SAP CRM Vs Salesforce
Listed below are some of the major differences between SAP CRM and Salesforce, although both of them are equally challenging and offer the best to their customers, yet there are some areas in which both strongly compete with each other. Let us understand and analyse some of these:
| Topic | SAP CRM | Salesforce |
| Understanding the Applications | The SAP CRM was designed by SAP, which is a well-known software company known in the field of ERP offering. SAP CRM was initially referred to as the on- premise system, until sometime back. | Salesforce has been built by Salesforce, which ranks as the Number CRM vendor which is broadly and first provider of a SaaS (software-as-a-service, i.e. web-based) CRM and dates to 1999. Salesforce is a SaaS based CRM and does not require a software. |
| Cloud computing | SAP has off-late utilized the cloud space in the last 2-3 years.
SAP although adapted Cloud recently but it is interesting to know that more than 50% of SAP CRM on premise functionalities are now obtainable in the cloud, and very soon most of the on- premise functionalities will also be made available in cloud. | Salesforce moved into the cloud CRM space almost 15 years back, and this gives them an edge over SAP CRM as they already have been successfully built a complete suite of CRM solutions on the cloud in these years. Salesforce have been able to acquire companies for building solutions for enabling them in coping up where they were lagging, ex in the field of marketing. Salesforce has come up with the functionality which will enable you to set your standards for product list, line items and pricing. |
| CRM utilization- | In SAP, the cloud base is a lot better than in Salesforce specifically for customers who opt for end to end sales solution with a unified SAPERP system. In SAP ERP/CRM, cloud can effortlessly be combined with an on-premise SAP ERP/CRM, because the middleware has been made available for their cloud customers. The configurations, solutions, formulas and routines have been designed in a complex manner in SAP. | On the other hand, in Salesforce, the adapters have to be built for integration. This is quite a challenge to merge Salesforce with SAP ERP as that’s going to be the case for heavy to moderate pricing. In the present-day scenario, the majority of the customers utilize ERP specially for logistics and ordering purposes, therefore utilizing an integrated Salesforce may be a gruesome task. might be a challenge. Salesforce has an advantage in the space of social selling over SAP. Salesforce seems to have a better user interface as compared to the SAP cloud for customer, with regards to the solutions, and configurations, routines, formulas which are slightly made easier in Salesforce. |
| CRM Utilization- for Marketing | But if you are looking at an end to end marketing solution then SAP should be a better choice, only issue with SAP is that the user experience is not that great, though it has improved drastically in the cloud for customer. Salesforce still offers better user experience and better integration capability with other cloud based CRM. SAP can be a better choice if you use complex segmentation around your transactional data, integration with SAP BW can be very challenging when using Salesforce. Budget planning, tracking marketing spending, funds management & tracking campaign ROI are additional super advantages of an SAP based system. | Salesforce was lagging in marketing solution until they acquired Exacttarget.com, a cloud based marketing solution company.
Salesforce has fortified its marketing cloud offering since then. The offerings around social media marketing, email and mobile marketing, marketing automation tool etc. make it very appealing to the end user |
| CMR Utilization- For Service | SAP stands in an advantageous position over Salesforce in Service functionality. SAP offers a broad range of solution in the field of customer service such as those in warranty and claims, contracts, an integrated billing, work order management and parts allocation, besides many other advanced features. The call centre solutions are known to be excellent too. | Salesforce does not offer any of the functionalities which SAP offers in the space of CRM Utilization and all the solutions offered here seem more like help desk oriented. |
| CRM Utilization- In the field of analytics | SAP has always known to be a standout performer in the field of analytics. The way Cloud has been designed for the customer is that it can easily unified with BI and BO for richer analytics. SAP went on to acquire KXEN, and the predictive analysis tool offered by SAP is known to be extremely powerful. | In Salesforce, the force.com platform provides all the freedom and flexibility to design your own system that too with 20% code and 80% customisation. |
| Functionalities | SAP offers other functionalities that Salesforce does not offer, such as those of trade promotion management, RTOM, Grantor management, ecommerce (Hybris), Claims, Leasing, BCM, along with solutions which are full-fledged. Though the above listed functionalities are available in SAP on premise CRM, SAP can also easily these to cloud over the time. | The force.com platform provides you freedom and flexibility to make your own system that too with 80% customisation and 20% code.
The automation engine has been designed in a very robust manner, which is very easy to use while communicating. |
| Upfront Costs: | There is a fee applicable for professional implementation services like customizations, de-duplication, data migration, integrations, customization. | The fees charged here is for the task of implementation and integration in Salesforce. |
| Contract term | In SAP in the cloud based functionality, the terms are based on the needs of the user. For on premise functionality the perpetual license agreement has to be signed upfront for owning and for using the software for an indefinite period of time. |
In Salesforce for the cloud based functionality there is a monthly subscription fee for each user login. |
| Pricing | User is required to pay a monthly subscription fee for each user login and for on- premise, a perpetual license fee needs to be paid upfront for each of the users. | In Salesforce, the terms vary based on the needs of the user. In on premise the perpetual license agreement is signed up-front for owning and for using the software for an indefinite period of time. |
| Recurring costs | In SAP, there is a perpetual license which requires supporting contracts and annual maintenance. The managed, maintenance and support fees is all covered under the subscription fees. | In Salesforce, there is a fee which is applicable for providing premium support to the customers |
| Companies | Centrica, Agilent, AGL Energy, Grundfos are some companies who utilize SAP CRM | Paytm, Snapdeal, Pepperfry, Bajaj Finserve, HCL are some established companies using Salesforce. |