Jan 3rd 22

Custom CRM Development Cost: How to Pay Less in 2022?

When starting your e-commerce project or just launching a website for your business goals, you should previously think about what CRM to choose for all the functions you want to implement. What is CRM itself? It is a ready-made software product that allows managing all the content your website will be filled with. CRM system is a philosophy of communication with a target audience, an opportunity to learn, study it, identify needs and offer a solution in time.

Among the diversity of CRM systems represented in the market today, it is a real confrontation between universal so-called box CRMs and custom systems developed for a certain business separately. In RexSoft we are fully sure that it is a custom CRM that is a must for a big company or a business that is going to be scaled. And we can prove that a solution like that is not costly as its opponents always claim.

Custom CRM Systems:

What Is It?

High-quality individual business solutions are always a guarantee of success. Unlike a boxed CRM, even the most multifunctional and innovative, a custom solution will always be adapted exactly to your tasks. Moreover, modern developers today offer CRM solutions that are based on processes already existing in the customer company. This allows you to start using it immediately, without waiting for employees to get used to it, undergo training and make mistakes at the initial stage.

Another difference between a custom CRM and a boxed one is the ability to use not only functions, ideas and technologies, but also to use the psychological aspects of the attractiveness of the finished product for a potential audience. This is working with colors, and the introduction of corporate elements, and the selection of unique fonts. All this is difficult to implement in a ready-made CRM provided to a wide range of users. But in a custom CRM, attention to detail will be great.

What tasks of your business does custom CRM solve?

  • It collects sales data in a common database, in a unified form.
  • It segments the target audience and helps to depict customer portraits.
  • It provides prompt responses to customer requests.
  • It forms personal recommendations and suggestions for buyers.
  • It can make a sales forecast for your analytics.

All of the above functions are so-called external ones, we mean they are aimed at buyers. But CRMs also work within the company as they integrate with financial instruments and speed up the reporting process, automate the work of employees, and improve the interaction between departments thanks to a common information field.

TOP-5 Benefits of Custom CRM Systems 

As for the benefits of a custom CRM, there are a lot of them. At RexSoft, we have concentrated on the 5 most important from a business point of view. So, our TOP 5 advantages of custom CRM include:



Customization for the Client

As a custom type CRM user, you will not experience the slightest inconvenience when using it. Its functionality is guaranteed to meet your needs and expectations because specialists develop everything purely for your tasks and according to your technical specifications.


A Turnkey Integration Into Your Business

Unlike box systems, the developer offers custom CRM completely on a turnkey basis. This includes not only direct product development, testing and debugging but also installation on your servers, employee training, CRM integration with the company's IT infrastructure (IP telephony, 1C, ERP, Skype, social media platforms, etc.)


Expandable Functionality

You don't have to limit your business to just standard solutions. All the functionality of a custom CRM can be increased, scaled, changed at any time. As soon as the developer provides you with the finished product, you can get to work, and if necessary, set a task and get the desired update in a short time.


An Ability to Implement the Most Complex Solutions

Where boxed CRM is out of the question, a custom product will help you solve the most difficult problem. Experienced developers will be able to create for you an amazing system that will have no analogues in competitors, regardless of the complexity of the task.


Data Protection Will Be Maximum

One of the cornerstones of using CRM is data protection. CRM will store important data: customer databases, information on transactions, reports, employee productivity, etc. The CRM system must be designed in such a way that the data is protected from third-party interference. It is worth taking care of the access levels for different groups of employees.


RexSoft can assist you in creating a high-quality CRM that is completely customized to your business procedures. It is not to be overlooked.

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TOP Factors Influence Custom CRM Development Cost 

One of the key factors that makes custom CRMs not a common solution is their high cost. The pricing for the development of a custom CRM is not small, however, in the case of individual development, you pay for the functions that your company truly needs. Add to this the fact that your employees will not have to spend a lot of time mastering the product because CRM will be initially created for a workflow already established in the company.

Yet, there are 3 main factors that influence the total cost of a custom product you should know about.

The Complexity

The more difficult the task assigned to the CRM developers, the more effort, time and experience they will have to apply. All this, of course, costs money. And the more complex the functionality of the system that you need, the higher its cost will be.

The Level of Skills of Developers

Be sure that a skilled pro will provide you with the CRM you want while a beginner will not create an impeccable product. Some companies use that hint to increase the average cost of their CRM development services due to their starring pros who will work on your project.

The Number of Users Is Also Important

The more staff will use the custom CRM, the higher the total amount will be. This parameter includes both the need to develop for a certain number of users and the cost of setting up CRM in the workplace and basic staff training.

TOP 3 Recommendations on How to Reduce Custom CRM Development Cost

In RexSoft we prove that the price for a custom CRM system shouldn't be sky-high. We have some tips on how to reduce the cost of a custom CRM you need for your business. Here are they.


Hiring Ukrainian Outsourcing CRM Development Team

The lion's share of the price of your CRM is the cost of the brains, time and skills of the specialists who develop it. But experienced pros live not only in Silicon Valley, and not only in the United States. Many customers complain about too inflated developer salaries in America, and yet there is already an alternative! For example, Ukraine is famous for its intellectual resources in the field of IT, while the average salaries of Ukrainian developers are several times lower than in America. This does not affect the quality of tasks, moreover, the developers are ready to work in client mode, have a high level of English proficiency and, in general, are able to compete with their colleagues from the United States.


Portfolio Speaks Better Than Words

Never forget that the miser pays twice. Often, the most dainty prices are set by those companies that do not have the competence to deal with CRM at all. Therefore, look not only at the price of developing CRM systems but also at the completed projects available to the developers. This is the case when the presence of a portfolio for the conclusion of the contract is required.


Starting With MVP Is a Bingo

If you have no enough money for a fully developed product, it is no problem. Just start with MVP and then add to its functions you may need further. That strategy allows you to pay partially and get a custom CRM for your goals just from the start.

Custom CRM functions and their cost

Custom CRM will usually have some of the core functions from the list below: 

  • Contact management
  • Interaction tracking 
  • Lead management 
  • Email integration 
  • Documentation management 
  • Workflow automation and others. 

These features determine the cost of custom CRM development. Usually, you aren’t able to exclude some of the core features of a custom CRM since it might make your investment less effective. However, if you wish to cut costs, you may start with an MVP to check the effectiveness of a custom CRM. Here is the estimated cost for a custom CRM that you might have to pay for its development. 

For a small or average CRM system, you should expect to pay about $18,000. For the development of more advanced software, you should expect to pay around $50-70,000. The cost of custom CRM system development can vary depending on the functionality as well as the needs of your company.   

How much does it cost to develop custom CRM functions in different countries? 

Usually, the development of a custom CRM system takes about a thousand hours and will cost differently depending on the country your IT partner is based in.  For example, if your custom CRM developers are based in the US, then the cost of their services will be approximately $150 per hour. 

According to this, the engagement of a development team of 4: PHP, JavaScript, or Ruby developers, QA, and designers will cost you about $600 per hour. And, if you get an average custom CRM development service that takes about 1000 hours, be prepared for an overall paycheck of about $600,000. 

However, if you decide to turn to the Western European development company, their services will cost a little less. You can work with companies from Germany or the UK that go by hourly rates from $60 to $80. 

This way, the team of the same four people will cost you about $240 - $320 per hour, and that’s almost two times cheaper. This team’s work on your custom CRM project for 1000 hours will leave you with a paycheck of $240,000 - $320,000. 

The most cost-effective option is to cooperate with Eastern European companies. They have the most affordable rates of around $40 per hour. So, a team of four people will take about $160 in an hour, which is two times cheaper than expensive developers from Western Europe.

Accordingly, 1000 hours of their work on your custom CRM will cost you $160,000 or even less. Considering that different specialists in a company have different rates and work on the project for a different amount of time, the costs we use as an example are approximate. A similar project RexSoft worked on recently cost our customer about $40,000. 

A Bit of Conclusion

Let's summarize. CRM for business today is as important as air. At the same time, standard out-of-the-box solutions do not at all satisfy all business needs. Therefore, if you need to get a truly reliable, unique and workable product, it is better to order a custom CRM. In it, the developer will accurately take into account everything you need, and will also be able to provide turnkey services for further improvement, training of your personnel, service and technical support.

The high price of CRM is called one of the main reasons why not everyone chooses it. But we at RexSoft know a few tricks on how to make custom CRM development affordable. This is primarily about hiring developers outside of the United States. A careful study of client portfolios will also help to avoid unnecessary costs. And you can always start with an MVP, which is cheaper than a complete CRM system.

Oleksandr Kryvotsiuk

I am a SEO expert and a Full-stack internet marketer. I have been helping small and medium-sized companies in various niches to increase organic traffic, attract more potential customers and improve the return on advertising investment since 2013.