SaaS-Based CRM Systems: Impact on Business Performance

Introduction

The intent of this research proposal is to determine whether Customer Relationship Management (CRM) applications delivered on the Software-as-a-Service (SaaS) platform can significantly increase the strategic financial and marketing performance of a global enterprise. Previous studies of CRM systems indicate that when correctly implemented, SaaS-based customer management systems are capable of drastically reducing the cost of sales, increasing customer loyalty, and increasing profitability (Ang & Buttle, 2006). The most pivotal turning point in the deployment of any CRM system is the focus on user experience and the navigation of features, functions, and workflows throughout applications (Ekinci, Gillett, & Stone, 2007).

This research proposal concentrates on evaluating the impact of user experience design and implementation on CRM system adoption when delivered on the SaaS platform. The SaaS platform is designed for agility, tailoring its interface to the specific needs of users — the majority of whom are sales professionals and sales management teams (Kumar, 2007). Studies indicate that the greater the level of autonomy users have in designing their CRM screens and workflows, the higher the level of adoption by sales, marketing, and executive management (Ang & Buttle, 2006). How much agility and usability of applications impact the adoption of a CRM system, and how higher adoption levels drive greater revenues and profits, is the overarching objective of this study.

Objectives and Methodology

Creating cloud services within a company must first be aligned to strategic priorities and direction in order to be successful. That is the assumption that unifies the following objectives.

Objective 1: To define the core business processes that can be most accelerated and enhanced through the use of SaaS CRM applications, and to benchmark them before implementing the software. This first objective will also serve as the foundation of the entire implementation of cloud-based services for the long term within the organization. It is essential for creating a series of benchmarks to evaluate the performance of SaaS-based CRM systems over time.

Using a series of metrics and key performance indicators (KPIs) captured on a dashboard, the organization will measure its core business processes for attracting, selling, and serving customers using manual and legacy system approaches. These performance measures will most likely also reflect errors in transactions and workflows. This data is critical for evaluating how effectively SaaS-based CRM systems — designed specifically for the needs of the organization — streamline core business processes over time. Of the many processes this objective can concentrate on, the most valuable are lead conversion cycles and quote-to-cash process workflows, both of which are highly dependent on pricing, quoting, catalog management, and order management systems. The metrics and KPIs can be used to isolate the effects of SaaS-based CRM usability on overall company performance, down to individual quoting close rates and order cycles (Limbasan & Rusu, 2011).

Conclusion

The SaaS-based CRM market is expected to grow at a compound annual growth rate of 6.2% per year, reaching $16.5 billion in revenues in 2013 (Klie, 2011). A large part of this growth is being driven by the ability of SaaS-based CRM systems to deliver measurable performance gains in financial, marketing, and operations-based objectives (Ang & Buttle, 2006). The intent of this research proposal is to evaluate the extent to which cloud-based applications augment the most critical business strategies and needs of an organization, while also simplifying and streamlining the overall workflows designed to attract, sell, and support customers globally.