The Essential CRM Guide

Answers to your CRM Questions: Advantages of Web-based CRM

Updated October 2022

CRM is being revolutionized by the Web.

An online system is cheap to set up and does not require a lot of money upfront. Instead of purchasing hardware and software, a web-based service is a fee for use system. This is known as a pay-as-you-go solution or an on-demand system. Due to the fact that some contracts stipulate that you must pay whether you utilise the system or not, and if it is working properly or not, these terms are not entirely accurate.

Web-based systems require little, if any, capital investment. They also have lower upfront costs. Instead of buying hardware and software, a web-based service is a fee for use system. On-demand and pay-as-you-go systems are both examples of this. In some instances, the contract specifies that you are required to pay whether you use the system or not and whether the system is working properly or not.

A benefit of tax reduction

The CRM service provider is in charge of upgrading the software, patching security holes, maintaining the hardware system, and controlling access. Upgrades and system maintenance are usually included in your subscription, and backups and any security requirements are included as well.

Shorter development phase

If you go with a web-based CRM solution, you should expect an easier installation process. The software is already installed, so all you need to do is get your employees trained and your data transferred and loaded. You will see results faster as a result of the shorter timeframe to launch, so you may anticipate a shorter period of profitability.

Anywhere, any time access

Web-based systems provide a convenient way to access data from anywhere because there is no need for an internet connection. Small companies can often get good functionality and good pricing by using hosted CRM.

CRM on the Web has these problems.

Monthly charges for usage can be higher than the cost of an in-house system over time. This would depend on the systems involved and the measuring periods. It’s important to do the math yourself based on what you’re seeking and what you’re comparing. Sure, getting that information is tricky at first, since you need to know all the costs involved in both alternatives upfront.

The cost of CRM in-house.

To help you calculate the cost of your CRM system, we’ve included a few pointers. Please include the following for an in-house CRM system:

Use the same number of employees for both calculations. For example, if you expect to have more users in two years, you could apply the additional users to both calculations. Find out whether any volume discounts apply – for example, the price per user per month for one to nine users might be $20, but for ten to twenty users it might come down a bit.

Data security is a concern for companies and individuals alike. Some firms handle large amounts of customer data, while others have few clients. The potential for a data breach can have a significant impact on a company’s reputation and finances. Data security is a growing concern as more and more information is stored in digital form. Employees should be aware of the risks associated with sharing personal information and encourage their peers to do so. Data breaches can result in identity theft or other serious issues, so it is important to take steps to protect personal information. It is also wise to have a plan in place in the event of a data breach. Businesses should have robust data backup and recovery systems in place to help them respond to a data breach. Data breaches are something that businesses and individuals should be prepared for. It’s important to know what to do if a data breach occurs and what steps to take to help prevent future breaches. This article provides some tips on how to protect your personal data.

Web-based systems may be vulnerable to system downtime and data security concerns. Because your information is off-site and outside the immediate control of the business, you may have concerns about guaranteed uptime and data security.

A provision that allows an organization to leave to another one at any time.

The fact that the CRM service provider might go out of business or close down suddenly may lead to concerns. Make sure that the CRM service provider lets you take your own backups and/or regularly export your data, or else you’ll lose your data when they shut down.

The settling of disputes and the ownership of data.

Because the CRM service provider holds your data, they have you over a barrel in case of a dispute. Make sure to study any contract carefully and seek legal advice before signing up.

Disadvantages of Web-based CRM

Monthly charges for usage can, over time, be greater than the purchase of an in-house system. However, this would depend on the systems involved and the respective measuring periods. You need to do your own sums based on what you are looking for and what you are comparing. Yes, this can be tricky because you need to know all the costs involved in both options up front, and getting that information is not always easy.

  • Total monthly usage/subscription fees, including software upgrades and maintenance multiplied by the number of months in   your measuring period
  • Training costs for your staff, including travel and accommodation, if any
  • Implementation, configuration and customization fees, including consulting fees
  • Cost of software upgrades and/or annual maintenance if these are not included in the total monthly fees.

For both calculations, use the same number of employees. If you expect to have more people using the system in two years’ time, apply the increased number of users to both calculations. Find out whether any volume discounts apply – for example, for one to nine users the price might be $20 per user per month, but for ten to twenty users it might come down marginally.

Data security

Concerns about system uptime and data security may be an issue with web-based systems. If your information is off-site and outside the immediate control of the business, you may have concerns about guaranteed uptime and data security.

Exit clause

Part of this problem could well be concerns that the CRM service provider could go out of business, or suddenly close up shop and disappear in an effort to avoid creditors. You need to ensure that the service provider will allow you to take your own backups and/or regularly export your data.

Dispute resolution and ownership of data

In the event of a dispute with the CRM service provider, they have you over a barrel because they are in possession of your data. Check any contract carefully and get legal advice on this aspect before signing up.