Glossary -
On-premise CRM

What is On-premise CRM?

In the evolving landscape of customer relationship management (CRM) systems, businesses have various options to choose from, depending on their specific needs and infrastructure. One such option is the on-premise CRM. An on-premise CRM is a customer relationship management system that is hosted on the company’s own servers, providing full control over data and customization. This comprehensive article delves into the concept of on-premise CRM, its advantages, disadvantages, key features, and best practices for implementation.

Understanding On-premise CRM

What is On-premise CRM?

An on-premise CRM is a type of customer relationship management software that is installed and run on a company’s own servers and infrastructure. Unlike cloud-based CRM systems, where the software and data are hosted on the vendor’s servers, on-premise CRM solutions give businesses complete control over their CRM environment. This includes managing data security, software updates, and customization according to their unique business processes and requirements.

Key Features of On-premise CRM

  1. Data Control and Security: Businesses have full control over their data, including how it is stored, accessed, and protected.
  2. Customization: On-premise CRM systems can be highly customized to meet the specific needs and workflows of the business.
  3. Integration: Seamless integration with existing on-premise applications and systems is easier to manage.
  4. Performance: The performance of an on-premise CRM is often more reliable and consistent, as it is not dependent on internet connectivity.

Advantages of On-premise CRM

1. Full Control Over Data

One of the most significant advantages of an on-premise CRM is the complete control it offers over data. Businesses can implement their security protocols, ensuring that sensitive customer information is protected according to their standards. This is particularly crucial for industries with strict data protection regulations, such as finance and healthcare.

2. Enhanced Customization

On-premise CRM systems offer a high level of customization. Businesses can tailor the software to fit their specific processes, workflows, and requirements without the limitations often imposed by cloud-based solutions. This allows for greater flexibility and adaptability to unique business needs.

3. Integration with Existing Systems

For businesses that already have extensive on-premise infrastructure, an on-premise CRM can integrate seamlessly with existing systems. This can include ERP systems, marketing automation tools, and other business-critical applications, ensuring a unified and cohesive IT environment.

4. Cost Predictability

While the initial setup cost of an on-premise CRM can be high, the ongoing costs are often more predictable. Businesses do not have to worry about subscription fees or fluctuating costs based on usage, making it easier to budget and plan for long-term expenses.

5. Data Sovereignty

On-premise CRM systems ensure that data is stored within the physical premises of the organization. This can be crucial for businesses operating in regions with strict data sovereignty laws that require data to be stored and processed within specific geographical boundaries.

Disadvantages of On-premise CRM

1. High Initial Cost

The initial setup cost of an on-premise CRM can be significant. This includes the cost of hardware, software licenses, and the necessary IT infrastructure. Additionally, businesses need to invest in ongoing maintenance and support.

2. Maintenance and Upgrades

With an on-premise CRM, the responsibility for maintenance, updates, and upgrades lies with the business. This requires a dedicated IT team and can lead to additional costs and resource allocation.

3. Scalability Challenges

Scaling an on-premise CRM system can be more challenging compared to cloud-based solutions. As the business grows, additional hardware and resources may be required to accommodate increased data and user demand.

4. Limited Remote Access

While it is possible to configure remote access to an on-premise CRM, it is typically more complex and less seamless than with cloud-based solutions. This can be a limitation for businesses with a remote or distributed workforce.

5. Disaster Recovery

Implementing a robust disaster recovery plan for an on-premise CRM can be complex and costly. Businesses need to ensure they have adequate backup and recovery processes in place to protect against data loss and downtime.

Key Considerations for Implementing On-premise CRM

1. Assess Business Needs

Before implementing an on-premise CRM, it is crucial to assess the specific needs and requirements of the business. Consider factors such as data security, customization needs, integration requirements, and long-term scalability.

2. Evaluate Total Cost of Ownership

Calculate the total cost of ownership (TCO) for an on-premise CRM, including initial setup costs, ongoing maintenance, upgrades, and support. Compare this with the costs of cloud-based alternatives to make an informed decision.

3. Plan for Integration

Ensure that the on-premise CRM can integrate seamlessly with existing systems and applications. This may involve custom development and configuration to achieve a cohesive IT environment.

4. Ensure Robust Security

Implement robust security measures to protect sensitive customer data. This includes data encryption, access controls, regular security audits, and compliance with relevant data protection regulations.

5. Allocate IT Resources

Ensure that there is a dedicated IT team to manage and maintain the on-premise CRM. This includes handling software updates, troubleshooting issues, and ensuring the system runs smoothly.

6. Develop a Disaster Recovery Plan

Establish a comprehensive disaster recovery plan to protect against data loss and downtime. This should include regular backups, off-site storage, and tested recovery procedures.

7. Train Employees

Provide thorough training for employees to ensure they can effectively use the CRM system. This includes training on data entry, report generation, and leveraging CRM features to enhance customer relationships.

8. Monitor and Optimize

Regularly monitor the performance of the on-premise CRM and optimize it as needed. This includes analyzing usage patterns, identifying areas for improvement, and making adjustments to enhance efficiency and effectiveness.

Conclusion

An on-premise CRM is a customer relationship management system that is hosted on the company’s own servers, providing full control over data and customization. This approach offers numerous advantages, including enhanced data security, customization, seamless integration with existing systems, cost predictability, and data sovereignty. However, it also comes with challenges such as high initial costs, maintenance responsibilities, scalability issues, limited remote access, and disaster recovery complexities. Businesses considering an on-premise CRM should carefully assess their needs, evaluate the total cost of ownership, plan for integration, ensure robust security, allocate IT resources, develop a disaster recovery plan, train employees, and monitor and optimize the system. By taking these steps, businesses can successfully implement an on-premise CRM that meets their unique requirements and enhances customer relationship management.

Other terms
Bottom of the Funnel

The Bottom of the Funnel (BoFu) represents the final decision-making stage in the customer journey, where prospects are converted into paying customers.

End of Day

End of Day (EOD) refers to the conclusion of a working or business day, often used to indicate deadlines or the time by which certain tasks should be completed.

Sales Team Management

Sales team management is the process of overseeing and guiding a sales team to meet and exceed sales quotas, achieve goals, and contribute to the organization's success.

Buying Process

The buying process refers to the series of steps a consumer goes through when deciding to purchase a product or service, including recognizing a need or problem, searching for information, evaluating alternatives, making a purchase decision, and reflecting on the purchase post-purchase.

Trademarks

A trademark is a recognizable insignia, phrase, word, or symbol that legally differentiates a specific product or service from all others of its kind, identifying it as belonging to a specific company and recognizing the company's ownership of the brand.

Sales Operations Key Performance Indicators

Sales Operations KPIs (Key Performance Indicators) are numerical measures that provide insights into the performance of a sales team, such as the number of deals closed, opportunities had, and sales velocity.

Drip Campaign

A drip campaign is a series of automated emails sent to people who take a specific action on your website, such as signing up for a newsletter or making a purchase.

Customer Retention

Customer retention is the rate at which a business keeps its customers over a specific period, and it's a critical metric for assessing customer loyalty and overall business success.

De-dupe

De-dupe, short for deduplication, is the process of identifying and removing duplicate entries from a list or database, ensuring that each piece of data is unique.

Data Pipelines

Data pipelines are automated processes designed to prepare enterprise data for analysis by moving, sorting, filtering, reformatting, and analyzing large volumes of data from various sources.

Commission

Commission is a form of compensation paid to an employee for completing a specific task, typically selling a certain number of products or services.

C-Level or C-Suite

A C-Level or C-Suite refers to the highest-ranking executives within a company, such as the CEO, COO, CFO, and others.

Customer Relationship Management Systems

Customer relationship management (CRM) systems are tools that help companies manage interactions with current and potential customers, with the goal of improving relationships and growing the business.

RESTful API

RESTful API is an application programming interface that allows two computer systems to securely exchange information over the internet using HTTP requests to GET, PUT, POST, and DELETE data.

Inbound Leads

Inbound leads are prospects who have been attracted to your content and convert as part of your inbound lead generation strategy.