SaaS CRM is usually priced on a per-user per-month basis, but purchases typically involve a three-year contract. As noted in this report on Tech Target, there are still some areas where buyers need to be careful, in particular when it comes time for a renewal.
"'We have been hearing complaints where [Salesforce.com] priced aggressively to get the business and because contracts were not written well people were surprised when it came time to renew,' said Bill Band, research vice president and analyst with Cambridge, Mass.-based Forrester Research.
"However, according to Eric Pozil, managing director of CRM Northwest, a Seattle-based consultancy, that's not always the case. When companies reach year four or five of a Salesforce.com implementation, they're usually in two camps, he said. The first is set on Salesforce.com as their CRM application; theyve customized some applications and they're happy. The second group thinks of CRM as more of a commodity, and those are the companies that are really starting to look toward price-sensitive offerings from competitors."