Homegrown CRM: Advantages and Disadvantages

Hello Friends! Have you ever considered creating your own Customer Relationship Management (CRM) system instead of purchasing one from a vendor? In today’s digital age, most businesses incorporate some form of CRM software to effectively manage their customer interactions and data. However, as technology advances, building a homegrown CRM solution has become an enticing option for many companies.

In this article, we will explore the advantages and disadvantages of developing your own CRM solution. We will look at the cost, flexibility, customization, and maintenance aspects of a homegrown CRM. So, read on to find out more.

Advantages of Homegrown CRM

1. Cost Saving

One of the main advantages of a homegrown CRM system is cost-saving. Typically, purchasing a CRM software from a vendor requires a hefty upfront investment plus ongoing maintenance and upgrade costs. On the other hand, creating your own CRM solution can drastically reduce overall costs as you only pay for the development process.

2. Flexibility

A homegrown CRM system is highly flexible, making it easy to add new features as your business requirements change. With a vendor solution, you are mostly stuck with a standardized system, which may not cater to your specific business needs.

3. Customization

A homegrown CRM system allows for complete customization, it can be tailored to fit your unique business requirements and can be integrated with existing systems and tools. This customizability ensures you are not limited in your business operations and can fully utilize the CRM system to enhance productivity.

4. Secure data storage

Another advantage of a homegrown CRM system is the ability to control your own data storage. This is in contrast to a vendor CRM which stores your data in their servers, which may be a security concern for some businesses. Building your own CRM system ensures you control the security of your data.

Disadvantages of Homegrown CRM

1. Time-consuming

Creating your own CRM system takes time and resources. It involves planning, designing, developing, and testing the solution, which can take a considerable amount of time. While a vendor-based solution is readily available with little to no inception delay.

2. High Development Cost

Although a homegrown CRM system saves you on licensing costs, there is still a significant investment of expense when creating the system. Building an on-premise system requires hardware, software, and developer or consulting costs.

3. Support & Maintenance Cost

A homegrown CRM solution usually requires a dedicated IT team to ensure it’s running efficiently. The ongoing cost for maintenance, support and update of the system can sometimes exceed that of a vendor CRM.

4. Lack of Expertise

Inevitably with the developing process of a homegrown CRM system not every business employs a team of expert developers. Hiring an experienced developer or team of developers is a major investment. Some businesses may not have the expertise in-house to create a robust system and may require more external assistance to build and maintain the system.


In conclusion, building a homegrown CRM system has its advantages and disadvantages. It’s essential to fully evaluate your business requirements to determine if developing a CRM solution is the right fit for you. For businesses with specific needs or who have the resources to build their own solution, a homegrown CRM system is a viable option. Nevertheless, the costs associated with building and maintaining a homegrown CRM solution should not be disregarded.

Hopefully, this article has provided you with valuable insight into the benefits and pitfalls of creating your own CRM solution. If you need further guidance on building a homegrown CRM, consult with experts, and always weigh the pros and cons before making a final decision.

Thank you for taking the time to read this article, and see you in our next informative post!


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