January 29, 2024

What is a CRM for Construction and Why Should You Want One?

Discover how CRM can play an important role in the construction industry. CRM can help streamline your operations, improve communication with clients, and increase productivity.

The construction industry is highly competitive and operates at a fast pace. There are many variables that can affect the day-to-day workflow of contractors. Owners often put in long, hard hours to keep things moving forward, satisfy customers, and make a profit. Balancing all of these responsibilities can be challenging. That's why having reliable Customer Relationship Management (CRM) software is crucial for success in construction. Companies looking to streamline operations, stay organized, improve client communication, and boost overall productivity will need to have a CRM in place. 

What is a CRM for Construction? 

A CRM for construction is a specialized software solution designed to meet the needs that are unique to construction companies. This software serves as a central hub for managing interactions with clients, employees, subcontractors, suppliers, and other people that play a crucial role in the construction process. It helps service contractors to maintain relationships with key stakeholders, manage their projects efficiently, and streamline their operations.

There are many CRMs out there. Each one has different features and things they are especially good at. Here are some features that construction CRMs typically have:

1. Client and Lead Management

With client management, you are able to track and manage potential leads and clients. You are able to keep track of contact information, project requests, requirements, project history, and communication history. This serves as a central place to organize your clients so when they call you can easily look them up and discuss projects and details with them. It allows companies to effectively manage sales processes and for multiple people to view, help, and respond to client inquiries. Having effective Client and Lead Management Processes helps manage the communication, estimating, and lead nurturing process. This helps boost and increase sales productivity, turning more leads into paying clients, thus boosting company productivity and profitability.

2. Project Management

In construction, production is just as, if not more important than sales. CRMs are a central point to organize, manage, oversee, and optimize production. With an effective project management software, you can organize and manage project details, timelines, budgets, spec sheets, photos, time sheets, materials, and many other items pertinent to a project. CRM project management features can also keep track of all project related communication, estimates, change orders, documents, plans, contracts, and communication history. Having this information all in one central place is a huge boost to team productivity, and delivering client satisfaction.

3. Communication Tracking

Communication and communication history can help make for a smooth sales and production process. Having a CRM in place, there are features to keep track of this communication between you as the business and the client. This history can help alleviate questions, frustrations, and potential disputes as jobs progress. CRMs can also keep track of communication with subcontractors, employees, sales team members, and suppliers. By having a centralized place to keep all communication, businesses can eliminate a lot of back and forth, searching for information, and really boost efficiency. Communication hubs also help schedule follow-up tasks, appointments, and reminders to stay on top of important tasks. 

4. Document Management

With construction projects, there are a lot of documents and information that pertain to each project. Being able to have a central location to keep track of the document history makes projects run smooth, keeps business owners organized, and makes clients happy. You can store and manage drawings, permits, and contracts. CRMs also allow for team collaboration by allowing team members to access and update documents as needed. Having a history of signed documents, estimates, pricing, change orders, and other things makes a big difference for contractors. 

5. Reporting and Analytics

There is a saying, “that which gets measured, gets improved.” Being able to have data to  review and improve operations is crucial for construction business success. Without a CRM, it is virtually impossible to track, manage or view data. CRMs can help construction businesses have easy access to view and manage data, thus improving decision making. With time, reviewing data, businesses can make improvements on pricing, processes, and accountability. Reporting data and helping team members compete with each other based on numbers and transparency has been found to boost productivity in organizations by 30%. You can also see and monitor which marketing campaigns are working, what sales processes work best, and how to shave time from production processes to stay on time and on budget. All of these allow businesses to find ways to improve and grow. 

Why You Should Want a CRM for Your Construction Business

Now we have covered some basics of a construction CRM, hopefully, you are getting a clear picture as to how it can help a service contractor grow and make more money

Let’s dive a little deeper into how it can help businesses grow:

1. Enhanced Client Relationships

Just like with any business, relationships are everything when it comes to running an effective construction company. Using a clear communication history helps provide streamlined communication and transparency. This allows customers to feel informed and trust your business more. As a business, you can stay informed about client needs, preferences, thus allowing you to trailer your services accordingly. 

2. Streamlined Project Management

If you want referrals and repeat clients for long term success in construction, you need to have amazing project management. Without a CRM, this is almost impossible. With a CRM, it helps construction companies stay organized and on point. Thus boosting customer satisfaction, the likelihood of good reviews, referrals, and repeat customers.

3. Improved Lead Conversion

Increased close percentages boost revenue and profits. You’ll need to spend less to acquire a paying customer, you can service more clients, and keep your team members busier with work. Using a streamlined estimating software combined with a great communication and client management portal will help boost lead conversion and increase overall profits. 

4. Increasing Productivity

In order to increase the bottom line, boosting productivity is crucial. CRMs can manage documents, scheduling, communication, checklists, and many other things to improve your team’s performance. Increasing productivity means you can increase profits and free up yourself and other team members to accomplish more in less time, take on more projects, and focus on tasks that grow the business.

5. Data-Driven Decision-Making

CRM generated reports and dashboards are key players in helping businesses have more insights and make better decisions. Having data is better than going off of gut feeling and helps leadership to make better, unbiased decisions. Data at your fingertips will help you have a more clear picture of what is working and what isn’t working and make improvements as you go. The transparency of reporting will help team members compete and take their performance to the next level. 

Summarizing, a CRM for service contractors is becoming more and more important for construction businesses (or maybe home service contractors?). Soon those who don’t adapt a CRM will be left in the dust. It is a strategic asset and competitive advantage that can help take your construction business to the next level. 

A MotionOps, we have created a state of the art software to empower contractors to grow their business. If you would like to see what we have created, check out our website.


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