The variety of solutions in the world of CRM systems can sometimes be overwhelming. Businesses often face the dilemma: build their own CRM system or purchase a subscription to a ready-made solution? In this article, I will examine both options.
The fundamental difference between the two solutions is simple. In the SaaS model, you purchase a license to use software provided by a vendor. Data is stored in the cloud, and you pay a monthly subscription. In the alternative solution, you commission IT specialists to develop custom software that will operate on your servers. Let's delve into both options, their advantages, and disadvantages.
Ready-made CRM solutions, such as HubSpot, are subscription-based systems. These platforms offer access to features immediately upon purchase, are continuously updated, and supported by the vendors. Ready-made CRM solutions are generally easier to implement and use, allowing companies to quickly reap the benefits of advanced customer relationship management features.
The software vendor offers a ready-to-use system that can be quickly implemented. Instead of spending months designing and testing a custom system, companies can almost immediately start using advanced features. This saves time and resources that can be allocated to other strategic activities.
Costs
One of the main arguments in favor of ready-made CRM solutions is cost. Creating your own system requires significant financial investments, both during development and maintenance. Companies often fail to account for developer hours accurately, leading to underestimated costs. A subscription offers predictable expenses that are easier to budget for. Check our article if you want to learn more about estimating CRM system implementation costs.
Development and Scalability
SaaS software is continuously developed and updated, providing access to the latest features and technologies without requiring any actions on your part. A custom CRM system, on the other hand, requires ongoing investments in development and updates to keep up with changing market needs. Scalability is also important, allowing the system to grow with the company’s needs without significant infrastructure investments. Expanding the feature set or purchasing additional seats happens seamlessly.
Integrations and Support
Ready-made CRM systems offer a wide range of ready-to-use integrations with other tools and platforms, enabling seamless connection of all aspects of a company’s operations. For custom integrations, such as with an ERP system, you can use the services of a solutions partner specializing in the specific system. HubSpot users also have access to technical support and a rich knowledge base, making it easier to solve problems and effectively use the system.
However, to achieve all these benefits, it is not enough to simply purchase any CRM system. From my perspective, a few key points are crucial:
A custom CRM system is software designed and developed on request, tailored to the specific needs of a company. Creating such a system involves requirements analysis, design, programming, testing, and implementation. A custom CRM system can be flexible and precisely tailored to unique business processes, but it comes with high costs and a time-consuming implementation process.
Full Control
Companies that opt for their own CRM usually value the full control they retain. In this case, you choose the features the system will include, and all changes and updates depend on you. Data storage can also be on your own server. However, these advantages have a downside. You also bear the entire burden of maintaining the system and protecting the information.
Time-Consuming
Creating your own CRM system is a long process that can take months or even years. During this time, the company cannot fully benefit from an advanced CRM system.
Lack of Flexibility
Although a custom CRM system can be tailored to a company's specific needs, it lacks flexibility in responding to market and technological changes. The project duration might make the system obsolete by the time it is launched.
Hidden Costs
Operating a custom CRM system is sometimes presented as free. However, it is not true that after developing the system, there are no associated costs. A custom CRM system often entails hidden costs, such as hiring additional developers, server maintenance costs, and unforeseen expenses for repairs and updates. These costs can quickly escalate, exceeding the initial budget assumptions. A common mistake in estimating such an investment is underestimating the developer hours needed to complete these tasks.
Does this mean that ready-made CRM solutions are always and everywhere the right choice? Not necessarily. Subscription solutions are optimal for businesses that do not plan to invest in IT infrastructure, such as servers. It's also a sensible choice if you don’t have your own, even minimal, IT team.
Custom solutions are usually invested in by the largest companies that can afford the high costs of such a project. Here, very detailed and specific data storage requirements often play a decisive role (although ready-made CRM systems also support data protection excellently). This does not mean that subscription systems are not used in corporations; quite the opposite, they also perform excellently there, as I wrote in my article about CRM for large companies.
To conclude with a small twist: does "ready-made" have to exclude "custom-made"? In my opinion, not at all. Here, the best approach is to choose the right implementation partner. What does this mean?
After purchasing a license, you get access to the CRM system and features available in the selected package, but this does not mean that you are confined to the templates chosen by the manufacturer. Firstly, the system needs to be configured. It is usually up to you to decide on the views, processes, etc.
Secondly, the system requires integration with other tools used in your company. It's not true that it's easier to do this for a CRM written just for you. On the contrary, it may turn out that the possibility of further integrations will vanish or become significantly complicated with the departure of an employee or supplier with the necessary know-how. Meanwhile, if your licensed CRM has an open API and a large community of developers, you will easily find support for such work.
As a result, with a solutions partner, you can achieve similar results to those boasted by custom CRMs, while retaining the advantages of a ready-made solution, such as a faster implementation time, which you gain by not "reinventing the wheel."
The decision to choose between a custom CRM system and a ready-made solution depends on many factors, including budget, functional needs, and available resources. However, for most companies, subscribing to a ready-made CRM system is a more cost-effective and efficient choice. Ready-made solutions offer a rich set of features, quick implementation time, predictable costs, and technical support, allowing companies to focus on key business activities rather than managing and developing their own CRM systems.
If you want to take advantage of all these benefits and ensure that your CRM is well-suited to the processes and tools used in your company, do not hesitate to contact us! Grow Poland, as a platinum HubSpot partner, supports clients in utilizing the full potential of the CRM system!