How To Build a CRM System From Scratch

· 5 min read
Build a CRM

CRM or Customer relationship management system assists you in getting more leads, fastening the sales cycle, and making customer management seamless and better.

However, learning a CRM and creating it from scratch can be harder. If you want to skip overpaying for the pointless CRM functions that aren’t useful for the current time, getting a custom CRM is also possible.

In this article, we will see how to build a CRM, what functions and features you can skip as per your business requirements, and which CRM will be a better alternative for your company. At last, we will also have a simple overview of what can be the approximate cost of building a CRM system.

Let’s dive in and learn about how to build a CRM system for making your customer relationship management easier.

Building a CRM from the beginning is not preferable for all business owners, so many opt for an existing CRM system and customize it as per their business needs. No CRM works perfectly as per the requirement, but we have a list of the most popular CRMs that provide a strong foundation:

  • Salesforce- suitable for fast-growing businesses
  • Monday Sales- best for almost all organizations
  • HubSpot- it’s a popular free CRM system
  • Freshsales Suite- provides the best automation for sales and marketing
  • Zoho CRM- it’s a good alternative when deeper analysis is necessary
  • Salesflare- Best CRM that focuses on upbringing the sales
  • Streak- Popular CRM that works 100% from Gmail
  • EnagageBay- It’s an all-in-one CRM suitable for small businesses
  • Corefactors- RevOps Enabled CRM solutions for SME’s

Now, let’s see how to build a CRM from scratch.

5 Steps to Build a CRM System from Scratch

Making a CRM is not just about coding, it has an entire lifecycle, which is very similar to building software or an application.

Step 1# Be clear with your company’s requirements

The main aim of using a CRM is to enhance your business profits. However, you must know how the CRM system will be helpful for your business to achieve new heights.

Be clear with your needs about whether you will need a custom CRM system for automating the tasks and minimizing costs or you’ll go for existing CRMs. Or you need to create insights to help you manage and understand your customers, or anything else.

Every CRM software is different in its own way. If you focus on minimizing operational expenses, you do not have to spend more on making sophisticated marketing functions, and vice versa.

Depending on your business goals, it’s possible that you do not need to have or develop a full CRM system. Hence, building a CRM from scratch will help you to have only the required features in that system.

Step 2# Decide the functions that your CRM should carry out

After you figure out what function your CRM system should perform, you have to choose the primary functions as per your business domain and size.

  • Individual businessmen generally make a CRM platform for monitoring and managing connections with the user’s database.
  • Medium-sized businesses will need a tool that automates marketing and sales and improves analytics that enable successful marketing strategies.
  • Enterprise-scale businesses use fully-fledged CRM software that combines different functions in one system.

Here are the general features that almost all CRM systems should have.

  • Contact Management
  • Scheduling regular reminders
  • Tracking user interactions
  • Sales automation
  • Funnel monitoring
  • Central database system
  • Easy customization
  • Analysis and reporting is made easier
  • Email Marketing
  • Lead generation
  • Easy integration

Step 3# Find a trustworthy CRM development partner

Once you figure out how to develop a CRM, the next step is to find a reliable CRM developer company.

There are two alternatives for the same:

If you choose to outsource, it involves hiring outsourced specialists who are separate from your in-house team and work full-time for the development of your CRM system. In outsourcing, you will get freelancers or a whole dedicated team.

Here are the advantages and disadvantages of outsourcing development:


  • Cost saving
  • Access to a global pool of experts
  • Easy scalability of the team


  • Lack of control over the development
  • You have to develop trust with your development partner

On the other hand, hiring an in-house team means hiring experts who will work for a longer term with your company. You will have to give them the required workspace and equipment. It involves more tax burden to the company.

Advantages and disadvantages of the in-house development model:


  • Full control over the system development
  • Knowledge memory


  • Expensive cost
  • Limited access to expertise
  • Challenges in talent acquisition and further retention

Step 4# Decide the design and approve it

After the primary consultation with developers, they will provide you with certain mockups and wireframes before building the final CRM system. It’s a chance for you to ensure that the required features are fulfilled in the prototype that your CRM development partner has provided you.

In this phase, you can also get an estimate of how long the CRM will take and how much it costs.

You can also meet the team and the stakeholders to finalize the design and its development timeline.

If everything- the design, timeline, and cost mainly, are good, give a green signal to your CRM development. Also, inform them to keep you updated on different steps.

Step 5# Make a budget for creating a CRM

Now, it’s time to decide on an approximate budget for your CRM development. It will assist you to decide if you have enough resources or you’ll need to add more. So, CRM development cost estimation is a mandatory step while building a custom CRM or a new CRM for your business.

For cost calculation, you need to know how much each functionality in your CRM will cost you. Here are some phases of creating a custom CRM from scratch. These steps will let you know what things will strike the cost of CRM development:

Depending upon these phases, and the kind of design and features you want to keep in your CRM, the collective expense of CRM development can be from $5000 to $50,000.

However, this is an approximate expense range. It can vary depending on your requirements and features.

So, this five step process is a primary process that every to-be CRM owner must follow while developing a new CRM system.

Still, many steps could be included in building a CRM project. But they may differ depending upon your CRM development partner.

Final Verdict

The five steps are to know your requirements, decide on features that your CRM should have, find a reliable CRM developer, ask them for a prototype as per your business requirements, make changes if necessary and later approve the design, and finally, decide a budget, these phases will be helpful for you to develop a custom CRM for your company. We will bring new articles for CRM development in the future. To keep yourself updated, bookmark us. Till then, happy reading!