What is a Cloud-based CRM and its benefits?

In the last blog, we discussed what is a CRM software tool and how it is beneficial for businesses of all sizes (Importance of Having a CRM). It was pretty evident that a CRM software tool is a must-have in the tech stack for any business.

When it comes to choosing the right CRM system – there is plenty of CRM software available in the market today – there are quite a few popular ones like HubSpot, Salesforce, Creatio, etc. There are CRM systems from big tech companies like Microsoft, Oracle, Adobe, etc. and there are other few CRM tools worth mentioning here Freshworks, Zoho, SugarCRM, etc. Choosing a CRM system completely depends upon each company’s business goals and strategies, the current process in their sales, marketing, and customer service functions, the size of the company, and the necessary monetary resources for a long-term implementation/usage of the CRM tool (as the value of the CRM or ROI is best found on long-haul).

With the ever-changing business landscape and advancement in the tech space- there have been quite a lot of changes in how the world functions today. More and more companies are remote-work friendly post the COVID-19 pandemic and there has been a quantum leap in technologies like software-as-a- Service (SaaS), Mobile technologies and Social Media apps, Big Data, BI and Advanced Analytics, Robotic Process Automation (RPA) and so on. But one fundamental technology that serves as a centerpiece or enabler of all the earlier-mentioned technologies is Cloud Computing.

Cloud CRM statistics show that 87% of CRM is cloud-based.

Cloud CRM statistics for 2018 show 72.9% of CRM spending was on SaaS.

What is Cloud-based CRM?

As per Gartner(Definition of Cloud Computing – IT Glossary | Gartner) the definition of Cloud Computing is – Cloud computing is a style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service using internet technologies.

Thus, to simply put a cloud-based CRM is a customer relationship management system hosted in the external server (cloud) than installed on-premises in the local company server or IT systems. Cloud-based CRM can be accessed from anywhere, by any device, and by anybody who has the right credentials via an internet connection.

Cloud-based CRM is usually hosted in the CRM provider’s server and this Software-as-a-Service (SaaS) is accessed by the customers through an internet connection unlike on-premises/installed software tools. The data security and the IT infrastructure for cloud CRM are borne by the CRM service provider which saves businesses from upfront costs and worries about storage and secure data.

Benefits:

According to a business report –‘Cloud-based CRM delivers 1.7 times more ROI than on-premise CRM’ and the growing trend is that the ‘Larger enterprise groups preferred cloud deployment to on-premise(Nucleus Research- Home – Nucleus Research).

1. Easy to set up and accessibility – Since there is almost no installation at all when it comes to Cloud-based CRM. Anyone with an internet connection can signup online, login with their credentials, set up the CRM, and have it up and run in a few minutes. Also, the added advantage is that any number of users can access the CRM from anywhere and any device (including mobile devices).
2. Easy to learn and use – Since one of the objectives of cloud-based CRM is to enable the remote workforce the CRM service providers typically have an extensive knowledge base, fun-video tutorials, personalized training sessions, Demos, and Youtube channels that address any topics or issues related to how to use the CRM tool. This makes it easy for CRM customers and their employees to easily learn and use the system.
3. Easy and regular software updation – Cloud-based CRM system requires little or no servicing at all since there is typically no hardware installed on-premises for the CRM system to work and maintain. It is the CRM service provider’s job to regularly fix bugs and provide hassle-free software updates.
4. Reduced Costs and higher ROI– This is one of the major benefits of a cloud-based CRM system for any business. As mentioned above, there is virtually no requirement for any IT hardware infrastructure like on-premises servers, data & security devices, etc. Also, having a cloud-based CRM completely knocks off the in-house IT team to a greater extent. Also, as per IBM reports the ROI of a CRM software system, when properly implemented, can exceed 245%. In another Nucleus research, the average ROI for CRM is $8.71 for every dollar spent. Thus, there are no huge upfront investments required, and no maintenance costs involved when opting for a cloud-based CRM system.
5. High level of security and easy control – Cloud-based CRM service providers typically back their services with robust IT security measures and certifications to protect the customer’s data from data theft, data loss, hackers, and any other security-related risk management measures. This makes CRM customers worry-free. Also, a good cloud-based CRM system provides good and easy control over the users with activity tracking, accessibility to certain features, etc. depending upon the type of organization structure and hierarchy within the company that is using the CRM for their business.
6. Scalability –If it was an on-premises CRM system then it would require an IT team to make changes and configure the system according to business needs. With cloud-based CRM there is always room for growth and scalability- be it an additional number of users ex. sales reps or huge inflow of lead/contact database from marketing campaigns or 24/7 customer support across regions, a good cloud-based CRM server all the business objectives and goals. Also, whenever the business scales up or scales down, unlocking additional features within the existing cloud-based CRM is easy and seamless.
7. Enables easy and flexible subscription and payments–Since the cloud is elastic in nature it provides the necessary flexibility to suit a wide range of businesses and the size of the company. This flexibility enables businesses to easily choose between different types of subscription plans and easily upgrade when the businesses scale up. The activation or an upgrade of an existing CRM system is just a click away and also the payment for the subscription is super easy usually online thus eliminating tedious paperwork which is time-consuming.
8. Open and easy integration with other software tools– Since CRM is an epicenter for all marketing, sales, and customer service activities. It becomes essential for any CRM system to be compatible and easily integrate with different other software applications like productivity tools, email clients, and other existing tools which help to track finances, inventory, POS, Delivery apps, and so on.
9. Enables and promotes inter-department collaboration– One of the greatest advantage that a Cloud-based CRM provides is – it acts as a centralized system for all the data in one place. Employees from different departments like marketing, sales, and customer service have access to the same customer data. This encourages open and apt communication and seamless collaboration within the departments which in turn helps better communication with the customers and helps build better customer relationships.

With the above discussion, now we know how important it is for a business to opt for a cloud-based CRM tool for their day-to-day marketing, sales, and customer service activities as it enhances customer satisfaction and experience. We at V-Nxt, are pioneers in helping choose and implement the right CRM system/tools for businesses at scale. With the above compelling reasons on why one needs to choose a cloud-based CRM– we are quick to understand your business, brainstorm on the problem statement, and implement/set up the right cloud-based CRM tool to help you achieve your business goals.