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How Much Should A Startup Invest In A CRM Solution

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sA business is better placed above its competitors if it can manage its customers well. From this point of view, CRM is more than a software – it is a strategy that can be a cloud storage solution for start-ups and can enable a business owner to learn about the needs and behavior of its customers in order to help in the development of a strong relationship with your customers. CRM is more of a business strategy than it is a technical medium that assists in handling customer’s efficiently and effectively, but this is not undermining the role of technology in the use of CRM.

In business, retention of customers is of great importance as its expanding the business, CRM helps business to have an insight about its customer’s behavior and to adjust their business operations in a way that their customers are properly served in the best way possible.

The emergence of CRM solution has seen the effect of technology on the business world and it has made the urge of IT system in solving business problems on a daily basis more popular. In the nutshell, CRM helps a business in recognizing the importance of its customers and to take advantage in improving its customer’s relation. In business, the more understanding you have with your customers, the more understanding you will have of their needs.

The ultimate question is now what is the cost of having a good CRM solution for a startup business, well, trying to determine the cost of implementing a good CRM solution in your business can be a very difficult thing to embark on, this is because the initial cost varies on a wide margin due to several factors such as features needed, your present region, discounts and some additional equipment. In an ideal world practice, each CRM provider lists the various prices per user and in this world that is not ideal not all the vendors give all the information about their prices.

Another important point to note in deciding the cost of implementing a CRM software for startups is where you are as an organization and the market you are presently. On the average, a business spends around $150 per user per month and this price varies depending on several features. When estimating the cost of having a CRM solution, it is very easy to prioritize expenses by reduction of cost, or in the alternative the avoidance of much spending by using cheaper options. The result that this decision will yield is a CRM system that will not meet your business need.

Beside the purchase of affordable CRM software vendor, reduction of costs in the wrong places will make the long term live of your CRM solution a failure. Cutting cost in the wrong area in funding a CRM system is the major reason behind failure of CRM. It is advised to do proper research on the right solution to take because the affordability of a CRM system implementation is available for any business size but you have to channel your resources wisely and on a more thoughtful basis.

As a startup business, the major question should be how to make the cost of funding your CRM work for your business rather than what you should plan for funding a CRM solution. The first step towards getting the needed cost idea about the budget of CRM system is the understanding of your business process, because when it comes to customization, maintenance and the integration of CRM system, the costs are difficult when there is no business process analysis. You will need to scrutinize your business readiness and expectation of a CRM system. Once you’ve conducted your internal analysis, it is time to allocate costs within your CRM implementation budget. To achieve this allocation of cost, the following will be of great help.

Selecting the Right CRM

Purchasing the software is one of the major things in your budget, the established CRM software that are available today comes with different features some with more and advanced features as the price goes up. When buying, it is good not to go for the cheaper option because it is less expensive; you need the complete understanding of your business process to guide you in selecting the right CRM software for your business.

This can be done by an expert on CRM who will help you in determining the features that you will need for your business. If you are under a budget, it is important you go for the cheapest option when licensing your software because it is easier to add license that it is removing it. This way, instead of cutting cost of software, you ensure you buy the license you will need in future.

Customization of the Software

After the successful selection of your software, it is now time to customize it. Newly bought CRM software comes with great functionality but it will be tremendous opportunity to utilize the full customization ability of the software to suit your business process and needs. Many CRM sellers will recommend the use of a licensed partner for your assistance in the customization of the software.

Many businesses make the mistake of making use of their own IT expert in the customization stage in a bid to save cost, such decisions always end up on a negative outcome. It is good to hire the service of a CRM expert to help out in the customization stage because there is a difference between a CRM savvy and a tech savvy, make no mistake about this stage of implementation.

Migration of Data

This data migration process is a complicated stage of CRM implantation; this stage tends to be the center of CRM systems. Many companies think that this stage is the simplest but in reality; it is the most difficult part of CRM implementation. When hiring a CRM expert make sure your expectations on data migration are discussed, when the expert has examined your business, the consultant should be able to give you an estimated time and the cost of the migration before the implementation process. From this perspective, you should have a clear comprehension of the different types of cloud storage solutions that are available on the market and pick the right one that will cater to your business’s needs.

A quick take-away here is to have your data state assessed before the commencement of the CRM project because this will help in saving cost during the data migration stage.


Lack of training and support is another the reasons why most CRM systems fails, many business tends to not pay attention to this stage of implementation and the final result happens to fall short of their expectations. The lack of training of user will make them to abandon the system and fall back to the old way of doing things. To have a successful CRM system, don’t cut the cost of training of personnel and support continually. CRM is a long term investment; you can ask from your consultant if they offer training service. The benefits of having a consultant train your user will bring consistency in the attention given to your users.

Management of Projects

A CRM consultant will be available whenever they are needed, but it is good also to have an internal project manager that has the knowledge of all the aspect of your business and its process. The job of the manager will be to organize the right team, getting of requirements and the schedule of meeting among the members of the team. The project manager will also ensure the proper implementation of the system ensuring that the project is on schedule and within budget.


The cost of having a good CRM system does not end in the implementation process only but the continual maintenance of the system. After the successful implementation of the CRM system, there will be need for some adjustments, upgrades also the need to enhance some parts of the system, the more the users in the company, and the more the maintenance cost of the system and all these add to the cost of establishing a good CRM system in a business. These maintenance cost is highly dependent on the approach your business takes towards managing the CRM system and is relative to the solution overall.

Despite the cost of the real implementation, the effect of the overall cost on the business should be negligible; the right CRM system brings more saving that outweighs the initial setup cost of the system. If you are trying to cut cost, don’t forget the importance of hiring a CRM expert because in the end they will help you in saving in the long run than opting against their service now. You will also need a ROI formula which will be handy in clarification of the long term cost of the implementation. Calculating ROI depends mainly on number of things such as the number of users in your company, the CRM strategy strength etc.

The combination of the implementation cost, a good understanding of your business process and a proper ROI formula, should give the complete cost of setting up a good CRM software for startups that will meet the ever growing needs of any new business and its customers.

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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