How Much Does a CRM Cost?

If you’re asking the question, “How much does a CRM cost?”, then you’ve likely already identified that you need one. CRMs are essential for modern businesses to manage customer relationships, but they have many other benefits such as improved efficiency, customised automation and an increase in sales. However, like everything in business, it’s important to understand CRM pricing, and more importantly, how to determine which is the best for you.

In this article, we’ll explore the costs of several popular Customer Relationship Management systems, but more than that, we’ll let you know about all of the additional costs you might encounter.  Read on to find out how you can avoid over-spending or under-spending on a tool that doesn’t meet your needs.

 

What factors affect CRM costs?

In the same way that your business is unique from your competitors, no two CRMs are exactly alike. So, naturally, they all have different pricing models and levels to be aware of. Many factors can influence the pricing, primarily the size of your business. Larger businesses usually need CRMs with more features and capability, whereas smaller businesses can find success with less expensive systems.

The cost of a CRM also varies depending on the number of users. Usually, you’ll pay a specific fee for each new user you add. If you think this sounds a little harsh, it’s really not – it allows you to add and remove users as your workforce numbers change. So, the pricing fluctuates with your needs.

Storage capacity can also increase the cost, but mostly, aside from the number of users, a CRM’s price is mostly influenced by its features. We’re definitely not suggesting that the most expensive solution is always the right fit – but generally, you get what you pay for in terms of features, integration capability, reporting and capacity for customisation.

 

Different types of CRM systems

As their name suggests, all CRMs are designed to manage your customer relationships. But there are still a variety of CRM types on the market. Here are the most common types you’ll run into:

• Cloud-based CRMs: Nestled safely in the cloud, these CRMs are the most popular. They’re great for remote work, and they typically come with easy, scalable pricing models. The range is pretty extensive though, so don’t be shy about contacting an expert for advice on which one suits your business.
• On-site CRMs: It sounds a bit old-school, but you can still install a CRM directly on your servers. The benefit is they typically come with a one-time cost and no ongoing subscriptions, and they can be highly customised before installation. However, ongoing customisation is a lot more challenging if your needs change.
• Industry-specific CRMs: There are also plenty of CRMs out there tailored for specific fields, such as healthcare, real estate, or retail. They may also incorporate industry-specific compliance features that are crucial to your daily operations.

 

Subscription vs. one-time fees

If you reside on Earth in 2024, then you’re probably no stranger to paying subscription fees for technology. From TV and music to business software, there’s unfortunately no escape, and your CRM could potentially be one more.

Ok, don’t panic, because when it comes to CRMs, subscriptions can be a good thing.

Your subscription fees are based on the number of users, which means when you add a new staff member, your CRM fees increase slightly. However, if your business decreases in size, your costs go straight back down. It’s the perfect setup for companies with a lot of employees. It also means you usually get all of the system updates automatically.

One-time fees are a little different. The lack of ongoing expense can be appealing, especially if you want highly customised software adapted to your unique needs. Plus, you own the software. But that also means it’s usually up to you when it comes to updates and maintenance, which can add to the long-term cost of ownership and frankly, be a major hassle. Not to mention that cloud-based systems are still very customisable if you work with an experienced CRM consultant.

 

Exploring the additional costs of a CRM

We’ll give you a nice little table later on that shows some of the popular CRM brands and their pricing. But what a lot of people won’t tell you about are the additional costs. These costs are essential if you want long-term value for money, but they can be a shock for businesses who see a monthly per-user rate and think that’s all there is to pay.

You read that right – we’re actually being transparent and upfront about CRM pricing, because we believe you should be informed rather than ambushed.

 

Customisation and setup costs

Talking about customisation and installation costs can be like opening Pandora’s Box. There are a lot of variables here, particularly in the level of customisation you need. In theory, you may be able to design some customised workflows and automations for yourself, saving the cost of hiring a custom CRM expert. In reality, this requires a lot of expertise to do it properly, and therefore, comes with a cost.

Typically, you’ll also pay consulting costs when you work with software professionals, and the total fees can vary. If you only need basic customisations, the price is less. If you want a lot, you’ll pay more.

To be clear about this, fees for consulting, customisation and installation are worth every cent when you choose reliable professionals. Highly customised systems effectively pay for themselves over time through increased efficiency, lower operating costs and more sales.

 

Maintenance and support fees

Have you ever owned a car that’s delivered a better performance with every passing year that you don’t get it serviced? No, we haven’t either. That’s because everything needs a little maintenance. Whether it’s because something has gone wrong or one of your business processes changes, you may need maintenance or updates for your CRM. Naturally, this comes with a cost.

In addition, larger companies may require a high level of user support, often provided by the company that customises and installs your system. Ongoing support comes with a cost, which will vary depending on your provider and the level of support you need.

 

Third-party software integrations

CRMs have the awesome ability to link up with other software programs, share data, and work in harmony with the systems you already love.

Usually, these integrations are included in your customisation and setup costs, but it’s worth making sure you understand they’re not usually free. However, once connected, your systems will talk to each other exactly how you need them to, cutting down on plenty of manual data entry work.

 

Costs for different CRM brands

Ok, we’ve babbled enough about the overall costs of a CRM. You’re here for a comprehensive table of popular CRM brands and their pricing, so here it is:

 

CRM Brand	Typical Pricing (per user/month)	Notes
Salesforce	$35 (Small Business) – $231 (Enterprise)	Feature-packed; customisation and scalability
Zoho	$22 (Standard) – $231 (Ultimate)	Affordable and customisable
HubSpot	$20 (Starter) – $150 (Enterprise)	Free plan available; great marketing tools
Monday.com	$16 (Basic) – Quote required (Enterprise)	Simple and affordable for smaller teams

 

As you can see, most brands offer scalable pricing depending on the features you need. Some, like HubSpot, offer a free plan, but these are usually designed to give you a sample of the product before you buy, rather than give you an ongoing feature-packed CRM for nothing.

So, before you invest, don’t just look at the basic pricing we’ve given you above. Contact our experts today, and we’ll be happy to book a consultation. Otto Digital specialises in assessing your business needs and providing tailored software solutions. Whether you’re interested in Zoho or a fully customised CRM, we can help. Contact us today for a chat!