In this article, learn more about the 3 types of CRM systems and their definition. Just continue reading to have more ideas.
What Is the CRM System Definition?
CRM is a customer relationship management system. This system helps the companies to keep records of their customer-related activities, such as marketing actions, sales activities, and customer service activities. This system also helps them to keep the customer-related data in one place.
3 Types of CRM Systems
There are 3 types of CRM systems, namely:
1) On-Premises CRM
On-Premises CRM is a type of CRM system that is installed and runs on your server. It means that the software is installed in a local server, not using any cloud storage. In this type of software, updates can be done manually by inserting the disc and installing the latest version of the program.
What does it mean? It means that whenever you have to update, you need to insert the disc and install it through a manual process. Then you need to re-enter data, re-setup configurations, and even re-create the database.
It is very inconvenient, isn’t it? But it is not the only disadvantage of this system. Another problem is that your data can be lost if you accidentally uninstall or uninstall the software or if you lose your server. In addition, there is no guarantee that the support of the program will be continued for long periods. And finally, you have to spend more money to buy a new license of the software if you want to upgrade it.
2) Cloud-Based CRM
Cloud-Based CRM is a type of software that is installed in a cloud storage system. In this type, updates are done automatically without the need to install new versions manually. This means that you do not need to insert any disc or enter any codes to update your CRM system.
Typically, this system requires using a browser and Internet connection, so you do not need a local server anymore. And you do not need to install any program on your computer or smartphone because it can run on any platform with an internet connection. Cloud-based CRM systems are usually supported by third parties and have regular updates, so there is no worry about updates for long periods.
3) Hybrid CRM
Hybrid CRM is a combination of On-Premises and Cloud-Based CRM systems. In this type, you can choose which system you want to use depending on what suits you most. Some software providers offer both On-Premises and Cloud-Bases systems so that users can use both types according to their needs and preferences.
The advantage of Hybrid CRM is being able to choose which type is most convenient for your business activities without the hassle of updating and maintaining two systems at once. The downside of this type is having two different systems that need separate maintenance costs and more time for installation and configuration processes.
We have discussed the 3 types of CRM systems. So, which one do you need for your business? It is better to choose a Cloud-based CRM system if you want to save time, maintenance costs, and have regular updates. However, if you have a local server and plan to use it for a long time, and On-Premises CRM system will be more suitable for your business.