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Cloud-Based CRM System: Is it Safe and What are the Benefits?

Daniel Bishop / 4 min read.
July 4, 2019
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From their humble beginnings back in the 1980s, CRM (customer relationship management) systems have come a long way to become what they are today.

The people responsible for bringing us the idea of database marketing, and subsequently CRM systems, are Robert and Kate Kestnbaum. They changed the way direct marketing works by implementing new metrics like customer lifetime value and applying financial modelling to marketing strategies. The Kestnbaum pair later collaborated with Robert Shaw to incorporate new metrics like telephone and field sales channel automation, campaign management and coordination, marketing analytics, and many more.

With time, great leaps in computer science came and made it possible for CRM systems to become the robust software that many businesses rely on today. The latest novelty of a now well-known system is the Cloud-based CRM.

Storing all of your customer information on a cloud-based server has its benefits, but it seems that not a day passes that we don’t hear about a security breach. This is obviously something that worries anyone who might decide to shift from an on-premise CRM to a cloud-based one.

The Sky Is The Limit

Recently cloud services have had a huge increase in popularity. The European Commission cloud computing study shows us that 23% of companies are using cloud technologies to run their business application software.

Here are some irrefutable reasons why so many companies are deciding to take the leap from an on-premise CRM to a cloud-based one:

Easy installation

CRM systems in the past were known for their somewhat complicated installation. A cloud-based system puts this worry to rest. With a modern system, there’s no need for you to pay for software, hardware, and server maintenance, or even have an IT person always present. Data migration and even upgrades can be done remotely for you.

Working around the clock

One of the greatest perks of a cloud-based system is its availability. Speed means everything in today’s sales arena, and if your customer management abilities are slowing you down, you’re bound to miss out on potentially life-changing sales.

With the power to access your CRM from anywhere, at any time, and also from any device that has an internet connection, your sales have the potential to skyrocket. Your central database will be in the palm of your hand at all times, which is a must for any business that aims to stay competitive today.


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Consent

Continuous Operation

As someone who relies on a CRM system, the worst scenario you can find yourself in is its potential malfunction. Along with losing money, you could also lose customers, which is much worse.

With a cloud-based system, this situation is almost impossible to happen because every part of the cloud has an online backup. Online backups are used in systems that can’t afford to lose even the slightest amount of data. There are different types of online backups, from RAID levels to Server Mirroring and High-Speed online mirroring, each providing high redundancy.

Is Standing On a Cloud Safe?

When it comes to handling and securing consumer data, it’s of vital importance to make it unreachable to any hacker out there. After all, the whole point of the data game is to use that knowledge for the benefit of your company and customers.

Security

As mentioned before, your customers are your most important asset, so their information needs to be treated as such. If you opt for a cloud-based CRM, it’s very likely that the online service is much better equipped for deflecting possible cyber attacks than your in-house server. Cloud companies’ only duty is to provide continuous service with no security breach and no chance of malfunction. For this reason, cloud service providers have their own security teams and use SSL encryption between servers and the end device.

Data ownership

Some people might think that cloud service providers end up owning the data you upload to the cloud. This is a misconception, but an understandable one, because what actually happens is that some providers limit access to the data uploaded.

Without having full control over your data, you won’t be able to download or transfer it when necessary. This is easily avoidable by choosing a service with tools that allow you to transfer data.

Double-edged sword

Considering the great power of a Cloud-based CRM, you must make sure that your teams’ responsibility is on par. One of the most obvious and somewhat uncontrollable security problems is device theft. Some of your employees will surely use BYOD with access to your CRM apps, and when one of them goes missing, your data might be compromised.

Luckily, preventing this is easy enough with two-factor authentication. That way, even if someone has your login information it will be impossible for them to compromise your security.

Final Thoughts

With CRM systems being a fairly old concept, they have no choice but to adapt and implement all the technologies that might help improve their service.

Cloud computing is one of these technologies that are responsible for the latest incarnation of CRM systems, and understandably it comes with certain concerns. In this case, the benefits outweigh the risk, as cloud services are continuously improving on their security policies. This being said, the only way for CRM systems is forward, evolving with the needs of their customers.

Categories: Cloud
Tags: cloud computing, CRM, customers, data management

About Daniel Bishop

Daniel Bishop started off as a content consultant for small SEO and web design companies. Online consulting was perfect for him as he is very social and loves to travel. At this point, he has a job as assistant editor on a few blogs and he's always trying to get his name out there.

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