CRM COMPUTING A Look At the Advantages and Disadvantages Madison Garvin

What is CRM Computing? CRM Computing is computer software or hardware that assists companies in managing and streamlining their communications with customers, enabling them, in some cases, to make offers to customers and track sales more efficiently. It consists of sales tracking software, as well as networks for companies to share customer data between locations.

The purpose of this presentation is to discuss the benefits and disadvantages of CRM computing, specific to the types of companies that may benefit or not benefit from the use of CRM computing.

Cloud-Based Advantages: Allows easier information sharing between different facets of the same company. Allows for more efficient sales tracking between departments. Membership costs lower than those of maintaining a large network of servers. Can help increase customer satisfaction by ease of communication and better tracking systems.

Cloud-Based Disadvantages: There is no guarantee that services will always be accessible and available. There is no guarantee that the service company will exist in the future, for the company to retrieve stored data. Companies can have concerns regarding the security and control of their private customer and company data.

Companies That May Benefit Small businesses with no space or finances for a large hardware/software investment. Marketing firms. Large companies would benefit to streamline and update their sales tracking for a large number of accounts. Companies looking to create more efficient communications. Any company that wants to keep track of sales or performances.

Companies That May Not Benefit Companies that have a lot of sensitive, confidential information may not feel safe using cloud computing. Companies who need their data to be available at any and all times, including a guarantee that their data storage provider will exist, making their data available, in the future.

Cloud Based or Conventional CRM What should you consider before deciding?

Cost Management decisions regarding which type of CRM to use should include whether or not the benefits of using cloud based over more conventional methods justify any increase in costs that may occur.

Efficiency and Access Management should also decide whether or not more conventional methods are better for them than cloud-based networks when it comes to the organization, access, and sharing of company and customer data. If a company has only one location and not many traveling employees, it may not make sense for them to use a cloud based network or storage company.

Technological Issues Management should certainly consider which of conventional methods or cloud based CRM meet their security requirements more. If they have a lot of private personal information they may not trust cloud based security. They should also consider how often and how long they will need certain information to be available, as there is no guarantee that a cloud based storage company will exist in the future, and what happens to the data stored if the company storing it no longer exists?

Summary Customer Relationship Management is an extremely important part of businesses, and the methods they choose to manage their customer relations can differ, based on the type of company and their informational needs. Cloud based CRMs may be more efficient and offer an ease of access, but they come with downfalls as well that conventional methods do not share.

References Laudon, K. Management Information Systems. Pearson. New York, NY.