Initial Investment vs. Ongoing Costs

Custom CRM:

• Initial Investment: Higher upfront costs for development, customization, and implementation.
• Long-Term Costs: Lower ongoing costs once the system is established, with maintenance and support expenses.

SaaS Licensing:

• Initial Costs: Minimal upfront investment, primarily subscription fees.
• Long-Term Costs: Continuous subscription payments, which can accumulate over time and potentially exceed the initial investment of a custom solution.

Scalability and Adaptability

Custom CRM:

• Scalability: Easily scalable as business needs grow, with the ability to add new features and integrations tailored to specific requirements.
• Adaptability: Flexibility to evolve with changing business processes and technological advancements.

SaaS Licensing:

• Scalability: Limited scalability options based on the provider's feature offerings and pricing tiers.
• Adaptability: Less flexibility for extensive customization and integration with existing systems beyond what the SaaS platform supports.

Return on Investment (ROI)

Custom CRM:

• ROI: Potentially higher ROI over the long term due to tailored features that directly address organizational needs, leading to improved efficiency, productivity, and customer satisfaction.
• Cost Savings: Savings from operational efficiencies and reduced dependency on ongoing subscription fees.

SaaS Licensing:

• ROI: Immediate ROI from quick deployment and lower initial costs, but may plateau as subscription fees accumulate.
• Cost Considerations: Total cost of ownership (TCO) may increase over time, especially with additional fees for user licenses, premium features, or exceeding data storage limits.