CRM development: Effective enterprise-grade solutions

What is CRM development? In modern business, what can be automated is automated. You will hardly find an inventory/accounting system without the use of specialized software. Trade representatives use special applications for order processing on their mobile phones and tablets. While most processes are automated, insufficient attention is given to customer relationships, especially in small and mid-size businesses.

Custom CRM software solutions can help turn things around and maximize the efficiency of customer interactions, hence their satisfaction, by accessible means — tailored CRM platforms that can be easily integrated with existing systems. This article explores the principles of creating CRM software solutions in the fullest detail. Let’s take a look! 

What is CRM development? 

Excel sheets and notepads simply don’t cut the deal when business operations gain enterprise-scale momentum. Especially if that business works with paid orders, each of which must be duly accounted for if any quarterly profit reports are to be generated. Accounting customer data is also an especially multi-faceted line of responsibility, where tons of inputs must be processed by a range of means and tools.  

An up-to-date solution for customer data accumulation and accounting is the implementation of a CRM system (which stands for customer relationships management). The system can bring a lot of benefits to S&M businesses and large corporations alike. Below are the key advantages of CRM implementation: 

• Mutual CRM database of contacts, including customers and counterparts 
• An ability to monitor the quality of work of sales departments at any time 
• A possibility to get statistics and analytics of lead generation effectiveness 
• An ability to improve the performance and to craft the strategy of business development 

CRM system benefits

A CRM-system is any option of control and accounting which helps enhance the relationships with customers. Even paper types of accounting can be considered as a system if these allow for effective control of all relationships with customers. It’s obvious that paper belongs in the past. That’s why we mean specialized software by the term CRM.

What Does a Typical CRM Software Do?

Not alienating customers should be the main objective of any CRM system for small or midsize businesses. It’s very important to monitor incoming calls and inquiries from websites and emails.

Before choosing a CRM system, you should understand if your business actually needs it. Oftentimes, CEOs hear about the best CRM software and think that they need to implement some at all costs. Who really needs a CRM?

CRM systems work well for any business that works directly with customers and wants to increase the number of buyers. You need CRM software if your business puts effort into customer acquisition and retention. If you develop your business and invest in marketing, CRM software will become a great helper for you.

Why might you need CRM software?

Often, business owners wonder why they might need a CRM system since they don’t have many customers and a sales department consists of only several people. They think that it’s a piece of cake to control the work of sales departments. Here are some reasons why you might need CRM apps:

• Reason 1. Not to alienate a potential customer and not to miss any incoming call or inquiry. Small and midsize businesses are rather competitive. To attract new customers, companies put in great effort. Compared to other expenses, investments in attracting new customers may be quite expensive. Automated systems allow recording every single call your sales department receives, every single inquiry and order.
• Reason 2. Monitor the work progress of your employees. If you don’t have a common standardized system for customer relationships, every team member will work as they like it. Some will do accounting in Excel sheets, others – on paper, and what is the worst thing is not to record the work progress at all.  In this chaos, business owners will not be able to track the performance and effectiveness of their employees. CRM systems solve this problem as you will be able to track every single call or contact in one place and at any time. Besides, you can export this information as well.
• Reason 3. Every business is in need of a static database. With a good CRM system, you will able to capture the required information and contacts in a single database. CEOs are able to analyze the performance and plan further work with regard to the analysis done.
• Reason 4. Out-of-the-box solutions that can be used for developing your own custom software. Every CRM system is an embodiment of the developers’ vision. Any CRM software has a lot of built-in features which can bring the workflow to a new level. The implementation of customer relationship systems allows getting not only software but also the help of developers and their vision of how a sales department must work. Developers rely on best practices and experts’ opinions while developing a new enterprise solution.

Besides, users of CRM tools will get a lot of other useful things that depend on the system you choose.  

Read more about CRM integration in our latest article:
“How to provide CRM integration”

How to choose the customer management software?

The main rule is to pay attention to the availability of all the features you would like to use within your work process. For example, if you consider incoming calls to be the most important part of your customer relationships process, you should pay attention to the capability of the system to be integrated with telephony. If you generate leads through your website, you should pay attention to the possibility of integrating your system with your CMS.

The next step is to consult an expert in CRM implementation. If the recommended has all the functionalities and features you need and costs reasonably, feel free to make up your mind about it.

Today, there are two types of CRM solutions that are based on two different technologies.

1. A system as a service (SaaS). Herewith, the software and all the data are hosted on the vendor’s server. You get online access to the server through a browser, a client program, or a mobile application. All processes are performed on the vendor’s side.
2. Stand-alone – a license for setup and use of a software product. You get a solution that can be installed on your server. If you need, you will be able to customize the software according to your requirements and those technical opportunities provided by the vendors.

If you choose a SaaS solution, you will meet some challenges. You won’t be able to make changes in the code. Usually, such types of systems allow setting up access rights for your employees, integrating some external systems (getting data from the website, recording incoming calls, etc.), choosing the interface, setting up reporting, etc.

You should also bear in mind that while using a SaaS product, you must always have access to the Internet. It’s very likely that you will pay for creating any backup. However, SaaS solutions have two key pros.

1. You don’t need a server to host your software.
2. You won’t need to update the system yourself, as this is done by a vendor.

Stand-alone software are out-of-the-box solutions that you can install on your server. You will be able to make changes in the code. More often, small and midsize businesses don’t require stand-alone solutions.

CRM system features

Integration with telephony

Any CRM system must be integrated with telephony. Your employees must be able to record incoming calls and initiate upcoming calls. There are two options for telephony realization:

1. The call is made from the browser and the whole system. The quality of sound and signal processing depends on the browser and CRM’s code.
2. Telephony is integrated with external services like Asterisk, Avaya, etc. In this case, you install a system of virtual telephony based on the services mentioned above and add your phone numbers to this telephony. The call is made with the help of an SIP phone.

API integration

Any business uses different services to get inquiries, to do accounting and paperwork. When choosing CRM software, pay attention to whether there are API solutions. The availability of out-of-the-box APIs is a great advantage.

The relationships with customers include the following activities:

• Phone calls
• Emails
• Meetings
• Newsletters

You can automate everything except for meetings.

Tasks planning

When you choose a CRM system, you should pay attention to whether it is possible to plan, assign, and track tasks. Employees must be able to assign tasks to themselves and their co-workers as well as to set up notifications. Besides, a system must monitor the cooperation and interaction of staff.   

Data import

Look carefully at what features for data import are provided by a CRM system. In what format are you able to download the required information? Is there any migration module? It’s important to import data transparently and quickly. The launch of the system will likely fail if there is no convenient data import, as it is quite difficult to add all the contacts manually.

Localization

Today, localization is not mandatory, as most popular CRM tools already have it. However, you should take the language question into account as your employees may face language difficulties when using the software.

CRM development approaches

When it comes to developing a custom CRM system, businesses have several options, each tailored to different needs, budgets, and goals. Let’s break them down in a way that feels more approachable: 

Custom CRM development

If there’s a sufficient budget in place, a company may safely go all in and build its own custom CRM system from scratch. It would be completely tailored to the business, with all the features needed and none of the fluff. The beauty of this approach is that it fits perfectly into existing internal business processes and grows along with the business. The downside? It’s expensive, takes time to build, and you’ll need a talented team of developers to make it happen. 

Pre-made CRM solutions

For businesses that want something ready to go, pre-made CRM tools like Salesforce or HubSpot are popular choices. These systems are packed with features and can be up and running quickly. They’re great for companies that don’t need heavy customization and want vendor support. However, the trade-off is that you’re working within the limits of the software, with no ability to really tweak and tune it.  

Hybrid CRM development

Then there’s the middle ground: hybrid CRM. This approach combines a pre-made system with custom CRM application features. Here, you can start with a solid readymade foundation but add your own touches to make it all fit just right. It’s faster and cheaper than CRM software development from scratch but still grants a good level of personalization. However, customizing a pre-built system can be tricky, especially if the original software isn’t flexible enough as is. 

Cloud-based CRM

Cloud-based CRMs, like Microsoft Dynamics 365, are a great option for businesses that need flexibility. Since everything is hosted online, you can access your CRM from anywhere, whether in the office or on the go. These systems are scalable and affordable, thanks to pay-as-you-go models. But because your data lives in the cloud, security and internet reliability are important considerations. 

On-premise CRM

For companies that want total control over their data, on-premise CRM is the way to go. This means hosting the software on your own servers, giving you complete oversight of security and customization. It’s a great fit for industries with strict data regulations, but it comes with significant upfront costs, and you’ll need an IT team to keep things running smoothly. 

Open-source CRM

Finally, there’s open-source CRM, where businesses use free or low-cost software like SuiteCRM or Odoo. This option is perfect for companies that want maximum customization without breaking the bank. Plus, there’s a whole community of developers contributing plugins and improvements. That said, you’ll need some technical know-how to make the most of it, and the lack of official support can be a challenge. 

Open source or proprietary architecture?

The difference between open-source and proprietary architecture is that in the first case, you get a system with open-source code, and in the second case – you can’t see the code and make any changes to it. Usually, large CRM development companies offer proprietary architecture. In this case, you get a powerful system that you will be able to modify according to the conditions defined by the developers of the system. Open source code systems are usually based on some CMS systems, which allow integration of other systems with your website.

Costs

When it comes to the integration of any system into a company, any businessman thinks how much it will cost. When you look at the CRM product cost indicated on the official site of the product, you see just a part of the total expenses. The total cost consists of the following things:

1. The cost of the license may be the price for cloud solutions or the price for one copy.
2. Data import. You will definitely need to import contacts and other important data. That’s why the availability or lack of this module will affect the cost of the system.
3. The cost of finalizing. Even if you bought an out-of-the-box solution, you will need to finalize the product and customize it.
4. The cost of maintenance and support.

By the way, many business owners forget about the essential point of financial loss during a transition period. You should bear in mind that during this period, you may lose some leads or process them with delay. Hidden costs also arise when your employees, instead of doing their tasks, learn how to use the system. Any CRM integration requires great effort, so business owners must prepare and be ready to meet the challenges.

The cost of the license

Depending on what type of CRM system you choose, there are various options for license purchase. You can buy the following types of licenses:

1. Unlimited license
2. The license for a certain period of time (month, year)
3. The copy of the software to install on your server
4. An unlimited license that is active for an unlimited period

When you subscribe, you purchase access to the system for a certain period of time. The subscription cost is reasonable in most cases, but you will have to pay regularly to prolong your access to the system.

CRM development process

Developing a CRM system is a structured process that combines strategic planning, design, development, and testing to make sure the final product matches the vision. Here’s a step-by-step breakdown of the custom CRM development process: 

Step 1 – Defining objectives and requirements 

Start by understanding why the CRM is needed and what specific problems it will solve: 

• Identify the key challenges your business faces in managing customer relationships. 
• Define clear objectives, like improving lead tracking, streamlining customer communication, or automating marketing workflows. 
• Gather input from stakeholders, including sales, marketing, and customer support teams, to identify their needs. 
• Prioritize features — decide whether you need contact management, sales process automation, reporting tools, or anything else. 

Step 2 – Selecting the development approach 

We cover this topic a lot just right above, but to sum up, your options here include the following: 

• Custom development: Building the CRM from scratch. 
• Pre-built customization: Adapting existing software (e.g., Salesforce or Zoho). 
• Open-source CRM: Using tools like Odoo or SuiteCRM and customizing them. 

The choice depends on factors like budget, timeline, technical expertise, and the level of customization required. 

Step 3 – Plan and design 

Step 1: Create a roadmap 

• Outline the project timeline, key milestones, and the overall workflow for development. 
• Define roles and responsibilities for the development team. 

Step 2: Design the system 

• Map out the CRM’s architecture, including how the data will flow through the system. 
• Design wireframes or prototypes of the CRM interface to visualize the user experience (UX). 
• Focus on creating an intuitive, user-friendly interface to make the CRM easy for employees to adopt. 

Step 4 – Development 

Frontend development: 

• Build the user interface (UI), making sure it’s responsive and visually appealing. 
• Implement features like dashboards, contact management screens, and search functionalities. 

Backend development: 

• Create the server-side logic to process data and handle complex functions, like sales automation or report generation. 
• Set up integrations with existing tools like email platforms, ERP systems, or marketing software. 

Database development: 

• Design and implement the database to store customer data, sales records, and other information securely. 
• Optimize it for performance and scalability. 

Data migration and import could be one of the most expensive things within the system’s launch. The data are to be imported from the other systems, processed, standardized, and only then imported to the new system. 

Step 5 – Feature integration 

Add key functionalities based on the requirements gathered earlier: 

• Contact management: Organize and track customer information. 
• Sales automation: Automate repetitive tasks like follow-ups or lead scoring. 
• Marketing tools: Implement email campaigns, social media tracking, or customer segmentation. 
• Analytics and reporting: Provide insights into sales performance, customer engagement and traits, and team productivity. 

Prepare for CRM integration with third-party tools like payment gateways, communication platforms, and analytics software. 

Step 6 – Testing 

Types of testing that you should strive to cover with your project include: 

• Functional testing: Verifying that all features work as intended. 
• Performance testing: Making sure the system can handle high loads of data and multiple users. 
• Security testing: Checking for vulnerabilities to protect sensitive customer data. 
• User testing: Get feedback from employees or a test group to assess usability. 
• Quality Assurance: Testing user journeys and seeing how a CRM performs from the end-user’s perspective. 

Prioritize also fixing bugs and making improvements based on all the feedback you gather from among stakeholders, testers, users, etc. 

Step 7 – Deployment 

Once testing is complete and the CRM is ready, deploy it to the live environment. Provide a smooth transition by migrating existing customer data from old systems to the new CRM. Watch out for minimal disruption to daily business operations during the rollout. 

Step 8 Adoption and training 

Employee Training: Educate teams on how to use the CRM effectively through workshops, tutorials, or hands-on sessions. Documentation: Provide user manuals or guides for reference. Ongoing support: Set up a support system to handle questions, troubleshoot issues, and maintain the system. 

Step 9 – Maintenance and support 

You should understand that there are failures in the system from time to time, especially if you choose a standalone solution. Maintenance will also cost you money. With SaaS solutions, you will probably pay less for technical support. More often, a custom solution works well. 

Step 10 Monitoring and optimization 

After deployment, monitor the CRM’s performance and gather feedback from users. Analyze usage data to see if it’s meeting business objectives. Make regular updates to fix bugs, add new features, and adapt to changing business needs. 

You might be interested in reading our article “10 ERP lifecycle models”

Things to consider before CRM development

Define business goals 
Why do you need a CRM? What specific problems are you trying to solve? 

Understand your processes 
Is lead tracking disorganized? Do your teams struggle to collaborate on customer-related tasks? Map out your current workflows. 

Involve stakeholders 
Get input from all relevant teams (e.g., sales, marketing, customer service) to understand their needs and challenges. 

Determine budget and resources 
Will you invest in a fully custom solution, modify existing software, or use an open-source platform? 

Decide on CRM type 
Pick a type according to the descriptions above. 

Plan out integrations 
See which software and tools your business already uses (e.g., email platforms, marketing software, ERP systems). 

Set development timeline 
Establish a realistic timeline for development, testing, and deployment. 

Choose the right development team 
Decide whether you’ll use an in-house team, hire external developers, or work with a CRM vendor. 

Opting for SaaS systems to avoid ongoing support expenses

One last thing to consider is the ultimate need to go for SaaS with your particular needs. SaaS can make or break your project, so make sure to do your research.  

• These solutions are usually robust and well-managed. The developers keep track of the operation. 
• The system has limited functionalities as it performs only a certain range of tasks. 
• An interface is intuitive and user-friendly that’s why users don’t need help from the experts. 

In this article, you learn what a custom CRM solution is, who and why needs it, and how to choose a system that fits your business goals and needs. Here you were able to learn the essentials of any CRM software and make your own choice. Follow us to learn more about enterprise-grade solutions for your organizations. Should you need a custom CRM development, feel free to contact us. 

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