In the fast-paced world of modern business, customer relationship management has evolved from a tool to a strategic necessity. According to the analysis held by Grandview Research, CRM is used in more than 91% of companies with over ten employees. It can be explained by the ability of CRM to streamline operations, improve customer service, and provide data-driven insights.
If you are considering a CRM implementation for your business, you must decide between integrating an off-the-shelf CRM or outsourcing custom software development. The aim of this article is to compare the benefits of ready-made and custom CRMs.
Cost-effectiveness
When choosing CRM software, it may seem better to go for an off-the-shelf solution due to its lower initial investment cost. However, ready-made CRMs have rigid functionality, which results in investing in features you do not need or buying some extra software for those necessary functions not included in the package.
Moreover, there are additional payments that the provider does not disclose at the start. One of these costs is the license fee, which grants you the right to use the software. It is charged monthly or annually and can be based on the scale of your business, meaning you could pay a higher cost for basic tasks. Another variant is a usage fee that may require paying for each new user or account.
On the other hand, custom CRMs may seem more expensive than off-the-shelf solutions because you need to pay for the software development upfront. Comparing the overall costs of both options, you can save money in the long run by investing in a customized CRM solution.
Increased team productivity
Off-the-shelf CRM solutions are designed for the general public and cannot adapt to individual businesses’ needs and processes. Thus, they are challenging to navigate and require extensive training to be used effectively.
In contrast, a custom CRM system can include only the tools and features required for your business and have a user-friendly interface that aligns with your teams’ needs and preferences. Such management software offers role-based access based on job roles, responsibilities, and organizational hierarchy, preventing unauthorized access and safeguarding sensitive data. The optimized navigation, layouts, and functionality enhance productivity and streamline workflows. In addition, custom CRM can be accompanied by comprehensive support instructions and user training to ensure an understanding of the system’s functionalities, features, and best practices.
Security
CRM solutions store a large amount of corporate information, including confidential and personal data. Therefore, the security capabilities of such software must meet the highest standards. Ready-made CRM systems are risky, as you must depend on security measures taken by the provider to ensure that your data is safe from cyber-attacks.
Meanwhile, custom CRM is entirely controlled by your organization, making it possible to implement stringent security measures, comply with industry regulations, and safeguard sensitive customer information to mitigate the risk of data breaches.
Performance and scalability control
Off-the-shelf CRM solutions provide a basic framework for organizing customer data and facilitating communication. You are required to accept the performance offered by the vendor. Initially, it may seem satisfactory, but after your business needs grow, you will notice the limited options for additional features and customization. Ready-made CRM solutions often lack the flexibility and scalability that are crucial for businesses with unique workflows and can interoperate only with a limited amount of third-party integrations. Anything beyond that requires additional costs or will not be possible to integrate at all.
On the contrary, custom CRM development gives you complete control over the system’s performance and lets you decide which technology stack to use and when your platform requires improvements. It will enable you to maintain a relevant, convenient, high-performing CRM even as your business needs or market conditions shift. In addition, a custom CRM system is designed with your existing IT infrastructure in mind so it can interoperate with any other software your team uses daily, including your other custom software, to create an ecosystem that streamlines operations and enhances collaboration.
Cutting-edge technologies
Incorporating innovative technologies into your business processes can enhance team productivity and automate workflows. According to Statista, 84% of global business organizations believe that Artificial Intelligence gives them a competitive edge in the market. However, off-the-shelf CRMs offer limited options for integrating advanced technologies into your business processes.
Conversely, custom CRM can include unique solutions for your business needs by incorporating AI, Machine Learning, and mobility services. For example, AI-powered CRM software provides businesses with intelligent automation features that can handle routine tasks like data entry, lead scoring, and email campaigns, saving time for customer support and sales teams for more complex tasks. Machine Learning can analyze customer data, identify patterns, and predict customer behavior, enabling businesses to make data-driven decisions and proactively retain customers. Mobile CRM has become essential with the rise of remote work and increasing mobile internet usage. Nucleus Research has found that mobile CRM boosts productivity by 14.6%, making it especially beneficial for remote employees, who can access customer data and accounts from anywhere using their mobile devices.
Conclusion
As businesses prioritize customer-centricity and operational efficiency, the demand for custom CRM solutions will continue to rise. Organizations can take advantage of their flexibility and adaptability to create new opportunities for innovation, growth, and customer engagement. Investing in a custom solution is not just a strategic choice; it’s a fundamental step towards driving sustainable business success and improving customer relationships in the digital age.
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