Could CRM software help your construction business?
September 18, 2024
When you read the words “construction software,” the first thing that may come to mind is an application that helps you plan or execute projects. Although this is certainly common, don’t forget there are also plenty of front-office technology tools to consider.
Just one example is customer relationship management (CRM) software. As its name indicates, this type of application is designed to help companies track and manage their relationships with customers. But, for construction businesses, carefully selected, properly implemented and effectively used CRM software can do so much more.
Tracking bids and projects
The truth is, CRM applications enable companies to track and analyze not only customers, but also any person or entity with whom the business interacts.
For contractors, this of course includes project owners who accept your bids, as well as those who don’t. However, in addition, it can include government agencies, architects, engineers, subcontractors, suppliers, lenders, investors, professional advisors, inspectors and consultants.
Essentially, the software enables you to gather all the contact information and interaction details you already have — either written down on paper or stored in multiple spreadsheets or perhaps in various people’s email accounts — and organize them into a centralized, widely accessible database.
By putting this critical data about customers and other parties at everyone’s fingertips, a CRM application can improve internal communication and minimize the chances that an important lead or vital contact falls through the cracks. More specifically, the software often helps construction businesses:
- Better use information about project owners (current, past and prospective), jobs (existing and those in your backlog), all the aforementioned parties and even competitors,
- Track bidding and sales activities, including relevant communications,
- Alert key personnel to critical tasks or deadlines, and
- Maintain a library of past projects and bids, with data such as “win-loss” records and notable successes and failures, by client, industry, sector, location and other factors.
In addition, the data you gather and analyze with your CRM application can help you identify the types of bids with the highest win probability and the kinds of jobs that are most likely to be profitable.
Managing jobs
Once you’ve won a bid, CRM software can help improve project management. For example, suppose the owner or developer contacts your construction company with a question or complaint about the job. In such cases, the application provides your personnel with instant access to relevant facts and any recent communications on the subject.
You may also be able to better coordinate relationships with subcontractors, architects, engineers and regulatory agencies. This can help you more efficiently fulfill permit requirements and optimally handle change orders.
And, like so many types of software today, most, if not all, CRM applications are now cloud-based. So, authorized personnel can access and update the data using their laptops, smartphones or other mobile devices from anywhere in real time — including jobsites.
Making a smart purchase
CRM applications offer great promise and robust functionality, but that doesn’t mean you should rush out and buy one without regard for cost and return on investment.
If you decide to buy CRM software, shop carefully for a product that is, first and foremost, cybersecure. Beyond that, it should suit your construction business’s distinctive needs and integrate well with other systems you have in place. Contact our firm for help identifying and controlling your technology costs, as well as managing the tax impact.
© 2024
