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Open Source CRM vs. On-Demand


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What Is Customer Relationship Management (CRM)?

CRM is a type of business strategy that businesses and companies use to reduce costs and increase profits by increasing customer satisfaction, customer loyalty and customer advocacy. CRM uses all available internal and external information to give businesses a holistic view of customers in real time.  By viewing customers in real time, departments that have direct interactions with customers can make quick decisions when problems arise. Without customers, no business will be successful, which is why it is important that CRM is implemented in the business correctly so as to give the best results.

When it comes to choosing the right CRM solution, you will need to consider many factors such as the size of your company, competitive environment and the goals of the company.  There are many CRM vendors in the market but you may find that alternative CRM deployments will suit your business needs better. You have two options to choose from when it comes to picking the alternative CRM deployment; open source and on demand.

Why Choose Open Source CRM?

Open Source CRM is a program that has been designed according to the company’s needs and requirements. This software is highly popular with large companies that have their own in-house IT personnel that will help the company modify or customize the program so that it fits the company’s requirements perfectly. Small companies are unable to afford their own in-house IT personnel, which is why they do not consider this type of CRM software. Some of the other benefits that an Open Source CRM has are:

    • Businesses can retain control of all their data.
    • Free licensing
    • Vendors barely have any lock in control of the company
    • Many active support forums are available, to help the company answer all its problems quickly.

Why Choose On Demand CRM?

On-demand CRM is also known as Hosted CRM. It is a web based CRM system that is customized according to the company and its needs through a remote host that is running a centralized CRM. The employees access the system and all the CRM functions by logging into the server.

This type of CRM software is very popular in small sized and medium sized business. The main reason for this because it requires a low capital investment, which is great for businesses just starting up. There are many other benefits of on-demand CRM software, such as:

    • You can access the data from anywhere at any time because all you need to do is login into a server with your internet connection,
    • The business is not required to install or maintain the system on site.
    • The expenses or cost of running the system are affordable because all you need to do is pay a monthly rent to the CRM provider.
    • The business does not have to hire specialist to run the system, as the CRM provider has its own experienced professionals.
    • Businesses do not have to buy modules in bundles, which they may not use in the future.
Both the On-demand and Open Source CRM have their own set of advantages and disadvantages but it is always important to analyze the company properly to decide which one will be best.  The On-demand CRM is less expensive as compared to the Open Source CRM but some companies feel that they will benefit in the long run from buying the system rather than renting it.

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