Analysis of CRM types: from Cloud-based to On-Premis. How to choose the right CRM?

CRM (Customer Relationship Management) is a customer relationship management strategy that focuses on creating and maintaining long-term mutually beneficial relationships between a company and customers. CRM includes the use of specialized technologies, processes and tools for effective management of customer information, their interaction with the company, as well as for data analysis in order to optimize business processes.

The importance of CRM for business lies in the fact that it helps to improve customer service, increase their satisfaction and loyalty, which ultimately contributes to increasing the company's profits. CRM systems allow you to collect, store and analyze information about customers, automate the processes of interaction with them, provide personalized service, and make more informed strategic decisions based on customer experience data.

CRM also helps optimize marketing efforts, improve audience segmentation, predict customer needs, and conduct more effective customer retention activities. As a result, an effective CRM system contributes to revenue growth, strengthening the brand and improving the overall competitiveness of the company.

Cloud-based CRM systems

Cloud-based CRM systems (SaaS, Software as a Service) are software products for managing customer relationships that are hosted and maintained on remote servers (in the "cloud") and accessible via the Internet. These systems provide a flexible and scalable solution for companies, ensuring data availability from anywhere in the world, ease of scaling and reducing the burden on the company's IT infrastructure.

Advantages of cloud-based CRM systems:

1. Cloud-based CRM systems usually provide flexible configurations, allowing companies to customize the system according to their unique needs and business processes.
2. The ease of making changes and updates ensures quick adaptation to changing business requirements.
3. Cloud CRM systems can easily scale depending on the size and needs of the company. Companies can easily add new users, functionality, or expand the volume of data as the business grows.
4. Since the data is stored in the cloud, users can access the CRM system from anywhere in the world where there is an Internet connection. This is especially useful for companies with distributed teams, remote employees, or those who travel frequently.
5. Cloud CRM system vendors are usually responsible for software updates and maintenance. This frees companies from having to take care of technical details, allowing them to focus on their business.
6. Cloud CRM system providers ensure a high level of data security, including encryption, regular audits and compliance with security standards. This is especially important to protect confidential customer information and business data.

All these factors make cloud-based CRM systems attractive for companies seeking to improve customer relationship management, taking into account flexibility, scalability and ease of access from anywhere in the world.

Desktop CRM systems

Desktop CRM systems are software products that are installed directly on the user's computer. Here are some of the features, limitations, and purpose of desktop CRM solutions:

Features of Desktop CRM:

1. Local installation: Desktop CRM systems are installed and run directly on the user's computer, which can provide more complete control over data and settings.

2. Local data storage: Data in desktop CRM is stored locally on the user's computer, which can be useful in cases where greater security is required or Internet access is limited.

3. Customization options: Desktop CRM solutions can provide deeper customization options because they are not limited by the limitations of a web browser.

4. Offline mode: Many desktop CRMs offer the ability to work offline, which is useful in cases of temporary lack of Internet connection.

Limitations of Desktop CRM:

1. Limited Access: Unlike cloud-based CRM, desktop solutions restrict access to data only from an installed computer.

2. Difficulties in updates: Desktop CRM updates may require manual installation on each device, which can be time-consuming.

3. Limited mobility: Users cannot easily access data from anywhere in the world, as is done with cloud systems.

4. Difficulties in collaboration: On desktop systems, it may be more difficult to organize collaboration and data exchange between different users.

Intended for offline use:

Desktop CRM systems are well suited for enterprises where a high level of security, full control over data and the ability to work offline are important. They can be especially useful in offline-oriented industries or in environments with limited internet access.

Mobile CRM Applications

Mobile CRM applications are software applications specifically designed for use on mobile devices such as smartphones and tablets. Here are the main aspects and features of mobile CRM applications:

Features of mobile CRM applications:

1. Real-time Data Access: Users can access up-to-date data on customers, transactions and tasks anytime and anywhere.

2. Task and Transaction Management: Mobile CRM applications allow users to track and update tasks, transactions and other important elements of business processes in real time.

3. Analytics and Reporting: Many mobile CRM applications provide tools for data analysis and reporting, which allows you to make informed decisions anywhere.

4. Integration with other applications: Mobile CRM applications can integrate with other business tools and applications such as email, calendars and messengers.

Ease of use on the go:

1. Mobility: Employees can work effectively outside the office, while maintaining access to important information on the go or during meetings with clients.

2. Intuitive interface: Many mobile CRM applications offer intuitive interfaces optimized for ease of use on small screens of mobile devices.

3. Notifications and Alerts: Notification systems allow you to quickly respond to important events such as new tasks, deal updates or customer requests.

Integration with mobile devices

Mobile CRM applications can integrate with the device's built-in applications, providing synchronization of calendars and contacts, and the ability to take and upload photos is also a plus.

Specialized CRM systems

Specialized CRM systems are individually customized solutions designed to meet the unique needs of specific industries. Here is a look at some specialized CRM systems:

1. CRM for medical institutions:

They include integration with electronic medical records (EMR), appointment schedule management, tracking of medication appointments and medication reminders. They provide centralized access to the patient's medical history, increase the efficiency of doctors and medical staff.

2. CRM for real estate:

They include managing property listings, tracking contacts with potential customers, automating marketing campaigns and sales analytics.

3. CRM for educational institutions:

They include student accounting, academic performance tracking, automation of the recruitment process, interaction with parents and event management in the educational process.

4. CRM for financial services:

Includes management of client portfolios, collection and analysis of financial data, automation of application processes and compliance with regulatory requirements.

5. CRM for tourism and hotel business:

These include booking management, customer preference analysis, package marketing, and integration with online platforms.

Specialized CRM systems help companies in certain industries better meet the unique needs of their customers and optimize business processes, which contributes to increased efficiency and improved service.

Open Source CRM systems:

1. The source code is open to the public. Users can view, modify and distribute it according to the license.

2. Users can customize the system according to the unique requirements of their business. This provides greater flexibility in adapting CRM to specific needs.

3. Companies can change the CRM structure, add new functions and modules, and create integrations with other systems.

4. Support can be provided by the developer community, third-party vendors, or the company itself, depending on the user's choice.

Closed Source CRM systems:

1. The source code is closed and unavailable for changes. The company that developed the CRM usually restricts access to the code.

2. Flexibility in customization may be limited by pre-defined functions and parameters provided by the developer.

3. The structure of the system is fixed by the developers, and changes in it may be limited.

The choice between open and closed CRM systems depends on a number of factors, such as budget, business needs for flexibility and the ability to develop and support within the company. Open systems provide more freedom and flexibility, but may require more effort to maintain, while closed systems provide an easier path with clearer responsibility for support, but may limit customization options.

On-Premise CRM

On-premise CRM is a CRM system that is installed and stored on the company's servers inside its own infrastructure. On-premise is an abbreviation of the Latin expression "in loco", which means "on the spot" or "in the enterprise". Thus, on-premise CRM involves the physical localization of software and data on servers that are owned and operated by the company itself.

This type of CRM system provides the highest level of control over data and settings, which can be important for organizations with increased security requirements or specific business processes. However, on-premise CRM has its drawbacks, such as higher initial costs, difficulties in scaling, and the need for internal support and maintenance from the company's IT staff.

Recommendations for the selection of CRM

Choosing the right type of CRM system should be based on the unique needs, budget and infrastructure of the company. Here are the recommendations for making a more informed decision:

1. Assess the needs of the company:

Analyze business processes and identify the main needs for managing customer relationships. Figure out what functionality is needed to achieve your business goals.

2. Consider the budget:

Evaluate the financial capabilities of the company. Cloud-based CRM systems usually offer more flexible payment by month, whereas online premium solutions may require significant initial investments.

3. Consider the infrastructure:

Evaluate the company's current IT infrastructure. If you have qualified IT staff and an existing server infrastructure, then it may be wise to choose on-line CRM.

4. Consider scalability:

Think about business expansion plans in the future. Cloud-based CRM systems are usually more flexible in scaling and easier to adapt to changes in business volume.

5. Assess the level of security:

If you have increased data security requirements (for example, in the healthcare, finance, or government industries), online premium solutions can provide more control over security.

6. Consider the need for integrations:

Consider integration with other systems (for example, email, accounting software). Some systems may provide easier integration than others.

So, if your company is focused on scaling, works on a tight budget, and values flexibility and convenience, cloud-based CRM systems may be the preferred option. While for companies with increased requirements for security, data management and a large budget, online premium solutions may be more suitable.

Conclusion

Choosing the right CRM system is critically important for a successful business. Consider the company's needs, budget, security level and system flexibility. Effective use of CRM contributes to better customer interaction, increased productivity and competitiveness.