Like the many other ecommerce products on the market there are also several different CRM software packages available to choose from. The key is finding the right one for your business.

Prices range from as little as $0 – yes that right zero dollars to thousands of dollars – it all depends on how complex and which system you are looking at.

There are two main categories of Customer Relationship Management software - Remotely hosted where the service is run on the CRM companies' server, or locally hosted where all the software is installed on your server. Remote hosted software is great choice for many companies. Let's have a look at the advantages and disadvantages of remotely hosted CRM software.

Advantages:

With remotely hosted software it is the CRM provider who is responsible for ensuring that the system runs smooth and without any hiccups. It is also there responsibility to ensure the application is secure.

The CRM provide is responsible for having to keep things up to date whenever upgrades become available. The troubleshooting is also the provider's responsibility. All of these things help you save plenty of money.

CRM software is very complex so by choosing to use a remotely hosted service you are able to benefit by the increased buying power determined by the number of users. This buying power means you are much more likely to be able to have access to the best CRM software on the market. Building your custom CRM application from scratch can be a very expensive for any one company and this method removes that cost.

Disadvantages:

Of course there are always disadvantages too. If the CRM remote hosting company goes out of business you records and everything related to your customers may disappear not only leaving you without the valuable information but also risking a hit to your reputation. That's why choosing a reputable company is so important. The host you choose should also allow you to backup or export your data as desired.

Here are things to look for:

• Consider the type of reports you need and the type of reports the CRM software can produce.

• Make sure that it integrates with current applications such as Outlook.

• Check the import and export features.

• Are you able to upgrade if needed?

• How long has the CRM company been in business?

• Is the CRM software capable of talking with handheld devices such as the blackberry, cell phone, or PDA? Can your sales team connect remotely?

• What are the costs of ongoing support from the company?

• How easy is the software to use?

Now that you are loaded with information you will be able to find the best remotely hosted CRM software for your business.