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Article : What Do On-demand CRM Solutions Get You, Anyway?

On-demand CRM solutions can be an option for any organization – regardless of size. If your company could benefit from lower risk, lower costs, rapid ROI and high value CRM solutions, then you may want to further research on-demand CRM. There are four main reasons why more and more companies are considering on-demand CRM.

Hosted or on-demand solutions now offer a serious alternative to the complexities and risks associated with traditional CRM solutions. Consequently, more and more companies are discovering that on-demand CRM solutions simplify the management of complex business processes resulting in low risk, low cost, rapid ROI and high value.

Here are four main reasons why more and more companies are considering on-demand CRM:

  1. Simplifying Choices Means Lower Risk
    Unlike traditional CRM solutions, on-demand CRM solutions offer companies a choice in how they want the solution delivered. Companies can choose to purchase a license and let a service provider manage the logistics and infrastructure of their software or they can choose to rent a solution, utilize it in their operations and decide to purchase the solution at a later date. Alternatively, an additional on-demand option is emerging. Large organizations can now opt to purchase the right to use a software license, install the software at their location and host it for each of their departments, thereby reaping significant savings in avoided individual license costs.

    Once a company has chosen how it wants the solution to be delivered, it is free to change the delivery model should the company's needs change. So a company can choose to access the on-demand solution, then after a few years of paying subscription fees, decide that it is more economical to own the solution, purchase it and bring it in-house. All of this can be done seamlessly without the actual user even noticing a difference.

    Whatever the choice, on-demand solutions make it simple for companies to use applications the way they want, for as long as they want. The choices that an on-demand solution offers are virtually unlimited, not just in delivery and pricing options, but also in terms of customization, service and features.

  2. Simplifying Implementations Means Rapid ROI
    Bundling software, hardware, systems configuration and integration into one offering that can be configured to a company's needs reduces implementation time drastically. This translates into faster time-to-customer and rapid ROI.

  3. Simplifying Processes and Services Means Lower Costs
    With an on-demand solution, an organization can take advantage of lower costs and rapid ROI. With software running at a centralized, remote location, on-demand solutions can reduce software implementation and customization costs dramatically. Initial start-up fees are minimal and the monthly subscription fee is based on usage, providing complete transparency into billing.

    On-demand applications eliminate the need for the installation of software at the client site, thus saving in initial installation and ongoing maintenance. The service provider guarantees performance, reliability and support through service-level agreements with the client. Software maintenance, support and updates as well as infrastructure systems and network monitoring are centrally administered with on-demand CRM solutions. This frees up technical resources for other projects.

  4. Simplifying Delivery Means High Value
    The on-demand CRM solution is designed to minimize the risks associated with implementing a traditional, on-premise solution. The figure below depicts how the general risks of using a traditional, licensed offering directly correspond with the general benefits of choosing an on-demand solution.



Lengthy implementations (six+ months) and slow speed-to-market

Short implementations (30-45 days) and quick speed-to-market

Price ranges in the millions

Price ranges in the thousands

Service costs greater than license costs

License costs greater than service costs

Relatively high capital investment

Low capital investment

Hardware, support and services not typically included in license cost

Subscription includes all resources (hardware, software and people)

Upgrades and maintenance are separate investments from the license

Upgrades and maintenance are included in the subscription

On-demand CRM solutions can be an option for any organization – regardless of size. If your company could benefit from lower risk, lower costs, rapid ROI and high value CRM solutions, then you may want to further research on-demand CRM.

This article is an excerpt from the Cincom white paper "On-Demand CRM: Simplifying Contact Center and CRM Solutions

About Randy Saunders:
Randy Saunders is the Marketing Director for Cincom’s Customer Experience Management products, with more than 25 years experience working with partners, Fortune 1000 and small-to-medium-sized businesses. Previously Randy has held marketing, sales and management positions at BusinessLabs, Gannett, SmartStar, and The Kroger Company.

About Cincom:
Company LogoCincom Systems delivers software and services to simplify complex business processes. For more than 43 years, we have empowered thousands of clients worldwide to outperform their competition by providing ways to increase revenue, control cost, minimize risk, and achieve rapid ROI.
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Published: Friday, September 30, 2005

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