Why Construction CRM is More Important than Ever in 2024

Anyone who has been a quota-carrying sales rep probably has bonded deeply with one or more customer relationship management (CRM) software products. Entrepreneurs too value the efficiency CRM brings to project pursuits, enabling them to bid more and grow.

But with ABC's Construction Backlog Indicator creeping up and up, reaching 8.4 months in June of 2024, do contractors still need construction CRM to help them grow?

The simple answer is YES.

Even when capacity is stretched, Construction CRM is important. Why is this?

• Construction CRM can reduce the amount of time required to bid, saving indirect cost

• Efficient processes may help a contractor bid more if they want to, without a corresponding increase in staff hours consumed

• The go-no-go decision is critical if contractors want to make the most of finite resources, and construction CRM will often enable contractors to identify the most profitable projects to pursue

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CONSTRUCTION CRM UPDATE

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In our new CONSTRUCTION CRM UPDATE, viewable with free site membership, contractors will get a quick snapshot of:

• Types of software that deliver CRM functionality for construction

• Emerging developments in functionality offered

• A breakdown of who is a fit for various construction CRM software products

How to Select Construction CRM

Contractors embarking on a selection cycle for software used in business development and sales ought to plan their steps in advance, perhaps with a dedicated construction software consultant who guides contractors through the process. Common steps include:

1. Identifying Requirements: Specific needs of a construction business may be driven by the type of contract they work under (negotiated versus hard bid), project length and complexity and length of the sales cycle. Each will impact what features are essential in a CRM system.

2. Identify a Short List: Doing online homework and asking trusted people in a professional network should yield a list of three or four products for close consideration. Pursue demos with these vendors, pushing them to address more challenging or exotic parts of your operation that may be missing from some packages.

3. Evaluate Costs Versus Returns: Consider the pricing structure of the CRM software, including initial setup costs, licensing fees, and ongoing maintenance expenses. Then, determine the payback, be that in additional bids that can be submitted, time saved by eliminating duplicate input or margin realized by pursuing more profitable projects.

4. Consider Integrations: Ensure that the CRM software can integrate with other tools and systems used in the construction business, such as project management software or ERP. If a product lacks a standard integration with your specific ERP, some vendors can stand up a new integration in hours, while others take months.

5. Trial Period: Beware of trial periods. A trial period may be fine to enable your team to see the software, but you won't know how it works until you commit to it across departments affected by the new data flow and processes and realize organization-wide benefits.

READ MORE IN OUR MEMBERS-ONLY CONSTRUCTION CRM UPDATE