Cloud-Based Vs. On-Premise CRM: What is the Difference?

A Customer Relationship Management (CRM) system might just be the crucial tool for growing your business. What started as a small business management toolkit quickly turned into a powerful industry with an estimated worth of a $36 billion on today’s market.

But why? What’s so good about CRM software? In order to get a clear picture of CRM’s capabilities, you need to ask yourself one thing first – do you feel your customer engagement, marketing, and sales strategies could use a boost?

According to the latest marketing stats and trends, the company’s top challenges are:

  • Generating traffic and leads (63%)
  • Improving ROI (40%)
  • Finding the budget (28%)
  • Website management (26%)
  • Better targeting content (21%)

The good news is that a quality CRM system can enhance all of these business operations and more.

CRM Software Features 

When talking about CRM systems, there are two main forms with similar, yet slightly distinctive CRM software features. While the choice lingers between the cloud-based and on-premise CRM deployment options, a valuable piece of CRM software, in general, improves the business process management via:

  • 360-degree customer view. The complete history (emails, addresses, phone, etc.) of consumers and customer behavioral patterns a business can use to improve personalized approach.

  • Lead/Opportunity management. Capturing and analyzing accurate data in real time opens the door to untapped opportunities on the market, while turning leads into loyal customers.

  • Better document organization and collaboration. CRM holds collaboration tools for refining the data management workflow and elevating the productivity within the company, especially with consumers.

  • Mobility and analytics. Organizations that adopted mobile CRM saw an increase from 22% up to 35% in achieving sales quotas, which is an increase in 59% in sales performance. However, for such success, we can also thank to the deep analytic capabilities of CRM software, which provide in-depth knowledge and accurate sales projections.

Cloud-Based or On-Premise: What is the difference?

Cloud-based software is deployed on the vendor’s servers, and vendor takes all the responsibility for data storage and safeness. On-premise CRM is deployed on the company’s servers, which may be a good solution for the businesses with a very strict privacy policy.

According to CRM Trends and Predictions, a “cloud-based CRM has won the day over on-premise” while Gartner projects the highest rate or an 18% rise in cloud-based services in 2017. Apart from free trials, good online CRM systems, like https://www.bpmonline.com/, offer benefits of low initial costs without the need to pay for the software license fee.

In addition, SaaS CRM providers offer a simple and rapid software set-up with no additional IT or hardware infrastructure requirements. Contrary to the cloud, on-premise CRM requires upfront costs, including the license fees and additional expenses for software upgrades. But in return, this type of CRM gives you total control over internal operations and data management.

The choice between the two CRM systems rests on the company’s budget, size, and most importantly resources and requirements, as these factors determine further business goals and growth. Cloud systems are more flexible and work like a charm when it comes to transforming a small organization into a market force not to be reckoned with.