A customer relationship management (CRM) application is one that small to large businesses use to keep track of customer contact information, addresses, orders and shipping information. While CRM is used all over the world and it has made business successful for small and medium companies, it does have some disadvantages.
Here are a few disadvantages that you should know about:
Some CRM applications use remote Internet connections to save customer records. This means that all data that you save and that is essential to the company can be lost. The reason for this is that the company does not have the ability to control the data: if something happens to it the company has no real power to retrieve the records. This is one of the worst things that can happen when you use CRM, but it only happens very rarely. To avoid this problem make sure that you don’t choose an application that is small and unstable. If the CRM software or application that you use online is hosted by another company you can always ask in advance for backups. This way you can fully take advantage of CRM without having to worry about record loss.
Sometimes using certain CRM applications can be costly. If the software is proprietary, the company needs to pay software developers, system administrators and maintenance people to keep the software running. This is very important because only this way can all the information be safe. Paying extra people is definitely not what a company wants, but if you consider all the incomes that CRM brings, these costs are not that high. By using CRM applications businesses experience an instant raise in sales, which can make this disadvantage less problematic.
Another small disadvantage of CRM is related to training. However, if you have a medium company, you don’t have to worry about this at all. There are some small companies which find training to be an issue for several reasons. Using CRM can mean that you must hire professionals to train employees in groups, which is a disadvantage from financial point of view, but it also takes a lot of time. Some CRM applications have extra functions that need to be learned. Of course it all depends on the type of the CRM application or software. Some of them are very simple and can be learned in just a few hours, while others might require days or even more. Stating that the CRM applications are difficult to work with is an exaggeration, but you should give yourself some time to learn everything about them.