Advantages of On Premise CRM

By Jelani Harper
Updated: February 15, 2011

An on-premise Customer Relationship Management (CRM) offers several key advantages for business owners, not the least of which is the organization and maintenance of virtually all customer related activity (including sales, marketing, customer support and technical support) that can be found in both the on-demand, hosted CRM as well as in the licensed, on-premise version. Despite the initial purchase price, which is significantly higher than the on-demand’s monthly fee requirement, an on-premise CRM delivers an array of possibilities and utilization that is often more economical in the long run.

Benefits of On-Premise CRM

The primary asset of an on-premise CRM lies in the fact that once paid for, it is housed in and completely owned by the business for which it operates. Provided there is an adequate information technology team to install, maintain, update, operate and repair the system, this in-house ownership allows for an ease of flexibility and customization which often translates into greater user satisfaction for both employees and customers.

An on-premise CRM provides a degree of integration with a business’ present system components, which can be extremely beneficial for companies with specialized procedures or equipment. Whereas an on-demand CRM may require a company’s previous technological applications to conform to a rigid, uniform system for everyone, an on-premise CRM offers an ease of integration and customization to suit nearly any variety of needs.

Another valuable benefit associated with an on-premise CRM’s in-house location is security. Customer and company information is completely confidential, since there is no need for any communication to go across a third party. Similarly, with this same level of autonomy in the entire customer environment, companies can utilize their on-premise CRM to tailor any facet of the customer’s experience to suit their liking.

Long Term CRM Value

The long term value of an on-premise CRM is another boon which will likely prove itself. Over a prolonged period of time, the total cost of ownership will almost certainly be lower than that of the on-demand version. This economic practicality is sure to aid businesses experiencing rapid growth, as well as those with a degree of stability. Enterprise-scale companies will generally see the benefit of an on-premise CRM’s cost efficiency, especially in light of the following features which typically accompany it.

• Global implementation support that allows for the operation of international currencies and languages.
• Capabilities for synchronization which enable workers to alter system data off-line before utilizing their changes once reconnected.
• Intuitive tools which give information technology staff the ability to set-up and administer the system.