How to Create Your Own CRM System: A Step-by-Step Guide

You might argue that building a CRM system from scratch isn’t necessary, since many ready-made solutions already exist. For some businesses, it’s the optimal choice to use off-the-shelf systems like Salesforce or HubSpot. In other cases, however, it is more practical to build your own CRM system — a perfect-fit solution for your company’s processes, free from unnecessary features, and with enhanced data security. 

If that’s the kind of software you’re looking for, you’ve come to the right place. SaM Solutions specializes in providing custom software development services to meet such needs.

Read our guide on how to build a CRM system from scratch, and contact our experts for a detailed consultation on your project.

What Is a CRM System?

A CRM (customer relationship management) system helps organizations manage contacts with current and potential clients. It centralizes data from marketing, sales, and customer service departments, making interactions smoother, automating routine tasks, and increasing productivity.

• CRM systems account for nearly 25% of all enterprise software sales.
• The global CRM market, valued at $63.91 billion in 2022, is projected to reach $145.79 billion by 2029, growing at a CAGR of 12.5% during the forecast period.
• Approximately 91% of companies with more than 10 employees use a CRM system.

Why Your Business Needs a CRM System

CRM systems offer significant advantages to companies of all sizes.

Enhanced client relationships

A CRM system allows you to maintain detailed records of every client interaction, including past purchases, communication history, and preferences.

For instance, if a client previously inquired about a specific product feature, a salesperson can proactively reach out when that feature is updated or a complementary product is launched, tailoring their pitch to the customer’s known interests. This approach makes clients feel valued and increases the likelihood of repeat business.

Better data management and analytics

With a centralized software solution, all customer data is stored in one place, making it easy to generate detailed reports and analyze trends. You can quickly identify customer purchasing habits or which products perform best. These insights help you make informed decisions and optimize your marketing efforts.

Improved sales performance

With a CRM, your sales team can track leads more effectively, guaranteeing they focus on the most promising opportunities. 

For example, if a prospect has visited your website multiple times or engaged with emails, the system flags this, allowing your sales reps to prioritize follow-up. CRMs also help monitor progress, set reminders, and predict future sales trends, keeping your team organized and efficient.

• According to Salesforce, businesses that implement CRM systems see an average increase in sales productivity by 34%.
• HubSpot reports that CRM systems can boost lead conversion rates by up to 300%.

Streamlined business processes

CRMs drive business automation by handling routine tasks such as sending emails, scheduling appointments, and generating reports. Instead of manually updating spreadsheets or composing individual messages, these systems send personalized responses based on previous interactions. This frees up your team to focus on strategic efforts like lead nurturing and strategy development.

Increased customer retention

A CRM helps you maintain regular contact with clients through personalized email campaigns, loyalty programs, or timely responses. 

For instance, the system can remind you to check in with a client who hasn’t made a purchase recently, offering them a special deal or simply showing that you care. This proactive approach fosters long-term loyalty.

• According to a study by Capterra, businesses that use CRM systems experience a 27% increase in customer retention rates. 
• A report from Salesforce found that companies using CRM systems see a 47% increase in customer satisfaction. 

6 Steps to Build a CRM System

It’s worth highlighting that the development life cycle may vary between vendors. In this guide, we describe a standardized process to provide a general overview of how to create your own CRM system.

1. Define your objectives and requirements

First and foremost, you need a clear understanding of why your company requires a CRM system and how it will benefit your business. Start by answering a set of critical questions.

• What problems are you trying to solve with a CRM? Identifying business challenges will help determine the right solution. Is managing customer data difficult? Is lead follow-up inefficient? Understanding the core issues will better align the CRM’s functionality with your needs.
• Which departments will use the system, and what are their needs? Sales, marketing, and client support teams likely have unique requirements. Sales may need tools to manage pipelines, while marketing may require email campaign integration. Knowing each department’s specific needs ensures the CRM serves everyone effectively.
• What customer data is most important for your business to track? Prioritize essential information, whether it’s contact details, purchase history, interactions, or user preferences. This focus will help capture and use relevant data.
• What kind of customer experience do you want to deliver? A well-built CRM personalizes and enhances the customer journey by improving response times, personalized communications, and problem-solving.
• What processes do you want to automate or streamline?  CRMs automate routine tasks, like data entry, follow-up emails, and reporting, making workflows more efficient.

Based on the answers, you can choose the most suitable type of CRM.

Why defining requirements matters

Setting clear objectives upfront ensures your CRM solution aligns with your business strategy and growth plans. A misaligned system can lead to wasted resources and low adoption rates,  while a well-designed system streamlines operations, improves customer satisfaction, and drives business growth.

By defining your goals and choosing the right type of CRM, you establish a solid base for the development and implementation process, making sure your investment delivers value.

2. Design the system architecture

This step involves laying the foundation for how your CRM will function. Think of it like designing a blueprint for a house — planning out everything from the rooms (core modules) to the plumbing (data flow) and the security system (protection of sensitive information).

• Key components: Identify the major building blocks your system needs such as customer management to store all customer details, sales tracking to monitor leads, deals, etc., and a support module to track inquiries or issues. Each module should be designed to work independently and together seamlessly.
• Database management: Determine how customer data will be stored and organized. For a small business, a simple SQL database might suffice, while larger companies with substantial customer interactions may require a more robust solution, like a NoSQL database, to handle complex data structures.
• API: Decide how the CRM will integrate with other systems, such as finance platforms. APIs facilitate smooth data flow between the CRM and other tools.
• Security layers: Security is crucial. Implement a solid security system that protects sensitive customer data including encryption, role-based access control (so only authorized people can see certain information), and strong authentication (like multi-factor authentication for logins). Security is especially critical if you’re dealing with regulated industries like healthcare or finance.
• Scalability: Nobody wants to rebuild their system from scratch every time the business grows. So, you need to make sure the CRM architecture can scale as your company and customer base expand. For example, your online shop may start with just 100 clients, but in two years, you’ll hit 100,000. In this case, you’ll need a scalable system to handle more users, data, and transactions without slowing down or crashing.

SaM Solutions’ experienced software architects can design a system tailored to your business, following best practices and your specific requirements.

Practical example

Consider developing a CRM system for a real estate company. The process begins by creating:

• Core modules to manage customer information (including both homebuyers and sellers)
• A sales pipeline to monitor deals (such as property listings, offers, and finalized agreements)
• A task manager to help real estate agents stay on top of their tasks

Integration with external services, such as email marketing tools for newsletters, Google Maps for property location display, and financial tools to track agent commissions, is also necessary.

For scalability, it is important to ensure that the system supports thousands of agents and property listings, particularly during high-demand periods like the summer home-buying season. Additionally, implementing strong security measures to safeguard sensitive financial data and personal information is essential.

3. Choose the technology stack

Deciding on the technology stack is one of the most critical steps in building your CRM. It’s like choosing the materials for constructing a house. Each choice has its pros and cons, and it impacts performance, scalability, and maintenance.

Programming Languages

First, choose the programming language(s) that best match your project’s needs, team expertise, and future goals. Here are some options:

Frameworks

Frameworks act as templates that speed up development and enforce best practices. Your choice of programming language will determine which framework is best suited to streamline the development process.

Databases 

Selecting the right database is crucial for data storage, organization, and retrieval. Your options generally fall into two categories: 

Cloud vs. on-premises infrastructure

Decide whether to host your CRM on-premises (your own servers) or in the cloud (remote servers).

Scalability and performance

When choosing technologies, always think long-term. They should support your CRM today and be able to handle far more users, data, and features tomorrow without performance issues.

• Vertical scalability: Can the server increase in power to handle growing capacity needs? This is more typical with SQL databases and on-premises infrastructure.
• Horizontal scalability: Can additional servers be added to balance the load as demand increases? This is key for cloud-based systems and NoSQL databases, which can easily scale across multiple servers.

Security considerations

Security should be integrated into your tech stack from the start, not treated as an afterthought. Whether handling customer data, financial transactions, or internal workflows, the chosen technologies must support security features. Look for:

• Encryption protocols: Does the stack support SSL/TLS for secure data transfer?
• Authentication methods: Does your chosen framework or platform support two-factor authentication (2FA), OAuth, or Single Sign-On (SSO)?
• Compliance: Does your tech stack meet industry-specific regulations like GDPR or HIPAA, especially if you’re handling sensitive customer data?

4. Develop core features

The following basic functionalities are crucial for every CRM system, regardless of the industry or business size.

• Contact management allows businesses to store and organize customer information in one centralized location, making it easily accessible for sales, marketing, and support teams. 
• Task management and calendars help users stay on top of deadlines, meetings, and responses, guaranteeing timely and efficient client interactions.
• Report generators and dashboards provide real-time insights and analytics, allowing businesses to track performance, sales, and customer data. These tools help decision-makers visualize key metrics, track progress toward goals, and identify trends or areas for improvement. 

Once these basic functions are in place, further customization can align the system with its intended use. 

• Marketing experts may require features such as email marketing automation, social media integration, and customer segmentation to launch targeted campaigns and monitor engagement, improving marketing efficiency. 
• Sales departments require features like invoicing and sales tracking to help manage the sales pipeline and close deals faster. 
• Client support teams benefit from client cards, knowledge bases, and case management tools to provide quick, informed assistance.

Customization in this phase is critical, as it ensures the CRM is aligned with the company’s processes, goals, and industry-specific needs. Niche features can also be integrated to support specialized sectors.

5. Implement integrations

To enhance the functionality and value of your CRM solution, integrate it with other systems and services, including:

• Email marketing platforms (e.g., MailChimp, HubSpot) to automate marketing campaigns and email tracking.
• ERP systems (e.g., SAP, Microsoft Dynamics) to enable synchronization of financial, inventory, and personal data.
• Payment gateways (e.g., PayPal, Stripe) to facilitate automated invoicing, payment tracking, and reporting.
• Customer support systems (e.g., Zendesk, Freshdesk) to provide smooth ticket management and enhance support service.

At this stage, consider security requirements and compliance with data privacy regulations (e.g., GDPR, HIPAA).

Select integration methods

Integrating external systems with a CRM can be achieved through several methods, depending on the architecture of both the CRM and the third-party system. Common approaches include:

• API integration: RESTful APIs or SOAP are typically used to establish seamless communication between systems, enabling real-time synchronization of customer records, sales data, and transaction details.
• Webhooks: These allow systems to notify each other about events in real time. For instance, when a new client is added to a CRM, a webhook can trigger an action in an email marketing tool to start a welcome campaign.
• Middleware solutions: In complex architectures, middleware tools like Zapier, MuleSoft, or custom-built connectors can be used to facilitate integrations between multiple systems without directly connecting each of them.

By successfully implementing integrations, a CRM system becomes a central hub that consolidates data from multiple platforms, providing users with a comprehensive view of customer interactions and business operations. 

6. Test, deploy, and maintain the system

Once your CRM is developed, thorough testing strategies, careful deployment, and ongoing maintenance are crucial. 

Testing is a critical phase where the system’s features and functions are rigorously evaluated to verify everything operates smoothly. QA experts conduct functional and non-functional tests to check the system under various conditions and confirm its reliability. Team feedback during this phase is invaluable as it reflects real-world use. 

Deployment follows with a well-planned strategy that includes a fallback option in case adjustments are needed. Specialists design the deployment process to minimize disruptions and ensure system’s smooth integration with the existing business infrastructure. Employees should be trained to use the system efficiently.

Software vendors offer post-release maintenance and support to keep the system up-to-date. Regular performance checks are conducted to identify and resolve any potential issues, while ongoing improvements ensure the CRM adapts to your business’s evolving needs. Security updates and patches are applied to protect your data, and robust backup and disaster recovery plans are in place to safeguard the system. 

CRM Development Challenges

Data security and privacy concerns

Companies must protect sensitive information stored in CRMs from unauthorized access and data breaches. This challenge extends to compliance with regulations such as GDPR or CCPA, which mandate strict data protection measures. For instance, a healthcare CRM might need to implement advanced encryption and access controls to safeguard patient records while also providing mechanisms for patients to request data deletion, adhering to privacy regulations.

Integration with existing systems

Most businesses already have established software ecosystems, so a new CRM must integrate seamlessly to provide a unified view of customer data. Achieving this requires precise data mapping and real-time synchronization to maintain accuracy across all platforms. Additionally, integrating with legacy systems may be necessary, which can be challenging.

Customization to fit business needs

Tailoring the system to match unique business processes can be complex. For example, a manufacturing company might need to modify the CRM to include custom fields for product specifications and create specialized workflows for their production-linked sales process. Customizations should be implemented without compromising the system’s core functionality or its ability to receive future updates.

Scalability and performance management

A CRM that works well for a small team might struggle when the company expands rapidly. The system must be architected to scale with the increasing data volumes and user numbers without significant performance degradation. Traditionally, ecommerce businesses start with a modest customer base but quickly grow to millions of records.

SaM Solutions’ experts know how to navigate these challenges by combining thorough planning, skilled development, and ongoing management.

Why Choose SaM Solutions to Build Your Own CRM System

With over 30 years of expertise in creating custom software, SaM Solutions knows how to make a CRM system within your budget and timeline. We offer end-to-end software development services and have an established and transparent development process, keeping you informed throughout. Our team of experienced architects, PMs, software engineers, and QA experts follows industry best practices and monitors CRM trends to deliver scalable, secure, and efficient solutions. With SaM Solutions, you gain a partner committed to your long-term success.

Summing Up

A high-quality, custom-built CRM, developed under your guidance, can become the core of your business operations, no matter the industry. With the right features, it can streamline processes, improve customer relationships, and boost overall efficiency. All you need is a skilled and experienced tech partner to turn your vision into a functional, user-friendly product. By aligning the CRM with your business goals, you can ensure it grows with your company and adapts to future challenges.