When Is On-Premise CRM the Right Choice?
Four Question to Determine if On-Premise CRM is Right for You
Both on-demand and on-premise customer relationship management (CRM) applications can offer tremendous value to the organizations that purchase and utilize them. But, many companies are confused as to which type of solution, and what deployment approach, is best for them. While the hosted method may be right for one business, on-premise CRM may be better suited for another.
So, what types of companies should consider selecting an on-premise CRM application, instead of a hosted one? The following questions will help you determine if on-premise CRM is the right choice for your business
Does Your Organization Have Unique Customer-facing Operations?
Only an on-premise CRM system can truly address the requirements of companies with “out of the ordinary” needs. Why? Because hosted customer relationship management solutions lack the customization capabilities that on-premise CRM offers.
With on-site CRM, businesses can perform extensive modifications to their solutions to support unique procedures, process workflows, end user requirements, etc. This is particularly important for companies who use their customer-facing activities as a competitive differentiator.
Does Your Company Have a Complex Information Architecture?
On-demand customer relationship management solutions don’t offer the same level of integration that on-premise CRM packages do. So, if your company maintains a multi-faceted infrastructure, with numerous applications and business systems (particularly proprietary solutions) that will need to integrate and share information with the CRM system, than the on-site method of deployment is definitely the way to go.
Do Your Business Leaders Wish to Minimize Total Cost of Technology Ownership?
Every firm wants to make sure their technology investments are as economical and valuable as possible. But, for some companies, reducing the total cost of ownership of the entire technology environment is a major strategic initiative – and those businesses are prime candidates for on-premise CRM.
Over their lifetime, analysts believe that on-demand CRM solutions cost far more than on-premise CRM applications. In fact, leading industry research firm Gartner has claimed that after the first three years, the expenses associated with a hosted solution will far exceed those that are incurred with an on-site one.
Does Your Company Store Highly Sensitive Customer Information?
For some businesses, the most confidential customer data – such as bank account details, credit card information, or social security numbers is maintained in their accounting environments, not in their CRM software. So, it’s only contact details, products purchased or of interest, and activity histories that need to be protected.
However, certain organizations – such as e-commerce companies – are likely to store client payment methods in their customer relationship management system. Others, like healthcare providers and insurance firms, may keep social security numbers in their CRM records. And although the majority of viable hosted CRM solution providers do leverage the latest and greatest security techniques and technologies, the only way a company can be completely assured that their customer information is safe from theft or breach is to purchase an on-premise CRM solution. That way, they have full control over the security of their most sensitive client data.