CRM system costs under the microscope: What factors are they dependent on?

The use of a CRM system cannot be disputed, as it allows the shop operator to keep an eye on the performance of his sales organisation. In any case, it is an efficient tool for the centralised management of customer relationships. However, newcomers do not understand which solution they should choose from the numerous CRM providers. That's why we take a closer look at whether an individually programmed or ready-made CRM system is better. We also provide a detailed CRM cost comparison.

These 6 factors have a particular influence

The costs of a CRM system can vary. They do not only depend on the provider. Other factors should also be taken into account.

Type of software

Companies can choose between 2 different solutions. These are cloud-based and on-premise CRM. Both systems can be used with the same goal, but have different focuses. As for the costs of these CRM tools, they are also different, and depending on individual needs and resources, companies choose a suitable option. Let's take a look at the main differences.cloud-based solutions are characterised by their flexibility and a good pricing model. This is why smaller companies often choose this option. You can pay for a certain number of users either monthly or annually. The costs for CRM software of this type can vary depending on the provider. There are also free versions with basic functions. If these are selected and later need to be expanded with new features, additional costs will be incurred. Prices usually vary from 25 to 100 euros per user per month, and those who opt for on-premise CRM should expect higher costs for CRM implementation. In this case, you should invest in the purchase, hardware and of course in Shopware CRM integrations. There are also ongoing costs to consider, as you should pay for updates, maintenance and IT services. The costs can vary depending on the requirements and range of functions. The local, customised solution costs much more than cloud CRM.

Functional diversity

For efficient management of customer relationships, the CRM system offers not only basic but also extensive functions. It should be used to thoroughly analyse customer behaviour and automate sales and marketing processes. The more advanced features the CRM software demonstrates, the more it costs; it is important that the CRM system only has the necessary functions. Features that are not required cause additional work and higher costs. In any case, it is better to choose a CRM that is easy to expand. The existing functions should fulfil a purpose. It is worth investing only in such software. Before choosing, you should compare your own budget and the needs of your business. You don't need a complex system, but a flexible option. It is necessary to consider the long-term perspectives.

Number of contacts

CRM system costs can vary depending on the number of contacts. If a large number of contacts are stored in the database, the prices increase. In particular, providers of software with integrated email marketing functions calculate the costs according to the length of the contact list, and CRM systems of this type are not particularly suitable for medium-sized and smaller companies that are still growing. The reason for this is the inability to pay. This is why a simple CRM for small businesses is often offered, which can manage several thousand contacts. The right decision in this situation is to use cloud-based systems that offer unlimited contacts in basic plans, while large companies need to manage up to millions of contacts. This is why they need more powerful software that can offer customised solutions, and it is important to define the pricing model of a CRM system in advance. It would be best to choose a scalable, customisable solution. It can grow with your business and manage as many contacts as you need. Your company will then be able to cover the costs of using CRM software.

Number of users

The situation with the number of users is similar. Access to the CRM should be paid for by the users. As providers limit the number of users on some tariffs, you should ensure that you have additional user licences. You can also upgrade the existing package so that several people can access the CRM system. According to Statista, the average CRM cost per employee is €76.83. Please note that some CRMs differentiate between two groups of users. The first can only view customer data without changing anything. In this case, nothing should be paid for this. Users in the second group make various changes and edit the data. If many people in your team need to have access to the CRM, you should calculate all the associated costs before choosing a comprehensive solution. After comparing the costs and benefits, you can make the right decision.

CRM strategy

Those who have a well-developed corporate strategy clearly understand the correct objectives. This is the best way to express your own requirements. The more requirements there are, the higher the CRM implementation costs. Since the individual needs of the company are diverse, the expenses involved in pursuing the CRM strategy also vary. This is why all potential costs should be taken into account, as such software meets business needs and contributes to workflow automation thanks to its numerous functions. If you choose a CRM system with an integrated sales pipeline, you can convert leads into real customers. With the help of CRM, more efficient processes are guaranteed and manual labour is reduced. This, of course, increases prices. It is about various integrations, development of interfaces to external solutions, configurations, customisations required by the CRM strategy to improve business processes.

Professional support and training

The staff who will work with the CRM must be trained. You can create an internal IT team or use the services of a CRM provider. The maintenance work must be paid for in any case. The more complex the CRM software, the higher the costs. It takes a long time for training to become fully proficient, and for a CRM system to always be up to date, it must be constantly maintained. Professional help is needed to eliminate technical problems. With cloud-based solutions, you can rely on the SaaS provider. For the maintenance of an on-premise CRM, you should hire a specialist and pay them a salary. This will result in new expenses for technical support, software updates, bug fixes and system upgrades.

How can you influence the costs of CRM implementation yourself?

You already know what a CRM system is and what you need to look out for when implementing it. Now we'll give you a few tips and explain the points that can influence the overall price. Spend only as much as you need to. Then you can control and optimise the CRM price. When choosing software, you should pay attention to the following: The range of functions is very important. Of course, you have to pay more for comprehensive software. If the goal is clearly defined, you understand which functions are unnecessary. Sometimes a CRM system with basic functions is enough to get you started. It is much better to go for a simpler solution. It should be easy to use. The level of complexity should be designed to meet your specific needs. You also don't have to pay so much for implementation and support, so determine in advance whether the CRM system is designed for growth in requirements. It should also be able to fulfil growing demands. Otherwise you will run into a problem in a short time. The selected tool will not be able to fulfil the required functions and you will have to switch to a new one, resulting in additional CRM software costs.