How On-demand CRM Revolutionizes Business Operations

What is On-demand CRM and how does it benefit businesses?

From the following options, which CRM system is hosted by an external vendor in their data center?
a) Mobile CRM
b) Analytical CRM
c) Operational CRM
d) On-demand CRM
e) Customer-facing CRM

Answer:

On-demand CRM is the correct answer as it refers to the CRM system hosted externally, in the data center of the vendor providing the services.

Explanation: On-demand CRM, also known as SaaS (Software as a Service) CRM, is a model where the CRM system is hosted by an external vendor in their data center. This model offers businesses convenience, scalability, and cost-effectiveness.

With On-demand CRM, businesses can access the CRM system over the internet without the need to maintain any infrastructure on their premises. The CRM provider takes care of software updates, security, servers, and storage, allowing businesses to focus on their core operations.

This type of CRM solution provides businesses with scalability, as they can easily add or remove users based on their needs. It is also cost-effective, as businesses only pay for the services they use, rather than investing in expensive hardware and software licenses.

On-demand CRM offers flexibility to businesses, allowing them to adapt to changing customer demands and market conditions quickly. It enables businesses to improve customer relationships, streamline processes, and make data-driven decisions more efficiently.

Examples of other types of CRM systems include Mobile CRM, which is accessible from mobile devices for on-the-go access, Analytical CRM for in-depth customer data analysis, Operational CRM for managing day-to-day customer interactions, and Customer-facing CRM as the direct interface for customers.