Hidden Costs of CRM

Vetting Vendors

Time and time again, public sector organizations struggle with how to objectively evaluate customer relationship management (CRM) platforms currently on the market to determine which one provides the best value for their operational structure. Without knowing the right questions to ask a vendor, there are predictable outcomes that lead to unnecessary costs, inefficiencies and low adoption rates including:

  1. accepting state-mandated job boards as a “CRM” that falls woefully short in functionality and customization, especially in collaborating across multiple agencies;
  2. selecting platforms that require multiple applications with proprietary language(s) that creates unpredictable configuration and customization costs on an ongoing basis;
  3. trusting big name companies because of their brand recognition versus being prepared to ask the questions you need answers to so you can “see” what’s really “under the hood”;
  4. using vendors that offer “free” user seats/licenses without realizing that these freebies are probably bundled into other line items such as hosting and customization;
  5. paying more money to get out of a contract due to data hostage situations.

Be prepared to compare CRM vendors by asking questions about potential hidden costs when reviewing a vendor proposal. For example, and as noted above, vendors may give you “free seats” but then substantially make up those costs during the configuration and maintenance phases of the project.

Read our blog to alert yourself with these potential issues and the top 6 questions to ask when interviewing a CRM vendor.

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