How Much Does a Bespoke CRM Cost?

Factors that impact the cost of a bespoke CRM

As you might expect, providing costs for a bespoke CRM solution is not straightforward and heavily dependent on the features and complexity involved. However, it is usually true that the cost of a bespoke CRM or indeed any custom solution will have higher upfront costs than off-the-shelf solutions. Depending on the scope and scale, even providing an accurate quote can take months depending on what information is readily available to the development team.

If we look at the typical development process of a bespoke CRM system, it involves several stages to enable the developers to provide pricing alone.

Generally, a client will provide a development company with a brief, it could be a detailed overview of what they want the system to include, the processes they currently have in place and what it needs to be able to integrate with. Alternatively, the brief may simply state that the company is struggling to keep on top of it's client management tasks and they'd like to explore a bespoke software solution to overcome this. The detail of the brief, the work involved to create a specification and the time spent on consultancy prior to any development work being undertaken are all factors that impact the cost before the development process even begins. It should also be noted at this stage that the development costs associated with creating bespoke CRM systems for small businesses are usually going to look a lot different to enterprises due to the scale, complexity and user base requirements.

Here we will look at the bespoke CRM development process in more detail -

Requirement and current environment analysis

Understanding your needs

Before we even think about building, you first need to be crystal clear on what you want your CRM to do. Define your business goals and measurable targets - boosting client retention by 20% in the first year for example. Think about how the CRM will help you do that, it could be flagging at risk customers for personalised follow ups or automating email campaigns to drive more interest. List out your must have features - full client history, marketing tools etc and your nice to haves which might integration with your email system. The more you want, the more time (and budget!) you’ll need.

Mapping your processes

Once you know what you want to achieve, map out your current processes. If you already have a CRM, work out what it does well, what’s missing and what needs improving. If you don’t, document your workflows so the developers can build a system that makes your life easier - not harder! Bigger businesses with complex processes usually spend more time on this step which can of course affect costs.

Picking core features

Now’s the time to prioritise - what’s essential and what’s just nice to have? Features like live chat, sales tracking and payment gateways might non negotiable whilst extras such as email automation can wait. Once this list is agreed, the development team can put together a clear scope, timeline and project plan for you to sign off.

Designing your CRM

First comes the high level design: the blueprint for your system, showing how it will be structured, what it will do and how it will be used. Client and developer collaboration is a must here.

Next is the technical design where developers plan the architecture, database, integrations and workflows. Because your requirements are already clear, this should be a smooth process...most of them time.

Finally, there’s the user interface design which should be shaped by the users requirements. The more customised the look and feel, the more it can add to your overall cost.

The development

With designs approved, development kicks off.

Backend development: Building the database, server logic and APIs that make everything work.
Frontend development: Creating the user facing interface.
Integrations & customisation: Hooking up email, payment or accounting systems and adding custom features, think reporting or automation. More complexity means more time and again, higher costs.

Testing, launch and beyond

Testing

Before launch, the system goes through thorough testing - individual components, integrations, user acceptance testing and even stress testing to make sure it holds up under pressure.

Launch

Once everything checks out, the CRM is deployed. Data migration happens here if needed, and you’ll want a backup plan just in case. Training can happen before or after go-live, either with your own team or with the developers’ help.

Monitoring

After launch, there’s a monitoring phase to catch bugs and make tweaks. Documentation is created so your team knows how everything works, even if the original developers aren’t around.

On going support

In addition to the activities listed above that generally follow in the immediate period succeeding the rollout, there may be on going activities that continue indefinitely, all of which will affect the cost of the bespoke CRM in the longer term -

Support & Maintenance: Ongoing maintenance and technical support including updates and security patches. These are usually at an additional cost although some companies may provide a specified number of months free following the deployment (we do!).
Continuous Improvement: Identify areas for further optimisation and development based on continuous user feedback of the existing tools and any changes within the business
Future Additions: Establish a feedback loop with the users to gather input on an on going basis which can help shape future additions and/or enhancements to the system.

Comparison with off-the-shelf CRM solutions

From a pricing perspective, there are a number of important differences between bespoke and off the shelf CRM systems that impact the overall cost.

We have already covered the key differences between the two types of systems here which also provide the main points that affect the cost of the CRM. Here we summarise the key takeaways -

Upfront costs are inevitably higher

Bespoke CRMs will typically have higher initial costs. This is due to the fact the system is being custom built, from scratch. The components that make up the system are tailored to meet the specific needs of one business and their current or target operating environment rather than multiple businesses, which of course requires significant time and resources
On the other hand, off the shelf CRMs usually offer lower upfront costs because they are solutions that have been developed to appeal to a wide range of users often across different industries with standard features that have been included to be attractive to as wide a group as possible. These systems have also already been developed so there are no 'development' costs required generally although these costs may be accounted for elsewhere.

...But the power is yours

Bespoke CRMs are completely customisable (because they do not yet exist!) allowing businesses to build exactly what they need in the way they need it. This will add to the cost of the system due to the complexity of the development including potential integrations, to ensure it is built to fit in with the clients specific requirements.
Off the shelf CRMs offer limited customisation and have a more one size fits all approach with limited integration capabilities for other bespoke software systems. Thus, additional costs may arise if customisation or non typical integrations are required if they are accommodated at all. This can be problematic for clients whose businesses need to introduce new processes and/or features as they evolve.

Longer term costs

Bespoke CRM costs are generally split into two core parts - upfront costs for the development & implementation of the system and ongoing costs for maintenance, support and future updates unless the client wishes to undertake those activities in house or via another third party.
Off the shelf CRMs generally offer a subscription based or licensing pricing model, which covers any updates, support and maintenance that the vendor deems necessary. It is important to note here that this is at the vendors discretion as opposed to when and what the client requests. These recurring fees can add up over time and will often exceed the costs associated with a bespoke system over the longer term.

Conclusion

To conclude, the cost of a bespoke CRM is highly variable and depends on numerous factors, including the complexity of features, integration requirements and ongoing maintenance requirements. Whilst bespoke CRMs do generally involve higher upfront costs due to their custom-built nature, they offer unlimited possibilities through open-ended customisation tailored to a business’s specific needs. Over time, these systems can often cover their costs in terms of value when compared to off the shelf solutions, which, though initially cheaper and quicker to implement, may well incur higher long-term expenses due to limited customisation, integration challenges and of course, recurring licensing fees. Ultimately, the decision between a bespoke and off the shelf CRM should be guided by your business’s unique requirements, long-term goals and budget considerations.