The benefits of effective customer management aren’t always obvious. It’s hard to connect an exact dollar amount to a good conversation or a few hours saved here or there, but the numbers show that customer relationship management (CRM) software has a massive impact on overall company effectiveness and customer lifetime value. A recent report found that 74% of users said CRM software improved their access to customer data, while 64% said it improved relationship management. Big picture, this means that the CRM ROI for every dollar spent on CRM software is around $8.71. That’s a pretty solid return.
With numbers like that, you can see why construction CRM is one of the most critical tools to help grow your business. Here’s how to maximize your CRM return on investment.
Understanding the ROI of CRM Software for Construction
In the construction industry, projects can range widely and represent millions of dollars, meaning any margin for error is narrow and critical. One frustrated customer can cost you both won projects and earned dollars further down the line. That’s why a CRM’s return on investment in construction is so significant. With the right CRM platform, you can benefit from improved efficiency, streamlined processes, higher win ratios, enhanced collaboration, better decision making and stronger fiscal health. Each one of these factors contributes to a more profitable operation overall.
Improved sales revenue is a key performance indicator reflecting any CRM’s impact on sales efficiency and customer acquisition, showcasing its strategic importance in calculating return on investment and overall business success.
But you can’t expect this kind of ROI merely by having any CRM in place, or even the right CRM – you also need to know what to do with it. The key is identifying metrics with the most impact on your ROI and tracking them so you can both adapt to changes and make the best decisions. Good CRM software will highlight metrics like sales numbers, bid and quote time, and customer retention so your team has the data they need. Once you’ve got software that lets you track that information, it’s time to start building a foundation that will help you maximize benefits.
Setting the Foundation for Success With Your Construction CRM Implementation
You’ve chosen a CRM, and you’re ready for CRM implementation — but you’re not exactly sure what to do next. Before forging ahead, you need to make sure you actually are ready to implement it. Here are a few key questions to ask:
- Have you set clear objectives? Make sure everyone understands why the company is using the CRM and how it will benefit the business and individual stakeholders. Consider meeting with members of your team that will spend significant time with the software and clearly outline goals and timelines. If you can start with everyone on the same page, like any effective start to a building project, it makes long-term positives much more attainable. Having a well-defined CRM implementation strategy is crucial for success.
- How are you going to get buy-in? Adapting to new ways of doing things can be hard – particularly for a team set in its ways. Top-down support from leadership for the CRM system and champions within each department is important. Also, consider ways to incentivize employees to familiarize themselves with the system by showing how it will make their jobs easier.
- Have you established an internal process review? You need to document and refine internal CRM processes — with particular attention to data entry and management. If you start the process and have your team collect a massive amount of data without a clear path for it to follow, you’ll end up with huge spread seats full of numbers that you have no idea how to interpret.
- Have you set up training? Just like any other software, CRM software has a learning curve. Make sure everyone understands the CRM’s features and how to use it for specific tasks. Some CRM providers offer workshops and training to make sure you are getting the most out of your software.
Depending on the CRM software you choose, implementation can take close to six months; TopBuilder’s average implementation time is 30-60 days. Because TopBuilder is construction-specific, we know the issues that come with implementing CRM in construction and can deal with them quickly.
Customer Data Is Key: Ensure It’s Accurate and Complete
The truest source of ROI from CRM software is in how you use data. When the CRM is usede correctly, you have real-time access to high-quality data and can make better, faster decisions. In short, it means you make fewer mistakes and spot more opportunities. Accurate data can also significantly improve customer satisfaction and retention for future projects. But to take full advantage, you need to ensure you are using best practices around CRM data. We can break data best practices down into four basic categories: data entry, data validation, data cleansing, and data ownership.
While it may not seem complicated, data entry is often one of the trickiest aspects of the process. Mistakes made here tend to trickle throughout the system. That’s why sticking to specific protocols is so important. Clear rules for all team members on data formatting let you build a unified and organized database.
Data validation rules are also important because they prevent inconsistencies and inaccuracies. Best practices here range from mandatory fields to data segmentation, all working toward streamlining the process.
Along the same lines, data cleansing involves getting rid of outdated data, fixing formatting issues, removing duplicate data, and scheduling data inspections. These let your team focus on valid leads with the best chance of success.
Finally, deciding exactly who is responsible for each aspect of the database is the key component of data ownership. When your team knows who’s responsible for what, they can avoid mistakes.
Not only does smooth data management help streamline workflows, considering other potential software integrations, it means that that same data can benefit other aspects of your business. For example, what you know about customers can help accounting, management, and every other department through advanced business intelligence.
High-Value CRM Features That Help You Win More, Faster
You’ve got the data sorted, cataloged, and ready to use in the best way possible — now you need a CRM tool with features that change that data into sales for the maximum ROI.
A top-of-the-line CRM for construction will have features like advanced bid management, customer and project tracking, and document storage and management. These let you stay on top of projects as they come together. As projects develop, relationship management, team collaboration, and business intelligence features are also important in making sure projects stay on track. To handle this many features, you also need customer reporting tools and dashboards that make it easy to find the information you need when you need it.
Effective CRM systems can enhance sales efficiency and customer acquisition, allowing sales teams to concentrate on acquiring new customers and optimizing their overall sales strategy.
The Most Important Way to Maximize ROI: Choose the Right CRM
There are many options out there, but not all CRMs are equal. Generic and major player CRM platforms and ecosystems lack features that construction companies need, and they often are loaded with features that aren’t particularly useful for your industry. No one wants to payfor things they won’t use, just as you wouldn’t plan for a gymnasium in a funeral home building project. But a CRM designed for the construction industry, like the one we’ve developed in TopBuilder, offers a suite of tools tailored to contractors’ and subcontractors’ needs. Investing in the right CRM is crucial for maximizing your CRM investment and achieving the best ROI. TopBuilder’s unique features — like comprehensive bid management tools, integrations, an easy-to-use interface, mobile accessibility, dashboards, and business intelligence — make it the right choice for any construction company seeking stronger, more cohesive operations or looking to scale.
A CRM solution like TopBuilder can significantly increase revenue and improve business processes by aligning operations within the CRM to optimize its – and your – effectiveness.
Schedule a demo with TopBuilder to see just how good your ROI can be.
