Last month my fridge broke down and it got me thinking about the CRM software industry. While scoping out different fridge models I found my wife was wary of the new brands. Whether it was companies fresh on the market or more established brands (like Samsung) that had just gone into making refrigerators, she said ‘can you really rely upon them?’. As a result I stretched my budget a bit to get a Westinghouse, because they’ve been around forever… that makes them better right?
Well I still believe we made the right decision on the fridge. But with CRM software the opposite principle applies. Older isn’t better when you’re looking for CRM software. Actually when you go older in the CRM industry you find inferior software, increased costs and less reliability.
Over the past 18 months or so a new generation of CRM providers has entered the market. By working on new frameworks they have been able to create CRM software that is easy, fast and comprehensive. These new CRM programs also have an unprecedented level of customization in built. Finally they are much more suited to the modern lifestyle, as they have the required speed to be used on smartphones and tablet technology.
So why aren’t some of the older more established (or trusted?) providers adopting this new technology? In short, most of them can’t. The CRM framework their software is built on can’t accommodate rapid change or large updates. It’s kind of like they have an old 1800’s era ship. You can do small upgrades, add an engine but it will never ever be a super yacht. All the small upgrades you make will take time, cost a lot of money and in the end you will still never be able to compete with the newer vessels. It may be quaint but no-one in their right mind would build a business on racing such an old piece of machinery. This is what the old CRM software frameworks are like, any changes take a huge commitment in time and budget. And honestly they will never be as powerful as a new steel hulled CRM system.
Older technology usually carries a lower price tag. Strangely enough in the CRM software industry the old providers charge the highest fees. For example the typical price for an established Web Based CRM system is around $100 per user, per month. If your company has 5 or more employees you’d be looking at a minimum spend of $500 per month (or $6,000 per annum). And that is before you factor in training and customization, which doesn’t come cheap on the older CRM software. Compare this against your average new generation CRM software provider who will give you access for up to 5 concurrent users for under $90 per month, meaning your yearly spend is only $1,080. And that includes free training videos and self customization modules.
You also get more from the newer CRM software packages. For example many of the old systems stuck to CRM and CRM functionality only. While newer systems incorporate document management, task management, billing, accounting and inventory all in the one program. It is pretty unbelievable, you can get a total business software solution, starting from $90 per month.
If you are shopping for a CRM remember, unlike other industries, in CRM software it is the new kids on the block who have the best stuff for the best price.
