How to Build a Custom CRM System: Steps and Stages of Building a CRM

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CRM system is a must-have for all types of businesses. It captures details of transactions and stores the results of interaction with customers, including:

• how they are progressing through the sales,
• what they are satisfied with, and
• what they complain about.

This article discusses the advantages of building custom CRM systems and provides a detailed analysis of how to create a CRM system from scratch.

Why Do Companies Choose Customer Relationship Management System?

CRM solution helps to analyze departments’ work and increase their efficiency. Many off-the-shelf CRM software solutions are on the market: amoCRM, A2B, and Microsoft Dynamics CRM. The global CRM market size is predicted to grow at a CAGR of 12% till 2030. But some companies prefer to build their own CRM platform.

For instance, your own CRM System can call anyone who has left an application within one hour or contact the buyer two weeks after finishing the transaction for feedback. CRM software organizes the sales process, automates your business, increases the buyers’ loyalty, and creates comfortable conditions for employees.

CRM systems are suitable for any business sphere but are often used in e-commerce, healthcare, IT, finance, and real estate. Read more about custom real estate crm software development in our blog post.

Why Do Business Owners Choose Custom Own CRM System?

If your business works with a narrow range of partners and does not engage in attracting new ones, forget about Custom CRM. But every lead is on the account if you are actively looking for new sales channels and launching advertising campaigns. So, you need to build a CRM system not to waste a budget and collect customer data.

Own CRM keeps you from losing customers

All requests and calls go into the CRM software, so no lead is lost. In addition, the history of interactions with buyers, client requests and other customer data are stored in the database and available to managers; they can always turn to it to offer the person what he needs.

Own CRM boosts sales

The CRM software system automates processes, so managers have time to process all client requests. As a result, they know more about customers and make offers tailored to their needs. Customers appreciate the attention, come back, and sales are rising.

Own CRM helps organizing responsibilities

Small companies often lack a clear division of responsibilities in the customer relationship management – all do everything. The main disadvantage of such multiple-work employees is not understanding who is responsible for what. CRM-system has a fantastic tool for this case.

Own CRM provides monitoring the results of managers’ performance

The CRM system keeps time records. With this tool and other CRM features, it is possible to estimate how much time is spent on average on solving problems, to find those who are idle, and to distribute the load.

Own CRM enhances business management

You can identify performance indicators for each of business processes, and the CRM software system will track them. For example, you introduced some new tools and can immediately evaluate their effectiveness with the help of metrics.

Own CRM collects data for analysis

The CRM system keeps a constant record of all customer service data: how many customers are at different stages of the pipeline, where the most leads fall out, and how long it takes from the first contact to the final stage of the transaction.

Own CRM helps closing a deal

The CRM system shows the pipeline stage of each lead, which helps the manager move it further and close the deal.

Whether a big or small business, you can not cope without an own CRM system – a massive flow of information, tasks, and customers can not be quickly processed manually. It especially matters for small companies because CRM development helps reduce costs and squeeze the most out of advertising budgets.

Now that we have decided why to implement the CRM system, we will figure out what type of CRM software you need.

Is Building Your Own CRM a Must, or is Off-the-shelf CRM Enough?

Off-the-shelf CRM systems can be used by any business with standard business processes. It is their advantage and the main drawback – not all companies operate under some universal scheme.

Custom CRM systems are built for a specific business, considering the company’s features. When you build a CRM, you decide which functions will be in your custom CRM software system and how they will work.

Suppose you desire a discount for every 11 orders. In that case, you will need a custom software company to write code for this non-standard condition while building your own CRM. With custom CRM development, you get only the right CRM features, pay once for the creation and use without restrictions, and you can always modify or change your own CRM system.

Let’s compare the features of standard and custom CRM systems.

• Principle of work: Off-the-shelf CRM System has a standard set. Custom CRM system works based on your business needs.
• User-friendly interface: A standard CRM has multiple CRM features, which can complicate working with it. In the Custom CRM software, you have only needed elements, saving you money and time to train the staff.
• Integration with other services: Off-the-shelf CRM has some restrictions on integration into third-party services. In contrast, a Custom CRM system has the opportunity to integrate with all types: messengers, social-media analytics tools, and email services.
• Simple to use: In the case of off-the-shelf CRM, some tools are difficult to master without special training. The Custom CRM system is based on the company’s business processes, so its use is simple for employees. Additional training is provided before implementing the custom CRM solution.
• Customization: You cannot modify or change functionality in the off-the-shelf CRM. In the Custom CRM software, the develoment team or a company employee can modify the functionality.

So the main advantages of an off-the-shelf CRM system are as follows:

• it offers a standard set of CRM software features
• it has low support costs
• it provides a fast start

But the disadvantages include monthly fees, expenses for customizing the final CRM solution, and personnel training costs. At the same time, you will not be able to fully configure the ready-made CRM software for yourself. A custom CRM system is initially created for a specific business and considers the subtleties of the company’s work.

Custom CRM development works best when:

• the company grows and faces problems of scaling
• you spend too much time on routine tasks
• you need an employee performance monitoring system

Either for small, medium, or large businesses, you can build a CRM as a universal tool for customer relationship management.

Read more about the best features for a sales-boosting property CRM here.

What are the Potential Off-the-Shelf CRM System Drawbacks?

You need to know about the challenges of ready-to-use CRMs. So, let’s look at the popular CRM systems, and their pros and cons as compared to the tailor-made ones.

Zoho CRM System

This CRM system lets you fully control the company and manage sales, marketing, and support. In addition, extensive customer data collection and processing capabilities in statistical reports of CRM software will help to improve cost recovery and to develop a work plan for staff.

Source: Zoho CRM System

Initially, this CRM solution requires a great deal of customization. Also, its customer service could be better. For example, users report poorly designed forms leading to low customer satisfaction. Although Zoho CRM offers many functions, you will need more as your business grows.

Hubspot CRM System

Hubspot CRM allows you to maintain a database of contacts, organizations, and transactions; store information on contacts, organizations, and transactions by adding custom fields or using dozens of pre-configured ones; correspond with clients; assign meetings/calls directly through the site.

Source: Hubspot CRM System

This CRM system suits B2B companies, but if you are a large retail business (offline stores) or a fast-growing company, better to choose Custom CRM software as Hubspot only works with 200 people.

Unlike the Professional version, Hubspot cannot create its own objects (for example, if you want to view “Project” as a separate system object). In addition, there is no integration with some messengers, for instance, Telegram.

Pipedrive CRM System

Compared to the most famous analogs, Pipedrive CRM software has tangible advantages. One of the most significant CRM features is focusing on problem-solving for small businesses or single users. In addition, system settings are as simple as they could be.

Source: Pipedrive CRM System

Small departments often select this tool to control long sales due to the simplicity of Pipedrive. The CRM platform interface is intuitive; you just need to drag and drop the desired fields to configure your objects.

But the disadvantages are there as well:

• Sales functions: The CRM software is sales oriented but does not provide documentary support for this process. There is a lack of integration with the accounting department, which makes it challenging to invoice and manage contracts.
• Data processing: The system has limited capacity to process and manage customer data. Records can be duplicated, so data cleansing must be done manually.
• Lack of support for current client relations: The service is focused on sales. Still, to support existing customer relationships, the system’s functionality provides very few opportunities.
• Reporting: The reporting system is minimal. Its capabilities allow you to track only current activities and estimate the sales forecast.

So the main drawbacks of ready-made solutions compared to own CRM development are as follows:

1. Need for better integration: Most pre-made CRM systems are designed for mass consumption and integrate into existing businesses poorly.
2. Too many functions: Ready-made CRM solutions are built with many features and options, most of which remain unused. It’s like selling a smartphone with a thousand pre-installed apps that might one day be needed; it requires many resources, is not optimal, and is more expensive than it might be.
3. Inappropriate UI / UX design: Developers of ready-made CRM have a difficult task – they have to create a product that will appeal to all. This is impossible, so developers are giving up some target audiences in favor of most. And your audience may be one of those compromises.
4. No special offers for your business: All the template CRM software solutions are similar, with no tailored approach.

To avoid these drawbacks, experts recommend developing your own CRM systems. Next, you will find guidance on how to make a CRM system from scratch, avoiding the most common problems of custom CRM development.

How to Build a CRM System from Scratch: Stages

Before starting to build your own CRM, it is necessary to answer several essential questions about business processes and customer relationships to determine the scope and set of custom CRM sofware functions.

When selecting own CRM system for your business, consider various factors such as the specific needs of your business, its size, industry, priorities, legal requirements, user experience, and budget. Then, choose the CRM software that best fits these criteria. Third party CRM system is always a trade-in between business needs and the final cost.

For example, HubSpot has great integrated solutions for the sales teams over 5 people and enterprises over 100 people. Custom CRM could cover not only the size of your team, but also specifics of your sales funnel, or internal integrations with other software products.

Oleg Kumko

Project Manager, Glorium Technologies

During the consultation and technical assignment description for CRM building, you can specify your customer relationship management requirements. For example, you can identify the primary functions of your Custom CRM, such as managing contact information, tracking customer satisfaction, task management, setting up reminders in calendars, and generating reports.

Analyzing the main features of CRM software Systems, we created a guide on how to build Custom CRM.

When implementing a Customer Relationship Management (CRM) system, it is crucial to carefully choose the type, roles, and platforms that align with your organization’s specific needs and goals.

Careful consideration of all important factors during CRM software development will contribute to a successful CRM implementation and improved customer relationship management overall. These statistics by SelectHub show an interesting insight – it turns out that bigger companies rely on their IT departments to choose the CRM vendor.

Before building a custom CRM, you need to analyze your business and choose the type of CRM software (collaborative CRM, operational CRM or analytical CRM).

Operational (optimization and automation of sales, customer service, and marketing.) This type of CRM application is suitable for business, interacting with customers through call centers, blogs, websites, communities, direct mail, and direct sales.

It standardizes the sales cycle and includes the following modules: product configuration, which allows sellers or customers to independently and automatically develop the product and determine the price for the customized product; management of proposals; account management; lead management, etc.

Analytical (collecting information from many points of contact with the client and processing this data). The primary function of this CRM system is to facilitate the organization of daily client-related tasks and generate analytics for developing efficient strategies for client interactions.

With analytical CRM, businesses can tailor their sales strategies to different customer segments by offering unique content and styles. It allows for individual and timely problem-solving for customers and provides more opportunities for sales, acquisition, and customer retention for the business.

Collaborative CRM system combines interaction management between all departments. It’s an opportunity for employees to exchange information and efficiently cooperate with customers, partners, and suppliers.

The choice of CRM system functions depends on the tasks you set for it. As a rule, the size of your business affects it the most:

• Private entrepreneur: Single users only need a Client Database to manage and track relationships with them. It significantly optimizes time and effort.
• Small business: In most cases, needs automation of the sales department to control and monitor the actions of individual trade representatives.
• Medium-sized business: Focus on the automation of sales and marketing, and use analytics to predict the outcomes and create marketing strategies.
• Big businesses: Everything is essential – from sales to strategy, so they need full-fledged combined CRM systems.

When developing CRM systems, it is essential to create several templates for typical roles (‘Owner,’ ‘Manager 1,’ ‘Manager 2,’ ‘Full Access,’ and ‘Extended Access’) and add the ability to create and customize roles. The level of access should determine which roles users are authorized to create.

Also, building your pipeline view in the Custom CRM is crucial. The correct pipeline allows you to do the following:

• evaluate revenue and sales
• determine the necessary resources, both in quantity and type, to convert a prospective client into an actual one
• assess how long the sales cycle will last
• predict what obstacles may arise in the process of gaining customers’ trust

The CRM allows the team to manage customers’ contacts collectively, move them quickly from one stage of the pipeline to another, and monitor the team’s progress in achieving their goals.

When choosing a platform for your company, consider the software equipment you already have. Typically, web applications are compatible with Windows and macOS operating systems, although Linux can also be used.

It would be best to choose how the invoicing and reporting system will be built. Consider methods of taking information suitable for your business, customer invoice options, and invoice history.

Creating a CRM system requires a whole development team: UI/UX designer, frontend developer, backend developer, QA engineer, and DevOps. Therefore, we recommend using the services of outsourcing companies instead of freelancers to build a CRM. Read more about how to hire a remote development team.

How Much Does Creating a Custom CRM System Cost?

The CRM development cost depends on the set of functions. So understanding how your CRM software should manage roles, tasks, and reports is crucial. Also, it is good to know what additional functions, such as chatbots and customer scoring, you need.

To calculate the estimated cost of CRM development, we focused on the time needed for CRM software development. The average price of an hour is around $50.

It is possible that you don’t need some of the features we put in the assessment. Instead, when you build a CRM system for your business, you can add your own. All this will affect the final cost of the CRM development project.

How Can Glorium Technologies Help You with CRM Development?

Glorium Technologies is a software company that addresses the unique business needs of its clients by utilizing the latest and most pertinent technologies. We have vast experience in may spheres of software development, including:

• custom real estate CRM software development;
• enterprise software development;
• ERP software development;
• mobile app backend development.

Advantages of working with Glorium Technologies:

• 12+ years of team experience. Our developers have extensive experience creating Custom CRM solutions in various areas. They constantly develop their skills to stay on the cutting edge of progress.
• Fairness and transparency. We are a company for maximum openness in communication with customers, and we strictly adhere to non-disclosure agreements to keep the idea of our customers in maximum safety from competitors.
• Simple project management. We use a flexible interaction and communication model, allowing clients to follow the development progress in real time and quickly make necessary changes and additions.
• Reliability and security. Our software products have high reliability and protection against all kinds of malicious actions – from fraud and phishing to data leaks and DDoS attacks.
• Client-oriented. We always focus on the business goals of our customers.

Final Words

If your business is snowballing and standard solutions don’t fit your needs, we suggest creating a customized CRM system. CRM development will provide all the necessary functions for successful business development and automate many routine processes, resulting in cost reduction and increased revenue goals. Contact us and learn how to make a CRM system from scratch in a way that serves you best.

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