EVALUATING

HOSTED CRM

HOW-TO GUIDE
 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 require-
ments, lack of user adoption, and large changes to existing business processes.

Fortunately, vendors have recognized these issues and have adapted their products accord-
ingly. 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.

What Is a Hosted CRM System?

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.

2 EVALUATING HOSTED CRM HOW-TO GUIDE

Hosted CRM System Benefits
Monthly Subscription-Based Pricing – most hosted CRM systems provide a very attractive subscrip-
tion-based pricing model. Ranging between $20-$125/user/month, these systems are affordable for
mid-sized enterprises.

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 technology
experience.

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.

Bottom Line
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.

3 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 1 - Discuss with Steering Committee

Discuss with
1 Steering
Committee
The Steering Committee
Charter Offers Visibility

Evaluate Existing
2 Systems Have a brief discussion
regarding your organization’s
ability to track Sales,
Make a Marketing, and Customer
3 Decision Service activities to
determine if migrating to
a newer, more advanced
Document system makes sense.
4 Requirements

Assess Hosted
5 CRM Providers

Steering Committee Charter

Select a
6 Solution(s) VIEW RESOURCE

7 Conduct a Pilot

Roll-out to
8 Enterprise

4 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 2 - Evaluate Existing Systems

Discuss with
1 Steering Audit Systems with the
Committee CRM Program Maturity
Assessment
Evaluate
2 Existing
Systems
Conduct an audit of your
current systems, such as
Make a excel spreadsheets, client
3 Decision lists, or CRM software, to
identify the strengths and
weaknesses of your current
Document environment to determine
4 Requirements potential impact.

You should also use our CRM

Readiness Assessment to
Assess Hosted measure your organization’s
5 CRM Providers readiness to implement an
enterprise CRM program and/
or system.

Select a
6 Solution(s)

7 Conduct a Pilot
CRM Maturity Assessment

Roll-out to VIEW RESOURCE

8 Enterprise

5 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 3 - Make a Decision

Discuss with
1 Steering Choices Are Transparent
Committee with the Build vs. Buy
Matrix
Evaluate Existing
2 Systems
Determine if your current
systems are adequate, or if a

3 Make a
Decision
new CRM system is required.
If you need a new system,
have a discussion regarding
the benefits of a hosted
Document CRM solution versus an
4 Requirements in-house system.

Assess Hosted
5 CRM Providers

Select a
6 Solution(s)
Build vs. Buy Decision Matrix

VIEW RESOURCE

7 Conduct a Pilot

Roll-out to
8 Enterprise

6 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 4 - Document Requirements

Discuss with
1 Steering Discuss with Your Team the
Committee Next CRM Requirements

Evaluate Existing
2 Systems Work with Sales, Customer
Service, and Senior Manage-
ment to understand what
Make a your requirements are.
3 Decision Next, prioritize these
requirements so that you
will be in a good position to
compare vendors.
4 Document
Requirements

Assess Hosted
5 CRM Providers

CRM Requirements Roadmap

Select a
6 Solution(s) VIEW RESOURCE

7 Conduct a Pilot

Roll-out to
8 Enterprise

7 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 5 - Assess Hosted CRM Providers

Discuss with
1 Steering Evaluate the Pros and Cons
Committee of CRM Solutions Offered

Evaluate Existing
2 Systems Create a short-list of poten-
tial vendors and book a
few demonstrations to
Make a learn about the pros and
3 Decision cons of each solution. Use
independent research firms,
or buyer’s guides, to save
time with this exercise.
Document
4 Requirements

5 Assess Hosted
CRM Providers

CRM Vendor Evaluation Matrix

Select a
6 Solution(s) VIEW RESOURCE

7 Conduct a Pilot

Roll-out to
8 Enterprise

8 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 6 - Select a Solution(s)

Discuss with
1 Steering Decide with Your Key
Committee Stakeholders the Best
Solution(s)
Evaluate Existing
2 Systems
Based on your key require-
ments, determine which
Make a system can meet your
3 Decision requirements and budget.
Include stakeholders from
each department who will
Document be using the system in the
4 Requirements decision-making process,
as their buy-in and adoption
of the solution is absolutely
essential.
Assess Hosted
5 CRM Providers

6 Select a
Solution(s)

CRM Vendor Evaluation Matrix

7 Conduct a Pilot
VIEW RESOURCE

Roll-out to
8 Enterprise

9 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 7 - Conduct a Pilot

Discuss with
1 Steering Test Drive Your New
Committee System(s) with a Small
Trial Group
Evaluate Existing
2 Systems
Test the system with a small
group of users for a 30–90
Make a day period. Adapt your busi-
3 Decision ness processes to accom-
modate for the new system
and analyze performance
Document results. It is critical that your
4 Requirements new system enables more
sales, improved marketing
tracking, and better
customer service, or else
Assess Hosted
5 CRM Providers
it is not worth the time and
resources needed to migrate
from your old system.

Select a
6 Solution(s) CRM PROGRAM
Playbook & Toolkit

7 Conduct a Pilot
Follow this playbook to implement a CRM program that engages your customers,
generates sales, and provides accurate reporting for your executives.

Roll-out to VIEW RESOURCE

8 Enterprise

10 EVALUATING HOSTED CRM HOW-TO GUIDE

 Action Plan
STEP 8 - Roll-out To Enterprise

Discuss with
1 Steering Once Proven, Scale Up
Committee and Build Momentum and
Knowledge
Evaluate Existing
2 Systems
Once the business case has
been proven, scale up your
Make a deployment. Have each
3 Decision department come on board
one at a time so that you
can build momentum and
Document internal system knowledge
4 Requirements incrementally.

Appoint a system adminis-

trator who can head up the
Assess Hosted training process.
5 CRM Providers

Select a
6 Solution(s)

CRM Project Schedule

7 Conduct a Pilot
VIEW RESOURCE

8 Roll-out To
Enterprise

11 EVALUATING HOSTED CRM HOW-TO GUIDE

 About ANA

The ANA (Association of National Advertisers) makes a difference for

individuals, brands, and the industry by driving growth, advancing the
interests of marketers and promoting and protecting the well-being of the
marketing community.

Founded in 1910, the ANA provides leadership that advances marketing

excellence and shapes the future of the industry. The ANA’s membership
includes more than 1,000 companies with 15,000 brands that collectively
spend or support more than $400 billion in marketing and advertising annu-
ally. The membership is comprised of more than 750 client-side marketers
and 300 associate members, which include leading agencies, law firms,
suppliers, consultants, and vendors.

Further enriching the ecosystem is the work of the nonprofit ANA

Educational Foundation (AEF), which has the mission of enhancing the
understanding of advertising and marketing within the academic and
marketing communities.
Demand Metric helps Marketing teams get stuff done with practical tools,
training, and a simple, modern platform for managing work.

Our analysts identify best practices from fast-growing companies and build
Playbooks & Toolkits, Guides & Reports, Training Courses, and Project
Templates to help you optimize your processes, add structure to your depart-
ment, and get your team punching above their weight class.

Manage your work visually with our easy-to-use platform, built for small
marketing teams by design. See what your team is working on at a glance
so you can spend less time managing projects and more time knocking
stuff off your list.

Through strategic partnerships with the AMA, ANA, and AIPMM, our
1,000+ time-saving tools & resources have become the industry standard.
Don’t start from scratch!

Sign up for a free trial at: www.demandmetric.com

LEARN MORE

© Demand Metric Research Corporation.

All Rights Reserved.