Customer relationship management (CRM) technology is no longer the exclusive domain of multinational corporations or sectors with strong IT expertise. Regardless of your company's size, there's a CRM system to suit your needs. Many small and medium-sized enterprises (SMEs) have shunned CRM due to misconceptions about costs. Perhaps they simply haven't embraced new technologies. The biggest obstacle to CRM adoption for small businesses is perhaps a lack of understanding and education in the field. By the time you've read this article, we hope we've done something to alleviate this problem.
So what exactly is customer relationship management technology?
Customer relationship management (CRM ) is the process by which a company organizes and structures all its interactions with customers and prospects. This can include marketing campaigns, financial transactions, document storage, and more. Most businesses use a combination of computers, the internet, and paper files to facilitate CRM processes. CRM technology allows this to be done in one central location using software.
The main advantage of this software is that it provides a central repository for all business needs. Businesses only need to search for information within a single system. They don't need to search across different domains or open multiple applications and systems simultaneously. The more integrated the system is within an organization, the more streamlined the workflow processes will be.
Buy the CRM or rent it?
Not all vendors offer a choice, but some will. A CRM can be purchased in a single transaction and installed internally in your back office. The other option is to take advantage of pay-as-you-go solutions, which are becoming increasingly available. These systems are rented online. You pay for each user based on a monthly fee. This solution is often called a "hosted" CRM. free CRM software options available for rent online. However, you usually have to pay for system maintenance, which can be quite inflexible.
Hosted CRM offers the advantage of greater flexibility in terms of access location. Since it's securely accessible from any internet-connected PC, it's ideal for businesses with remote employees. Purchasing the software outright can be beneficial for SMEs with in-house IT expertise. However, for most businesses, the adaptation process will be costly, as they will likely need external technical support.
Renting software online can also offer other advantages to small businesses. For example, they can choose CRM software and outsource secure data backups. This way, in the event of a system failure, essential customer information is copied and accessible. If your CRM provider offers IT support services , it may be beneficial to work with an organization that can manage all your systems and IT infrastructure (web hosting, disaster recovery, network support). With a hosted CRM, you have greater flexibility in choosing the features you need that best suit your business requirements.
READ ALSO: CRM Score: Maximize the effectiveness of your customer relationship management strategy
Custom CRM or generic CRM?
Custom CRM systems are generally the most expensive option. However, if well-designed, they can work effectively alongside your existing business processes. They can provide a long-term solution to your needs. SMEs should therefore consider how quickly they expect to see a return on investment . This return may take longer with a custom CRM than with a system you can start using immediately.
An alternative to a custom CRM is an industry-specific CRM , which is designed for similar types of businesses and is generally only suitable for that specific sector. These solutions can be beneficial because they offer a certain level of customization for your business as a standard. However, you can find better alternatives to generic solutions with more flexible usage options.
Improvements, additions, and hidden costs
Most CRM providers constantly update and revise their systems. This allows them to offer better functionality and greater variety to their clients. These upgrade costs are generally passed on to the customer, who pays for updated versions of their software (usually on an annual basis). They can also take the form of additional modules.
This is when a new feature is added to your existing CRM, for a fee. Some internet service providers include all upgrade costs in your user license price. If you need to transfer customer information, additional costs may apply depending on the ease of extraction and the amount of data to be transferred. These costs are related, for example, to the history, notes, and previous correspondence from your old system to the new one.
In addition to the software purchase, there will likely be costs associated with training your employees on how to use the application. These service fees are significant, and any company considering implementing the application should factor them into its budget. Customization costs are another potential source of hidden expenses. A generic CRM may need to be reconfigured in some way to meet your company's specific requirements. The ability to customize the CRM at the user level (without having to pay consultants to do it for you) is a valuable feature to consider for any CRM system.
Consider your end users
At the heart of a successful CRM implementation are the people who use it daily. Changing company culture can be a long and arduous process for any organization. Staff must see the benefits for themselves and the company as a whole if CRM is to deliver a return on investment . That's why it's wise to involve your end users in discussions during the pre-selection and final selection phases. This lack of user involvement is a common obstacle to many CRM initiatives, which is why many are deemed ineffective.
If you can maintain some familiarity with the system change, this should facilitate the transition from the old system to the new CRM. It's generally best to proceed gradually and avoid attempting a radical change. Ensure everyone understands the basics before introducing more advanced features.
If you use a standalone accounting system, see if your chosen CRM can be integrated to store all your data. Some vendors have partners with accounting software, so they're designed to work seamlessly together. However, be careful not to fall into the trap of buying CRM solely on that basis and neglecting what's truly important overall.
Customer relationship management (CRM) requires careful and logical planning. SMEs can reap enormous benefits from CRM if it addresses their current and future needs. It's also essential to anticipate the company's needs in one or five years, as well as in the present. This allows them to choose the right long-term solution. With thorough consideration of all these elements, CRM can be a boon for SMEs.
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