Hosted CRM Systems Still Require Training, Implementation

Hosted CRM systems take a lot of the hassle out of deploying new sales and customer service solutions. In many cases, companies can use their existing hardware and operating systems by connecting to hosted CRM via web browsers. In fact, many companies are counting on "software as a service" to reduce their dependence on hardware upgrades over the next few years.

However, the speed of setting up hosted CRM inside a company doesn't always translate into faster implementation. According to a number of recent reports, hosted CRM implementations are starting to fail because company leaders neglect to invest in a comprehensive implementation plan.

In many organizations, team members take action based on the perception of risk and ROI. Most hosted CRM systems charge companies based on simplified seat license agreements instead of the complex, up-front costs that used to come with large system installations. This new pricing arrangement may, in some cases, encourage team members to take hosted CRM less seriously. After all, if the implementation fails, the company hasn't lost very much. Public price wars and free license promotions are becoming more transparent to end users, who may feel that they can sit out a CRM implementation in favor of an alternative solution that may be coming down the road.

Instead of letting hosted CRM systems fail, business experts advise company leaders to treat a new hosted CRM system launch with the same pomp and circumstance as if the company were investing in its own on-site hardware solution. Leaders should talk about the opportunity cost of remaining with older systems, and about the specific benefits to sales professionals who learn how to use new tools effectively. Helping team members understand the impact of hosted CRM on their personal bottom lines can help adoption rates soar.