Avoid Sticker Shock: Here’s What a CRM Really Costs?

Today, all companies acknowledge the importance of running their business on data. And the best way of doing so is through a customer relationship management (CRM) tool. However, not all businesses know the overall costs of a similar tool. With over 2,000 CRM providers only in the US, companies have difficulty selecting the right CRM solution, adequate features, and the overall cost of implementing it. But we’re here to elucidate the mystery for customers so they can avoid sticker shock during their research process.

What we'll Cover:

• CRM Solutions: The Cost
• CRM Implementation: What Does It Consist Of?
• CRM Implementation: Hidden Costs
• SugarCRM: a Fully Transparent Pricing Model

CRM Solutions: The Cost

According to Forbes , the average price for entry-level plans is a little over $20, while for mid-tier and high-tier plans, the prices can jump up to $100 and $400, respectively.

For companies first attempting to start with CRM solutions, there are also free editions, which are limited in features, capabilities, number of users, and data storage but are nevertheless a good solution to get to know how a CRM really works. But for paid versions, companies can think of the final price of a CRM broken down into main fees.

• Subscription Costs. These apply to cloud-based CRMs and are recurring fees that companies pay at well-established intervals: monthly, quarterly, or annually.
• Service Level Costs. These costs depend on the plan or package you select, the number of records you have, and whether and which premium features you’ll choose later on your CRM journey .
• Cost per user. Unlike cloud-based solutions, billed at pre-established intervals, on-premise CRM really cost depend on the number of users. The base price usually includes a fixed number of users, but you can keep adding to it, depending on your needs.
• Implementation Fees. The industry usually expects an implementation fee of $1 spent on implementation consultation for each $1 in annual subscription costs. Implementation fees usually encompass the charges your vendor employs for CRM setup. This part is usually time-intensive and involves a lot of heavy lifting on your implementation team’s part. This is why it should be mentioned that implementation fees usually apply to the many processes.

CRM Implementation: What Does It Consist Of?

CRM implementation is a complex process usually offered by the vendor as a separate service. It is time-intensive, and selecting a team that can adhere to a pre-determined timeline is critical.

Implementation Planning

In this step, you will define your CRM goals, strategy, and timeline together with your implementation team. Your CRM implementation team can help you answer the right questions to get started and allow the process to run smoothly. Upfront planning enables you to set proper expectations for your implementation to prevent scope creep, which wastes time and extra money.

CRM Setup and Feature Configuration

Since CRMs rely heavily on data, you need to identify which data will be hosted in your CRM and then clean it up. This involves merging duplicate records, standardizing data fields, and fixing potential formatting issues and discrepancies between your two data management solutions. A rule of thumb would be to test your data by sampling a small amount before proceeding with your entire database.

This step is also essential for setting up the customizations you want on your CRM. For example, in this step, you will define workflows and templates and integrate other features and tools (email, project management, social media, support apps, and solutions) with your CRM.

Take Your CRM For a Test Drive

Before dreaming about the company-wide adoption of your new CRM, you must ensure proper functionality and meet your particular needs and expectations. Here are some things you should assess in this step:

• Data—Ensure that all migrated data matches the corresponding fields without any duplicate records.
• Contacts—Check and see if the assigned contact data fields are functional.
• Email Capturing Capabilities—Ensure proper synchronization of your two-way email features and that each contact matches the correct email address.
• Lead Routing—Ensure your lead routing protocols and workflows are functional, and check whether the correct sales rep is assigned to the right sale.
• Pipeline Management—Make sure that deal columns in each pipeline correctly match the sales process.
• Automated Task Management—See if the task triggers you set are working out as expected.
• Integrations—Check and see if the integration between your apps and CRM works flawlessly and if any hiccups will not appear.
• Reports—Check and see if the data you input matches the expected results.
• Website Forms—Ensure that forms are correctly displayed, fields are functional and the completed forms are routed correctly.

After ensuring everything is functional, you can launch your new CRM.

User Training

Given the importance of this step, reputable vendors also offer training programs and sessions. Without proper training, companies can damage user adoption and ROI levels. For this step, ensure that your timeline is realistic and your teams have a well-defined timeframe to accommodate themselves with the new tool and its features. CRM vendors usually have knowledge bases and training platforms available and many other types of resources that can be used, but they may also offer training sessions.

CRM Implementation: Hidden Costs

While all companies know a price when they adventure themselves on the CRM path, sometimes, hidden fees can arise. CRM implementation, integrations, add-ons, user training, and regular upkeep all require investment in money and time. You may end up paying extra for things, including:

• Extra data storage
• Additional users
• 24/7 support
• Mobile app access
• Offline access

However, hidden costs and fees are not the only downside of CRM implementation. Sometimes, companies may pay the needed amount for consulting and implementation assistance just to end up with adoption or functionality issues. Buyer’s remorse is genuine, and it is also applicable in B2B scenarios. To avoid it, ask the right questions in your research step and avoid selecting the wrong solution or vendor for your particular case.

• What does the implementation process look like, and what is included?
• Are live training and resources provided?
• How many additional tools and support will I need?
• Can the platform grow with my business—or does that cost extra?

SugarCRM: a Fully Transparent Pricing Model

At Sugar, we are fully transparent with our solutions’ pricing, and our prospects can even take our dedicated solutions, Sell , Market , and Serve , for a short test drive. As for our standard pricing, Sugar Sell Starts at $19/per user/month for the Essentials package, while our most popular Sugar Sell package, the Advanced version, is priced at $85/per user/month.

With Sugar, you don’t have to worry about hidden costs. However, we offer optional products (like LinkedIn Sales Navigator Plug-In and Oktopost ) at an additional cost. These products are not required to extend functionality or integrate with other applications.

Still want to know more about SugarCRM pricing? Speak with a representative today to learn how to implement and customize Sugar for your business.

by Anamaria Vintila

Originally published on SugarCRM.