Due to the high level of competition between online businesses, more and more of them are choosing to use a CRM system to help with managing their customer relations. If you are thinking of incorporating a CRM system then you will find that generally speaking there are two types to choose from. They are on-site CRM systems and web-based or hosted CRM systems and there are significant differences between the two.

When the two are compared, online or hosted CRM solutions appears to show many obvious advantages over on-site CRM solutions, pareticularly for small to medium sized businesses. To start with on-site CRM can be difficult to access from some areas of the world, while online or hosted CRM solutions are easily accessed from anywhere.

All data for a hosted CRM solution is stored in a secure location for complete security with a hosted CRM system. Also, much of the work, such as upgrading data is done by the service provider, so this takes this burden off of your shoulders. Another great aspect of online CRM applications systems, is that communications is far more streamlined and efficient.

This means that if you have promotions people working working in one country, they can instantly connect with sales person ell working anywhere in the world by using the web based CRM. For small to medium sized businesses, hosted CRM applications are a life saver and can allow a company that is has a limited budget for customer relations management to play in the big leagues with regards to CRM.

Another great advantage of web based or hosted CRM systems is that they are far easier to implement as compared to on-site CRM systems. This is because there is a wide selection of modules that allows you to select just what is best for your business applications.

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Written by Alesandra Gibson. Find the latest information on CRM Requirements as well as Small Business CRM