No, I’m not going Dear Abby on you, I’m talking about your relationship with your CRM provider.
Sometimes you just don’t know what you’re in for. Everything starts fine, the whole thing seems like a promising partnership between vendor and customer. But, the more you get to know someone, the more you start to realize there are some flaws you just can’t stand – like an ambiguous pricing model.
If you are considering a new CRM relationship with Salesforce, you should be aware of a few things. Salesforce pricing includes upcharges for system usage, which are often very hard to calculate and budget. Just as companies start to realize the business benefits of the CRM system, the costs start to grow exponentially. Upcharges include API calls, which equate to connections to other data sources. Storage-based fees can balloon when storing large files such as PDFs or presentation slide decks in the system. In addition, complete mobile access for some versions can cost as much as $50 additional per user, per month. Also, building custom mobile applications on the Salesforce CRM platform can cost an additional $300 per application per month.
It helps to understand Salesforce business model. They talk about “the age of the customer” and how they want to help you build close customer relationships. That’s great, but what they also want to do is lock you into their proprietary cloud environment and charge you every time you want to access your customer data. Think about that, it is like being charged a toll every time you park your car in your own garage.
A recent Forrester survey revealed that 52% of the respondents picked “high cost of ownership over time” as the one thing they most dislike about Salesforce’s Sales Cloud, followed by “rigid and inflexible pricing model” at 42% of total. As a result, 43% of the respondents said they will “renegotiate our contract with Salesforce when it comes up for renewal,”
Good luck with that one.
Breaking up is hard to do, the best approach is to avoid a dysfunctional CRM relationship in the first place and choose a better partner from the outset.
SugarCRM believes strongly in simple, predictable pricing with no hidden fees or forced upgrades. Unlike Salesforce, SugarCRM includes sales, service and other core CRM capabilities for one price with absolutely no hidden fees. SugarCRM’s sticker price is much lower than Salesforce for similar editions, but that really only tells part of the story. SugarCRM aims to limit the “hidden fees” that Salesforce is known for. SugarCRM does not charge exorbitant premiums for object storage nor does SugarCRM force users to upgrade to more expensive editions when the user hits arbitrary customization or API limits.
These are some critical elements to consider when entering into a new CRM relationship. Buyer beware!
For more information about hidden CRM costs, check out our pricing comparison guide.