Bad Customer Service Story #2: LongContractLand

One of our vendors—a very large cloud-based CRM that wastes a lot of its revenue on sales and marketing because its product isn’t all that great and costs too much—has a billing practice that really annoys me. We renew our contract with this vendor each year in May for another year. Why? Because we save lots of money by renewing for a year at a time instead of going month to month? Because the vendor provides such a stellar product and service that we just know we’re going to need their services as a critical part of our operations for the next year?

No. We renew each May for another year with our large cloud-based CRM vendor because it’s the only billing option they offer. Yeppers, you heard correctly: these guys require a year commitment to their “service-based” software that they claim is the epitome of “The Cloud.” And guess what…we’re locked in for another year even if we want to change vendors. No refunds or credit for cancellations before your contract is up. Sound like another bad customer service story?

It seems to me that part of the definition for cloud computing is providing meter-based, on-demand services that don’t lock customers into one vendor for long periods of time. I guess our CRM vendor just doesn’t get it and I can pretty much guarantee you we won’t be with them after next May. But until then…

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