Web Based CRM Software - Definition

Web based CRM software is a Customer Relationship Management application which is typically hosted on the internet by a third party provider. Web based CRM falls into the category of software as a service (SaaS) which is a a software license model where a user buys the right to use the software online rather than to install it on his own infrastructure.

This SAAS model has one very important advantage: the end user (typically companies in the context of online CRM) can immediately start using the product without going through the hassle of large and costly implementation projecs which typically cost hundreds and in some cases thousands of man days. The user just logs in into his account on the internet and can start using the application right away. This model also has an important positive effect on the capital expenditures. An additional benefit that must be taken into consideration is that web based CRM software does not require hiring trained staff specialized in developing and maintaining the application (indeed, all software maintenance is carried out by the SaaS vendor).

The largest web based CRM software vendors today are SalesForce.com, NetSuite, Siebel (Oracle), SAP, Microsoft, Sage Software, RightNow technologies and SugarCRM (which is open source software). Without any doubt, Salesforce.com is one of the leading web CRM software vendors in this market as they were the pioneers of the SaaS model. Much later, the large enterprise software vendors such as Oracle (with Siebel), SAP and Mirosoft started developing their own web based customer relationship management solutions once the market demonstrated real potential.

So, the biggest difference between pure play web based vendors and the others is that the first group has built their applications on an internet technology foundation, while the others have in a sense migrated their existing suite to a software as a service model (which lead in more than one case to important software issues and delays).

Web Based CRM software provides different capabilities that range from Campaign Management over E-Commerce to Sales Force Automation. Other categories are: E-Mail Marketing, Lead Management, Customer Service and Support, Workforce Management and Partner Relationship Management. Recent evolutions in online CRM demonstrate an increased interest in the following categories: collaborative intelligence (mainly in the customer service area), enterprise feedback management applications and sales performance management.

It is clear that potential customers must operate carefully when choosing the right SaaS solution, especially with the large (and growing) number of web CRM software vendors on the market. Before selecting an online solution, customers should first clearly analyze their business requirements in order to be able to select the right customer relationship management capabilities that are necessary to meet those business needs. Based on these capabilities, customers should consider different alternatives and rate them on how successful they meet the acceptance criteria.

Signing up for a free trial should definitely be a part of the selection process for web based CRM software. This will allow the potential customers to assess the performance of the offered capabilities before taking a paid subscription for the On Demand service.

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3 Responses to “Web Based CRM Software - Definition”

  1. [...] Salesforce pricing model for its web based CRM software features 4 license types: Group Edition, Professional Edition, Enterprise Edition and Unlimited [...]

  2. [...] He writes opinions on the evolutions in the world of Software as a Service. Learn more about web based CRM software and choosing the right CRM vendor at his [...]

  3. Your definition of web-based CRM is very impressive and the features you listed are definitely key parts of having a web-based crm. One that I really think you should look at is SalesNexus.com. I personally have been using it and all these features apply but the greatest thing about them is there customer support service. Check em out!

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