Sunday, February 27, 2011

CRM Software Blog

Customer Relationship Management (CRM) and marketing automation software systems are forging ahead to the cloud. In fact, ahead of other business software applications, CRM software and marketing software systems are becoming pervasive in the cloud, on-demand or Software as a Service (SaaS) delivery model.

I find it interesting that CRM experts cite dozens of reasons for the wide scale cloud CRM SaaS adoption. While these reasons are in deed valid, the reality is there are the big 3 reasons for cloud CRM pick-up, and they are lower acquisition costs, lower implementation costs and lower operating costs. It's really that simple.

SaaS CRM software changes the procurement model from up-front procurement to subscription-based pricing. In addition to lower acquisition costs, this model also support dynamic scalability as cusotmers can dial-up or dial-down their utilization as their business needs change.

Lower CRM software implementation costs stem from faster deployment. SaaS CRM systems don't require installation of hardware and platform software. Just boot up the browser and begin software configuration in a graphical environment. The entire process can be completed by users and business analysts - without the need for IT participation.

Lower operating costs are achieved primarily as the CRM software management is outsourced to the cloud provider - thereby putting it in the hands of experts and relieving the customer of a non core competency task (so management is also free to then focus on more pressing issues).

SaaS CRM in the cloud is a trend which will only increase as its financial benefits are compelling.