Why Do You Need a CRM System: Definition, Benefits, and Types

Have you ever noticed how store cashiers offer you a favorite coffee or dessert? Or how mobile providers consistently remind customers about upcoming payments? With millions of consumers, remembering details about each one may seem impossible, and it was, until CRM systems appeared.

A CRM is software for automating and managing customer interactions. It stores all data in digital form, from order and sales history to each customer’s preferences and records of previous interactions with the brand. This platform helps companies increase profits while meeting customer needs. In this article, we’ll explain what a CRM is, why it matters, the main types of CRM systems, best CRM programs for small business, and the advantages this solution brings.

Five Reasons to Use a CRM System Across Industries

Whether you’re in retail, IT, pharmaceuticals, or the restaurant business, a CRM can add value in any field. Here’s why:

Centralization

Why do you need a CRM system for business? First and foremost, to keep all important marketing data in one place. Information, including customer details, their order history, and the products they showed interest in, is collected from multiple channels (social media, website, messengers, etc.). A CRM then launches automation: email triggers, SLA reminders, invoice generation, and reporting – all without manual routine.

Customer experience

The goal of any business is to satisfy the customer, and that is exactly why CRMs were created. By organizing consumer data and quickly finding the correct information, you can personalize offers, suggest what truly interests the customer, and motivate purchases with things like a birthday discount. Proper use of the information structured in a CRM is a powerful marketing tool.

Data analysis

When answering the question “What is a CRM and why do you need it?”, it’s important to highlight its analytical capabilities – both at the level of the individual customer and the company as a whole. The system shows sales leaders and underperformers, forecasts demand and stock levels, and analyzes win/loss ratios across segments, ensuring decisions are based on data rather than intuition. It’s also convenient that the software can generate reports, for example, on manager performance, business finances, or customer orders. In addition, some CRMs allow you to maintain inventory records, which can also be very useful.

Workflow improvements

Analyzing and automating company processes is another key use of a CRM, beyond working with customer data. Some systems make it possible to create employee profiles, track the start and end of the workday, assign and monitor tasks, and set deadlines for each one. A productive team is one where every employee knows what to do, when, and how – something a CRM for software development helps establish.

API integration

CRMs integrate with other services via API, including messengers, accounting and inventory management systems, logistics providers, and more. This connection makes it possible to process an order without leaving the program, contact a customer on time, and even generate a shipping waybill with the carrier. Let’s now take a look at the different types of CRM systems.

Ready-Made vs. Custom Solutions: Types of CRM Systems

We’ve already covered the advantages of CRM technology, so the next step is to look at the different types of systems. So, what kinds of CRMs exist? What are CRM systems? What is the best online CRM for small business? If we stick to the basic classification, there are two main categories:

• ready-made cloud solutions;
• fully custom-built systems.

Cloud services: these are easy to purchase, set up, configure, and start using right away. There are dozens of solutions on the market, so it’s not simple to evaluate all their strengths at once. The key advantage is the time savings for the customer when getting started with a CRM.

Custom CRMs are systems created by developers entirely from scratch for a specific client. Such projects come with many more benefits:

• Complete customization. The client gets a product designed around their unique needs, with its own design, architecture, and features.
• Cost efficiency. While the initial development costs more, savings are realised by not having monthly or yearly subscription fees, making a custom CRM pay off relatively quickly compared to a cloud system.
• Additional functionality. Experienced developers can build in any features that off-the-shelf CRMs don’t offer, making the system easier to work with.
• Streamlined interface without unnecessary clutter. With a custom CRM, you can forget about confusing menus, ads, dozens of irrelevant pages, and other extra options. The software will contain only what you actually need.
• Independence. Did the provider of your cloud CRM raise subscription prices, roll out a failed update, or suffer a data breach? With your own system, you don’t have to worry about that; everything depends only on your requirements and your developers’ expertise.

In comparison, custom solutions are almost always more advantageous for clients. However, if building your own CRM isn’t an option right now, you can consider one of the ready-made systems instead. To make things easier, we’ve put together a list of popular cloud CRMs available internationally. Keep reading for CRM systems examples and learn more.

Comparison Table: SaaS vs. Custom CRMs

CRM Requirements Checklist for 2025

Have you ever wondered why some companies use their CRM with ease and scale smoothly, while others constantly struggle with integrations or security gaps? It all comes down to setting the right requirements from the very beginning.

• Security. Two-factor authentication, single sign-on (SSO), user activity audits, backups, and GDPR compliance – this is the foundation for working with customer data.
• Data and Analytics. A comprehensive 360° customer profile, flexible reporting, and seamless integration with BI systems enable you to track sales trends and pinpoint growth opportunities.
• Integrations. Open APIs, webhooks, iPaaS, or ESB connectors allow you to quickly connect a CRM with ERP, accounting, marketplaces, or call centers.
• Scalability. The system must handle peak loads and remain stable as the number of users and data increases.
• Migration. Correctly importing customer history, cleaning up duplicates, and running test migrations are essential for a smooth transition to a new platform.
• Administration. Clear roles and access rights, control over data visibility, and transparent monitoring of activities within the company.

At Asabix, we build CRMs that meet all these requirements and adapt to your business processes. Next, let’s examine the ready-made and custom solutions available on the market and how they differ.

CRM Systems: Overview of Benefits and Costs

The CRM market today is vast, from local developers to global giants. International solutions stand out with their extensive functionality and thousands of integrations. They are the go-to choice for companies seeking proven platforms with a long track record and worldwide support. Let’s look at some of the best CRM systems.

Pipedrive

A CRM designed for sales teams. Its main advantage is the ease of setup. All it takes are three steps:

1. Set up your sales pipeline. Either from scratch or using templates. Deals can be imported automatically from another CRM or spreadsheets.
2. Track progress. Automated notifications and reminders help managers stay on top of deals. As opportunities progress, sales forecasts are updated automatically.
3. Scale your business. Built-in AI technologies and analytics make this possible. Automating routine tasks frees up time for innovation and new customer acquisition.

The CRM offers a wide range of features, detailed on the official website. Pipedrive offers five pricing plans, ranging from Essential ($14/month) to Enterprise ($79–$ 99/month), with annual billing. There are no user limits, and extra modules (such as LeadBooster or Projects) can be added as needed.

Zoho

Zoho is a CRM for small business as well as for mid-sized enterprizes. It’s the best cloud crm small business when you need quick results without detailed technical specifications or developer involvement. Key advantages include:

1. lead management and conversion to customers;
2. built-in competitive analysis;
3. detailed tracking of deals, related contacts, products, and expenses;
4. integration with 800+ apps and a ready-made solutions marketplace;
5. AI-powered forecasting based on available data;
6. extensive customization options, including the Canvas Builder;
7. ability to create custom automation functions.

Zoho CRM as the best CRM small company offers a free plan for up to three users. Paid plans start at about $14/month (Standard), followed by $23 (Professional), $40 (Enterprise), and $52 (Ultimate) with annual billing.

ClickUp

Another CRM system example, initially built as a project and task management platform, ClickUp also offers CRM capabilities. Its strengths in customer relationship management include data visualization, marketing automation, and streamlined communications. Regardless of the industry, users can tailor ClickUp’s features and tools to their specific needs. It’s well-suited for marketers, customer support engineers, and finance teams. Key benefits:

1. increased sales;
2. streamlined business process management;
3. improved collaboration within teams;
4. coordinated customer service.

ClickUp is award-winning and trusted by companies like IBM, Netflix, and Logitech. It offers a free plan (Free Forever) with basic CRM features. For teams, paid plans are available: Unlimited ($7/month) and Business ($12/month), with annual billing. The Business Plus and Enterprise tiers are available upon request.

Salesforce

Salesforce is one of the best CRM for small law firms, also designed for companies in finance, retail, healthcare, it's also the best CRM for small manufacturing business, and many other industries. Its strengths include:

• deep customization;
• advanced reporting;
• integration with 1,000+ platforms;
• intuitive interface;
• robust lead management capabilities.

Salesforce provides a 30-day free trial for evaluation. Pricing includes a free tier as well as basic, standard, professional, and enterprise plans.

HubSpot

Another standout CRM is HubSpot. The platform encompasses all the necessary tools for sales, marketing, customer service, and other business operations. Key benefits:

• Intuitive interface. Easy for beginners to learn and use.
• Built-in integrations. Syncs data with Gmail, Slack, Salesforce, and other apps.
• Scalability. Pricing plans are available for small, medium, and large businesses.
• Accessibility. Strong customer support and documentation simplify adoption.

HubSpot makes it easy to manage customer interactions and data throughout the customer journey. Pricing details are available on the company’s official website, as costs depend on specific business needs.

When Custom Pays Off: The TCO/ROI Logic

There are moments when a cloud CRM becomes cost-ineffective and starts hindering growth. Here are the key signals:

• 40+ users. Subscription costs grow exponentially, and after 2–3 years, you end up paying more than it would cost to build your own system.
• Complex processes. Multi-level approvals, multiple legal entities, unique pricing or document workflows – SaaS platforms struggle to handle these.
• Integrations. ERP, accounting, warehouse, call center, marketplaces – if everything needs to work together in a single ecosystem, custom solutions win on flexibility.
• Security. If data must be stored only within your infrastructure, you need your own storage policies, access control, and local backups.
• BI and analytics. Forecasting, custom KPIs, and machine learning – standard solutions often fail to provide the flexibility to go beyond basic dashboards.

Example calculation. A company with 100 employees pays on average $20 per user per month. That’s $2,000 per month or $24,000 per year. Over three years, the total exceeds $70,000. A custom CRM development software is a one-time investment with minimal ongoing support, and from the second year onward, it begins to save money. In such cases, custom-built CRMs quickly pay for themselves and turn into a strategic advantage for the business.

How Asabix Delivers Turnkey CRM Development

At Asabix, we don’t treat a CRM as just another piece of software; we see it as the core of business management. That’s why every project begins with a deep analysis: we review your processes, identify needs, document requirements, and check which systems are already in place. This ensures we build the right architecture from the start. Next, we create a prototype and define modules, user roles, and access levels, so you immediately see how your future CRM will look. At this stage, we also plan integrations with ERP, accounting, marketplaces, or call centers.

Within 8–12 weeks, we launch an MVP – a working version with key scenarios. This allows you to test the logic in practice and quickly see results. From there, we gradually add automations, advanced reports, and partner integrations. We also carry out secure data migration: transferring customer history, cleaning duplicates, and running test migrations. After launch, we train your team and provide ongoing support to ensure the system evolves together with your business.

Conclusion

A CRM system is still a relatively recent type of software, designed to automate and streamline how businesses interact with their customers. From viewing customer data and segmenting audiences to setting up campaigns and sales funnels, as well as managing teams and assigning tasks, all of this and more is possible within a modern CRM.

Whether you're looking for the best CRM for small construction business or the best CRM for small consulting business, the market offers dozens of cloud solutions, both local and international, but in many cases, the best option is a fully tailored platform. At Asabix, we develop CRM systems of varying complexity for businesses of all sizes. Our custom CRM development services include API integrations, custom design, and the addition of any required features, among other services. With a team of professionals who each bring over 5 years of experience, we know how to build the perfect custom CRM that delivers measurable results and grows with your business.