- February 4, 2019
- Posted by: Sangeeta Raheja
- Category: Zoho
As the title of this blog states, it is about finding the cost of Zoho implementation in an organization.
So it would be best if we begin with a clear definition of Zoho.
What is Zoho CRM?
Well, to put it simply, “Zoho CRM is a system that is designed for the automation and to enhance all the customer relationship management processes, like email marketing, lead management, inventory management, and customer support.
So, let’s now move on to the main question.
How much it would cost you to implement Zoho in your business?
Well, it is first imperative to understand that Zoho CRM comes in several pricing options. Like, you could get a free version, which has up to three free users. The premium versions come with additional features. Now the cost of standard version if $12/user/month, whereas the professional version costs $20/user/month, and the enterprise is $35/user/month.
Whole picking a software product, usually, the buyers are concerned about the cost, as they want to get the best value for their money that too without it digging a big hole in their pockets. But what’s important to understand is the fact that determining the exact cost of Software is just not easy, as its overall cost comprises of the cost of a subscription fee, software license, customization cost, software training cost, cost of maintenance and support, necessary hardware and other vital services. Thus it is quite difficult to account for all of the given costs to know the system’s ‘total cost of ownership’.
All of these factors are briefly described below:
Zoho Software Pricing Model: In Zoho CRM, the common model is the Subscription model. In this pricing model, payment is made either in a per-user basis or on a subscription basis. Usually, a customer is to pay a recurring monthly fee until a certain period to use the software. To use premium support services, extra fee needs to be paid. Other two pricing models are: Commercial Open-source & Perpetual License. However, they are not relevant for Zoho CRM.
Cost of customization: A customization cost is charged in case you need a specific feature in the software that meets your specific business needs. Usually, customization cost is more complex to calculate when compared to the licensing cost. Some application may allow combining data from the multiple sources easily, sans any complicated query requirements, others can be embedded in various apps to provide enhanced reporting. In case, you need products supporting customizable dashboards & predictive analysis to recognize possible trends and to facilitate the decision making, then you would have to pay higher for all of the customization features.
For calculating customization cost, following estimates can be used:
- Minimal customization: integrate with 1-2 systems: $2,500
- Standard customization: integrate with 3-5 systems: $10,000
- Fully customized system: integrate with more than 5 systems: $25,000
Cost of Data Migration: Most firms go for data migration services from a vendor and this raises the cost of product ownership. Upon choosing to transfer data on your own, the cost to pay for data migration can be avoided. However, usually, the data migration cost depends on the number of records you are keen on migrating. Like, the records may comprise no. of customers, invoices, financial transactions, products, versions, and much more.
It goes like this:
- 1,000 records: $500
- 10,000 records: $2,500
- 100,000 records: $10,000
- 1,000,000+ records: $25,000
Cost of Training: A software buyer requires to pay some extra money for the in-person training, however, by some vendors it is offered as a part of the package.
Here are the estimates for training cost calculation:
- 1-2 Training Sessions: $500
- 3-4 Training Sessions: $1,500
- 5-7 Training Sessions: $2,500
- 8-10 Training Sessions: $5,000
Cost of Hardware & IT: This costs a lot for the on-premise software buyers as they require their own servers & other infrastructure for software installation. This one is a costlier alternative as compared to cloud solutions. Also, here the software cost will depend on software capabilities that include sales automation, marketing automation, help desk, & call center.
Cost of Support: Constant support is a crucial part of value-based pricing that a customer is willing to pay. After all, what is the use to buy a software product and face inconvenience owing to certain technical glitches that you have no idea about? Thus, it is vital to make the necessary payment for the support.
By now, it must be clear to you that the science of software pricing is just not easy to understand. So, if you want to understand the software pricing model, then get in touch now, to get the needed help!