced operational burden, there is great potential to reduce running costs compared to on-premise CRM. Since the running costs of on-premise CRM are consolidated into license costs, maintenance costs, labor costs, and electricity costs, cloud CRM can be expected to cut many of these costs.
What are the disadvantages of cloud CRM?
As mentioned above, there is a wide range of advantages to implementing a cloud CRM. It is hard to imagine that there are disadvantages to this cloud CRM, but just as there are advantages and disadvantages to everything, cloud CRM is no exception.
Increased costs due to pay-as-you-go billing
In the case of cloud CRM, which is charged on a per-user basis, running costs may increase compared to on-premise CRM if the number of accounts used is large. Also, the longer the usage period, the larger the total cost becomes, so a comprehensive cost comparison with on-premise CRM is necessary.
Since most cloud CRMs are fully packaged system services, they may not be able to handle highly customized requirements. Sometimes, you need to adapt your business processes to the cloud CRM, which can be a burden with change. However, many cloud CRM software allows for easy customization.
Key points to consider when choosing a cloud CRM
Even if you decide to implement a cloud CRM, not all cloud CRMs are equally effective. The important thing is to choose the best cloud CRM for your company's requirements, and here are some points to consider:
Short-term and long-term benefits
Cloud CRM offers both the short-term benefits of integrating SFA and marketing tools and the long-term benefits of building relationships with customers by leveraging the inherent capabilities of CRM systems. CRM systems themselves take a long time to demonstrate cost-effectiveness, so choosing a product that can be expected to make a short-term profit is also necessary for gaining management's understanding.
Convenience in terms of usability
A CRM system is a product that requires the input of user information, so it is necessary to choose one that is convenient for your environment.
A cloud CRM system that specializes in a specific field may not be able to respond to future changes in business needs, which can lead to a complex system environment. Therefore, it is essential to choose a product with high versatility and a system that can handle various risks.
Value of use on a global scale
In this age of global business, you should focus on the value of using a cloud CRM on a global scale. Multi-language and multi-currency support is a given, and the best choice is a product that can standardize business processes across the entire group.
When implementing cloud CRM, you should focus on not only the advantages but also the disadvantages. Take measures as a problem and aim for appropriate implementation with the above points in mind.