23+ Pros and Cons of using CRM Software (Explained)

  Customer Relationship Management Software or the CRM Software can deduce the trends of customers, calculate the exact sales of a company, and perform several other analytical activities for a company thus making the whole process automated.

 In the present day, it has become an investment that is almost imperative for all businesses around the world and every organisation seems to be using a CRM Software. Businesses can use the data they collect from the software to make necessary changes that will ensure higher sales and thus higher revenue(s). 

Pros and Cons of using Customer Relationship Management Software

Centralisation of DataSevere security concerns
The aspect of scalabilitySubstantial overhead expenditures
Mining of dataHuman element almost completely eliminated
Accessing the data remotelyExtensive training sessions required
Conversion rates get quickerVery hard to maintain Data Integrity  
Marketing Strategy becomes simplerNeed of constant technical support
Customer Service is improved Resistance from the staff
Daily Costs are lowered Data can fall into the wrong hands

Advantages of CRM Software

  • Integration

Effectiveness of Customer Relationship Management in any organisation is directly proportional with the amount of the data(that is collected from the organisation) that is centralised. The people who require the data, should have easy access to it. This is where a CRM software helps in increasing the productivity and efficiency of the employees in an organisation

  • Scalability

As the customer base of an organisation increases, meeting each individual demand of each of the customers becomes increasingly harder, owing to the fact that each interaction requires a particular investment of time. The CRM Software grows with the business allowing an opportunity for the business to meet every single customer’s need(s). 

  • Data Mining

Apart from customer data, there are various other data sets, like reports of specific sales, a company must analyse to decide on the best course of operation. A CRM software allows organisations to create a real-time business environment, by carrying out all the analysis and thus allowing companies to make instantaneous, necessary changes. 

  • Accessibility

The different technological advances of the digital age like the easily available stable internet connection, the Cloud, saturation of the internet, VPN, a secure connection of software, etc., a CRM software can be accessed from anywhere across the globe at any point in time. This increases field time and in turn the conversion rates. 

  • Conversion Rates

The internet at our fingertips, customers nowadays conduct thorough research on a company before initiating any contact with them and a CRM software can make this research process much easier for any potential customer. Most of the research work done before any proper contact, a good CRM software can boost a company’s conversion rates. 

  • Marketing

CRM Softwares can make data like the purchasing behaviour of customers, the type of offers customers tend to respond to, etc. easily available to the company using it. Thus, businesses can tailor their pitches, products, etc. according to the exact demand(s) and wants of the customer(s), thus hugely boosting revenue. 

  • Customer Service

By making an organisation aware of the exact likings, preferences, etc. of their customers, a CRM Software allows an organisation to provide their customers far improved and customised service. This turns customers into repeat customers and allows the customer service department to adapt approaches with the customers’ changes in need(s). 

  • Daily Expenditure

As a company adopts a CRM software several daily costs are eliminated including expenditures on files, paper for keeping a record of all the activities of the company, etc. and any extra expenditure in case any of the paperwork is lost. CRM Software also increases productivity, thus reducing the daily costs. 

Disadvatanges of CRM Software

  • Security

Several CRM Softwares make use of the internet connection to store the data of the customers. This in turn means that the company has almost no control of the details of the customers and in case the data gets out, the organisation will have almost no way of retrieving the data.

  • Extra Cost

Any CRM software, that is local, brings with it a host of overhead costs. A proprietary CRM software requires payment for system administrators, software developers, maintenance personnel, etc to keep the software running properly. Backing up the whole data, in case of a personalised CRM software, also adds extra cost.

  • Human Element

Customers like to interact with humans while doing business with a company. Now, with the CRM software automating the whole process, it eliminates any need for humans and thus in the absence of the human element, a company will have to face a potentially big reduction in the whole revenue.

  • Training

Large organisations trying to implement CRM Software will need mass training sessions for the employees and employ professionals to conduct those sessions. Often these training sessions can in turn hinder any improvement(s) in productivity. Also there need to be different training sessions for general employees and the executives and managers. 

  • Data Integrity

Once a CRM Software becomes the only store of an organisation’s data, it becomes a very tricky situation, as there is always the chance of inaccurate data being entered into the system. This makes the requirement for encryption safeguards along with constant supervision and backup, unavoidable, further increasing the cost. 

  • Technical Support

Technical Support after buying a CRM Software, is absolutely mandatory when trying to adopt it. This means either outsourcing the work to a third party outside of the company or outright hiring a specialist(s). While several organisations offer Technical Support for CRM solutions, they charge very high rates for their service(s). 

  • Staff

A company trying to adopt a CRM Software will definitely  face resistance from the staff owing to the basic fact that a CRM program automates the whole process leading to far lesser human requirement, resulting in job cuts. The staff must also be made aware of the benefits of the CRM software. 

  • Third Party

Companies have, in the past, sold the customer data they acquired by using a CRM Software, to a different organisation without the customers having any knowledge of the situation. This is a serious breach of privacy as the information is very sensitive and personal and can be detrimental in the wrong hands. 

 Though most businesses today are already using or are in the process of adopting a CRM Software, all the aspects of using a CRM Software should be considered before opting for one. In case the pros outweigh the cons for a particular organisation, an independent and unbiased software provider should be contacted for smooth transition into the new phase. 

Similar Posts:

Was this article helpful?

Leave a Comment