How Much Does It Cost to Develop CRM Software?

Nearly every business uses CRM for customer-centric operations to increase efficiency and automate repetitive tasks. CRM means Customer Relationship Management. It is a software that helps businesses manage their business relationship with their past, current, and potential clients. CRM serves many different purposes in sales, marketing, and customer care. CRM is a centralized database within the organization that acts as a common data storage for different departments, such as marketing and sales. But many of you wonder about the CRM development cost. In this guide, we will discover the factors affecting the cost, types of CRM, development costs, and much more. Whether you are a business owner or a developer, this guide will help you understand all the factors of CRM software development cost.

What is CRM Software?

A CRM software is a centralized software that converts customer data into meaningful insights for the business to better understand its customers. The CRM is distributed across several business functions such as sales, marketing, e-commerce, customer care, etc. The data of all the departments can be stored on the centralized database and accessed by employees of any department when given permissions. CRM serves many functions, such as creating personalized profiles of each customer with contact information, messages, purchases, emails, etc., and simplifying the overall process of end-to-end communications between the business and its clients. 

Global Market Statistics of CRM Software Development in 2025

According to Statista, the global market revenue of CRM software is $98.84 Bn in 2025. With a CAGR of 10.17%, the market cap is expected to reach $145.61 Bn in 2029. 

Advantages of Having CRM Software in Business

[1] Enhanced Customer Experience

One of the major benefits of a CRM system is that businesses can personalize user interactions by accessing customer data from the centralized system and respond to customer queries rapidly using the previous communication records. CRM also enables building strong relationships with customers by actively addressing the needs and concerns of the customers. 

[2] Better Team Collaboration

Since CRM offers centralized data access to different departments, it enables to sharing of customer information across different teams like sales, marketing, and customer support for better coordination. CRM also enables seamless information transfer between departments, ensuring customers receive consistent experiences. It also reduces duplication of work by providing a unified view of customer interactions. 

[3] Automation

CRM is known for automating repetitive and manual tasks such as email follow-ups, appointment scheduling, and data entry to save time for the business. CRM also sets up automated workflows to manage leads and track sales progress easily. Moreover, it generates detailed reports automatically, saving time and effort. 

[4] Informed Decision Making

Nearly every business is using data to make important and major decisions. CRM can monitor performance metrics, such as conversion rates and customer retention, for continuous improvement. Also, it can analyze customer data to identify emerging trends and opportunities and use the insights to predict customer behavior and adapt strategies accordingly. 

[5] Scalability

Business is something that constantly grows and expands. As the business grows, its customer base also grows. So to handle the large customer base, the CRM also needs to be upgraded over time. Scaling the CRM enables management of larger volumes of customer data and interactions without any complications. Also, businesses can adapt CRM tools to new markets, products, or customer needs as they evolve. 

[6] Better Marketing Strategies

Business is all about making and executing strategies. A CRM helps to create targeted campaigns based on customer demographics and behavior data and delivers personalized marketing messages to improve engagement and conversions. Moreover, businesses can track campaign performance and refine their approaches for better results. 

Types of CRM Software and Their Development Cost

[1] Operational CRM 

As the name suggests, operational CRM software automates several manual processes like lead tracking, email campaigns, and customer inquiries. CRM also Integrates sales, marketing, and service tools into one streamlined platform that improves team productivity by reducing repetitive and manual tasks. An operational CRM has many features, such as sales and marketing automation as well as service automation. The cost of operational CRM development is between $20,000 to over $100,000.

[2] Analytical CRM 

An analytical CRM helps businesses in data-centric tasks such as gathering, preparing, and analyzing customer data to identify trends and behaviors. Analytical CRM provides valuable insights for targeted marketing and sales strategies. Moreover, this CRM also helps businesses make informed, data-driven decisions easily. This CRM includes features such as advanced reporting and analytics, AI features, etc, and costs between $30,000 to over $150,000. 

[3] Collaborative CRM 

One of the main goals of having a CRM is to promote collaboration among different teams within the organization by facilitating smooth communication between departments like sales, marketing, and support. Collaborative CRM  improves collaboration, leading to better customer experiences and ensuring customer information is shared across teams for a unified approach. This CRM has tools and features for team collaboration, interaction management, and sharing customer data. The development cost lies between $25,000 to over $120,000. 

[4] Strategic CRM 

Every business creates strategies to tackle a problem or accomplish business goals. A strategic CRM aims to help businesses understand customer needs and preferences efficiently and also focuses on building long-term relationships with customers. This type of CRM promotes customer loyalty through developing personalized strategies. It is developed for long-term customer engagement, involving advanced personalization and tools for customer lifecycle management. The cost lies between $50,000 ot $200,000 or more. 

[5] Campaign Management CRM

Campaign creation and management are a part of the marketing strategies of the business. This type of CRM assists in planning and executing marketing campaigns and tracks campaign performance to measure success and improve future efforts. Moreover, it also ensures timely and relevant customer communication. It has multichannel marketing and campaign management tools and costs between $15,000 to over $80,000. 

[6] Customer-Centric CRM

Every business is known for its customer-centric approach among its customers. A customer-centric CRM software puts the customer at the core of all interactions and processes and enhances customer satisfaction through personalized experiences while building trust and loyalty. Customer-centric CRM has several important features, such as customer support, personalized interactions, etc. The cost to develop lies between $20,000 to over $150,000. 

Main Features of CRM Software

[1] Contact Management 

Using CRM, businesses can organize and store customer data, including contact details, communication history, and preferences. 

[2] Sales Management 

CRM helps businesses track leads, opportunities, and the sales pipeline to optimize the sales process. 

[3] Customer Support 

Customer support is a crucial part of every business. Using CRM software, businesses can manage support tickets and inquiries, and resolve customer issues effectively. 

[4] Marketing Automation 

CRM helps in marketing by automating marketing campaigns, email marketing, and lead support to boost engagement.

[5] Analytics and Reporting 

Businesses rely on data to generate visualizations and get important insights out of it. CRM aids in generating detailed reports and insights to evaluate performance and customer behavior. 

[6] Integration 

Using CRM, businesses can seamlessly integrate with other software like ERP systems, email platforms, or social media.

[7] Customization 

CRM’s major advantage is its tons of customization options. CRM can be adapted to specific business needs, offering custom workflows and features.

 [8] Mobile Access 

Modern CRMs can be easily accessed using smartphones and other handheld devices such as tablets etc. Mobile CRM allows users to access CRM tools on the go through mobile apps. 

Factors Affecting the CRM Software Development Cost in 2025

[1] Feature Complexity

Features and complexity of the software play a crucial role in affecting the CRM development costs. Basic features like contact management and task tracking are affordable to implement. Whereas, advanced features like AI-driven analytics, workflow automation, and machine learning algorithms add complexity and increase the overall cost. Furthermore, if your business has large volumes of data, designing a system to handle it requires advanced planning and higher costs.

[2] Customization Level

Customization is the key component that makes a CRM truly unique to the business’s needs and requirements. The business can select between off-the-shelf or custom CRM software development solutions. Off-the-shelf CRMs come with pre-built features, costing less, but offer limited flexibility.  On the other hand, customized solutions enable businesses to add unique functionalities but increase both development time and overall costs. Also, customizing the business for integration with the business processes and existing workflows requires significant investment. 

[3] Technology Stack

Selection of the right technology stack also impacts the development costs. Businesses can opt for cloud solutions as they offer scalability, but have subscription costs. Integrating the latest and emerging technologies, such as Artificial Intelligence AI, Machine Learning ML, Internet of Things IoT, etc, offers unique features and functionalities but leads to higher development costs

[4] Development Team and Location

The development team size also matters. The smaller the team, the lower the development costs, but the longer the time to develop and deliver. On the other side, a larger team would cost more but can develop and deliver the project in less time. You can also consider outsourcing your project to a CRM software company to balance the development time and overall costs and get the best value for money. The location of the team also matters, as the developer in North America or Europe would charge more than the developer based in Asia or Africa. 

[5] Third-Party Integrations

Integrating third-party tools and technologies such as payment gateways, email marketing platforms, etc, adds up to the cost. Third-party APIs that require subscription or licensing increase the overall development costs.

[6] Support and Maintenance

Every software requires constant maintenance and support to keep it running without any issues. CRM also requires extensive maintenance, such as providing regular updates with bug fixes or adding new features to increase the functionality as the business increases the overall costs. Also, if the business plans for future scalable solutions, it would increase the initial costs but reduce the cost in the long term. 

[7] Design Complexity

Every user loves an engaging and smooth user interface. If you want an intuitive and sleek design, it will cost more time and resources. Also, developing a user-friendly interface requires extensive development and testing, which increases the cost. Device compatibility is also important because the CRM can be accessed on any device.  Ensuring the CRM is accessible on multiple devices adds to the design complexity and increases the overall costs. 

[8] Data Migration and Security

Data is everything for a business. Many businesses rely on legacy systems that are old and have outdated data formats. Migrating the data into the new systems further increases the cost. From a security point of view, implementing robust measures like encryption and compliance with regulations increases costs. 

Difference Between Saas CRM and Custom CRM Software

Different Monetization and  Pricing Models of SaaS-Based CRM Software

[1] Subscription 

In a subscription model, there a fees on either a monthly or annual basis for the usage of the CRM software. Subscription can be 2 to 3 levels, and in each level, there is a unique set of features. The business can select the subscription that best suits its business requirements. 

[2] Per-User Pricing 

In this type of model, the business pays the fees for each user who uses the CRM. It is ideal for small teams as the cost is directly proportional to the number of users, but expensive for larger teams and organizations. 

[3] Tiered Pricing 

CRM providers offer multiple levels or tiers of their product. Each level consists of certain features, including the features of a lower tier. The lower tier has basic features, and the higher tier has more advanced features. It is best suited for businesses with varying needs. 

[4] Freemium Model 

The freemium model is pretty straightforward. It has a basic version of CRM software with basic features. It is ideal for small businesses, but larger organizations would need to purchase the software completely. 

[5] Custom Pricing 

This model is designed for large organizations to pay for custom plans based on specific requirements such as the number of users, features, and functionalities, etc. 

[6] Flat-Rate Pricing 

In this pricing model, businesses pay a fixed fee regardless of the number of users or features. It’s simple and predictable but does not offer the flexibility of other models.

[7] Pay-As-You-Go Pricing 

This model is used by CRM providers to charge as on the usage of their product by businesses. It is best for businesses with variable needs and requirements. 

[8] One-Time Licensing Fee 

This model requires initial costs, which might be higher for small businesses. In this model, the organization can purchase the full license of the product without paying anything else. 

CRM Software Development Process With Costs in 2025

[1] Requirement Gathering and Feasibility Analysis 

This is the first stage. In this stage, the analysts and project managers will conduct a meeting with the client to discuss their project idea. The project will be assessed on multiple factors such as budget, timeframe, legal aspects, regulations, etc. Once the assessment is done, the project requirements are gathered and thoroughly analyzed. After the analysis is done, an SRS document is prepared and signed by the client, confirming the deal. The cost required in this stage is between $5,000 to $15,000. 

[2] Planning and Discussion 

This is the second phase of the SDLC. In this phase, the team of designers, developers, and managers gathers and discusses the project and its details. The discussion consists of the features and functionalities of the project, selection of the development methodology, and creating an overall plan of the timeframe, sprints, etc. Once everything is planned, the project is divided among the team members, consisting of the frontend and backend. The cost in this phase is between $10,000 to over $25,000.

[3] Designing and Prototyping 

In this stage, the team of designers and developers creates a prototype of the project as per the SRS document. The aim of designing and developing a prototype is to get an idea of what the final product would look like after development. The prototype is a working prototype, and it is shown to the client for approval. Once the project is approved, the actual development begins. The cost in this stage is around $25,000 to $40,000.

[4] Development and Coding

This stage is all about coding and programming. In this stage, the frontend and backend of the project are developed using the selected tools and technologies. You can either hire a dedicated team or outsource the project to a CRM software development company. The cost in this stage starts from $40,000 to over $300,000. 

[5] Testing and Debugging

When the development is completed, it is time to test the finished product. The CRM software is thoroughly tested under different situations to ensure it is working as intended. There are many different types of tests performed, such as unit testing, integration testing, functional testing, non-functional testing, user acceptance testing, etc. The cost of testing is between $5,000 to $30,000 or more. 

[6] Deployment and Launch

In this stage, the final tested CRM software is deployed either on a cloud platform or installed on the organization’s system if it is on-premises. A proper training and instruction manual is provided to the employees to better understand the usage of the software. The deployment cost is variable and is around $20,000 to over $50,000.

[7] Maintenance and Support

ERP software needs regular maintenance in the form of updates for new features and fixing any bugs and errors that occur during runtime. Also, customer support is required to handle the technical issues faced by the employees. The maintenance and support costs can be between $10,000 to $20,000 per month, depending on the project. 

Use the Latest Tech Stack in CRM Software Development

Frontend: AngularJS, React, Bootstrap, Vue.js, JavaScript, React.js, 

Back end: Java, Node.js, Python, .NET, React.js, Python, 

Integration Tools: Elastic Search, Elastic Email, Google Workspace, Socket.io, Amazon S3

Database: MySQL, MongoDB, Oracle, Firebase

Cloud Platforms: AWS, Azure, Google Cloud

APIs: RESTful API, GraphQL

How to Optimize CRM Software Development Costs? 

[1] Define Clear Objectives

Defining clear goals and requirements enables the developers to develop the exact product as required without adding unnecessary features and functionalities. This saves a lot of time and lowers the overall development costs.

[2] Utilize Open-Source Platforms

Open-source platforms such as Odoo offer customizable code at low costs. However, ensure compliance with licensing rules and assess customization as per the business requirements. 

[3] Focus on Scalability

Consider having a scalable architecture to upgrade the CRM as your business grows, as it prevents the cost of overhauling the entire infrastructure, thus saving costs.  

[4] Prioritize Essential Features

Prioritize the most important and required features that satisfy your business needs. Integrating unnecessary features and functionalities would only increase the costs. 

[5] Leverage Cloud Technology

SaaS-based CRM software is generally more affordable than custom and on-premises software as it eliminates the need for expensive hardware and maintenance costs. 

[6] Emphasize Automation 

Automating manual and repetitive tasks such as testing, deployment, and routine processes ensures efficiency and cost savings.

How to Select a CRM Software Development Company?

A reliable CRM development company should possess several attributes, such as timely delivery of the project, transparent communication with the client, use of the latest technology, and follow a client-focused development approach. One such company is Next Olive, which has over 13 years of experience and has over 150 CRM software developers ready to face any challenge and deliver the best results. Next Olive offers exceptional CRM software development services to clients across 20 countries, such as the USA, UK, Saudi Arabia, etc. 

Conclusion

In this guide, we discovered the key factors that affect the CRM software development cost, along with the various types of CRM software. In conclusion, the business needs to decide which CRM would suit them best, as per their requirements: SaaS or Custom CRM. Also, selecting a good CRM development company is equally important.