MENU
GET LISTED
GET LISTED
SHOW ALLPOPULAR CATEGORIES

How Much Does CRM Software Cost: Overview of Typical Pricing Plans

HubSpot: No. 1 CRM Solution

USER SATISFACTION 99%
OUR SCORE 9.8
How much does CRM software cost ?

CRM pricing doesn’t adhere to any standardized scheme, and records some of the most dramatic value gaps from one product to the other. For those of you who want to accurately gauge the price of their ideal CRM solution, we recommend comparing several suppliers and payment schemes of tools whose features meet your specific needs.

The CRM market is about to reach a whopping $36 billion in 2017, which is a brave but also reasonable forecast considering the benefits often associated with this system. Experts believe that investing in a quality CRM product is more important than ever, as tools that boost sales rep productivity by as much as 27% are becoming strikingly inexpensive.

It was exactly small and medium businesses that caused this revolutionary movement in the CRM industry. Over a decade ago, Harvard Business Review correlated the cost of CRMs with the benefits they provide and foresaw a bright future for them, at a time when these systems still required installations so expensive that only enterprises could actually work out some profits using them. On today’s market, most popular CRMs are hosted in cloud, and tightly integrated with an array of systems to expand their functionality without additional fees. Some of the popular CRM suites are even offered for free, depending on the number of contacts the firm wishes to manage.

So, how much does CRM software cost? To answer this question, we analyzed the payment policies of leading CRM providers, and listed the most beneficial payment options buyers can choose from in 2017.

How Much Does CRM Software Cost?

CRMs with fixed monthly pricing schemes

Most CRM vendors nowadays offer their products on a fixed monthly or annual price, usually with several plans available to cater to the needs of small, medium and large businesses. The exact amount depends on how many users or contacts you wish to involve, communication channels you’re looking to manage, and the type of deployment you’re interested in (cloud-hosted systems are usually cheaper with average prices varying between $50 and $100/user/month, while in-house CRMs will expect you to pay between $250 and $1000 per single user license). For some of them, you will also be able to purchase add-ons and functionality plugins, or participate in dedicated Customer Success programs to help develop a smarter customer relationship strategies.

A recent trend is to build up plans with different sets of features, and let the user decide whether he wants basic functionality on a starter price, or a fully-featured platform targeted as ‘Professional’ or ‘Advanced’. The best course of action with these products (or any CRM in general) is to check whether the vendor offers a free trial/demo, and compare packages on your own. Unless stated otherwise, trials and demos are free of charge, and usually don’t require credit card data or any long term commitment.

The most popular pricing basis, nevertheless, remains the size of the purchasing company, as developers are well aware that not every tool can be configured in detail to correspond to all companies. There are, of course, one-stop-shop CRMs with almost unlimited customization that you can tweak to the specifications of your brand, but they are usually offered on a single price that equals a small fortune for startups and growing businesses.

The logic that applies in any case is to go as far as your budget allows: professional CRMs do make sense to developing businesses that can afford them. Another thing to remember here is to check the availability of customer support – in certain cases (reputed companies in particular) access to professional advice is reserved for premium users only.

Fixed pricing case study – Pipedrive

A good example that helps understand how fixed pricing works are the plans of one of the most popular CRMs out there: Pipedrive. At the moment, the system is offered in three different versions (Silver, Gold, Platinum), each priced according to the market tier targeted with it.

  • The Silver Plan, equipped with all necessary sales management features, live chat and email support and team organization is available for $12.50/user/month (ideal for small businesses and startups).
  • The Gold Plan adds more features to the package with automation for optimizing sales processes. It is priced at $24.20/user/month (ideal for medium businesses).
  • The most expensive Platinum plan targeting enterprises that work at scale costs $49.17/user/month. This gives users revenue forecast reports, SAML SSO, and more advanced security and automation features.

What is typical here, users can choose to pay for the subscription on a month-to-month basis or commit to an annual subscription for reduced prices. The pricing mentioned above is based on the annual subscription plan. The month-to-month cost of the Silver, Gold, and Platinum plan is at $15/user/month, $29/user/month, and $59/user/month, respectively. Similar pricing is available for other popular CRMs such as:

  • Zoho CRM – Starter Plan costs $12/month and Professional is priced at $20/user/month for additional social CRM, macros, and unlimited records.
  • Nutshell – Starter Plan is available for $19/user/month and Pro Plan is $35/user/month with additional sales process automation, advanced reporting and cross-sell and upsell automation.

Pipedrive, one of the popular CRM tools, have tiered pricing based on feature set.

CRMs offered on custom, quote-based pricing

Quite often, you will come across ‘by-quote priced CRMs’, and unless you have experience negotiating software deals, you may dismiss the idea of purchasing a potentially solid product just because of it being ‘overly complicated’ to acquire. However, quote-pricing is among experts’ most preferred and recommended payment solutions, predominantly because it shows that the company offering it is flexible and ready to compromise. Basically, if you ask them how much does CRM software cost in their case, the are more likely to offer an answer you will like.

Quote-priced CRMs are suitable for all businesses, but don’t discuss specific prices and payment details. Instead, the vendor invites interested users to contact his sales professionals, share the details of their company (in particular their expectations of this software), and then tailors a unique price for the functionality they can afford. For instance, a startup service provider may purchase a single-channel CRM, instead of paying for a rich omnichannel platform that also reports, generates leads, and covers collaboration capability for large and decentralized teams. Put into perspective, this means you should approach your CRM choice with an exact list of wishes and preferences.

Certain providers develop detailed growth plans for midmarket businesses and gradually increase the number of features in order not to burden their budget’s capacity too much. In cases like these, it is of vital importance to give systems a test drive first with a free trial, so that you will know exactly what to ask for.

In order to understand how custom pricing works, look at Yotpo, where customers are asked to contact the vendor’s sales personnel to get a personalized quote for their business. The easiest way to do that is to submit a request on the vendor’s website, entering the basic information about your company. The same approach was adopted by tools such as Siebel CRM and WakeUpSales.

Yotpo offers two options: a free plan and a premium plan for small to enterprise businesses.

Single-payment CRMs

This option is usually reserved for in-house and on-premise CRM suites that target large enterprises with plenty of homegrown software solutions. With an excess feature suite and an open API architecture, these solutions won’t exactly cater to the needs of small and modest businesses, as they involve expensive installations and hardware purchase, and usually, put users through long training to obtain the coding knowledge necessary to associate them with other systems.

In terms of payment, these solutions are usually covered with a user license you only need to purchase once. Prices for these licenses vary from $1000 upwards, depending on the reputation of the provider and the functionality of the system. In certain cases, the license has to be renewed each year/established period and consequently costs less ($200-$800 a year, on average).

InfoFlo is one of the several popular single-payment CRMs. Its users are expected to cover a license priced fee between $99 for the InfoFlo Basic plan for its core products. Depending on the features you need, you can opt for add-ons at additional prices ranging from $79 to $99. Other CRM solutions with similar plans are ManageEngine SupportCenter Plus which is available in 3 editions and GoldMine Premium (offers pricing that can be amortized in over 3 years).

Free CRMs

HubSpot CRM is completely free forever.

There are also open-source CRM platforms that are offered free-of-charge, but in most cases, their functionality is basic and demands that the user would switch to a paid plan once his operations expand in size or complexity. The user gets to choose between popular CRMs that also offer paid plans you can upgrade to as your needs grow (Insightly or Bitrix24, for instance), or a CRM that is entirely free such as HubSpot. These systems require no credit card details or long-term commitments, but we do recommend that you read some expert evaluation for each of them to see if they match your business’s needs.

In case you’re running a small business or are still not sure what to expect, opting for a free CRM is definitely a good option. For developed businesses with considerable client lists, however, it may be better to look for a professional and affordable system.

The best example of a powerful and completely free CRM is HubSpot CRM, where all features and support are available at no cost. Some other CRM vendors offer free-of-charge packages in addition to their standard paid plans. These include Freshsales (Sprout Plan for managing and basic scoring of leads and contacts, and unlimited phone and email support is available for free) and Insightly (a no-frills plan for 2 users to get started in managing contacts, sales, and projects).

Common payment methods in the CRM industry

Monthly

Monthly payment is typical for cloud-hosted systems with fixed pricing schemes, but may also apply for quote-priced ones (check details with the vendor). What it means is that the user is expected to cover a monthly fee in order to use the product, with or without an annual subscription contract that would prevent him from shifting to another package or system. The reason why most customers consider annual subscriptions as an alternative to month-to-month payment is that they significantly reduce the price (10-25% on average).

Annual

Alongside annual subscriptions, certain CRM providers offer per-annum licenses which users cover for at the beginning of the year, and are not expected to meet any monthly fees until that year is over. These licenses usually cost between $200 and $1,000, and are more common among locally hosted systems than cloud-based ones (here, the rationale is that a user should pay only for as long as the service meets his needs and quality criteria). The drawback with annual payment is of course that you pay for the whole year in advance and if for any reason you decide to resign from using a given CRM you will lose money. If you already decided to stick with a particular vendor though, annual plan will usually let you save some money in the long term.

Single-payment licenses

As we discusses previously, in house CRMs are usually offered against a lifelong license, which also carries the responsibility for a user to update and maintain the system on his own. For large teams and international enterprises operating with sensitive data, this is definitely a more affordable option compared to month-by-month payments for premium and advanced suites. The prices of these licenses come down to several thousands of dollars, depending on the size of the company or the functionality it is about to acquire.

Most CRM providers support credit card and wire transfer payments, while some of them also accept checks and direct bank transfers. Make sure you’ve checked all additional fees and charges required by the service provider, and choose the option that is most secure and affordable.

Comparison of Pipedrive, HubSpot CRM and Salesforce CRM Pricing

Scenario 1: The owner of a newly-launched online magazine looking to attract subscribers considers HubSpot CRM because it is free

The cart of the HubSpot CRM buyer

HubSpot CRM is a common winner in the ‘which software to buy’ debate, as it is offered absolutely for free, but yet goes beyond the expected ‘basic CRM kit’. The application of this system is also not limited to retail businesses, but rather fits all users in need of customer intelligence. If your intention is to get an intelligence collecting system that doesn’t exclusively cater to sales management needs, you can save the bucks you’d invest in Pipedrive or any other paid CRM system.

What will you get for free?

HubSpot doesn’t offer the same sales management functionality of Pipedrive, but you can still rely on basic pipeline tracking, phone and email integrations, or connect it with other leading CRM and marketing systems. Despite being free, HubSpot CRM has some of world’s best data enrichment functionalities, including a powerful and fast leads backlog users can easily master in no time.

Another reason to consider HubSpot CRM is that it organizes and tracks your contacts automatically. In fact, you get to manage as many as 1,000,000 contacts and users, and more importantly – your storage capacity is not limited at all. Similarly to paid systems, HubSpot CRM integrates with leading social media, and ensures you will have the chance to target larger audiences. Unfortunately, HubSpot CRM still doesn’t offer an advanced reporting kit to analyze the data it collects (it relies on third-party integrations instead). The list of integrations with other software providers is large, but there is no open API for the user to count on custom integrations.

On top of that, HubSpot CRM offers phone support for all users, regardless of whether they’ve just started to use the tool or are long time clients. You can also use it on all devices and types of business venues, but unlike Pipedrive, it doesn’t support multiple languages and currencies.

If you want to start your adventure with HubSpot CRM you can easily sign up for HubSpot CRM free app here.

Scenario 2: A slow-performing but large contact management team is looking to accelerate productivity, and considers Salesforce CRM because of its good reputation

The cart of the Salesforce CRM buyer

Software development history will reveal a number of top-notch vendors that ‘burned’ in their own desire to go beyond their capacity, but that’s not the Salesforce case. If you are already using some of their products, or have at least heard of their beneficial effects, you’ll see no reason not to also use a genuinely powerful CRM tool they provide. The question, however, remains the same: is the system worth of what you’d pay for it?

How much will you pay?

Just like Pipedrive, Salesforce CRM charges per-user-per-month basis on an annual subscription. The main difference between the two is that Salesforce CRM limits the number of users you can include in each of the plans. Storage and access to support channels, nevertheless, remains the same for each plan.

There are four plans available. The most basic starting plan Salesforce offers is Salesforce Essentials available for $25/user/month, where you can include only 5 users, and obtain a fairly basic accounts & contacts management suite. This plan is packed with out-of-the-box CRM features you need to get started in managing leads, customers, and sales.

For more functionality, you should look at the Lightning Professional plan ($75/user/month) which is a complete CRM solution for any size of your team. It offers more functionality in configuration, collaboration and cross-selling and upselling.

An even better, but significantly more expensive, solution is the Lightning Enterprise plan $150/user/month), where functionality is extended with the Sales Console app, accurate sales forecasting, and real-time sales insights. This is also the plan where you obtain a credible Salesforce identity, private AppExchange, and access to web service API that help connect the tool with third-party software other than email service providers.

The most expensive plan available is the Lightning Unlimited plan ($300/user/month), packed with enterprise-grade contact management features, Sales & Service Cloud Consoles, sandboxes, and unlimited custom app development.

Basically, Salesforce CRM offers a really well-tailored plan for companies coming from each market tier (startup, small, medium, and large businesses).

Note that Salesforce CRM also offers Cloud Lightning and Service Cloud Lightning upon request, and for an additional fee. If you want to try its features for free you can easily sign up for Salesforce CRM free trial here.

Scenario 3: A medium-sized online retailer is looking to manage customers for a reasonable price, and considers Pipedrive as the leading and most recommended CRM solution on the market

The cart of the Pipedrive buyer

Pipedrive is certainly one of the ‘look no further’ CRM systems for companies that can afford it, and that’s justified with a robust feature suite and spotless functionality.

What forms the package-to-package gap in Pipedrive’s case is storage and email import, as the number of users is unlimited in all packages. In fact, Pipedrive plans are all priced per user, so the decision whether to assign a single user or 50 of them is completely up to you.

How much will you pay?

The lowest plan available is the Silver Plan, where businesses are charged $15/user/month ($12.50/user/month for an annual subscription). Higher plans cost $29/user/month ($24.20/user/month billed annually) for the Gold Plan, and $59/user/month ($49.17/user/month billed annually) for the Platinum Plan.

In all three cases, users get a full sales management package (multiple pipelines, personal revenue goals, customizable pipelines, fields, and activities), chat and email support, and mobile apps.

The Gold plan offers more advanced automated workflows such as a full conversation history and the ability to send and view emails without leaving the platform. On top of this, the Platinum plan adds a dedicated private environment for your sales data and a live phone support.

The vendor also offers a free trial plan if you want to try out the software at no cost first. You can easily sign up for Pipedrive free trial here.

Category: B2B News

Leave a comment!

Add your comment below, or trackback from your own site. You can also Comments Feed via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

I agree to publishing my personal information provided in this comment.

Page last modified

Share
Tweet
+1
Share