Why CRM for construction company is crucial? Which one to implement?
The Great Recession was catastrophic for the global economy as nearly all the leading market sectors faced significant revenue decreases. Today, industries tend to grow again. Construction companies that are historically strongly linked with housing and real estate suffered from the US subprime mortgage crisis in 2007-2010 but now they also move back to high profits.
2018 was pretty successful for the construction industry because it added nearly 280,000 new jobs, lowered workers’ deaths, and attracted venture capital. Precisely, ConstructConnect reports that the total construction spending was around $1.31 trillion or 5.4% more in comparison to 2017. The forecast for 2019 is $1.37 trillion.
However, growth rates slow down, which means that enterprises have to find advanced approaches to remain profitable. One such tool is CRM for a construction company – software that focuses on attracting and retaining customers. Further, we will explore the idea behind CRM, the key advantages of such systems, and the best products.
Check out a related article:
B2B CRM: A magic wand to stay competitive
Understanding the industry and CRM for a construction company
Let’s begin with a plain but essential idea: all businesses which work with either individuals or entities and earn money through this interaction have to maintain their relations with clients. Especially it’s valid for industries with high spending. Thus, construction management software is mandatory as potential faults will result in insane expenses, loss of reputation, and even bankruptcy. To realize the industry’s value, check insights on the total construction spending in the US from 1996 to 2017: the last year features more than $1.2 trillion ($280 billion for the public sector and $951 billion for private one).
As for exact industry sectors, their stats are mixed. Numbers are for 2017 compared with 2016:
- Commercial construction: +11% spending.
- Home improvement: +14% spending.
- Amusement and recreation: +5% spending.
- Transportation construction: +4% spending.
- Manufacturing construction: -16% spending.
- Power and energy construction: -5% spending.
The problem is that a lot of companies have significant issues with the digitizing process. As McKinsey reports, nearly one-third of the gap is related to this stuff so far as businesses slowly and poorly introduce digital assets and workflows. Roland Berger notes that corporations can benefit most from this digitization. Hence, both on-premise and web-based construction management software may be a real finding because it’s all about digital management and a personalized approach.
Our developers’re ready to share ideas about CRM software, its definition, and features.
The structure of CRM for a construction company
Basically, CRM includes a few tools like databases and dashboards, but there isn’t a single and universal set. Every developer includes different features, while tailor-made solutions are based on your wishes. Let’s say you want custom construction management software and ask us to develop it. After the initial business analysis, we (and other developers who create different modules) can offer the following tools:
- Construction/project management. Set and track tasks, use electronic records with e-signatures, set alerts, and access integrated data related to plans.
- Business project management. Get suitable BPM systems to check and modify past, current, and upcoming business processes.
- Warehouse management. Always know about your resources, check available materials and workers, and track their movements.
- Job costing/estimation. The title says it all. Check the price of any procedure or deals, track receipts and reimbursements, and evaluate time costs.
- Budgeting module. Finally, calculate salaries, create financial reports and balance sheets, manage cash flow, and so on.
With it, you can easily oversight and control everything from the building process to finance while your workers and clients will get access to key data. Hence, all parties will feel engaged.
Most valuable benefits of construction management software
The strengths of CRM for any sphere are pretty similar because the system is focused on the general streamlining of all your processes. There are various tools for different industries, but we will focus on four primary advantages of CRM for a construction company.
1. Process tracking
Using old-fashioned Excel sheets or even paper documents to track tasks is extremely inefficient. Modern CRM let your sales reps keep in touch with clients and always know even the smallest details of any given project. Using digital systems, you can monitor bids, new leads, marketing campaigns, follow-ups, and so on which means your corporation will be more profitable without unnecessary fails and losses.
Simpler, CRM for construction company answers the next questions instantly:
- What projects do you have, and what are the bids for them?
- What stage of the sales process is it now?
- Who is responsible for projects?
- Which tasks you’ve finished, and what you have to do later?
To be honest, you can’t answer them without software.
2. Data accessing
Apart from tasks and projects, CRM lets your staff access any info related to affiliate organizations, individual clients, financial authorities, and so on. Using a single system, you are able to get a split-second report on:
- Subcontractors.
- Architects.
- Banks.
- Clients.
Documents, contact info, historical data, analytics, reports – construction management software is universal for getting data.
3. Routine tasks automation
Moving further, let’s talk about automatic stuff. We bet that your employees monitor sales, relationships, contracts, and warranties manually, as well as conduct marketing campaigns and check expenses. CRM for construction companies makes these things automated: the system cares about small tasks, daily alerts, notifications, and calculations to free up managers and let them do more creative work, like real interactions with customers.
4. Business streamlining
Finally, the basic benefit of any CRM is the optimization of processes. Using such managerial tools, you are able to speed up everything using already mentioned automating, simple tracking, and all-around data coverage. Web-based construction management software frees up resources while stand-alone solutions adapt to your requirements making the business even more efficient.
Choosing the best CRM for construction company
As you remember, the excellence of CRM depends on your needs. Some companies are happy with free basic software because they don’t require more complicated stuff. Large enterprises want to get all-in-one solutions, although. This means, before choosing and ordering a product, you should evaluate the performance, set goals, and check what you really need.
Then, you may want to look for the general features of any CRM for construction company described earlier. Finally, if you have a dedicated expert, consult with him or her. This person will integrate the system and import data from your previous platforms, so be sure that he/she is comfortable and familiar with the chosen product.
Examples of stand-alone and web-based construction management software
Managerial systems are popular things, so different companies develop them. You can easily find universal programs for enterprises, customizable solutions for small businesses, and certain industry-specific tools designed for your needs exclusively. CRM for construction company is a really useful tool which is proven by the leading international contractors. Top-rated worldwide companies use such systems to boost the experience of their clients. While Chinese corporations rely on in-house solutions and don’t disclose their developments, other teams are more transparent:
- ACS (Spain) has an unnamed computerized CRM.
- Hochtief (Germany) partners with Anywhere 24 and Aurex.
- Vinci (France) uses CRM developed by BSI.
- Bouygues (France) works with Salesforce but for the Telecom department only.
- Skanska (Sweden/Czech Republic) implemented Microsoft Dynamics CRM.
Simultaneously, Strabag (Austria) and TechnipFMC (the UK) have CRM managers but also don’t reveal which software they’re using.
There are a few types of software but let’s look at the simplest classification. According to it, CRM for construction company (and any other CRM, surely) can be hosted by a developer via cloud services or deployed on your own server:
- Web-based construction management software. These apps are fully controlled by creators who share them with clients. Cloud solutions are cool because you don’t have to care about deployment and tuning them but they are pretty limited when it comes to customization.
- On-premise CRM for construction company. These products are based on your own server, so be sure that you have enough resources to maintain them. Usually, developers allow modifying on-premise CRM. Plus, such systems are a bit more secure because you protect local storages and don’t rely on third-party clouds.
Ultimately, it always depends on your company’s purposes, so be sure to find the best product with perfect integration and support. If you need something unique, contact us and we will discuss all requirements to create the ideal CRM, help you to import data, test software, and maintain the system afterward. We always focus on the best result and feature quote-based prices instead of hourly rates.
A final word
When it comes to choosing CRM of your dream, it may be difficult. But spend some time to find the perfect match, so you will avoid a lot of pain during the integration stage. Knowing the company’s goals, you will be able to install CRM without the need for future costly upgrades, as well. If you focus on ready-made products, remember that developers charge monthly or annual fees per user. Prices start from $25 for read-only plans (reports and dashboards), while standard solutions cost approximately from $50 to $100. Also, remember about launching fees which start at $1000.
Still, we suggest considering fully-customizable CRM for construction company. Our team creates such systems to meet the requirements of even the most complex corporations with unusual business tasks. You can specify all needs, and we will calculate the project’s cost without hidden fees. Contact us now to get the product!
