CRM Categories

Categories are just a way that we can view the entire world of CRM and provide some groupings that make sense to the technology or business world. When you are attempting to select your CRM solution, you can use these either singly or in combination to help you focus on the solutions that would be the most appropriate for your current needs.

1. Open Source or Commercial
2. Hosted [ on-demand ] or on-premises
3. Technology Platform
4. Business Size
5. Functional Use

Open Source or Commercial

There are really three types in this category. They all attempt to describe the way in which the solution is “sold”. Commercial products are CRM solutions that are sold for a price, usually in the form of a base price plus support plan. Sometimes these will be a collection of changes that will comprise the required CRM solution. At times companies break out installation, more advanced functionality or functional areas as separate charges. Open Source are free. They are sold “as is” with no guarantees nor indemnity. At times you will need to purchase additional modules at a cost to complete your required functionality.

Indemnity is important if you need protection against lawsuits that arise because of patented or copyrighted material used in the release solution. Many open source products are “true” to open source software in that they are developed by teams with contributions by many. The third type is neither a true open source nor fully a commercial product. These are for profit companies that create CRM solutions that they sell commercially. They also provide an Open Source version which many times is an older release or a solution that does not contain all of the functionality that the commercial version embodies.

Hosted [ on-demand ] or on-premises

There are two methods to a company using the software. They can buy the on-demand or hosted solution that provides all the functionality of the CRM solution without having to invest in hardware nor operational staff to run the product. It is all accomplished in the sellers facilities. These typically are changed on a monthly bases. On-premises means that your company will purchase the product and install it in facilities that your own or in a hosting facility that you have purchased to run your organization’s software systems. Your charges for on-premises will usually be a cost for the software (one-time) and a support or maintenance fee.

Technology Platform

This category is to differentiate the various software operating and language choices out in the market today. This can be important if your company desires to keep within their existing standards so that they may leverage technical talent that maintains and operates the software. Examples would be Microsoft products, IBM’s Webshere, Oracle, Java, PHP and on. To the user of the CRM software technology platform does not matter.

Business Size

Software is almost always designed to fit into a market or business size. Sometimes the solution can range between small and large, but normally larger oriented products are more complex to install, more complex to operate, contain many more features and present training issues not found in software designed for smaller organizations. For certain products, the large orientation can be added by adding new modules while other products it is always there in the product. In most of the CRM marketplace today there are three major business sizes that are used:

1. Enterprise / large company Typically companies that have revenue above $ 750 million, large IT staffs and an employee base that is large and diverse.
2. Mid-size business Companies between $ 50 and $ 750 million in revenue (my range definition). Have IT staffs.
3. Small Business Businesses that have revenue less than $ 50 million. Most of the companies are bunched at the very small end of this range.

Functional Use

The term CRM has many definitions and is applied to completely different functionality and therefore has different goals in support the organization. The three main uses are:

1. CRM for sales automation and sales process support and management
2. CRM for marketing automation and management. Creating marketing campaigns, data analysis, segmentation
3. CRM for customer support. Contact center solutions to assist in the management of customer request and needs.

Putting this into use

When you are starting out to create your short list for potential CRM solutions for your company use this list to narrow down the choices. By the time you are reviewing this list you should have already created your CRM goals and scope statements, developed your high level requirements. Then review each of the categories and mark how your company and its needs fit. Then do your homework by selecting CRM software solutions that fit your category needs. Doing this should allow you to focus on three or so products to really review and understand their suitability for your company.

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