In today’s digital landscape, businesses frequently encounter the dilemma of whether to build a custom CRM (Customer Relationship Management) system from scratch or to adopt and customize an existing one. Kasey Luft, in his insightful video “Do You Really Need a Customized CRM? Building CRM from Scratch!” on YouTube, delves into this topic, highlighting the complexities and considerations involved in developing a CRM from scratch.
The Temptation of Custom CRM Development
Many business owners, particularly contractors, are tempted by the idea of developing a custom CRM system. Luft mentions that some are willing to invest around $100,000 in creating a new system from the ground up, with the intention of potentially reselling it. This enthusiasm, however, often stems from a lack of understanding of the full scope and intricacies of such an undertaking.
The Reality Check: Building a Custom CRM
Luft provides a practical analogy to convey the challenges of building a custom CRM. He likens it to designing a custom house. Just as you would need extensive knowledge to design a house that meets building codes and get it approved by engineers and city officials, developing a CRM requires a deep understanding of software development, user needs, and compliance with industry standards.
The Three Options for CRM Development
To simplify the decision-making process, Luft outlines three main options for businesses considering CRM development:
- Building In-House: This involves hiring a team of developers, designers, and product managers to create the CRM from scratch within the company. While this approach offers complete control over the system’s design and functionality, it demands significant resources, time, and expertise.
- Hiring an Agency: An external agency can be contracted to design and build the CRM. This option might seem less burdensome as the agency handles the development process. However, it still requires substantial investment and ongoing maintenance costs. Additionally, the business must ensure the agency understands its specific needs and vision.
- Customizing an Existing System: The most cost-effective and efficient approach is to adopt an existing CRM platform and customize it to fit the business’s needs. Platforms like Zoho, HubSpot, Salesforce, and GoHighLevel (GHL) offer extensive customization options, enabling businesses to tailor the system without starting from scratch.
Beyond Costs: Considering the Broader Implications
Luft emphasizes that the decision should not be driven solely by cost considerations. Even if a business has substantial funds available, several factors must be taken into account:
- Development Team: A robust CRM requires skilled developers, product managers, UI/UX designers, DevOps teams, and sales and onboarding teams. Assembling and maintaining such a team involves significant effort and expense.
- Time and Focus: Building a CRM from scratch demands considerable time and attention. Businesses must decide whether they want to focus on their core operations or divert resources to essentially running a software company.
- Market Research and Scalability: A custom-built CRM tailored to specific needs might not translate well to other businesses. Extensive market research is needed to ensure the system’s features are relevant and scalable.
The Risks of Building from Scratch
Luft warns of the high failure rates associated with software development. Even well-funded ventures often struggle to bring a successful product to market. Many businesses underestimate the time, money, and resources required, leading to wasted investments and unmet goals.
The Smarter Alternative
For most businesses, customizing an existing CRM platform is the smarter alternative. It allows them to leverage proven technologies and frameworks while tailoring the system to their unique requirements. This approach minimizes risk, reduces costs, and accelerates time-to-market.
Conclusion: Weighing Your Options
Ultimately, Luft’s video serves as a cautionary tale for businesses contemplating the development of a custom CRM. While the allure of a bespoke system is strong, the practicalities and risks involved are substantial. By opting for a customizable existing platform, businesses can achieve their CRM goals more efficiently and effectively.
If you are considering building a CRM, it’s essential to carefully weigh your options and consult with experts to make an informed decision. Luft encourages viewers to reach out and discuss their ideas, promising to guide them towards the best possible solution, even if it means directing them to alternative resources.
In the end, success in CRM development is about balancing vision with practicality, ensuring that the chosen path aligns with the business’s long-term goals and capabilities.