How Companies are Implementing Cloud CRM & Lowering Upfront Costs

MAIDENHEAD, U.K. - June 10, 2013 - PRLog -- Cloud CRM is increasingly attractive to businesses weighting up the choice between an on-premise or cloud deployment. Improvements in security, reliability, scalability and affordable licenses make cloud software-as-a-service more preferable in a highly competitive market economy.

Also, with providers like Microsoft taking a ‘cloud first’ approach new CRM features will appear on this platform first ahead of on-premise updates enabling organisations to stay agile and respond to new opportunities.

But customer expectations of the financial and cash-flow benefits that cloud deployments deliver are undermined if large up-front costs are attached.

Preact Marketing Director, Warren Butler explains, “Implementation projects that demand a sizeable upfront cost run counter to way of consuming services in the cloud. Customers view this approach as outdated and one that no longer fits the way of doing business in the cloud. This can cause delays to CRM implementations as teams bid to secure budget, but will more likely it'll result in a prospective client choosing a different CRM solution, or a different partner.”

Although a cloud service enables businesses quickly activate CRM compared to an on-premise server installation it remains essential to personalize each database with the data, processes and terminology to match each requirement. To complete this work the total cost of ownership will often include consulting services, data migration and user training.

Butler continues, “In the current risk-averse climate businesses want to pay for CRM services in a monthly subscription, but, in reality they’re often left with a large bill for implementation services.  As a result, the cloud benefits that accrue from a shift from capital expense to operational costs are compromised”.

Leasing or software asset financing has long been available but in an age of squeezed business finance this isn’t always an economically viable option.

As a Microsoft Dynamics CRM partner (http://www.preact.co.uk/microsoft_dynamics_crm/partner), Preact offer a managed service that resolves this conflict by enabling organisations to spread the full cost of implementing and supporting their CRM solution.

“Reducing the burden of total cost of ownership by converting upfront costs into monthly payments helps to mitigate the risk of companies skimping on critical parts of their implementation.” continues Butler.

“That’s why our managed service, CRM Fusion (http://www.preact.co.uk/microsoft_dynamics_crm/technical-support) has proven popular by reducing the strain on cash-flow as businesses only pay for CRM as they start gaining value – not before. Instead of a large capital outlay a CRM Fusion agreement spreads the set-up and support cost of Dynamics CRM in predictable monthly payments that adapt fit each budget.”

CRM Fusion includes all of the consultancy hours needed to get started and develop Microsoft Dynamics based on each unique requirement and it covers CRM user support at no additional cost.

For organisations that have already implemented Microsoft Dynamics CRM, Preact’s managed service is still a flexible solution, “CRM Fusion includes all the technical, training and support resources that businesses need to take their system to the next level” says Butler.

“An annual agreement is loaded with an agreed number of consultancy hours that customers can then allocate to any CRM requirements during the year for our team to complete including development work, change requests and user tuition.”

In addition to lowering upfront CRM costs, Preact have found that this approach has helped them deliver extended value as Butler concludes, “Because of the recurring nature of this service it’s helping us to work even more closely with customers after the initial implementation. Through monthly reviews we’re able to provide leadership on future requirements and help clients keep on track with their CRM strategic aims.”

About Preact CRM

Established in 1993, Preact is a specialist customer relationship management consultancy.

Preact are a Microsoft Gold competency CRM partner and are winners of the prestigious Microsoft Dynamics President’s Club 2012 for service and sales excellence.

Headquartered in Berkshire, Preact work with clients across numerous industry sectors to provide professional services including bespoke implementation, project management, CRM database development, user training and technical support.

From charities to IT consultancies, from high street retailers to prestigious Universities, from small owner run businesses to global organisations, Preact have broad sector experience.

For more information on the CRM solutions and services available from Preact including Lead Forensics integration email sales@preact.co.uk, or call 01628 661 810.