In CRM, is Cheaper Always Better? Or, Cost vs. Value

I am just now getting my blogging-head back on, Colin did a great job while i was running the CRM Acceleration event of chronicling the event (which went great, and I hope the other dozen or so we’re doing this year go just as well and have such great customer and non-customer participation)….

I saw this entry at CRM Guru and it got me thinking, especially the part about CRM prices.

Really, when it comes down to the success of your business, is a few thousand dollars over a few years a deal-breaker? It shouldn’t be. Rather, shouldn’t companies instead be insuring that their CRM initiatives reach a desired action – a specific decrease in man hours for certain tasks, top line increase in sales leads, calls made, etc.

It seems to me that a CRM decision made solely on price could be doomed to fail, because that decision maker was looking at COST, not VALUE.

It may sound odd for some people to hear an anti-lowballing spiel coming from a company like SugarCRM that is priced well below its competitors. But SugarCRM isn’t priced to undersell, it is priced based on VALUE RECEIVED by the user. SugarCRM is able to leverage an open community, open standards and a more efficient sales and marketing model – and that savings is (seriously, we mean it) passed on to the buyer.

But back to CRM decisions…make them carefully, and realize that shaving a few grand in licenses fees – only to have to scrap a CRM initiative because the product was not right for your firm – is obviously a far more costly move in the end.