Lesson 2 - Types of CRM

Customer relationship management (CRM) is important in running a successful business.

As 4N says “You met them, liked them, got to know them, then trusted them. It's at this point you work together”. The better the relationship you have with a person, the easier it becomes to conduct business and generate revenue.

CRM solutions tend to fall into one of these 4 broad areas:

Off-the-shelf CRM
Several software companies offer CRM off the shelf which tend to be cut-down versions made suitable for smaller businesses. This approach has been known to be the cheapest option as you are investing in standard software. However, with the low price comes many drawbacks. The major downside is that the software may not always do precisely what you want and you may have to trade off functionality for convenience and price. If it does what you want – this may be the best option – do not change the way you do business to fit in with a CRM – a CRM that is ideal for you and your business will fit in with the way you work. The key to success is to be flexible without compromising too much.

Tailored CRM
Tailored solutions are a mix between an off the shelf and bespoke solution. A tailored solution begins at core CRM solution. Additional business specific modules are added and fully integrated to form a more precise business tool for you and your business without the increased costs and time to implementation. Due to these reasosn this type of solution is on the increase.

Bespoke CRM
For the ultimate in tailored CRM solutions, consultants and software engineers will customise or create a CRM system from the chalkboard. However, this can be quickly become expensive and time consuming. If you choose this option, make sure you carefully specify exactly what you want.

Outsourced CRM
Also known as Hosted CRM, On-Demand CRM, Web Based CRM, Online CRM and Software as a Service (SaaS), is where the some or all of the organisations Customer Relationship Management (CRM) functions are hosted by a service provider and typically made available over the Internet.

The popularity and adoption rate of hosted CRM software is rising quickly with many small to medium sized business been able to benefit from CRM software. This approach is also ideal if you need to implement quickly, have a low budget, want global access or don’t have the IT staff to support an on-premise CRM. It is also a good solution if you already geared towards online e-commerce.

When deciding which of the four types best suits your organisation, you should take into account your requirements, your time-frame and your budget. It is also worth noting that a good solution can pay for itself in a relatively short period of time, where as a bad solution can cost you more and lower your efficiency in the long-term.

Remember, you are never alone in making this decision; reputable software providers will bring you peace of mind by guiding you through this process and helping you choose the solution that is right for you and your business.