Customer relationship management software has become indispensable for enterprises as well as small businesses. While traditional on-premise CRM solutions have been around for quite some time, the rise of cloud computing has revolutionized the CRM landscape, giving rise to cloud CRM software.
Image source: freepik.com
In this comprehensive guide, we’ll delve into the intricacies of cloud CRM (also known as web based CRM), exploring its key features, benefits, and how it compares to traditional on-premise solutions. We’ll also examine some of the top cloud CRM providers in the market and provide guidance on how to choose the right CRM system for your business.
What is customer relationship management?
Customer Relationship Management (CRM) is a strategic approach that focuses on managing a company’s interactions with current and potential customers. The goal of CRM is to build strong, lasting relationships with customers, improve customer satisfaction, and drive business growth. This is achieved by organizing, automating, and synchronizing sales, marketing, and customer service processes.
At the heart of CRM is the use of technology, particularly CRM software, to manage customer data and interactions throughout the entire customer journey. This includes everything from initial contact and lead generation to sales conversion and post-purchase support. By having a comprehensive view of customer interactions, businesses can tailor their strategies to meet customer needs and expectations more effectively.
What is a cloud based CRM?
Cloud-based CRM solutions, at their core, are systems hosted on the vendor’s servers and accessed over the internet. Instead of installing software on your own computers or servers, you access the CRM application through a web browser or mobile app. In short, it combines CRM and cloud computing. This fundamentally changes how businesses interact with their CRM data and processes.
Imagine a traditional on-premise CRM system as a standalone physical store. You own the building, you are responsible for the maintenance, security, and all the resources needed to keep it running. With cloud customer management software, it’s more like renting a space in a modern shopping mall. The vendor handles the infrastructure, security, and updates, while you focus on running your business and serving your customers. This eliminates the need for expensive on-site hardware, reducing costs and simplifying IT management.
This “rental” model, typically offered as a subscription, often provides a more cost-effective entry point for many companies. One of the biggest benefits of cloud CRM is its accessibility. Because it is hosted in the cloud, your team can access customer data and manage relationships from anywhere with an internet connection.
Furthermore, cloud CRM software is highly scalable. As your business grows, you can easily increase your storage space, add more users, and integrate with other business applications without the need for significant hardware investments or complex IT infrastructure upgrades. This scalability cloud CRM solutions offer is a huge advantage for growing businesses that need services that can adapt to their evolving needs.
Cloud CRM software comes in various forms, including:
Software as a Service (SaaS): This is the most common type of cloud CRM. The vendor manages everything, from the infrastructure to the software, and you simply pay a subscription fee to access the service.
Platform as a Service (PaaS): PaaS provides a platform for developers to build and customize CRM applications. This option gives you more control over the CRM system but requires more technical expertise.
Infrastructure as a Service (IaaS): IaaS provides the infrastructure, such as servers and storage, for you to host your own CRM application. This option gives you the most control but also requires the most technical expertise and responsibility.
In short, cloud-based CRM is a flexible, scalable, and accessible solution that can help businesses of all sizes improve customer relationships, streamline sales processes, and enhance overall efficiency.
What are the key cloud-based CRM features?
A robust cloud-based CRM application offers a wide array of features designed to streamline your customer relationship management processes and enhance overall business performance. These features work together to provide a 360-degree view of your customers, empowering your sales, marketing, and customer service teams to deliver exceptional experiences. Let's dive into some of the most essential features.
Contact management
This is the cornerstone of any CRM system. It allows you to store and organize detailed information about your customers, including their names, contact details, company affiliation, job titles, and communication history within the customer database. A good contact management system will also allow you to segment your contacts based on various criteria, such as industry, location, or purchase history, enabling you to personalize your communication and marketing efforts.
Lead management
Lead management features help you track and manage lead data and potential customers from the moment they enter your sales funnel to the point where they become paying customers. You can capture leads from various sources, such as website forms, marketing campaigns, and social media, and then nurture them through the sales process. Lead scoring and lead routing capabilities allow you to prioritize the most promising leads and assign them to the appropriate sales representatives.
Sales force automation
Sales force automation features streamline the sales process by automating tasks such as lead qualification, opportunity management, quote generation, and order processing. This frees up your sales reps to focus on building relationships with customers and closing deals.
Marketing automation
Cloud CRM solutions often include marketing automation features that enable you to create and execute targeted marketing campaigns. You can automate email marketing, social media marketing, and other marketing activities, allowing you to reach a wider audience and generate more leads. Marketing automation also helps you track the performance of your campaigns, giving you valuable insights into what's working and what's not.
Customer service and support
Providing excellent customer service is crucial for building long-term relationships. Cloud-based CRM often includes features such as case management, knowledge base, and self-service portals, which allow you to resolve customer issues quickly and efficiently. You can track customer interactions across all channels, including phone, email, and chat, ensuring that your customer service team has a complete view of each customer’s history.
Additionally, mobile access enhances client interaction and supports various business needs, ensuring that users can manage tasks efficiently regardless of their location.
Reporting and analytics
Gaining insights from your customer data is essential for making informed business decisions. Cloud CRM solutions provide robust reporting and analytics capabilities that allow you to track key performance indicators (KPIs), identify trends, and measure the effectiveness of your sales, marketing, and customer service efforts. You can generate customizable reports and dashboards that provide a real-time view of your business performance.
Integration capabilities
A cloud-based CRM system should seamlessly integrate with your other business applications and various business tools, such as accounting software, email marketing platforms, and e-commerce systems. This integration ensures that data flows smoothly between your various systems, eliminating data silos and improving overall efficiency. Many cloud CRM providers offer pre-built integrations with popular business applications, or you can use APIs to create custom integrations.
These are just some of the key features of a cloud-based CRM system. The specific features that are most important to your business will depend on your unique needs and requirements. However, by understanding the capabilities of cloud CRM, you can choose a solution that will help you improve customer relationships, streamline your sales processes, and drive business growth.
Cloud CRM vs. On-Premise CRM
The landscape of CRM has evolved dramatically. No longer are businesses confined to clunky, server-room-bound systems. The emergence of cloud-based CRM has presented a compelling alternative to the traditional on-premise model. On-premises CRM tools offer benefits such as advanced customization and enhanced data security, but they also come with challenges like higher initial costs and maintenance responsibilities. The question isn’t if you need a CRM, but which CRM deployment model best aligns with your business objectives and resources. Let’s dive into the key differences that distinguish these two approaches.
Image source: linkedin.com
Cloud CRM solutions rely heavily on internet connectivity. While reliable internet access allows users to reach these platforms from anywhere, enhancing accessibility and operational flexibility, a dependency on internet connectivity can hinder access during outages. Understanding the importance of internet connectivity is crucial when considering cloud CRM options.
Deployment and infrastructure
The fundamental difference lies in where the software resides. On-premise CRM systems are installed directly on your company’s servers, demanding significant upfront investment in hardware, software licenses, and IT infrastructure. In contrast, cloud-based CRM solutions are hosted by a third-party provider, accessible via the internet through a web browser or dedicated application.
Cost and scalability
The cost structures of on-premise and cloud CRM differ significantly. On-premise CRM requires a substantial upfront investment, followed by ongoing maintenance and support expenses. This includes the cost of the hardware, software licenses, IT personnel, and potential upgrade costs down the line. Additionally, the company's IT team is solely responsible for all aspects of system maintenance, including updates and troubleshooting, which can be an administrative burden. Cloud-based CRM typically operates on a subscription-based model, where you pay a recurring fee (monthly or annually) per user. This predictable pricing makes budgeting easier and reduces the initial financial barrier to entry. Cloud CRM also offers superior scalability, allowing you to add or remove users without requiring significant infrastructure changes.
Accessibility and mobility
On-premise CRM systems often require users to be physically present in the office to access the software, or to configure complex VPN solutions. This can hinder remote work and collaboration, particularly for a distributed workforce.
Cloud-based CRM offers unparalleled accessibility. Users can access the system from anywhere with an internet connection, using a variety of devices, including laptops, tablets, and smartphones. This empowers sales teams to manage leads and customer interactions on the go, and enables customer service representatives to provide support remotely.
Customization and integration
On-premise CRM systems typically offer greater flexibility for customization. Because you control the underlying infrastructure, you can tailor the software to meet your exact business requirements. However, this customization often requires specialized technical expertise and can be time-consuming and expensive.
Cloud-based CRM solutions offer a balance between customization and ease of use. While you may not have as much control over the underlying infrastructure, most cloud CRMs offer a range of configuration options and integrations with other business systems. Many cloud CRMs provide APIs that allow you to connect the CRM with other software applications. Additionally, cloud-based CRM solutions can be integrated into existing systems with lower initial and ongoing costs, although some integration challenges may arise.
Security and compliance
Security is a critical consideration for any CRM implementation. On-premise CRM systems give you complete control over data security. You are responsible for implementing security measures, such as firewalls, intrusion detection systems, and data encryption. Cloud-based CRM providers invest heavily in security infrastructure and expertise. They typically implement robust security measures, such as data encryption, access controls, and regular security audits. They are also responsible for ensuring compliance with relevant data privacy regulations. However, it’s essential to carefully evaluate the security practices of any cloud CRM provider before entrusting them with your data.
Suitability for Nonprofits
On-Premise CRM Often too costly and complex for smaller nonprofits, on-premise systems require in-house IT support and aren’t easily scalable. Cloud-Based CRM More accessible and budget-friendly, cloud CRMs help nonprofits manage donors and fundraising with less technical overhead. Explore nonprofit cloud CRM options.
Top 5 cloud based CRMs: Finding the perfect fit for your business
1. Lark: The All-in-one platform for connected workflows
Lark is not just a CRM tool; it's a comprehensive platform that seamlessly integrates communication, project management, collaboration, and CRM functionalities. This holistic approach allows businesses to manage customer relationships within the context of their broader operations, leading to improved efficiency and enhanced customer experiences.
Features
Advanced communication & collaboration: Lark's core features include messaging, video conferencing, shared documents, and task management, enabling seamless internal and external communication.
Automation & customization: Robust workflow automation capabilities in Lark Base allow for the streamlining of repetitive tasks, freeing up sales teams to focus on building relationships. Lark also allows for extensive customization to tailor the CRM to specific industry requirements and business processes.
Knowledge base & collaboration tools: Integrated knowledge base ensures all team members have access to the latest customer information and internal documentation, promoting consistent communication.
Mobile-first design: Lark's mobile app is highly functional, allowing sales teams to manage leads, update records, and communicate with customers while on the go.
Advantages
Unparalleled integration: Lark's key advantage lies in its seamless integration. By combining CRM with communication and collaboration tools, it eliminates the need for disparate systems and reduces data silos.
Enhanced collaboration: The platform’s inherent collaboration features facilitate seamless teamwork between sales, marketing, and customer support teams, resulting in a more coordinated approach to customer management.
Increased productivity: Automating repetitive tasks and providing a centralized platform for information sharing increases productivity and allows sales teams to focus on higher-value activities.
Improved customer experience: A unified view of customer data, combined with effective communication tools, enables businesses to provide personalized and responsive customer service.
Scalability: Lark can easily scale to accommodate the growing needs of your business.
Starter: Free (up to 20 users, 100 GB storage, unlimited chats, and 10 wiki spaces)
Pro: $12 user/month (up to 500 users, 15 TB storage, 500 meeting participants, unlimited Wiki spaces)
Enterprise: Custom pricing (unlimited users, 15 TB storage, advanced security features, and supergroup collaboration capabilities)
Explore more👉
Lark CRM: A Comprehensive Guide to Streamlining Your Business for Growth
2. Salesforce sales cloud: The industry leader
Salesforce Sales Cloud remains the dominant force in the CRM market, offering a comprehensive suite of features and extensive customization options.
Image source: salesforce.com
Features
Sales force automation (SFA): Comprehensive SFA tools for managing leads, opportunities, contacts, and accounts.
Reporting & analytics: Robust reporting and analytics capabilities for tracking sales performance and identifying trends.
AI-powered insights: Utilize Einstein AI for predictive analysis and personalized recommendations.
Predictive analytics: Enhance CRM systems by providing intelligent insights and personalized experiences through AI and machine learning, enabling businesses to analyze customer data more effectively, predict behavior, and make informed decisions.
Workflow automation: Automate complex sales processes and improve efficiency.
Advantages
Extensive functionality: Salesforce Sales Cloud offers a wide range of features to address virtually any sales challenge.
Scalability: Highly scalable platform that can accommodate the needs of businesses of all sizes.
Ecosystem: Benefit from a vast ecosystem of partners, developers, and consultants.
Customization: Highly customizable platform that can be tailored to specific industry requirements.
Pricing
Starter suite: $25/user/month
Pro suite: $100/user/month
Enterprise: $165/user/month
3. HubSpot CRM: The inbound marketing powerhouse
HubSpot CRM is a popular choice for businesses focused on inbound marketing, offering a free version with a generous set of features.
Features
Contact management: Centralized contact database with detailed information on leads and customers.
Sales pipeline management: Visualize your sales pipeline and track deals through each stage.
Email marketing: Integrated email marketing tools for nurturing leads and engaging customers.
Live chat: Real-time communication with website visitors and potential customers.
Advantages
Inbound marketing focus: Seamlessly integrates with HubSpot’s marketing automation platform.
User-friendly interface: Easy to learn and use, even for non-technical users.
Comprehensive integration: Integrates with other HubSpot tools and a wide range of third-party applications.
Customer expectations: Helps businesses understand and adapt to evolving customer expectations, which is crucial for delivering exceptional customer experiences and making data-driven decisions.
Pricing
Free: for up to 2 users
Starter: $15/month/seat
Professional: $1300/month (includes 5 seats, additional seats starts at $45/user/month)
4. Zoho CRM: The affordable enterprise solution
Zoho CRM offers a comprehensive suite of features at a competitive price, making it an attractive option for businesses seeking a cost-effective CRM solution.
Features
Sales automation: Automate repetitive tasks and streamline sales processes.
Lead management: Track and manage leads throughout the sales cycle.
Reporting & analytics: Gain insights into sales performance with detailed reports and dashboards.
Customization: Customize the platform to meet your specific business needs.
Accurate data: Ensure accurate data in your CRM system to gain a complete understanding of your operations and customer interactions, leading to better decision-making and customer service.
Advantages
Affordable pricing: One of the most cost-effective CRM solutions on the market.
Feature-rich: Offers a comprehensive set of features to meet the needs of most businesses.
Customizable: Highly customizable platform that can be tailored to specific requirements.
Zoho ecosystem: Seamlessly integrates with other Zoho applications.
Pricing
Standard: $14/user/month
Professional: $23/user/month
Enterprise: $40/user/month
Ultimate: $52/user/month
5. Microsoft Dynamics 365 Sales: The power of the Microsoft ecosystem
Microsoft Dynamics 365 Sales leverages the power of the Microsoft ecosystem, offering seamless integration with other Microsoft applications such as Outlook and Teams.
Image source: microsoft.com
Features
Sales force automation: Comprehensive SFA tools for managing leads, opportunities, and contacts, making it an essential CRM platform for businesses.
AI-powered insights: Utilize AI to identify sales opportunities and improve performance.
Integration with Microsoft Apps: Seamlessly integrates with other Microsoft applications.
Customization: Customize the platform to meet your specific business needs.
Mobile App: Access CRM data and manage sales activities on the go.
Advantages
Microsoft integration: Seamless integration with other Microsoft applications.
AI capabilities: Utilize AI to improve sales performance and identify opportunities.
Scalability: Can scale to accommodate the needs of businesses of all sizes.
Comprehensive features: Offers a comprehensive set of features to meet the needs of most businesses.
Pricing
Professional: $65/user/month
Enterprise: $105/user/month
Premium: $150/user/month
Important considerations
Remember, this is not an exhaustive list, and the “best” cloud-based CRM for your business will depend on your specific requirements. Evaluate each CRM based on factors such as:
Budget: How much are you willing to spend on a CRM subscription?
Features: What features are essential for your business?
Ease of use: How easy is the CRM to learn and use?
Integration: Does the CRM integrate with your existing business systems?
Scalability: Can the CRM scale to meet your future needs?
Customer support: Does the provider offer reliable customer support?
How to choose a cloud CRM: A step-by-step guide to success
1. Define your business requirements
Before you even begin to evaluate CRM solutions, it’s crucial to clearly define your business requirements and understand your business operations. The process should involve stakeholders from across your organization, including sales, marketing, customer service, and IT. By getting input from all relevant departments, you can ensure that the CRM system meets the needs of everyone who will be using it. Here are some questions to consider:
What are your top sales priorities? (e.g., lead generation, improved closing rates, shorter sales cycles)
What are your marketing goals? (e.g., increased lead conversion, improved customer engagement, personalized marketing campaigns)
What are your customer service objectives? (e.g., faster response times, improved customer satisfaction, reduced support costs)
2. Establish a budget
Cloud-based CRM solutions offer a variety of pricing plans, ranging from free to enterprise-level subscriptions. Consider the following costs:
Subscription fees: The recurring fee you’ll pay per user per month or year.
Implementation costs: The cost of setting up and configuring the CRM system.
Data storage costs: The cost considerations related to data storage, especially when comparing cloud versus on-premises CRM solutions. Cloud CRMs provide functional and secure data storage managed by a third-party provider, while on-premises systems require businesses to manage their own data storage.
Training costs: The cost of training your employees on how to use the CRM system.
Customization costs: The cost of customizing the CRM system to meet your specific needs.
Integration costs: The cost of integrating the CRM system with your existing business systems.
Ongoing maintenance and support costs: The cost of maintaining and supporting the CRM system.
Be sure to factor in the total cost of ownership (TCO) over the long term. A seemingly inexpensive solution may end up costing you more in the long run if it requires significant customization or integration costs.
3. Create a shortlist of potential solutions
Once you’ve defined your business requirements and established a budget, you can start researching potential CRM solutions. Leverage online resources, industry reviews, and recommendations from colleagues to create a shortlist of 3-5 CRM providers that seem like a good fit. Don’t be afraid to explore both well-known and lesser-known solutions. Focus on those that align with your identified needs and budget constraints.
4. Request demos and free trials
The best way to evaluate a CRM solution is to see it in action. Request demos from the providers on your shortlist and sign up for free trials whenever possible. During the demos, focus on how the CRM system can address your specific business requirements. Evaluating the features of a good cloud CRM is crucial, as it should offer seamless integration with various tools, minimizing manual data entry and errors.
5. Consider ease of use and adoption
Even the most powerful CRM system is useless if your employees don’t use it. Choose a CRM that is easy to learn and use. Look for a CRM with an intuitive interface, helpful tutorials, and responsive customer support. By ensuring ease of use, you can facilitate the delivery of exceptional customer experiences, which is crucial for gaining a competitive advantage.
6. Negotiate the contract
Once you’ve chosen a CRM solution, negotiate the contract carefully. Pay attention to the terms of the agreement, including pricing, payment terms, service level agreements (SLAs), and termination clauses. Additionally, ensure that the CRM system supports delivering personalized customer experiences, as this is crucial for tailoring interactions and services to individual customer preferences.
By following these steps, you can increase your chances of selecting a cloud-based CRM that meets your business needs and helps you achieve your goals. Remember, the “best” CRM is the one that fits your specific requirements, budget, and technical capabilities. Take your time, do your research, and choose wisely.
Conclusion: Embracing the power of cloud-based CRM
Cloud-based CRM has revolutionized the way businesses manage customer relationships. By offering scalability, accessibility, and affordability, cloud CRM systems have empowered organizations of all sizes to improve sales, enhance customer service, and streamline marketing efforts. Selecting the right cloud based CRM solution is crucial for business success, as it can greatly influence operations and efficiency.
Implementing a cloud-based CRM system is a significant investment, but it’s an investment that can pay off handsomely. By following the best practices and strategies outlined in this blog post, you can chart a course to success and unlock the full potential of cloud-based CRM. Remember to prioritize security, focus on user adoption, and continuously improve your system over time. And for a truly integrated experience that streamlines communication and collaboration, be sure to explore the capabilities of platforms like Lark!
Table of Contents
