How much does a CRM software cost to develop?

Developing customer relationship management (CRM) software can be a costly endeavor, but is often essential for business success. How much should be budgeted for this project? What are the major costs associated with creating a CRM system from scratch? What benefits can a business enjoy from a custom-built CRM software?

Creating a custom-made CRM requires more than just technical skill. Depending upon the complexity of the software, businesses might also need to budget for fees associated with legal documentation, software licensing, and user experience design. According to the Harvard Business Review, “CRM is about not just compiling data but using it strategically to meet customer needs in ways superior to competitors.” For a CRM system to be truly effective, an appropriate budget must be allocated early in the process to ensure that all key components are addressed.

In this article, you will learn about the major costs associated with custom-made CRM software, including those that involve software licensing, technical expertise, UX design, data protection and compliance, and professional training. We will also examine the unique benefits that a custom-made CRM solution can bring to any business, as well as discuss strategies that organizations can take to make sure they get the most out of their investment.

Finally, this article will make recommendations for businesses to ensure that they are obtaining the maximum benefit from their CRM software investment. By following these guidelines, businesses can rest assured that they are making an informed decision with regards to their CRM software development budget, as well as reap the rewards of a CRM system that is tailored to their individual needs.


CRM software is an acronym for Customer Relationship Management, and it refers to specialized software designed to manage customer information and interactions. It provides a platform for businesses to store, track, analyze, and improve customer relationships as well as offer customer service, sales, and marketing materials. CRM software is important for businesses that are looking to control and improve their customer relations.
The cost to develop CRM software can vary greatly depending on the needs of the business, the size of the project, the level of customization, and the platform being used. Factors such as the scale of the project, the complexity of the features, the user interface, and the type of support needed will also affect the cost of development. Additionally, the cost will depend on whether a third-party CRM system is chosen or the business develops its own custom software. On average, it can cost upwards of $15,000 to develop a CRM system.

Factors That Affect the Cost of Developing a CRM Software

Factors That Affect the Cost of Developing a CRM Software

Customer Relationship Management (CRM) software provides businesses with an integrated platform that streamlines the customer service process. However, CRM software development is not without its costs, which may vary significantly depending on the requirements and unique needs of every business. Below are some of the factors that play a part in determining how much it may cost to develop a CRM software.

What Business Requirements are Necessary?

The cost of CRM software development varies depending on the specific features and capabilities of the system. Companies that want to be able to track trends over a long period of time and need advanced analytics capabilities will pay more for their system. Companies that just need basic features might be able to get away with a simpler and cheaper system. It all depends on the business requirements of the company.

Does the Company Need Custom Development?

Custom development is often necessary in the CRM software development process. Custom development makes it possible for businesses to get the exact features and functionality they need from their software. Custom development can be expensive, so businesses should think carefully about whether or not they need it.

What is the Scope of the Project?

The scope of the project is an important factor in determining how much it will cost to develop a CRM software. If the scope of the project is limited, then the cost will be less than if the scope is broader. The larger the project, the more time it will take to complete, and the more money it will cost.

What is the Timeline?

The timeline is critical when it comes to software development. If a company is in a rush to get their software up and running, then they may have to pay a bit extra to have the development process sped up. On the other hand, if a company has more time to wait for the development process, then they may be able to save money.

Features Offered by the Software?

Finally, the features offered by the software will also determine the cost of development. If a company needs a lot of features and functionalities, then they will pay more for their software. Basic features are often cheaper than advanced features, so companies should be aware of this when deciding what software to develop.


The cost of developing a CRM software can vary significantly depending on a variety of factors. Businesses should think carefully about their requirements and take into account the various factors that can affect the cost of development before making a decision. This will help them make the best decision for their business and ensure they get the most bang for their buck.

List of Factors

  • What Business Requirements are Necessary?
  • Does the Company Need Custom Development?
  • What is the Scope of the Project?
  • What is the Timeline?
  • Features Offered by the Software?

Cost Saving Tips for Developing a CRM Software

1. Assess Your CRM Needs

The cost of developing a CRM software can vary significantly depending on the specific features and requirements it needs to meet. Before investing in development, it’s important to assess the size and nature of the solution you need, as this will help determine the scope of development required and the associated costs. Additionally, consider the impact of a custom-built CRM and whether this would produce better long-term value than an off-the-shelf solution.

2. Consider Cloud Hosting Costs

The hosting setup that will be required for your CRM should be a major factor in your budget considerations. Server and site maintenance costs can add considerably to the development cost of a CRM system without the correct setup. Additionally, consider the cost savings that can be made outside of deployment, such as how cloud-based solutions can offer easier access to anyone working on the project and help reduce the cost of ongoing server maintenance.

3. Leverage Open Source Code

Where possible, leverage open source code for the software development of your CRM. This will reduce costs compared to commercial development and provide access to high-quality code and a wide range of components for seamless integration. Popular technologies such as PHP, Ruby, and JavaScript are ubiquitous and have an established learning curve.

4. Research Ready-Made Solutions

Researching ready-made solutions can also offer cost savings when developing a CRM. This includes the research and hard work of finding custom options, as well as researching solutions available through popular providers. Seeking out well-known providers can offer excellent insights into the features and functions of a CRM and help you determine the optimal option for your needs. Additionally, organizational tools and data privacy considerations should also be taken into account.

Advantages of Investing in CRM Software Development


The cost of investing in Customer Relationship Management (CRM) software development can vary widely depending on the requirement and needs of each company. While some basic CRM software may be relatively affordable, more complex offerings such as ERP and CRM systems, or cloud-based solutions, may be prohibitively expensive when compared to standalone packages. It is essential to consider the needs of individual businesses carefully when assessing the cost of a CRM software solution.

Factors That Impact CRM Software Cost

A wide range of factors can affect the cost of CRM software, including the scope of features and customization required. For businesses with complex data requirements, such as for sales, customer service, or marketing teams, custom CRM development may be needed to create a functional and intuitive system. This can add significantly to the total cost of the project. Additionally, any hardware or infrastructure upgrades that may be necessary to support a new CRM system should also be taken into account.
Aside from direct costs, companies must also consider the indirect costs associated with investing in CRM software development, such as the cost of training staff or integrating the new system with existing ones. In some cases, it may be necessary to move data from current systems into the new CRM, which could add additional expense.

The Potential Return on Investment

For any company weighing the decision to invest in or upgrade its CRM software, the potential return on investment should be carefully considered. Cost savings may come in the form of more efficient processes, such as automated customer support or improved sales force productivity. In addition, CRM can help to improve customer satisfaction, leading to increased sales and loyalty.
The long-term cost of CRM software should also be considered, as the best solutions are typically those that are regularly updated and maintained, allowing them to keep up with changing customer needs. By investing in a well-maintained and up-to-date CRM software solution, businesses are likely to benefit from greater scalability, lower maintenance costs, and better customer service.


Developing a CRM software can be an intense and expensive endeavor, making it difficult to provide an exact cost. The features, complexity, and size of the software needed all impact the end cost, making it tough to estimate the full cost until design is completed and the project is far into development. To truly answer the question of ‘How much does a CRM software cost to develop?’, a business or individual evaluating software solutions must take a deep dive into every potential project to determine the ideal cost.

At Xyz Devs, we understand the importance of accurately assessing the cost of development for a CRM software. To help those interested get a better understanding of how to properly evaluate cost, we advise following our blog for the latest updates on the development process and for upcoming releases.
Below are some of the most frequently asked questions we receive about the cost of developing a CRM software.
Q: How long will it take to develop a CRM software?
The time frame for developing a CRM software varies widely depending on the features, complexity, and size of the software needed. Generally, it can take anywhere from weeks to months depending on the specifications and complexity of the build.
Q: What factors determine the cost of development?
There are many factors that influence the total cost of developing a CRM software, such as the features and complexity. Other factors that heavily influence the cost include the level of accessibility, design, and security that is needed.
Q: How can I make sure I’m getting the best cost for my software?
One of the best ways to ensure you’re getting the best cost for your CRM software is to research the development costs and features for your project ahead of time. Asking for quotes from multiple developers and researching the experience of the development companies in the field can also be extremely helpful.
Q: What resources are available to help me find a developer?
When looking for a developer to create your CRM software, it is best to make sure they have extensive experience with CRM software development. There are a number of online resources available to help you compare and select developers, such as Xyz Devs and developer-specific forums.
Q: Will I need to make frequent updates?
Most CRM software require regular updates, either to keep up with new features or to maintain security of the software. Depending on the software, the updates may be handled by the development team or done manually. It is important to assess the need for regular updates when selecting a developer.
Ultimately, the cost of developing a CRM software can be difficult to accurately determine without a thorough evaluation of the project. By leveraging our blog and other online resources, businesses and individuals can learn more about CRM software development and determine the best cost for their needs.