Download the PDF: https://www.demandmetric.com/content/evaluating-hosted-crm Until recently, Customer Relationship Management (CRM) software had the unenviable reputation for being difficult to implement in many mid-sized enterprises. Reasons for project failure included high start-up and maintenance costs, IT resource requirements, lack of user adoption, and large changes to existing business processes. Fortunately, vendors have recognized these issues and have adapted their products accordingly. Currently, there are many hosted CRM solutions that can be quickly implemented at reasonable costs. Read this summary to learn the benefits of hosted CRM and understand the current marketplace.

1. EVALUATING
HOSTED
CRM
HOW-TO GUIDE

2. 2 Evaluating Hosted CRM How-to Guide
Until recently, Customer Relationship Management (CRM) software had the unenviable reputation
for being difficult to implement in many mid-sized enterprises. Reasons for project failure included
high start-up and maintenance costs, IT resource requirements, lack of user adoption, and large
changes to existing business processes. Fortunately, vendors have recognized these issues and
have adapted their products accordingly. Currently, there are many hosted CRM solutions that
can be quickly implemented at reasonable costs. Read this summary to learn the benefits of
hosted CRM and understand the current marketplace.
Customer Relationship Management (CRM) is a business strategy that covers methods and tech-
nologies used by companies to manage their relationships with clients. Information stored on
existing customers (and potential customers) is analyzed and used to this end. Automated CRM
processes are often used to generate automatic, personalized marketing based on the customer
information stored in the system.
There are two major types of CRM systems in-house or hosted. Hosted software, or ‘on-demand’
as it is often called, is delivered via the Internet. Examples of common hosted software systems
include Hotmail, Travelocity.com, and online banking.
HOW-TO GUIDE
No IT Resources Required – organizations that have do not have IT resources find exceptional
value from the hosted model, as system users and administrators can have little to no prior tech-
nology experience.
Monthly Subscription-Based Pricing – most hosted CRM systems provide a very attractive
subscription-based pricing model. Ranging between $20-$125/user/month, these systems are
affordable for mid-sized enterprises.
Very Quick Implementation – most deployments can be implemented within a few weeks.
When compared to in-house deployments of 6–18 months, the hosted model becomes a much
more viable option.
High Availability – Application Service Providers (ASP) deliver these hosted solutions and
provide Service Level Agreements, which guarantee availability. Although these systems have
been known to go down from time to time, there is a better chance that your in-house system
would be less reliable.
What Is A Hosted CRM System?
Hosted CRM System Benefits
Evaluating Hosted CRM

3. 3 Evaluating Hosted CRM How-to Guide
CRM systems are one of the top investment priorities for mid-sized enterprises this year. Learn
how the hosted model for service delivery can provide strong return on investment, and get your
pilot started immediately.
HOW-TO GUIDE
Bottom Line
Evaluating Hosted CRM

4. 4 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 1 - Discuss with Steering Committee
1
3
Discuss with
Steering
Committee
Make a
Decision
Have a brief discussion regarding your organ-
ization’s ability to track Sales, Marketing, and
Customer Service activities to determine if
migrating to a newer, more advanced system
makes sense.
7 Conduct a Pilot
6 Select a
Solution(s)
4
Document
Requirements
2
Evaluate Existing
Systems
5
Assess Hosted
CRM Providers
Roll-out to
Enterprise8
The Steering Committee
Charter Offers Visibility
Steering Committee Charter
V I E W R E S O U R C E

5. 5 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 2 - Evaluate Existing Systems
Conduct an audit of your current systems,
such as excel spreadsheets, client lists, or
CRM software, to identify the strengths and
weaknesses of your current environment
to determine potential impact. You should
also use our CRM Readiness Assessment
to measure your organization’s readiness to
implement an enterprise CRM program and/
or system.
1
2
Evaluate
Existing
Systems
5
3
4
6
7
8
Make a
Decision
Conduct a Pilot
Select a
Solution(s)
Document
Requirements
Roll-out to
Enterprise
Discuss with
Steering
Committee
Audit Systems with the
CRM Program Maturity
Assessment
CRM Program Maturity Assessment
V I E W R E S O U R C E
Assess Hosted
CRM Providers

6. 6 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 3 - Make a Decision
Determine if your current systems are
adequate, or if a new CRM system is required.
If you need a new system, have a discussion
regarding the benefits of a hosted CRM solu-
tion versus an in-house system.
3 Make a
Decision
1
2
4
5
6
7
8
Conduct a Pilot
Select a
Solution(s)
Document
Requirements
Evaluate Existing
Systems
Assess Hosted
CRM Providers
Roll-out to
Enterprise
Discuss with
Steering
Committee
Choices Are Transparent
with the Build vs. Buy
Matrix
Build vs. Buy Decision Matrix
V I E W R E S O U R C E

7. 7 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 4 - Document Requirements
Work with Sales, Customer Service, and
Senior Management to understand what
your requirements are. Next, prioritize these
requirements so that you will be in a good
position to compare vendors.
4 Document
Requirements
1
2
3
5
6
7
8
Make a
Decision
Conduct a Pilot
Select a
Solution(s)
Evaluate Existing
Systems
Assess Hosted
CRM Providers
Roll-out to
Enterprise
Discuss with
Steering
Committee
Discuss with Your Team the
Next CRM Requirements
CRM Requirements Roadmap
V I E W R E S O U R C E

8. 8 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 5 - Assess Hosted CRM Providers
Create a short-list of potential vendors and
book a few demonstrations to learn about
the pros and cons of each solution. Use
independent research firms, or buyer’s
guides, to save time with this exercise.
5 Assess Hosted
CRM Providers
1
2
3
4
6
7
8
Make a
Decision
Conduct a Pilot
Select a
Solution(s)
Document
Requirements
Evaluate Existing
Systems
Roll-out to
Enterprise
Discuss with
Steering
Committee
Evaluate the Pros and Cons
of CRM Solutions Offered
V I E W R E S O U R C E
CRM Vendor Evaluation Matrix
CRM Solution Study
V I E W R E S O U R C E
CRM
Solution Study

9. 9 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 6 - Select a Solution(s)
Based on your key requirements, determine
which system can meet your requirements
and budget. Include stakeholders from each
department who will be using the system in
the decision-making process, as their buy-in
and adoption of the solution is absolutely
essential.
6 Select a
Solution(s)
1
2
3
4
5
7
8
Make a
Decision
Conduct a Pilot
Document
Requirements
Evaluate Existing
Systems
Assess Hosted
CRM Providers
Roll-out to
Enterprise
Discuss with
Steering
Committee
Decide with Your Key
Stakeholders the Best
Solution(s)
V I E W R E S O U R C E
CRM Vendor Evaluation Matrix

10. 10 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 7 - Conduct a Pilot
7
8
Conduct a Pilot
88
1
2
3
4
5
6
Make a
Decision
Select a
Solution(s)
Document
Requirements
Evaluate Existing
Systems
Assess Hosted
CRM Providers
Roll-out to
Enterprise
Discuss with
Steering
Committee
Test the system with a small group of users
for a 30–90 day period. Adapt your busi-
ness processes to accommodate for the new
system and analyze performance results. It is
critical that your new system enables more
sales, improved marketing tracking, and
better customer service, or else it is not worth
the time and resources needed to migrate
from your old system.
Test Drive Your New
System(s) with a Small
Trial Group
V I E W R E S O U R C E
CRM Program Playbook

11. 11 Evaluating Hosted CRM How-to Guide
Action Plan
STEP 8 - Roll-out To Enterprise
8 Roll-out To
Enterprise
2
1
3
4
5
6
7
Make a
Decision
Conduct a Pilot
Select a
Solution(s)
Document
Requirements
Evaluate Existing
Systems
Assess Hosted
CRM Providers
Discuss with
Steering
Committee
Once the business case has been proven,
scale up your deployment. Have each depart-
ment come on board one at a time so that
you can build momentum and internal system
knowledge incrementally. Appoint a system
administrator who can head up the training
process.
Once Proven, Scale Up
and Build Momentum and
Knowledge
V I E W R E S O U R C E
CRM Project Schedule

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