The Difference Between On-Premise CRM and Cloud-Based CRM - Sun and Planets Spirituality AYINRIN
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The business space changes with new improvements and challenges all the time. Survival, therefore, depends on how a business handles its customers – right from attraction of leads to conversion. The stronger the bond a business creates with a customer, the more the chances of conversion and retention.
Many businesses are asking, “What is CRM?” Simply put, customer relationship management (CRM) is a tool or system that businesses use to manage their customer data. It’s used by companies to manage internal and external communication systems, sales, and the delivery of business insights as well as to integrate with the various social media accounts. A tool like Creatio CRM is, therefore, something every organization needs for a more efficient way to manage customer information in today’s competitive and more digital marketplace.
CRM software helps businesses by keeping customer data in one easily accessible place. Contacts can be easily updated, and interactions are monitored across teams and with customers. It’s basically built to make customer relationship management easier.
Organizations interact with customers on a daily basis. This takes place either in the field or at the office and may be over the phone or physical. In traditional settings, your team would collect data on a computer, notebook, or as memories in their minds. This is what CRM features can solve.
As a customer relationship management tool, it collects, separates, analyzes and stores customer data. The system also makes this information available to team members by displaying it on reporting dashboards as needed. This means CRM is not limited on the support it can deliver to businesses. In this article, you’ll learn about two types of CRM – on-premise CRM and cloud-based CRM.
Cloud-Based CRM vs. On-Premise CRM
As the name implies, cloud-based CRM is a customer relationship management software with tools hosted on the cloud. This CRM software is made available to all devices with internet connectivity, which means usage is not limited to the office desktop. With an internet connection, team members can access and update or read reports from the CRM system from anywhere using mobile, tablets, laptops and desktops.
This type of CRM is also called web-based CRM. It’s preferred widely because it’s easier to use among other benefits.
On the other hand, on-premise CRM is a less versatile customer management software that is controlled by a company server. However, if the tool is hosted on the cloud, like cloud-based CRM, it only permits access to customer information via the company server. This also means that all system users are tethered to the office and only those who choose to work from the office will be in a position to access the cloud.
Advantages Of Cloud-Based CRM
Gives You Freedom to Work from Anywhere
As opposed to the on-premise CRM, this software has unlimited reach and employees have the freedom to work from anywhere. All one needs is an internet connection. This software improves productivity of teams since they can answer customer concerns, relay data, or get reports from the office and when they’re out in the field. Customer experience also improves because sales teams don’t have to get back to the office to get the relevant details on inquiries they need to relay to the leads or customers along the way.
Room for Scalability
Small businesses that need to grow find cloud-based CRM a big business asset because this software is highly scalable – not just for upward growth but it can also be downsized where necessary.
Reliability
As a software that can be accessed from any place with internet connectivity, cloud-based CRM is the most reliable company software. Data is also safe as storage is not affected by factors such as power outages.
Countless Integrations
Cloud-based CRM integrates more with third party apps in the business process. This makes it easier to transfer data, link with leads and customers, and collect and store customer data.
Disadvantages of On-Premise CRM
Usability Depends on Location
As an on-premise tool, users have no choice but to stick to the office where the server is. This limits usability and drives down productivity.
Not Easy to Build a Mobile App
With on-premise CRM, it’s not easy to build a mobile CRM. This is because most applications rely on cloud servers, making it a big hassle.
Maintenance Costs are High
Upfront fees and maintenance costs for an on-premise CRM are higher than those of a cloud-based CRM. This can be very costly, especially for small businesses.
In conclusion, choosing cloud-based CRM is the right decision for many businesses.
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