Custom CRM or Off-the-Shelf CRM? A Comparison for Your Business
Off-the-shelf CRM packages get you started quickly; a custom CRM fits your processes. An honest comparison of the two approaches in terms of cost structure, integration, data ownership and maintenance.
Alp3 min read
CRM (customer relationship management) software brings customer records, sales opportunities, quotes and communication history together in one place. There are many off-the-shelf CRMs on the market. Even so, at some point many businesses consider having a CRM developed specifically for them. Which one is right depends on how distinctive the business's sales process is.
Side-by-side comparison
| Criterion | Off-the-shelf CRM | Custom CRM |
|---|---|---|
| Time to start | Short; you start with setup and configuration | Requires analysis, design and development |
| Cost structure | Ongoing per-user subscription | Investment up front, maintenance afterwards |
| Process fit | You adapt to the flow the package offers | The flow is designed around the business's process |
| Integration | Limited to the connections the vendor offers | Can be built with any system that is needed |
| Data and ownership | The data sits on the vendor's infrastructure | The data and the source code belong to the business |
| Maintenance | Handled by the vendor | Handled by the business or its software partner |
| Roadmap | Set by the vendor | Set by the business |
When is an off-the-shelf CRM the right choice?
- If your sales process consists of standard steps (lead, meeting, quote, closing),
- If the team is small and you want to start right away,
- If you do not need deep integration with other systems,
- If it is not yet clear how the process will take shape in the period ahead.
In this case, it makes sense to start with an off-the-shelf package and learn what you need by using it.
When does a custom CRM make sense?
- If your sales process includes steps specific to your industry or your business (such as a site visit, samples, technical approval or a dealer channel),
- If the CRM needs to exchange data in real time with inventory, production, accounting or field systems,
- If the subscription cost turns into a significant item as the number of users grows,
- If the team does not use most of the off-the-shelf package's screens and does its real work in Excel.
How should you compare the total cost?
Making the comparison over a single year is misleading. For a period of at least three years, list the following items one under the other:
- Off-the-shelf CRM: subscription (number of users × duration), additional modules, integration and customization costs, training.
- Custom CRM: development, hosting, maintenance and support, development for new needs.
Also factor in the manual labor spent wherever the process does not fit the software; this is often the biggest hidden cost.
A third way: the hybrid approach
The two options are not mutually exclusive. Using an off-the-shelf CRM for the standard parts, running the business-specific processes in a separate application and connecting the two through integration is a frequently used solution. It is also possible to start with an off-the-shelf package and move your data to a custom system later; for this, make sure that the package you choose allows data to be exported.
A short checklist before deciding
- Have you written down your sales process step by step?
- Which steps are the same in every business, and which are specific to you?
- Which systems should the CRM exchange data with?
- How many users will there be three years from now?
- Which tool does your team actually do its work in today?
If you would like to evaluate your processes together, you can take a look at our CRM and ERP software development service.