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Loopholes in your CRM software that needs attention

Loopholes in your CRM software that needs attention

Customer Relationship Management (CRM) software is the wisest decision companies could ever make while aiming at elevating the performances of their marketing, sales and customer service departments. Popularly known as a Sales Management Software, this tool has created a lot of buzz among established as well as newcomers in the market. As per the Gartner Research, CRM software captured $42.8 billion market last year. These are just the basic numbers. The actuals till date have grown exponentially and current trends show there is no stopping even in nearing future. Apart from global footprint, CRM software companies in India dealing in both domestic and international markets have churned out a humungous revenue of $462.7 million with 20.5% annual growth rate. (Source: Economic Times)

Needless to say, a lot of CRM solution providers are fighting cut-throat competition to offer its clients business oriented customized features and best CRM software implementation support. Yet, there are a few loopholes in this system. Although the disadvantages might be pretty less compared to the benefits, they may get worse with time if ignored. 

Here are a few potential drawbacks that demands attention while implementing a CRM software for your business. 

  1. Expenses and Overheads: CRM software implementation might be a costly affair to businesses if they don’t pay attention to hidden costs. The major cost incurred in enabling this sales management software consists of purchase/ subscription fees, customizations, IT resources and staff training. Additional expenses like premium upgrades, annual maintenance, timely support, last minute work scope additions and extra hardware/ software requirements can shoot up the total budget allocated. This can be avoided when companies carefully evaluate their actual requirements, assess future growth plans and possibilities and more importantly align their implementation strategy to key goal. Your ideal CRM solution provider will be considerate about your current position and future development plans while drafting the quotation without causing an unnecessary hole in your pocket with push marketing. 
  2. Risk of Data Loss: Most of the CRM software companies in India push the idea of hosting any sales management software on the remote server even to companies which are not up for it. It is important for companies to understand the difference between local and remote serve and then compare the pros and cons based on their individual requirements. Although remote CRM application might save you money, it can sometimes lead to loss of data. Some inexperienced CRM software companies in India are in the market to make quick bucks and therefore, they will not maintain transparency with their clients. In such cases, it is advisable to have a local back-up of your data.
  3. Breaching of Data: As per the EU GDPR (European Union General Data Protection Regulation) which is a standard process followed so far by most of the countries, individuals have several rights in respect to their data. The proposed Draft Bill by India talks a lot about data protection and privacy laws. Companies usually have sensitive personal data like financials and passwords hosted on the remote servers, which stands a chance to get exploited. Potentially harmful breach can hold criminals a mandate to sign up for severe penalties and even up to 5 years of imprisonment. Although the CRM software companies in India might get heavily punished under malfunction practices, the damage can be huge for both parties. To avoid this, it is better to use data encryption safeguards, timely monitor the key activities and use a local back-up system.  


Customer Relationship Management (CRM) software is an effective tool for businesses to enhance their marketing, sales and customer service efforts. A lot of advantageous features like segmentation targeting, client communication history, automated workflows and reports, and a variety of sales related templates make it the hottest software available in the market for sales management. However, there are a few drawbacks associated with it. Problems like overhead costing, data loss because of remote server and security issues might not make the transition smooth. Businesses have to be extremely careful while creating CRM software implementation strategy. This sales management software can prove to be a boon for any business when executed through careful analysis of hidden costs, using a local-backup as a disaster management solution and using safeguard encryptions for data protection. A lot of CRM software companies in India have showcased satisfactory results when it came to offering business relevant features and customer delight. Yet, choosing the right one from the vast pool of CRM solution providers is the major challenge. Technically speaking, there is no such thing as a right or wrong vendor. It’s just that businesses need to align their selection factors with primary goals. Proven track record, versatile clientele, skilled resources and prompt support team are key components companies should evaluate before selecting the perfect CRM solution provider. Now that you know what are the pros and cons associated with this most talked about sales management software, it is the right time to weigh your chances of opting for a CRM software.  

About the Author

Kalyani writes about upcoming technologies like big data, machine learning, virtual reality, AI and robotics. Her expertise lies in growing the business opportunities by market qualified lead generation through inbound and outbound practices, majorly focusing on content. Kalyani works for Sage Software Solutions Pvt. Ltd., a leading provider of ERP and CRM software to small and mid-sized businesses in India.

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