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The Top 3 Benefits of SaaS CRM

by Corie Kaftalovich

September 22, 2010

Software-as-a-Service or SaaS is software that is delivered over the Internet.  While most software requires downloading and regular maintenance, SaaS is simply accessed through the web offering superior and flexible functionality, while avoiding the hassle of managing complex hardware.

There is an abundance of CRM vendors, like us, who have modeled their solution on a SaaS foundation in hopes of making CRM an easier and more enjoyable process. For this blog post I will propose the top 3 benefits of SaaS CRM so to convince businesses actively seeking a solution that once you go SaaS, you never go back.

No Hardware, No Problem

The first benefit of SaaS is that the user does not need to buy, install, or update any hardware. The management of hardware is usually the biggest factor deterring businesses from purchasing new software. However, with a SaaS CRM solution, the SaaS provider is the one responsible for all maintenance and upgrades of new functionality. Even when a company begins to expand their user base, they do not need to worry about purchasing and adding new hardware or bandwidth as it will be supplied by their provider.

When a company’s hardware is managed by the SaaS vendor, it creates a new level of data protection. With the SaaS provider responsible for the solution’s maintenance, all of the customer’s data resides on the vendor’s servers and storage systems, which are assumed to be highly secured. With virtually no hardware to maintain, the IT department has time freed up to focus on other projects and the company can be rest-assured that their data is protected.

The Low, Low Costs of SaaS

The SaaS provider’ s management of the company’s IT infrastructure leads to the second benefit of SaaS- lower costs. Because the company doesn’t have to manage the product, they do not pay for the fees associated with its upkeep and upgrades. Most SaaS CRM applications are offered on a subscription basis. Therefore, companies do not have to pay expensive licensing fees, data protection services or additional costs of ownership. Companies simply pay an annual fee to use the CRM product. The savings that are provided to the company can then be used for optimizing on their use of the software. They can invest in additional training, monthly health checks, and extra services and so forth to ensure that they are getting the most out of their SaaS CRM experience.

Customizability Made Easy

The third and most appealing benefit of SaaS CRM is its extensive scalability and flexibility. SaaS providers with a multitenant architecture are able to customize their product’s capabilities to meet each of their customer’s specific requirements. Even if the customer is the one responsible for customizing the software to adapt to their business model and processes, they are able to do so quickly and easily without depending upon their IT specialists. SaaS applications, like Luxor CRM, grant companies the control over the product, which allows for quicker adoption and more successful deployments. SaaS CRM can also provide APIs, allowing companies to integrate other software programs to sync with their CRM product.  Overall, the flexibility of SaaS CRM products demonstrates how CRM is not just a tool for IT, but an instrument also geared for the sales and marketing departments.

These are only some of the many benefits that SaaS CRM provides businesses striving to succeed in the new economy. Though I have not explored the negative elements associated with SaaS, I hope that if you take anything from this blog post, you understand that putting a little more ‘SaaS’ in your business might be a good thing.  

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