Custom CRM Development: Steps to Consider

Korovkin Vitaliy -

Customer Relationship Management (CRM) is an essential tool for modern businesses, facilitating effective management and nurturing customer relationships.

With options like off-the-shelf CRM systems, customized CRM software, and custom CRM development, businesses must carefully consider the advantages of each approach.

Regarding our development team's expertise with custom CRM development services, we assembled this article, featuring how can a highly tailored CRM benefit your company.

Benefits of implementing a CRM in figures

  • According to a Forrester report, 9 out of 10 respondents stated their companies saw measurable, significant benefits or cost improvements after implementing CRM
  • 89% of companies noticed an increase in revenue from 1% to 20% after CRM implementation
  • 84% of sales teams said that implementing a CRM increased the Customer Lifetime Value
  • Statistics also show that investing in a CRM system can get you an ROI of 8, which means for every dollar spent on CRM you will get 8 dollars as a return on investment

Which approach to choose?

There are several ways to adopt a CRM system, depending on your company's resources and needs.

  • Using an off-the-shelf solution from CRM development companies may suit a small company. Still, it’s usually ineffective in the long run as it does not fulfill all business requirements because it is built for the mass market.
  • Customizing already existing CRM software by adding features — consider this, if you only need a few extra features in addition to what pre-built software can offer. Stick with this option if you want to deploy your startup quickly. Besides, it’s faster to build and cheaper than built-from-scratch CRM.
  • Opting for CRM development services allows you to have a solution tailored to your specific requirements and business goals. It can be costly and the developing process might take some time, but in the end, you will get an independent, reliable, customizable, and scalable product.

Pre-packaged CRMs from some famous CRM development company might solve your problems at the beginning, but most businesses tend to switch to CRM that meet specific needs.

For example, custom CRM has better scalability, automation, advanced data security, more convenient integrations, bespoke design solutions, and, most importantly, unique functionalities that suit your business.

Types of custom CRM systems

CRM development requires a thorough understanding of the different types of CRM available, namely operational, collaborative, and analytical. Let’s take a closer look.

Operational CRM

Operational CRM is particularly beneficial for resource-constrained businesses seeking to streamline repetitive tasks through sales and marketing automation. It is commonly utilized by customer-facing teams, including sales and marketing, to optimize customer relationship management processes.

Examples of existing solutions in this category are Hubspot, Salesforce, and Pipedrive.

Collaborative CRM

Collaborative CRM is ideal for customer-centric companies aiming to enhance the overall customer experience. As a company-wide platform, collaborative CRM is utilized by all departments, not solely customer-facing teams, to foster effective communication and interactions with customers, and analyze customer behavior and preferences.

Examples of existing solutions in this category are Dynamics 365 and Copper.

Analytical CRM

Analytical CRM is ideal for data-driven decision-making in businesses that rely on extensive customer data. Analytical CRM is commonly used by data analysts, accountants, and business intelligence managers, especially when dealing with large databases of contacts, to gain insights, statistics, and analytics data for informed decision-making.

Examples of existing solutions in this category are Zoho and Creatio.

Steps to follow in creating a custom CRM

Custom CRM development allows for tailored features that align with specific business needs. This customized approach can enable more effective and efficient business operations.

While custom CRM development may require an upfront investment, it can result in long-term cost savings by eliminating the need for costly workarounds or customizations in the future. It offers the advantage of scalability and adaptability, making it a cost-effective solution in the long run.

1. Determine your goals

To ensure a successful CRM development project, it is essential to clearly define your requirements and business goals to the development team. Before initiating CRM development, engaging with employees from marketing and sales departments can be valuable in identifying their pain points and exploring how a CRM system can address them effectively.

Open communication and collaboration with relevant departments can help in aligning the CRM development with the needs of the organization, leading to a more effective and useful end product.

Let’s now take a closer look at the main areas to focus on.

Goals

Achieving optimal results in CRM development can be accomplished by prioritizing your requirements. For instance, you may choose to focus on functionalities such as data flow management or automation of routine processes for your employees.

By aligning your CRM system with your business goals, you can ensure that it is tailored to meet your specific needs and drive desired outcomes.

Data regulations

When it comes to storing and managing customer information, it's crucial to be mindful of the rules and regulations that govern data privacy and protection. These regulations may impose limitations on the type of customer information you can collect, such as addresses and relationship statuses, among others.

Before collecting customer data, it's essential to familiarize yourself with relevant regulations such as PCI DSS, GDPR, and PIPEDA to ensure compliance and avoid any potential legal issues.

Being proactive in understanding and adhering to these regulations can help safeguard your business and customer data, and establish trust with your customers.

Security

The type of data stored in your CRM system should dictate the level of security measures you implement. Additionally, there are both general and industry-specific standards that need to be considered.

It's crucial to be aware of and adhere to relevant security standards and certifications to protect sensitive customer information and maintain compliance with applicable regulations in your industry.

2. Define main features

With custom CRM development, you have the flexibility to choose from a wide range of features to meet your specific requirements. This allows you to tailor the CRM system to your exact needs and maximize its value for your organization.

And the most popular and most crucial choices are:

  • Sales tracking — a useful feature to track the status of each order along with analyzing which stage needs some improvements;
  • User reports — custom CRM system can be set to collect users' purchase history and marketing preferences to make personalized offers automatically;
  • Email marketing — modern CRMs not only can send emails automatically but also keep track of if the user opened it;
  • File sharing — this feature lets you sort and store documents, track the interactions with them, create backups;
  • Chatbots — integrating chatbots with a CRM system can automate many monotonous tasks.

If you have all the necessary features sorted out it’s time for the next step.

3. Plan a budget

The cost of custom CRM development can be complex to determine, as it can vary significantly, ranging from $18,000 to $70,000 or even higher.

The final cost depends on various factors, including the complexity of the CRM system and the specific requirements of your business.

But there are also a few extra price drivers, let's take a closer look.

  • Project complexity: the more intricate and feature-rich the CRM system, the higher the cost is likely to be.
  • Developers' location: the location of the CRM development company can also impact the cost. For example, Asian software development companies often offer lower rates, but the quality of the product and customer service may be questionable. However, there is an option often chosen by international clients — Ukrainian developers, it can be cost-effective with a high-quality ending product.
  • Seniority level: When it comes to CRM systems, it's usually better to hire more experienced specialists, such as middle or senior developers, as they have the expertise to handle the complexities of CRM development.

Considering these factors can help you better understand and estimate the cost of custom CRM development for your specific requirements and budget.

4. Hire a team

When it comes to CRM development, businesses have several options to consider in terms of assembling a team. Each approach has its advantages and considerations, depending on factors such as budget, project scope, and desired level of control.

Freelance

Freelance developers are becoming popular in the industry, but they may not be the ideal choice for CRM development due to the long-term nature of CRM projects and potential issues with project continuity and missed deadlines.

In-house developers

Hiring an in-house team of developers gives you more control over the development process and allows for smoother communication. However, it can also be the most expensive option, as it comes with additional costs such as rent, hardware, software, taxes, and more.

Outsourcing companies

Outsourcing companies offer an attractive option for CRM development due to their affordable rates and ability to deliver high-quality final products. You can also hire a dedicated development team for custom CRM application development, providing you with the expertise and resources needed for the project.

Based on our experience, we believe that in-house developers or outsourcing are the most suitable options for CRM development, considering factors such as project continuity, communication, cost, and quality. It's important to carefully evaluate your business needs, budget, and resources to determine the best approach for your CRM development project.

5. Improve and support

Project maintenance typically involves several aspects, including:

  • bug fixing;
  • adding new features;
  • stability and performance improvements;
  • code optimization;
  • support for the latest operating system versions.

CRM is a complex system with multiple integrations, requiring ongoing support and improvement to ensure its smooth operation. Continuously collaborating with the development team is beneficial for long-term success.

Final words

At Webmil, we specialize in providing enterprise-level software development services, which also include custom CRM software development. Our experienced team of developers can create tailor-made CRM solutions that meet the unique requirements and business goals of our clients.

With our expertise in CRM development, we can deliver high-quality, scalable, and feature-rich CRM systems that help businesses streamline their operations, improve customer relationships, and achieve their strategic objectives. Whether it's a small or large-scale CRM project, we are committed to delivering innovative and reliable solutions that drive business success.

Check out the custom CRM system our team made for Lobby X, where we implemented an uncluttered, user-friendly design along with lightning-speed performance.

If you have a project idea for custom CRM software development or any other software development needs, we invite you to reach out to us. Our team of specialists is ready to provide you with a free consultation to discuss your project requirements, goals, and vision.

FAQ

What is CRM development?

It’s the process of creating and customizing a Customer Relationship Management software application that helps businesses manage their interactions with customers, streamline their sales and marketing processes, and improve overall customer satisfaction.

It involves creating a software solution that is tailored to the specific needs of a business, taking into account its unique sales and customer management processes.

What are the main benefits of custom CRM?

  1. Custom CRM is tailored to business needs;
  2. It can be built to accommodate the growth and changing needs of a business;
  3. It can automate repetitive tasks, streamline workflows, and provide efficient data management and reporting tools;
  4. It can provide robust data management capabilities, including data collection, storage, organization, and analysis;
  5. It can be integrated with other systems and services used by a business;
  6. It can be built with robust security measures to protect sensitive customer data.

What are the types of CRM?

Operational — designed to automate and streamline business processes aimed at acquiring new customers and enhancing customer retention;

Collaborative —  eliminating silos between sales, marketing, and customer service teams, along with facilitating external communication by creating a more seamless connection with distributors, partners, and suppliers;

Analytical — enables you to collect data, gain insights, and gather the information that can drive informed actions and support business growth.