Things to Consider for Developing Custom CRM Software from Scratch

  • Saurabh Sharma
  • Sep 12, 2023
  • 12 Min Read
Developing Custom CRM Software from Scratch

Article posted by

Saurabh Sharma

VP of Engineering

VP of Engineering at Closeloop, a seasoned technology guru and a rational individual, who we call the captain of the Closeloop team. He writes about technology, software tools, trends, and everything in between. He is brilliant at the coding game and a go-to person for software strategy and development. He is proactive, analytical, and responsible. Besides accomplishing his duties, you can find him conversing with people, sharing ideas, and solving puzzles.

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A CRM is the best way to increase sales, manage customer information, and get more leads. A custom CRM will allow you to avoid a steep learning curve, as well as paying for features that are not useful.

Salesforce claims that CRM software can increase sales by up to 29% and productivity by up to 34%. It also improves accuracy in sales forecasting by 42%. A CRM adds real value to any business. It can be a great asset, from marketing automation and targeting improvements to activity tracking and reducing manual work.

Companies of all sizes and specialties use CRM systems and custom ERP solutions because they offer many advantages. Which is better, a turnkey or custom solution? What features should a CRM app have? How and where to begin the project if you build CRM from the ground up?

Is it Worth to Create a CRM from Scratch?

There are two choices when you consider a CRM: a ready-made platform or a custom CRM software solution. What should you pick?

The CRM platforms that are available off-the-shelf can be used immediately. Choose a plan, gain access to the platform, and organize training for your team.

The cons are that you may not use certain features, and you will be unable to add missing functionality. The price may be high if you have a large group, as you pay for seats. You may also need help with scalability since many platforms limit storage space.

No further research is required if you find a CRM that fits your needs and addresses your daily challenges.

A customizable CRM is an infrastructure you can customize to suit your needs. You can add modules and modify workflows. You can customize it to meet your specific needs, and the vendor will handle maintenance and updates.

Adding features is limited, but the cost increases with each new user. A feature also requires technical expertise. You'll need to hire a developer if you need more technical knowledge.

This is the best option if you want to launch quickly and have a low CRM software development budget.

Custom CRMs are tailored to your business's workflows and are highly compatible with other tools. You can customize it to meet your business needs and be assured of its security as you decide what to protect. You can add additional users at no extra cost.

You'll need to pay for the development of your CRM before you can start using it. Custom software development is time-consuming, and you must hire a specialist afterward to maintain your platform.

If you're looking for a custom CRM and ready to invest in resources, consider how to create a CRM from scratch.

Types of CRM Software

Some of the most common types of CRMs can be categorized as follows:

Operational CRMs

This person is responsible for all aspects of customer service, including sales, marketing, and services. It also supervises different things, such as:

  • Contact Management allows you to manage contact information, history, and records.

  • Lead scoring helps you to understand and nurture leads so that you can achieve more success.

  • Sales Team Automation - Distribute tasks efficiently to the team.

  • Marketing Automation is a powerful tool to help you reach out to potential clients and leads.

Analytical CRMs

Analytical CRM helps you make better business decisions by analyzing and organizing the data about your customers and sales. What makes up an Analytical CRM?

  • Data mining uses all the statistical information and analyzes patterns and relationships between these statistics and your data.

  • You can cross-sell and upsell by using the insights you've gathered about your customers' purchasing history and behavior.

  • Buyer Persona Building involves obtaining information about your customers and analyzing their data to understand them better. This improves your sales and marketing strategy.

  • Data analysis and sales forecasting can help your business to predict future demand.

  • You can keep your customers loyal by having all the necessary information.

Collaborative CRMs

The customer relationship can be protected and nurtured with Collaborative CRM. It is responsible for service, retention, and satisfaction. The system includes interaction management, which tracks all customer interactions and provides document and relationship management access. Relationship management ensures that sales teams and other customer teams are aligned. Document management ensures that all documents, from contracts to proposals, are organized and accessible.

Things to Consider Before Developing a CRM Software from Scratch

You should know what you want to develop before you plan how to build your CRM. You could end up with a CRM software solution that does not fit your business processes or is limited when adding new features. Here are some key points to keep in mind:

Business Objectives

Determine the exact purpose of a CRM: to increase revenues, reduce operational costs, provide data that can be used to polish company strategy, etc. Find out exactly how to achieve your goal, such as automating services.

User Groups

Divide all CRM users by roles to decide what features you should include. Sales, marketing, and support departments could use a CRM. You can choose who should have access to what information.

Functional Requirements

Consider your CRM in the context of the users and explain how each group could interact with it to achieve their goals.

Requirements for Quality

List the main characteristics of the CRM you intend to use, including work speed, security, analytics, integration, compliance with specific standards, etc. Next, consider how you will evaluate whether these requirements have been met.

User Interface

When designing your CRM, the user interface is one of the most crucial features to consider. Your user interface must be intuitive and easy to use.

The platform's design should be intuitive, consistent, and easy to use.

Integration of Internal Business Software

The type of CRM you choose to use is also a key factor. You can streamline your business operations and effectively manage customer data by integrating your CRM with the right software. Consider choosing CRM software with various integrations if you want a comprehensive solution. Some standard integrations include marketing automation tools such as HubSpot and Marketo, communication tools like Zoom and Microsoft Teams, and customer support systems such as Zendesk and Freshdesk.

Cloud-Based CRM

It's no wonder many companies today use the cloud to meet their CRM requirements. This technology is more affordable, reliable, and flexible than ever.

You can easily share your data with team members using a cloud-based CRM. You can also add new functionality and features to your CRM without much effort. This makes it an excellent choice for all businesses.

Post-Project Maintenance

After the custom CRM has been built and delivered to the client, there's still work to ensure it meets the customer's needs and functions as expected. Closeloop, a well-known CRM software development company, follows a few essential guidelines when developing your CRM.

  • Clear customer acquisition strategies and procedures

  • Design customer profiles accurately

  • Automate workflows and processes

  • Setup alerts and notifications for timely updates from your customers

Right CRM Software Development Company

It is essential to hire the best custom CRM software company when creating your CRM software. They can save money and time by building a system tailored to your comprehensive CRM software development services need.

The team must be committed to providing excellent service and guaranteeing your satisfaction with the end product. A company that develops apps can also help you organize your data to ensure it is accessible and meets your needs.

Must-Have Features of a CRM Software Solution

Some core functions make up your CRM system.

Contact Base

No matter what your main objective is, whether it's sales or marketing automation, incoming requests processing, lead generation, or any other goal, you need a user/contact database. This feature stores customer data, manages contacts and keeps records.

Your managers can instantly access all information when they respond to customer inquiries or communicate with them. You don't have to waste time searching for information and won't risk losing vital data.


CRM is all about planning. From email marketing campaigns to various communications. A calendar is an essential feature when creating your CRM application.


It is impossible to remember everything. By setting up reminders, your employees will know exactly when to contact customers, confirm if goods have been delivered, etc.

Access Permissions

Managers in most CRM software systems are responsible for various tasks, clients, and leads. Several departments can share a CRM solution. For example, sales and marketing. It is important to consider the corporate hierarchy. This means that you should have data access permissions in your CRM.

Report Generating

Custom reports are a great tool to track and manage the activities of your employees' activities and monitor their work. Reports can be tailored to your specific business needs. They may include marketing expenditure reports, task status reports, analytics reports, and lead generation reports.

File Sharing

Your specialists' work will be simplified when you can share reports, files, and other data.

Task Manager

You should also include task management in your CRM application. Managers can create tasks for processing incoming requests, communicating with existing and prospective clients, etc. Reminders help employees remember to do required tasks like call, email, or answer customer questions.

Email Marketing

Your managers can launch and analyze personalized email campaigns using CRM integrated with email marketing services.

This feature allows you to accelerate campaigns by sending a single email to a specific group of users. You will see an increase in sales and improved customer engagement.

Interaction Tracking and Recording

All communications between your business and clients can be tracked with this feature.

You will be able to see the entire history of each customer's interactions, from when they first contacted you to when you finished your service. You can store all information about each client in one location and also see a history of communication to ensure your employees are working well.

Pipeline View

This feature lets you visualize your sales process as a simple diagram on one dashboard. Each lead in the context of lead generation will have a specific status. For example, "New," "Proposal," "Negotiation," or "Contract."

You can add "Qualified" for qualified leads and "Lost" for lost customers. The card of the potential client is changed from "Proposition to Contract" when they are convinced to use your service.

It is impossible to replace the integration of the Pipeline View for tracking leads and their current status. It is essential to know why your sales are down.

Mobile Access

Consider adding mobile access to your CRM system if you are building a custom one from scratch, primarily for sales managers. The ability to work from anywhere via a mobile device will help boost their productivity.

This is particularly useful when working with customers in a different time zone. You will gain a competitive edge by providing instant responses.

Two ways are available to offer mobile access: by creating a native application on iOS or Android and by developing an adaptive web app. You can adapt only a small part of the CRM web application for mobile devices if you only need a few features. You can avoid additional costs.


If your company is geared towards sales, you need a CRM system geared toward sales. When creating a CRM solution, you can include various invoicing features such as invoice shipping, invoice history, tracking invoice status, etc.

You don't need to create this CRM feature from the ground up. You can instead integrate your CRM web app with existing financial accounting software in your business.

Integration of Other Software

Your specialists' work will be simplified when you can share reports, files, and other data.

You can, for example, connect your CRM system to:

  • Enterprise Resource Planning Software (ERP).

  • Warehouse Management Software (WMS).

  • Logistic Management System

  • Software for Human Resource Management (HRM).

You can automate your workflow and improve employee productivity by integrating internal software.


Chatbots are widely available on the market and can replace humans when answering frequently asked questions, responding to requests received, or resolving customer issues. They can also organize internal meetings, set up reminders, and more.

Integrating a chatbot into your CRM system will relieve your employees of manual tasks. Chatbots will improve customer service by providing instant answers.

Lead Scoring

Consider implementing a scoring system for leads when building a CRM system geared towards sales (e.g., Estimation from 1-10 or 1-100. This feature will allow your sales managers to focus their efforts on truly qualified leads - loyal customers who are prepared to buy. You will be able to increase your income and sales.

Social Media Integration

Businesses also use social media because 7 out of 10 Americans use it constantly. According to the Pew Research Center, a lot of customers are logging in daily on Facebook (76%), Instagram (51%), Twitter (42%), and Pinterest (25%).

A business must know its target audience and customers' attitudes towards the brand to increase sales and improve customer loyalty. You can use a tracking feature to track social mentions of your product or company.

This method allows you to determine the level of customer interest and engagement and what they don't like.

How do you Choose a Custom CRM Development Company?

Custom CRM software offers many benefits to businesses. These include improved customer service, increased sales, and better customer retention. Not all companies that provide custom CRM development have the same commitment. It is, therefore, essential to consider several factors, depending on your business requirements, when choosing a CRM development company.

Choosing a CRM company with the expertise and experience to produce a quality product is crucial. Here are a few tips to help you select a CRM company:

  • Search for companies that have a track record of successfully delivering CRM projects.

  • Check to see if the company has worked in your industry or sector.

  • Request portfolios and case studies.

  • Visit the company's website and read its blog to understand its CRM development approach better.

  • Call for a discussion.

Cost of Custom CRM Software Development

You must invest time, money, and resources to get a customized and comprehensive CRM solution.

Suppose you only need to add certain features to your existing system or seek a customized solution. In that case, you can get what you need at a reasonable price.

It is only possible to estimate the approximate cost of a custom CRM project based on a few factors, such as technology, team size, integration of software, and more. The rough estimate can range from $30,000 up to $300,000.

The Key Takeaway

Your CRM can be the core of your business. You can now build your CRM that will return at least $2 for every dollar you spend on its development.

How can you build a CRM to improve your business's performance? It is essential to have a clear goal for the CRM. A tech partner with experience can help you turn your idea into an actual product. Closeloop offers full-cycle CRM development, assisting clients with research, conceptualizing and validating their ideas, and implementing them into reality.

Maintain a relationship with your partner. You may already have the staff to support your software for a long time.

Your best bet is to work with your software development partner. You can avoid diverting your IT team from its core functions by relying on the expertise of your development partner.

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