On Demand CRM : Is It Suitable For You?

Posted on July 26, 2008
Filed Under Technology |

by Ray Lam

The popularity of CRM applications in a business cannot be denied at all. But now in the last few years, there has been yet another change on the CRM front. Traditional CRM software has been replaced by much sharper and precise on demand solutions called ‘CRM on demand’.

One of the most important benefits that has been instrumental in the growth of ‘on-demand CRM solutions’, is the cost. While more traditional forms of software will cost you on a yearly basis with costs running up to millions of dollars up front, the on demand CRM software comes with a monthly subscription charge per user.

The major advantage of open source CRM system is its adaptability. These CRM systems eliminated the need of installing large sized software programs with unwanted applications in to company computers. Today, pre-customized CRM systems are available for companies working in different fields such as automotive, insurance service and medical service, marketing, sales etc. The initial cost for purchasing the raw software may be some what high.

Open-source CRM software systems are useful for all kinds of companies, as these programs customized to any CRM need. Large sized companies usually have special trained programmers who customize standard applications into company-friendly applications at appropriate times. For medium and small sized companies, it may be difficult to employ trained programmers; so they can prefer pre-customized CRM software systems. Many CRM vendors today customize standard software programs according to their client needs.

Hosted or on-demand CRM systems are mainly preferred by small and medium sized companies. On demand CRM services are provided by an application service provider (ASP) and are an example of Software as a Service (SaaS). The on demand CRM provider will integrate all business functions of the client on a monthly fee. The client company can access all their data, such as documents, collaboration application, customer information, etc, through internet on demand.

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