Pricing of Subscription or software capital purchase:
A key concern when considering implementing a CRM system relates to arriving at a dollar amount that represents not only the purchase of the software or subscription but professional services, related hardware and IT costs, the value of time resources and other 'disruptions' involved in changing the working environment.
Usually the purchase of the software or subscription price is the easiest to arrive at. Consider this example set of scenarios.
I. Subscription Pricing per user license in Cloud hosted outside our network:
Situation 1: Consider Greg who owns a small business like similar others in your city with 5 to 25 staff in the sales, sales support and sales management. The business needs revolve around basic customer and contact management, tracking activities and notes of conversations with contacts and some basic opportunity management. He likes to have some numbers and a positive feeling where future sales revenue will be coming from and when. Microsoft Outlook is the primary email system that is used on the laptops and desktops. There may be some minor customizations and personalization on some data entry forms he'd want to have done. The business doesn't have a strong IT department and Greg would rather have his CRM system hosted off-premise (in the 'cloud'). Also his business, like many nowadays is rapidly moving to more mobility with smart phones and tablets.
Option 1: Consider the ACT Premium cloud option with ACT! customer and contact management capability. All the basics are covered for managing customer and contacts. Subscription pricing is around $50/named user/month with a minimum of 1 year subscription. Better yet this solution would include the ACT Premium mobile capability.
Option 2: Consider the separate SalesLogix mobile-only user license option for customer relationship management made specifically for today's smart phones and tablets. This is especially useful if the businesses doesn't need the full capabilities of the larger web client implementation. It's been designed from the ground up with the features and functions that will help salespeople easily and quickly act on opportunities. Saleslogix Mobile allows salespeople to manage accounts, take and update orders, and see opportunities remotely, all from their mobile devices.
The platform also allows the sales team to access up-to-the-minute customer information using quick lookups or filtered searches and connect with their calendar of activities, take notes, schedule meetings, and complete activities. Pricing is $25 per user per month.
Enhanced Business Situation: Greg's business requirements have expanded and Sally who directs the customer service representatives needs a system for tracking service/support issues and providing knowledge base support and solutions for customers. Greg's Quality Assurance and product departments need more advanced capabilities such as tracking product defects, RMA's, product sales per business account. Also manufacturing is moving to less inventory and more 'just-in-time' production. So there is a strong need for a much more robust opportunity sales process and forecasting accuracy for production planning. Also sales teams are more competitive and only specific user teams should be able to see only their specific accounts, contacts, communications and opportunities.
Option 3: In this enhanced scenario consider the full SalesLogix CRM Cloud option. SalesLogix Cloud subscription pricing is $65/named user/month or $100/concurrent user/month for a one year period. The 'concurrent' license option will reduce the cost to Greg's business because a pool of split-shift and part-time users can share a smaller number of licenses. This option's price also would include the SalesLogix mobile capability for the field sales reps- so they can use either the full web client or the more mobile version.
II. Software Licensing with Capital Purchase and deploy on-premise or in your cloud:
Situation 2: Kurt has a similar business situation as described above in #1 but he is more comfortable with his IT department. He has a strong need to keep company information near by because of security and data integration concerns. Also in his business there is better long term ROI and lower total cost of ownership than paying a monthly subscription per user. Kurt can decide to place their CRM system on-premise or use a trusted IT hosting partner.
Option 1: For the same business need capabilities as noted above, then consider ACT! Premium with Premium Mobile. The manufacturer's suggested pricing will run from $415 to $550 per named user license. We would recommended to Kurt to include a Business Care plan so his business can obtain software publisher updates and basic support access. As the number of users increases along with the size of the SQL database the business would eventually move from using the default SQL Express version to the full Microsoft SQL standard edition. In Kurt's business it will be using both the Windows and Web version.
Option 2: If the business requirements become more involved, require additional CRM related functionality such as the management of customer service and support issues, or some advanced customizations for Kurt's specific business, we'd recommend the SalesLogix CRM system, either Advanced or Premium edition. It would provide Windows, Web and Mobile access with total CRM capabilities. Pricing for a basic CRM system running on a Microsoft SQL 2005, 2008 or 2012 system would involve the purchase of the following:
- SalesLogix Advanced server with premium Architect license $7,300
- Named user license @ $ 995 each
- Concurrent users @ $1,895 each
To include in the initial one-time purchase of the software licenses of SalesLogix, there is purchase of a first year business care plan that costs from 18% - 21% of the MSRP total above. These plans are intended to keep Kurt's CRM system humming with the latest enhancements and updates. These business care plans include various levels of SalesLogix support from the software publisher.
In the future additional capability may become needed to satisfy Kurt's business requirements such as advanced analytics, integrated e-marketing, customer self-service portal, advanced SpeedSearch, Business Process management/work flow, and remote PC/office synchronization.
Note that there may be promotional offers provided by the software publisher with software discounts, Switch-N-Save from a competitive CRM, ACT to SalesLogix upgrades offers, Non-profit organizational discounts, etc., so please ask us for the latest.
Summary and Next Steps
These are some examples to consider for subscription or CRM software purchases. In this article I have only touched on the technology component of your CRM investment and of course, your situation may be different and that leads us to other factors affecting CRM pricing...
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