How to Build a Custom CRM Software Making No Mistakes

How to build a CRM system from scratch? This is a question that modern businesses are looking for an answer to. Why? The thing is that Customer Relationship Management software is a must-have for most firms. The system allows organizations to keep, access, and manage essential sales data and do much more, optimizing all business processes.

In this article, we're going to point out the main things to think about building CRM system: features, development steps, and critical considerations. We’ll also explore the cost to create custom CRM software and provide you valuable tips on how to find reliable developers.

Before talking about how to create CRM software from scratch, let's delve deeper into the essence of the subject. Customer Relationship Management system is a multifaceted tool that allows companies to scrutinize clients’ interactions and measure data throughout the customer lifecycle. CRM engages databases that are utilized to gather, keep, and examine valuable data they collect about their clients. In short, CRM systems are the simplest way to manage customers in the most efficient way possible to extract the most value. So, thinking about how to create a custom CRM system is worth consideration.

Development of custom CRM software aims to strengthen business relationships with customers through retention and acquisition. So whether you’re a small company looking to store information and make it accessible across multiple devices or an enterprise using a CRM to manage client interactions and focus on improving customer satisfaction, CRM tools will be applicable in both cases.

Preparing to give a response to the "how to build CRM system" question, we'll learn more about the market situation relevant to solutions of such a type. So, according to the latest research:

• According to Fortune Business Insights, the global CRM market size is projected to grow from $101.41 billion in 2024 to $262.74 billion by 2032, at a CAGR of 12.6%
• Entrepreneur news portal states that CRM can enhance conversion rates by 300%
• Dynamic Consultants Group revealed an average of $30.48 Return on Investment (ROI) for each dollar spent on CRM development
• Nucleus Research, a research firm specializing in technology ROI, reported that CRMs can improve forecast accuracy by up to 42%.

Based on statistical data, investing in CRM development is a profitable decision that can lead to significant returns, making it a wise choice for any business. However, the benefits extend beyond financial gains. Customer Relationship Management software integration brings significant benefits to any service-based business, from e-commerce to healthcare CRM implementation and logistics.

So, let’s consider how exactly building a CRM system can boost business growth:

• Keep track of all internal sales and marketing operations, allowing detailed records of activities and refined strategies based on customer behavior insights.
• Automate sales and marketing processes, streamlining repetitive tasks and reducing manual errors, enabling focus on strategic initiatives.
• Generate highly targeted messages by segmenting audiences for personalized marketing and delivering tailored offers to increase engagement and conversions.
• Enhance client interactions across departments by facilitating seamless communication and ensuring a consistent and well-informed customer experience.
• Centralize data management, storing all business-critical data in one secure database, and providing employees with access to maintain data integrity.

CRM systems are integral for various departments, including sales, marketing, and customer support. Each department has unique operational needs and utilizes CRM software for different purposes. Let's review primary business roles to include when building CRM system and their core responsibilities:

Before developing your own CRM, identify your primary goal. For example, an operational CRM is ideal if you need to improve customer service. Additionally, you can create a comprehensive CRM that includes all three types. This option is perfect for large enterprises that need a robust solution to handle various aspects of customer relationship management. However, a comprehensive CRM takes longer to build and is more complex and expensive.

So, to help you make a decision, let's review the peculiarities of all these types:

Operational CRM. Operational CRM focuses on automating and improving customer-facing processes. It includes functionalities such as sales, marketing, and service automation. Operational CRM aims to streamline and optimize customer interactions, enhancing efficiency and customer satisfaction.

Analytical CRM. Analytical CRM involves analyzing customer data to gain insights into customer behavior and preferences. It focuses on interpreting data collected through various touchpoints to identify trends, predict future behaviors, and segment customers effectively. Analytical CRM helps businesses make data-driven decisions to improve overall business performance.

Collaborative CRM. Collaborative CRM emphasizes improving collaboration and communication with customers across different channels. It integrates various communication channels into a single platform to ensure consistent and personalized interactions. Collaborative CRM facilitates teamwork among different organizational departments to provide a unified customer experience.

Since you already know the basics, it’s time to consider the features needed to build your own CRM system. To make this section as helpful as possible, we’ll explore the basic features essential for every type of Customer Relationship Management software.

Contact management within CRM systems allows businesses to create and maintain comprehensive profiles for customers, leads, and vendors. These profiles include vital information such as contact details, purchase history, communication records, and customer preferences. Building CRM, you can add segmentation of contacts based on demographics, interests, or behavior, enabling targeted marketing campaigns and personalized customer interactions.

Build a CRM software that enables users to set personalized reminders for tasks, follow-ups, meetings, and other important customer interactions. These reminders are integrated with calendars to ensure timely notifications and to prevent missed deadlines. By facilitating efficient task reminding, CRM systems help teams improve productivity.

CRM calendars allow businesses to schedule appointments, meetings, calls, and other activities directly within the CRM platform. Team members and customers can be invited to events directly through the CRM, fostering seamless communication and coordination. Building CRM system with a centralized view of team schedules helps avoid scheduling conflicts and ensures effective time management across departments and increased productivity.

Building your own CRM facilitates the creation, assignment, and tracking of tasks related to sales, marketing, and customer service activities. CRM may allow users to set due dates, specify priorities, and assign tasks to team members, ensuring clarity and accountability. Monitoring task completion within the CRM helps teams stay organized and focused on achieving business objectives.

This feature is essential to building a CRM from scratch as it allows tracking communication between the company’s representatives and clients. This CRM feature also allows you to store information about customers and their whole history of partnership with them. It improves overall customer service. Managers won't have any trouble with passing a client to another employee. They no longer need to spend hours telling about details of the deal.

This piece of functionality keeps all the documentation in one place. It also helps you find an answer on how to create a CRM appropriate for different departments. You can set access levels to prevent employees from seeing files they aren't supposed to see. The system can be taught to register all records of working with files. In other words, after you make your own CRM software, you’d be able to see who's been working with a doc and look through the edits made.

CRM can help generate reports on key performance indicators (KPIs) relevant to sales, marketing, and customer service functions. These reports track sales pipeline progress, lead conversion rates, customer satisfaction scores, and campaign performance. By analyzing these insights, businesses can evaluate team performance, identify areas for improvement, and make informed decisions.

The integration with the email system allows tracking communication with every customer after you build your CRM software. It’s very helpful if managers send a lot of emails every day. CRM can automatically mail different letters to different customer groups. It’s also possible to introduce a sequence of emails. The system will send them according to the given parameters. For example, if a customer opens the introduction email, they get the next letter from a chain.

If the solution is going to be used by sales representatives, then you should build a custom CRM with support for smartphones. According to different studies, sales reps' productivity grew by 26.4% after companies created their own CRM system in a mobile version. Additionally, 24% more of them began to achieve annual sales goals. An opportunity to work on the go may boost sales, especially considering that modern customers want to contact businesses anytime and get a fast response.

This CRM feature allows you to track all sales processes. With its help, you can see at what stage each lead is at the moment (new leads, contact made, qualified, and so on). The pipeline lets you spot the stage where you lose customers. And it’s simply a great feature to keep track of what’s going on with your sales at any moment.

If you want to build a CRM application that will be sales-oriented, equip it with invoicing options like:

• Searchable invoice history
• Quick invoices to clients
• Status tracking

One of the reasons to create your own CRM system is that you can integrate it with any third-party tools you need. It can be accounting software, payment systems, or whatever else. For example, you can sync data from your accounting software like FreshBooks with your CRM using API.

Studies prove that 51% of sales reps are more likely to reach their quotas with social sales. Also, they sell 78% more compared to colleagues who don’t use social media. One use case is to build or integrate a system that tracks mentions on social media (by hashtags). Businesses can use it to measure interest in their brand and improve customer service (reply to messages with reviews).

That’s why integration with social media can be one of the key features in custom CRM projects, and you should consider it while deciding how to build a CRM that will be the most advantageous.

After implementing basic features, you can move on to a more complicated tier. Let’s discuss how to build a CRM with advanced functionality for large businesses and enterprises.

Additional features to integrate in CRM are:

• Integration with third-parties (e.g., payment gateways, marketing automation tools, customer support platforms, etc.)
• Unity with other internally created software (e.g., ERP, HRMS, inventory management, etc.)
• Call center management
• Tracking referrals
• Customer scoring
• Chatbots

Building a CRM from scratch requires thoughtful preparation steps due to the rich functionality that needs to be implemented. So, let's take a close look at the main CRM development stages.

Any process starts with planning. Before building a CRM, it’s crucial to write down the CRM implementing plan including business goals and challenges you want to solve. For example, you want to increase the annual sales quote by 20% or decrease your clients’ acquisition costs. The well-formed goals will help the software development team make the detailed project’s specifications and pick the most appropriate technology stack. Moreover, well-defined requirements speed up the development process, reducing cost to build a CRM.

One of the key advantages of a CRM platform is its ability to establish strong communication relationships between a company’s employees, fostering better collaboration and efficiency. However, each team member utilizes the CRM software differently based on their department-related tasks. For instance, sales teams use CRM for managing leads and automating follow-ups, marketing teams for audience segmentation and campaign tracking, and customer support teams for accessing customer histories and managing service tickets. Therefore, it’s crucial to specify for who you are creating a CRM, ensuring it includes tailored features that address the unique needs of each department.

The fastest way to build a CRM from scratch is to outsource the development to an IT vendor with proven expertise in CRM development services. Outsourcing is an excellent opportunity to get first-class services for a reasonable price. Spend some time on in-depth research of the potential vendor to build your own CRM software properly — from the company's portfolio, tech expertise and experience, to clients’ reviews on reputable B2B platforms like Clutch or IT Firms.

Here is what Yoann Georges, CTO at Oppcar, says about cooperation with Cleveroad on CRM development services they received. You can explore the full review on the Clutch page.

Most of the work goes to your software development team at this stage. They begin by thoroughly analyzing all your requirements and translating your vision into a detailed list of features tailored specifically to your operations. As they develop a CRM software design prototypes, you see how it takes shape, with visual representations of the interface and user experience.

Your vendor outlines the technical specifications, architecture, and technology stack, ensuring every aspect aligns with your goals for building CRM system. They then present a comprehensive project timeline with clear milestones so you can track progress and stay informed. Throughout this process, you review, provide feedback, and approve the plans, ensuring the project stays on track. This collaborative effort with your IT vendor sets a strong foundation for the development phase, paving the way for a CRM system that perfectly fits your business needs and goals.

After planning the project's scope, the development team begins building CRM software guided by detailed user stories prepared by the business analyst. Simultaneously, you review and approve the CRM interface designed by the UI/UX team. Throughout development, QA engineers rigorously test both backend and frontend functionalities to catch and resolve issues promptly. Your ongoing feedback ensures the CRM system aligns with your goals. After coding, QA performs comprehensive regression and stress testing to ensure the CRM system's robustness under varying conditions, effectively meeting your business needs.

Deployment of a CRM system is a multi-step, developer-led process aimed at successful integration and utilization of the system by end users. First, they check the system in the specially created test environment for functionality and performance. Then, developers install and customize the CRM system, integrate it with other business systems, and migrate data.

After deployment, CRM software needs to be continuously maintained due to its complexity. We are ready to offer support and maintenance services, including monitoring system performance, issuing updates, and solving users' technical issues.

To create your own CRM system, you should consider several critical points that are significant for the success of your software. Here they are:

When deciding between a SaaS platform and bespoke CRM software, weighing your business's specific needs is crucial. SaaS CRM solutions can be quickly implemented and have a lower upfront cost, making them easier to start with. However, they may not be cost-effective in the long run, as you often pay for features they don't need, leading to additional expenses.

On the other hand, building CRM system from scratch offers unmatched flexibility and customization, allowing for precise adaptation to your unique business processes, seamless integration with existing systems, full control over data, and enhanced security. These factors make bespoke software development more suitable for especially suitable for enterprises with complex requirements, including large businesses. Building a CRM from scratch is advantageous in the long term because it allows you to implement the exact functionality you need, avoiding unnecessary and hidden costs.

Deciding whether to build a custom CRM or opt for a SaaS system, consider these factors:

• Budget: Evaluate the initial costs of developing a proprietary system versus regular payments for using a SaaS platform.
• Integration needs: Take into account the need for integration with existing systems (ERP, marketing tools, etc.) and compatibility.
• Security requirements: Consider unique data protection and confidentiality requirements, especially if your industry is subject to strict regulatory standards.
• Future plans: Plan for scalability of the system in the future to accommodate business growth.
• Data management: Determine ownership of CRM data and how it will be stored and processed.

Thinking about custom CRM development, remember about legal considerations to safeguard your business and ensure compliance. Let's review some of the most widespread regulatory requirements for high-quality CRM software:

• GDPR (EU): Applies to all companies processing personal data, requiring explicit consent for data processing, robust data protection measures, and notification of data breaches.
• CCPA (California): Governs the collection, use, and sale of personal information, giving consumers the right to know what personal data is collected, how it's used, and the right to request data deletion.
• HIPAA (USA): Specifically applies to CRM software development for healthcare, setting standards for the protection of patients' medical records and other personal health information.
• CAN-SPAM Act (USA): Regulates commercial email messages, setting rules for sending marketing emails, including requirements for opt-out mechanisms and accurate email headers.
• Data Protection Directive 2016/680 (EU): Concerns the processing of personal data for prevention, investigation, detection, or prosecution of criminal offenses or the execution of criminal penalties, including the safeguarding of personal data used for law enforcement purposes.

Please note: This list is just an example of regulatory requirements for building a CRM system. You should consult legal experts to consider all the local and industry regulations to ensure your CRM will operate without issues.

How to build a CRM for your business? Custom CRM requires addressing critical security aspects that are paramount to safeguarding sensitive information. Make sure you chose a software vendor who can integrate CRM data encryption protocols to shield data at rest and in transit, along with robust access controls to manage user permissions effectively.

We at Cleveroad create CRM software ensuring robust data security with such measures:

• Role-Based Access Control (RBAC)
• Data encryption in transit and at rest
• Industry-standard data encryption
• MFA, automatic logouts
• Activities tracking, etc.

Integration with your existing business systems is another crucial consideration to build CRM from scratch. Seamless integration allows custom CRM solutions to synchronize data effortlessly across various business platforms, enhancing operational efficiency and providing a unified view of customer interactions and transactions.

Here are some solutions you can integrate your CRM with:

• Enterprise Resource Planning software development
• Marketing automation tools
• Customer support systems
• E-commerce website development
• Building an accounting system
• Social media app development
• Business Intelligence implementation

When deciding to create your own CRM system, ensure your staff members are ready to utilize it. Otherwise, you are at risk of failure. So, before looking for an IT company, you should decide who will be responsible for CRM management and consider the training part. Then, show your team how to utilize the software to collect business-critical information, monitor customers, track analytics, etc.

The cost of building your own CRM depends on various factors, including the number and complexity of features, user roles, design intricacy, location, and hourly rates of your software development team, etc. Let’s sum up and see how much does it cost to build a CRM system.

Please note: The estimate above is APPROXIMATE and covers only the time and cost to develop the basic features features set. The expenses for other services, such as Discovery Phase, UI/UX design, Quality Assurance, etc., are estimated separately.

In general, the cost to build CRM system may vary from $30,000 to $300,000 and up. However, t’s hard to tell how much does it cost to build a CRM system without any project details. You can contact our managers to get a consultation and request project cost estimation for free.

Building a custom CRM system requires choosing the right technology partner to translate your business needs into a functional and scalable solution. Here are the key aspects that will help you choose a reliable software vendor to create your own CRM software:

Start by assessing the IT partner's experience in CRM system development. Examine their portfolio, case studies, and customer testimonials to evaluate their expertise in building CRM software. A provider with extensive experience in custom CRM development projects will be familiar with best CRM practices, technical challenges, and effective design solutions.

Ensure your custom CRM software development partner is up-to-date with current technologies and utilizes modern development methodologies such as Agile SDLC. Agile frameworks like Scrum or Kanban promote iterative development, change flexibility, and continuous product improvement. Thus, Agile-based CRM system development allows to cope with all CRM development challenges. Learning about software development approaches and quality assurance strategies throughout the project lifecycle is important to ensure maximum effectiveness.

Here is an example of a technology stack for building a CRM used by our experts:

• Backend: Java, PostgreSQL, Python, Node.js, Express.js
• Frontend: React.js, Angular, Vue.js
• 3-rd party integrations: RESTful API, Flask, Stripe, Google API
• Cloud: AWS, Azure, Google Cloud, Docker, Kubernetes, Jenkins
• Security: JWT, OAuth, SSL/TLS, bcrypt

Please note that this technology stack is just an example. The exact list of technologies to use for building your own CRM will depend on your individual needs and requirements.

Choose a vendor with a deep understanding of your industry and its specific requirements and experience developing various solutions for it. A software provider with deep tech expertise across industries will be able to develop CRM software that will meet your unique business processes and compliance requirements, especially important if you are in industries such as healthcare or finance.

Effective communication is essential for a successful partnership between you and your IT vendor. Create your own CRM system with an IT vendor that values clear and transparent communication, ensuring consistency in project goals, timelines, and expectations.

We at Cleveroad ensure transparent communication through regular project updates, delivery reports, sprint reviews, and meetings throughout the development process.

Cleveroad is a high-tier software development company providing CRM development services for more than 12 years. We deliver custom digital solutions for businesses in various domains, including Healthcare, Logistics, FinTech, Retail, Real Estate, Education, Media, Travel. We guarantee high service quality and data security, validated by our ISO 9001:2015 certificate for Quality Management and ISO/IEC 27001:2013 Information Security Management certificate, assuring our commitment to providing high-level service. IT development services our team provides include building CRM from scratch, creating custom modules, integration with internal business systems, software modernization services, CRM customization, IT consulting, etc.

Cleveroad in numbers:

• 12+ years on the IT market
• 250+ in-house software engineers backed with 1200+ developers in our talent base
• 200+ successful projects
• 9+ expertise industries

We at Cleveroad have extensive experience crafting customized, complex systems like CRM solutions for both large enterprises and emerging businesses. Recently our team has worked on developing - Multifunctional Retail and eCommerce Platform.

Our customer reached us for assistance in creating a brand new system covering all the essential tools for retail businesses. Our specialists helped the client build a software complex to simplify and optimize retail operations. It includes the following modules:

• Warehouse management: To track inventory, optimize product placement, automate warehouse operations, and analyze data to improve efficiency.
• Product management: To create, edit, and publish product information, manage catalog, track prices and discounts, and analyze sales by category.
• Inventory management: To control inventory levels, automatically generate orders from suppliers, optimize purchases, prevent product shortages, and analyze turnover.
• Order and vendor management: To create and track orders, manage vendor relationships, automate order processing, monitor delivery dates, and analyze data.
• Reporting and analytics: Get data on sales, inventory, orders, and other KPIs, generate reports, analyze data to make informed decisions, and visualize data with charts and graphs.

As a result, our client received a robust multifunctional software solution that matched their business needs and allowed them to master the market of retail apps.