Things to Consider for Developing Custom CRM Software from Scratch

  • Saurabh Sharma
  • Sep 12, 2023
  • 14 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.

Let’s Connect

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

CRM software enables businesses better to manage interactions between themselves and customers/prospective clients. Such an app should offer features designed to streamline sales, marketing, and customer service activities.

Below are detailed descriptions of some essential features that a CRM solution must have:

Contact Management

Contact management is the core of any CRM. You should be able to organize and store detailed data about customers and prospects in a CRM. Contact details, communications history, purchases history, and other data are included. The user should be able to search, filter, and segment contacts according to various criteria.

Sales Automation

Sales automation must be included as part of CRM software to assist businesses with effectively managing their pipelines and pipeline management processes. It provides lead and sales opportunity tracking as well as automated sales processes, forecasting capabilities, and automated follow-up. Customizable stages with lead-scoring features may help sales teams close more deals rapidly.

Marketing Automation

Marketing automation should be integrated into a CRM to assist businesses in running targeted campaigns. Email marketing, customer segmentation, and lead nurturing are all part of this. Marketing automation enables marketers to monitor and assess campaign performance more efficiently. This ensures that all marketing campaigns are effective and data-driven.

Support and Services for Customers

Customer service departments should offer exceptional customer support with CRM software. Features such as case management, knowledge base integration, and ticketing systems can assist agents in resolving issues faster and maintaining a complete history of customer interactions. Support personnel can be well-informed when helping customers if they have access to data.

Analytics and Reporting

A CRM system that provides robust analytics and reporting tools is vital for business. The CRM system should allow users to build custom reports, track performance metrics, and get insights on sales, marketing, and customer service. These data are useful for refining and optimizing processes.

Capabilities for Integration

The CRM should be integrated seamlessly with all other business software applications such as accounting, email, calendaring, and online shopping platforms. Integrating data across departments eliminates duplication and error. This also allows for a comprehensive look at customer interactions.

Mobile Accessibility

A CRM solution that offers mobile access is essential in today's mobile world. This allows sales teams and customer service representatives to work on the go. Employees can access customer data, update records, and complete essential tasks while away from their office using mobile applications or responsive interfaces.

Workflow Automation

CRM systems with workflow automation capabilities can help streamline processes, decrease manual work, and maximize efficiency. Users can customize automated workflows for specific business processes - like assigning leads for follow-up or validations - which save time and ensure consistent operations.

Data Privacy and Security

Client information should always be handled carefully, with adequate encryption, user access control features, and GDPR compliance at the forefront. All these components represent key considerations to uphold data protection practices that respect data privacy regulations.

Customization and Scalability

It should allow your business to expand. Customization should be possible to meet your needs. A CRM is more flexible if it allows you to modify or add fields, integrate custom modules, and create customized applications.

User-Friendly Interface

Adoption is dependent on an intuitive and user-friendly interface. The software should be easy to use by users in different departments, which will reduce training time and increase productivity.

How do you Choose a Custom CRM Development Company?

The success of any CRM project is directly affected by your choice. You can select the best CRM development company by following these considerations:

Define Your Needs

Before beginning your search for a business to fit your requirements, it's vital that you clearly articulate them. Make a list of features and functionality necessary, and then it will make choosing an entity easier.

Research Potential Partners

You can start by doing thorough research on potential CRM companies. Asking for referrals from colleagues, checking online reviews, and exploring industry forums are all options. Make a short list of potential partners that you can further assess.

Assess Experience and Expertise

Search for firms with proven experience in the development of CRM. Look at their portfolio and see if the company has experience developing solutions that are similar to yours. Specialized industry knowledge can be precious, showing a better understanding of the business requirements.

Case Studies and References

Ask for references from any CRM companies that you are considering. Ask their clients about the experience, quality of work, timeliness, and budget. Review case studies as well to gain a better understanding of the capabilities of the firm.

Assess Technology Stack

Make sure the company you choose is familiar with your chosen technology stack. The company must have experience with your required tools, including CRM platforms, database systems, programming languages, and other software. Compatible development is essential.

Compliance with Data Security

The security of customer data and compliance with regulatory requirements are paramount. Verify that the company is experienced in developing secure systems and knows data protection laws, like GDPR, HIPAA, or other regulations, depending on what industry you are working in.

Project Management and Communication

Project management and effective communication are critical to the success of any CRM project. Ask about the project management of the firm, such as regular updates, key milestones, and problem resolution. Find a partner that is proactive and responsive in dealing with concerns.

Scalability and Customization

Check the ability of the provider to customize and scale. The CRM you choose should meet your business's needs and be able to expand with it. A company that develops software should be able to create flexible and scalable solutions.

Budget and Cost

Talk to potential companies about your budget and pricing structure. Ask about pricing and your budget. Understanding the total cost includes development, implementation, and maintenance.

Maintenance and Support

Support and maintenance after implementation are essential. Make sure that the company offering the support service is able to handle any updates or issues that arise following the performance of the CRM.

Project Timeline

When choosing a company to develop CRM, the project schedule is crucial. The impact of delays on your budget and business can be significant. It is essential to choose a company that can meet project deadlines and deliver projects on time.

Cultural Fit

When selecting a company to develop CRM, ensuring that the culture of your organization is compatible with what you want and need is crucial. Strong cultural alignment increases the chances of a successful project. A common vision, shared values, and work ethic will help you create a successful CRM partnership.

Cost of Custom CRM Software Development

Costs of CRM development vary widely depending on many factors. These include the size of the project and its complexity, features and functions required, technology used, and geographical location.

Here are some of the factors that influence the cost of developing custom CRM software:

Project Complexity

The complexity of a CRM solution primarily drives costs. Simple CRM solutions with standard functionality will cost less than complex customized systems with sophisticated functionalities. The system's complexity may include complex workflows, software integration, or extensive data migration.

Functionality and Features

Costs are directly related to the number of features and their complexity you require. While standard features such as lead management and contact tracking may be more affordable than advanced features, AI-driven analytics, and machine learning can increase the cost.


Cost is directly related to the level of customization. Prices will be higher for customized CRM systems tailored to business processes.

Technology Stack

Costs can be affected by the choice of technologies. Prices may be higher for proprietary software and technologies that are less common. Cost-effective solutions and platforms are often open-source or have a large developer community.

Data Integration

Integration of the CRM into existing systems, such as marketing automation platforms, ERPs, and e-commerce, can increase the cost. Costs will vary depending on the complexity, number, and need of real-time information exchange.

Geographical Location

The location of the development team is a significant factor in pricing. Companies that offer development services in areas with low labor costs can provide more competitive prices. Time zone and language differences must also be taken into consideration.


Building a system to accommodate growth can cost more upfront but can prove worthwhile over time. Make sure your CRM is flexible enough to accommodate any future changes in business without having to overhaul it.

Support and Maintenance

The costs of post-implementation include maintenance, support, and updates. Prepare for annual maintenance costs, which may be a % of the development cost or a subscription fee.

Data Migrating

Data migration can cost a lot if you are transitioning away from an old CRM system. The data migration process includes extracting, cleansing, and moving the information to a new CRM system.

Training for Users

Spend money on user training to ensure your team can use the CRM effectively. The cost of training can be affected by the complexity and number of users of a system.

Regulatory Compliance

Additional development and security measures may be necessary if your industry falls under strict data protection regulations like HIPAA or GDPR.

Cost estimates for CRM development depend heavily on your unique business requirements. To arrive at an accurate figure, it's wise to conduct a detailed examination of these needs while creating a project plan and seeking quotes from multiple development firms. A successful CRM project requires balancing your budget and the most essential features.

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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In the dynamic world of business applications, one fixed solution for the constantly changing e…

cross platform app development using flutter

Flutter App Development - The Future of Modern-day Cross-platform Apps

While mobile devices were increasing significantly, the demand for mobile app development servi…

custom mobile app development process

Custom App Development Process - The Complete Guide

Whether big or small, businesses from different industries and start-up founders are taking cha…

cloud computing in logistics - benefits and limitations

Role of Cloud Computing in Logistics in 2023 - Benefits & Limitations

Cloud computing is one of the hottest technologies in this era of digital transformation that i…

mobile application development steps

6 Essential Steps You Must Follow to Develop a Feature-Rich Mobile App

We are living in a technology-driven world where almost everything is available at our fingerti…

Salesforce CRM Pros & Cons for Businesses

Is Salesforce CRM the Best Choice for Your Business? Pros & Cons

Customers are the most important part or lifeblood of a business. The way you onboard customers…

eCommerce store development With Shopify

Ultimate Guide to Build Profitable eCommerce Store With Shopify

To start an eCommerce business that becomes successful, the first step is to develop an enticin…

How to Start a Fintech Startup

Ultimate Guide on How to Start a Fintech Startup

Fintech or financial technology has become one of the most popular ideas for startups today. In…

Recruiting Software Development

Is Your Recruiting Software Ready for the Future of Work?

Recruiting software is a critical part of Human Resources Management (HRM). Basic functionality…

Top 5 Roles in Your Software Engineering Team

Are These 5 (Minimum) Roles On Your Engineering Team? They Should Be!

It can be very challenging and overwhelming to develop technology and software for a non-tech o…

Being Cheaper is Not a Competitive Advantage

Being Cheaper is Not a Competitive Advantage

As someone who attends dozens of startup pitches a month, “our product is cheaper” is a phrase …

Case Study: 6-Months in and Software Vendor Causes $160,000 Loss

Case Study: 6-Months in and Software Vendor Causes $160,000 Loss

PACEfunding’s Business Executive Is Shocked When The Vendor He Hired Fails To Deliver The Softw…

Control and Fear Aren't Your Company's Only Growth Problem

Control and Fear Aren't Your Company's Only Growth Problem

The Invisible Crushing Power of Software Why are companies afraid to partner with the vendors …

Software Bugs Risk $1.7 Trillion in Assets

Software Bugs Risk $1.7 Trillion in Assets

Painful Lawsuits: Huge Toll Taken on Executives at Uber, Equifax, St.Jude, and Provident Financ…

Startup Pitch Event, November 9th, 2017

Startup Pitch Event, November 9th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event, October 30th, 2017

Startup Pitch Event, October 30th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event, October 11TH, 2017

Startup Pitch Event, October 11TH, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event September 26th, 2017

Startup Pitch Event September 26th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

How Can MoviePass Be So Cheap?

How Can MoviePass Be So Cheap?

MoviePass caused major shifts in the movie industry when they lowered their monthly unlimited m…

User Experience is Key

User Experience is Key

There is nothing more tragic than a company with a great product that is hampered by poor user …

Investors Aren't Afraid of Smart Tech Outsourcing

Investors Aren't Afraid of Smart Tech Outsourcing

One of the most misunderstood fears entrepreneurs and startups have is that investors won’t inv…

Three Software Mistakes That Strangle Startups

Three Software Mistakes That Strangle Startups

I love meeting people who launch startups. Their energy and ambition inspire me. One of my life…