On-Premise vs Cloud CRM: 7 Ways Cloud-Based CRMs Help Drive Scalability

7 Ways Cloud CRMs help your business scale

In today's hyper-connected business landscape, a CRM software is vital for organisations to effectively manage their customer interactions, streamline processes, and boost productivity. 

With the rise of hybrid work and the need for flexibility, traditional on-premise CRM solutions have been gradually eclipsed by a more innovative approach: Cloud-based CRMs.

What are Cloud-Based CRMs? 

Cloud-based CRM software, a form of software-as-a-service (SaaS), has revolutionised the way businesses operate by harnessing the potential of the cloud. In this model, the CRM provider hosts the software on their servers, allowing customers to access it conveniently through the internet. By adopting this approach, companies eliminate the burden of managing infrastructure and gain the freedom to focus on their core business activities. 

The main difference between a traditional CRM and cloud-based CRM is that deploying an on-premise CRM solution involves substantial upfront costs, including server infrastructure, hardware, software licenses, and IT personnel. Whereas, the advent of cloud-based CRMs has brought about a paradigm shift, democratising access to powerful customer relationship management tools.

Difference Between Traditional On-Premise CRM Systems and Cloud-Based CRMs 

Traditional on-premise CRM systems and cloud-based CRMs differ in various attributes. Let’s look at a comparative analysis of cloud-based CRM versus on-premise CRM and understand the difference between them.

1. Deployment

• On-premise CRM: Installed and hosted locally on company servers. 
• Cloud-based CRM: Hosted on remote servers and accessed via the internet. 

2. Infrastructure

• On-premise CRM: Requires dedicated hardware, servers, and IT infrastructure on-site. 
• Cloud-based CRM: Relies on the infrastructure of the cloud service provider. 

3. Accessibility

• On-premise CRM: Accessible only from within the company's network or through a virtual private network (VPN). 
• Cloud-based CRM: Accessible from anywhere with an internet connection, using various devices (e.g., desktops, laptops, mobile devices). 

4. Scalability

• On-premise CRM: Scalability is limited by the capacity of the local infrastructure and requires additional hardware and resources for expansion. 
• Cloud-based CRM: Easily scalable by leveraging the resources of the cloud provider, allowing for flexible and on-demand scaling. 

5. Cost

• On-premise CRM: Generally involves higher upfront costs, including hardware, software licenses, implementation, maintenance, and IT infrastructure. 
• Cloud-based CRM: Typically involves lower upfront costs, as it operates on a subscription-based pricing model, with costs based on usage and user licenses. 

6. Maintenance

• On-premise CRM: Requires in-house IT staff 24x7 to handle software updates, bug fixes, security patches, backups, and overall system maintenance. 
• Cloud-based CRM: The cloud provider takes care of maintenance tasks, including software updates, infrastructure management, security, and backups. 

7. Security

• On-premise CRM: Offers more control over data security since it is managed internally. However, the company is responsible for implementing security measures. 
• Cloud-based CRM: Relies on the cloud provider's security infrastructure and expertise, which often includes advanced security measures, encryption, and regular audits.

What are the Benefits of Cloud-Based CRMs?

• Cloud-based CRMs offer lower upfront costs and eliminate the need for extensive infrastructure investment. 
• Maintenance tasks and updates are handled by the cloud service provider, reducing the burden on internal IT teams. 
• Cloud-based CRMs provide easy scalability, allowing organisations to quickly adjust resources as needed. 
• They offer remote accessibility, enabling users to access the CRM from anywhere with an internet connection. 
• Cloud-based CRMs benefit from frequent updates and new features introduced by the provider. 
• They often come with enhanced security measures and data protection protocols provided by the cloud service provider. 

Explore how an EdTech company leveraged a cloud-based CRM to streamline their business process and satisfy their end-user.

Popular Cloud-Based CRM Platforms

When it comes to cloud-based CRM solutions, there are several popular platforms that businesses rely on to effectively manage their customer relationships and streamline their operations.

1. HubSpot CRM:

HubSpot is a leading cloud-based CRM platform offering contact management, deal tracking, email integration, marketing automation, and customer service tools. It provides a user-friendly interface and integrates with other HubSpot products and third-party applications for seamless marketing, sales, and customer service workflows.  

Popular customers: Canva, Trello 

Tech company achieves accurate reporting, increases productivity and ROI with HubSpot. Learn how

2. Salesforce CRM:

Salesforce offers a wide range of CRM solutions. It provides a customisable platform with features such as sales and lead management, marketing automation, customer service, and analytics.  

Popular customers: Amazon, Spotify 

3. Zoho CRM:

Zoho CRM is a cloud-based CRM platform offering features like lead and contact management, sales pipeline tracking, email marketing, workflow automation, and analytics. Zoho CRM integrates with other Zoho products and provides mobile apps for on-the-go access. 

Popular customers: Hyundi, Hotstar 

4. Microsoft Dynamics 365:

Microsoft Dynamics 365 is a cloud-based CRM and ERP platform that combines sales, marketing, customer service, and field service capabilities. It provides a unified view of customer interactions and integrates seamlessly with other Microsoft tools like Office 365, Power BI, and Azure. 

Popular customers: Adobe, Pandora  

5. Pipedrive:

ipedrive is a cloud-based CRM platform designed primarily for sales teams. It offers features such as deal management, contact and lead tracking, email integration, and sales pipeline visualisation.  

Popular customers:

Vimeo 

These are just a few examples of some of the most  popular cloud-based CRM platforms available in the market today. 

Seven Ways That Cloud-Based CRMs Can Benefit Your Business 

Leveraging the benefits of cloud-based CRMs can enable companies to drive scalability and growth for their organisation in several ways. 

1. Easy to Set Up:

Cloud-based CRMs are typically quick and easy to set up compared to on-premise solutions. They often provide versatile interfaces and guided setup processes, allowing businesses to start using the CRM system without extensive technical knowledge or complex configurations. 

2. Accessible Anytime, Anywhere:

Cloud-based CRMs offer seamless accessibility, allowing users to access the system from any location with an internet connection. This accessibility promotes remote work, facilitates collaboration among teams, and ensures that critical customer information is readily available on the go. 

3. Subscription-Based Pricing:

Cloud-based CRMs typically operate on a subscription-based pricing model, which can be more cost-effective for businesses. Instead of upfront costs for hardware and licenses, businesses pay a regular subscription fee based on their usage and the number of users, allowing for better budget management and scalability. 

4. Data Safety:

Cloud-based CRM providers prioritise data security and employ robust measures to protect customer information. These measures include encryption, regular data backups, secure access controls, and compliance with industry standards. Cloud providers often have dedicated security teams and infrastructure, ensuring a higher level of data safety compared to on-premise solutions. 

5. Customisable:

Cloud-based CRMs offer flexibility in customisation to meet the specific needs of businesses. They provide various configuration options, allowing businesses to tailor the CRM system to their workflows, data fields, and business processes. This customisation ensures that the CRM aligns closely with the unique requirements of the business. 

6. Smooth Integrations:

Cloud-based CRMs are designed to integrate smoothly with other business tools and systems. They often offer pre-built integrations or APIs (Application Programming Interfaces) that allow seamless data exchange between the CRM and other applications such as email, marketing automation, customer support, or ERP (Enterprise Resource Planning) systems. These integrations enhance operational efficiency and provide a unified view of customer data across different platforms. 

7. Analytics and Reporting:

Cloud-based CRMs provide robust analytics and reporting capabilities. They offer built-in reporting tools and dashboards that allow businesses to gain insights into their sales pipeline, customer behavior, marketing campaigns, and other key metrics. These analytical features enable data-driven decision-making and help businesses track their performance, identify trends, and optimise their sales and marketing strategies. 

Key Considerations for Selecting a Cloud-Based CRM Solution to Fit Your Business Needs 

While choosing a cloud-based CRM, you must consider several factors that come together to fit your business needs and addresses the challenges you face. 

1. Identify your Specific Requirements:

Start by making a list of all the essential features and functionalities you need from a CRM. Consider factors such as the size of your business, industry, sales process, customer service needs, and integration requirements.  

2. Scalability and Flexibility:

Ensure that it can accommodate your business growth and adapt to changing needs. Look for options to add or remove users, give limited permission access, scale storage capacity, and customise workflows to fit your evolving business requirements. 

3. User Experience:

Consider the usability and user experience of the CRM platform to minimise the learning curve. Look for a versatile interface, easy navigation, and a layout that aligns with your team's workflow. 

4. Integration Capabilities:

Assess the CRM's integration capabilities with other essential tools and systems you use in your business, such as email clients, marketing automation platforms, customer support systems, or ERP software.  

5. Data security and privacy:

Data security is crucial for any CRM. Evaluate the security measures implemented by the CRM provider, including encryption, access controls, regular backups, and compliance with data protection regulations.  

6. Customisation options:

Determine the level of customisation the CRM offers to tailor it to your business processes. Look for options to customise fields, workflows, and reports to match your specific requirements. 

7. Support and Training:

Evaluate their customer support channels, documentation, training resources, and community forums. Ensure that the CRM provider offers adequate support to assist your team during implementation, training, and ongoing usage. 

8. Pricing and ROI:

Consider the pricing structure of the CRM solution, including subscription fees, user licenses, and additional costs for add-ons or customisation. Assess the return on investment (ROI) potential of the CRM by weighing the cost against the benefits and improvements it can bring to your business processes and customer relationships. 

By carefully considering these factors, you can select a cloud-based CRM that aligns with your business needs, overcomes your specific challenges, and empowers your team to effectively manage customer relationships and drive business growth. 

Cloud-based CRM solutions have revolutionised the way businesses manage their customer relationships, offering numerous benefits and transforming traditional sales and marketing processes. It serves as a foundation for building strong customer connections, improving sales efficiency, and fostering business growth in today's digital era. 

A well-selected CRM solution can streamline your operations, enhance collaboration, improve customer relationships, and provide valuable insights through analytics and reporting. Investing in the right cloud-based CRM solution like HubSpot or Salesforce can provide a solid foundation for your business's customer relationship management, enabling you to stay competitive, deliver exceptional customer experiences, and achieve your growth objectives.   

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