Customer relationship management software has become indispensable for enterprises as well as small businesses. While traditional CRM systems have been around for quite some time, the rise of cloud computing has revolutionized the CRM landscape, giving rise to cloud CRM software.
In this comprehensive guide, we'll delve into the intricacies of cloud based 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 solution providers in the market and provide guidance on how to choose the right systems for your business needs.
What is a cloud based CRM?
Cloud based CRM solutions, at their core, are CRM systems hosted on the vendor's servers and accessed over the internet connection. Instead of installing CRM 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 customer data and business processes.
Imagine a traditional on-premise CRM system as a standalone physical store. You own the building, and you are responsible for all the resources needed to keep it running. However, with cloud customer management software, it's more like renting a space in a modern shopping mall. The CRM provider handles the infrastructure, security, and updates, while you focus on running your business operations and serving your customers. This eliminates the need for expensive on-site hardware, reducing costs and simplifying IT management.
Cloud based CRM software comes in various forms, including:
Software as a Service (SaaS): This is the most common type of cloud solution. 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 cloud 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 business performance.
Cloud based CRM vs. On-premise CRM
The emergence of cloud based CRM offers a modern alternative to traditional on-premise systems. While both deployment models have distinct advantages, the key is choosing the right fit for your business needs and resources. Here's a detailed comparison of Cloud CRM vs. On-Premise CRM!
Deployment and infrastructure
On-premise CRM systems install directly on company servers, requiring significant upfront investment in hardware, software licenses, and IT infrastructure. Cloud based CRM solutions are hosted by third-party providers, accessible via internet through web browsers or applications while providing secure data storage.
Cost and scalability
On-premise CRM requires substantial upfront investment plus ongoing maintenance expenses including hardware, software licenses, IT personnel, and upgrades. Your IT team handles all system maintenance and troubleshooting while protecting customer data.
Cloud based CRM operates on subscription models with recurring per-user fees. This predictable pricing simplifies budgeting and reduces financial barriers. Cloud CRM offers superior scalability, allowing user additions or removals without infrastructure changes while maintaining cost effectiveness.
Accessibility and mobility
On-premise CRM systems often require physical office presence or complex VPN configurations, hindering remote work and team collaboration.
Cloud based CRM offers unparalleled accessibility. Users access customer data from anywhere with internet connections using various devices. This empowers sales teams to manage leads remotely while enabling customer service representatives to provide support from any location.
Customization and integration
On-premise CRM systems offer greater customization flexibility through infrastructure control. However, customization requires specialized expertise and can be expensive.
Cloud based CRM solutions balance customization with ease of use. Most cloud CRM platforms offer extensive configuration options and business system integrations. Many cloud CRM provide APIs connecting with applications at lower integration costs.
Security and compliance
On-premise CRM systems provide complete data security control through implemented firewalls, intrusion detection, and encryption while protecting sensitive customer data.
Cloud based CRM providers invest heavily in security infrastructure, implementing robust measures including encryption, access controls, and security audits. They ensure compliance with data privacy regulations, though careful evaluation of cloud CRM provider security practices remains essential.
What are the key cloud-based CRM features?
A robust cloud based CRM application offers features designed to streamline customer relationship management processes and enhance efficiency. These features provide a 360-degree view of customers, empowering sales representatives, marketing, and customer service representatives.
Contact management
This cornerstone of CRM platforms stores detailed customer information including names, contact details, company affiliation, and communication history within the customer database. Contact management systems enable customer segmentation based on industry, location, or purchase history, allowing personalized communication and marketing efforts while analyzing customer behavior patterns.
Lead management
Lead management features track and manage lead data from entry into your sales pipeline until they become paying customers. Capture leads from website forms, marketing campaigns, and social media, then nurture them through sales processes. Lead scoring and routing capabilities prioritize promising leads and assign them to appropriate sales representatives.
Sales force automation
Sales force automation streamlines sales processes by automating lead qualification, opportunity management, quote generation, and order processing. This automation frees sales teams to focus on building customer relationships and closing deals while improving sales performance.
Marketing automation
Cloud CRM solutions include marketing automation features enabling targeted marketing campaigns. Automate email marketing and social media marketing using integrated marketing tools, reaching wider audiences and generating leads. Marketing automation tracks campaign effectiveness while enhancing customer engagement.
Customer service and support
Cloud based CRM systems include service tools such as case management, knowledge bases, and self-service portals for quick issue resolution. Track customer interactions across all channels, ensuring customer service teams have complete customer history views.
Mobile access enhances client interaction and supports business requirements, ensuring users manage communications efficiently while maintaining access to sensitive customer data.
Reporting and analytics
Cloud CRM provides robust reporting and advanced analytics capabilities for tracking KPIs, identifying trends, and measuring sales, marketing, and customer service effectiveness. Generate customizable reports and dashboards providing real-time business performance views while ensuring accurate data analysis.
Integration capabilities
Cloud based CRM systems integrate with existing systems and business tools like accounting software, email marketing platforms, and e-commerce systems. Integration ensures smooth data flow between systems, eliminating data silos and improving efficiency.
These key CRM capabilities help you choose a cloud based CRM solution that improves customer relationships, streamlines sales processes, and drives business growth.
Cloud based CRM recommendations: Finding the perfect fit for your business
1. Lark: The All-in-one cloud platform for connected workflows
Lark is not just a CRM tool; it's a comprehensive platform that seamlessly unifies communication, project management capabilities, collaboration tools, and CRM capabilities. This holistic approach allows businesses to manage customer relationships within the context of their broader operations, leading to improved efficiency and enhanced customer experiences.
Key features
Cloud-based customer database: Store and access all customer information in a secure, centralized cloud database that syncs instantly across all devices and team members. Comprehensive contact profiles with custom fields and detailed activity logs enable teams to personalize customer interactions and maintain complete visibility of the customer journey from anywhere.
Ample storage space: Lark offers substantial storage advantages with 100 GB for up to 20 users in the Starter plan, 15 TB for up to 500 users in the Pro plan, and customizable storage options in the Enterprise plan, accommodating unlimited users. This flexibility ensures that as your business grows, your storage needs are met efficiently.
Real-time mobile data synchronization: Access and update customer data instantly across all devices with mobile-optimized interface designed for smartphones and tablets. Log calls, update deal stages, create follow-up tasks, and maintain accurate reporting with real-time data entry that keeps sales pipelines consistently up-to-date.
Automation & customization: Lark Base’s robust workflow automation capabilities support up to 1000 automation runs per month for free, streamlining repetitive tasks and 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.
Customizable analytics dashboards: Generate real-time insights into sales pipelines, targets, and team performance through flexible data visualization tools that enable data-driven decision-making and comprehensive CRM reporting.
Cloud knowledge base & collaboration tools: Lark Wiki ensures all team members have access to the latest customer information and internal documentation, promoting consistent communication.
Pre-built CRM templates: Deploy ready-made templates for common use cases including lead tracking, contract management, customer visit logs, and deal progression to accelerate CRM adoption and boost productivity from day one.
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Unified communication workspace: Combine instant messaging, email, and video calls directly within CRM workflows, with notifications for database updates, task assignments, and approvals appearing in chat feeds to keep everyone aligned throughout the customer journey.
As a cloud-based CRM, Lark offers flexible pricing plans that adapt to your usage, allowing for agile budget planning to meet the evolving demands 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)
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
Key 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.
Pricing
With a free trial. Paid plans start at $25/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.
Key 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.
Pricing
With a free plan for up to 2 users. Paid plans start at $9/month/seat.
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.
Key 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.
Zoho ecosystem: Seamlessly integrates with other Zoho applications.
Pricing
With a free trial. Paid plans start at $14/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.
Mobile App: Access CRM data and manage sales activities on the go.
Pricing
With a free trial. Paid plans start at $65/user/month.
6. ActiveCampaign: Cloud CRM with powerful marketing features
ActiveCampaign combines CRM functionality with powerful marketing automation, making it ideal for businesses seeking an all-in-one customer experience platform. It excels at nurturing leads through automated email sequences and behavioral tracking.
Image source: activecampaign.com
Key features:
Built-in email marketing and automation workflows: Easily design and automate targeted email campaigns to engage customers based on their interactions and preferences.
Advanced lead scoring and behavioral tracking: Assess and prioritize leads using a scoring system that evaluates their engagement and behavior.
Sales pipeline management: Organize and manage sales opportunities through a visual sales pipeline.
Customer segmentation: Divide customers into specific groups based on various criteria, enabling personalized marketing strategies.
Pricing:
With a free trial. Paid plans start at $15/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
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 cloud CRM system meets the needs of everyone who will be using it while supporting team collaboration. 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)
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 cloud CRM system.
Data storage costs: The cost considerations related to data storage, especially when comparing cloud versus on-premises CRM solutions. Cloud CRM provides functional and secure data storage managed by a third-party CRM 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 cloud CRM system to meet your specific needs.
Integration costs: The cost of integrating the CRM system with your existing systems.
Ongoing maintenance and support costs: The cost of maintaining and supporting the CRM system.
👉Try Lark’s Savings Calculator: Switching to Lark’s Pro plan can lead to significant cost savings— for example, a 100-employee company using Slack, Google Workspace, and Airtable could save approximately $25,200 annually by consolidating their tools with Lark.
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 while affecting cost-effectiveness.
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 while offering the CRM capabilities you require.
Request demos and free trials
The best way to evaluate a cloud 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 while demonstrating its ability to manage customer interactions effectively.
🌟Try a free demo right now!
Consider ease of use and adoption
Even the most powerful cloud 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 system with an intuitive interface, helpful tutorials, and responsive customer support while ensuring it can deliver exceptional customer experiences.
By ensuring ease of use, you can facilitate the delivery of exceptional customer experiences, which is crucial for gaining a competitive advantage while improving customer engagement across your organization.
Negotiate the contract
Once you've chosen a cloud 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 while maintaining access to all your customer data.
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 while considering how it will support your overall business performance.
Conclusion
By offering scalability, accessibility, and affordability, cloud based CRM systems have empowered organizations of all sizes to improve sales performance, enhance customer service, and streamline marketing efforts while supporting comprehensive business operations.
Selecting the right cloud CRM solution is crucial for business success, as it can greatly influence operations and efficiency while enabling access to critical customer data from anywhere with an internet connection.
Remember to prioritize data security, focus on user adoption, and continuously improve your system over time while maintaining accurate data and protecting sensitive customer data. And for a truly unified experience that streamlines CRM workflow and team collaboration, be sure to explore the capabilities of platforms like Lark!
FAQs
What is a cloud-based CRM?
A cloud-based CRM (Customer Relationship Management) system is software hosted on remote servers, allowing businesses to manage customer interactions and data online. It offers accessibility, scalability, automatic updates, and enhanced collaboration among teams.
Is Salesforce a cloud-based CRM?
Yes, Salesforce is a leading cloud-based CRM platform that provides a comprehensive suite of tools for managing customer relationships. You might also consider other rapidly developing CRM solutions like Lark that emphasizes on-the-go customer data management and seamless team collaboration.
What are the 4 types of CRM?
The four types of CRM are:
Operational CRM focuses on automating business processes,
Analytical CRM analyzes customer data for insights,
Collaborative CRM enhances communication,
Strategic CRM centers on long-term customer relationships.
What are the 4 cloud-based services?
The four cloud-based services include:
Infrastructure as a Service (IaaS) provides virtualized computing resources,
Platform as a Service (PaaS) offers a framework for application development,
Software as a Service (SaaS) delivers software via the internet,
Storage as a Service (STaaS) enables scalable data storage solutions.
