Should Small Business Buy a Customer Database Or CRM Solution?

Over the years I have been asked this questionMaximise customer satisfaction, business
numerous times, and my response has changed.performance, profitability and customer
10 years ago my answer would be customerrelationships.
database purely on the sheer complexity and theSo CRM is better than customer databases? -
poor ROI (return on investment) that CRMWhat about the COST? Some of the initial
offered small business. Most small business initiallyprohibiting factors where the cost, the cost to
rely on word documents, spreadsheets, sharedbuy the multiple systems and integrate. But know
folders, outlook express and paper files. As thethere is a new option Web Based CRM! Deemed
business evolves it becomes difficult to accessto be the answer to all our prayers Web Based
the necessary customer information whenor Hosted CRM also has its limitations and
required, thus customer service is compromisedchallenges.
and growth is limited due to labour intensiveWeb Based CRM - is a new form of cost
business processes. At this stage most smalleffective CRM delivery. If we consider that CRM
businesses will search for a better solution.Systems are all about centralising all customer
So what options are out there? - Tailor madedata you have to be prepared to upload
customer database, off the shelf customereverything, customer data, faxes, sms, emails,
database, in-house CRM and hosted CRM.letters, quotes...etc. What about accounting? Are
Customer databases - are great tools they enableyou prepared to upload your accounting data?
rapid access of customer information but one ofProduct information cost, margin and profit? I
the problems is that every business has differentthink not. You also need to consider that uploading
information requirements. Meaning you are forcedeverything is cumbersome and tremendously
to look at tailor made solutions or expensive offslow. What about the difference between web
the shelf customisation. Another issue is thatbased v Windows based GUI, the quality of
most customer databases are limited to storingwindows based user interface are far superior.
very basic information, i.e. you can't store faxes,And most of all differentiation what happens if
emails, sms letters, quotes...etc. Even the onesyour biggest competitor has the same capabilities
that can, they force you to perform everythingand features. If the product is the same, the
manually, wasting valuable human time. The nextservice is the same will that only leave price
major frustration is the data in your database isdifferentiation? Business is all about differentiation
limited to your database you can't use it todemand a system that you can make it your
generate documents, letters or messages and areown WITHOUT expensive customisation.
very limited to interfacing it to other in-house.net to the rescue - with the introduction of .net
system and other external systems.and the thousands of .net components, the year
CRM the answer to customer database limitations!2008 is the dawn of a new age. CRM solution
- CRM solutions are designed to be customised toproviders can now provide all front-end sales
each individual business, either by thesystems in a single application delivered at the
administrator or by external developers (The keyprice of good off the shelf customer database
is to find a CRM Solution that can be customisedwith numerous advantages. A CRM Solution that
by you). They also provide numerous tools toyou own that provides business automation,
interface to other systems such as accounting,workflow management integrated messaging plus
retail and messaging systems. The only issue ismuch more.
the COST; most CRM solutions promoteDon't risk the unknown future costs or the
numerous systems and very expensiveunknown business process limitations or the limited
integration. The major benefits that some CRMdifferentiation opportunities, speak to a CRM
Systems provide are workflow management,solutions provider that will maximise your business
business automation and electronic documentationperformance while minimising the overall costs.
generation. All these tools ultimately enable you to