Construction Business Owner, December 2007

With all of the equipment, materials and craftsmanship involved, it is easy to lose sight of the fact that construction is, first and foremost, a people business.

Your business operates on who knows you and who trusts you.  Who do you know, and who do you trust?  Who do you call to bail you out of a fix? Who calls on you to bail them out of a fix?

Unfortunately, people businesses don’t function well when you drop out of the scene. People businesses feed off constant touch. Your customers, prospects and peers need reassurance that you value them as business associates and friends. They require little reminders that you’re out there and care about them.

Construction is also an insanely hectic business. Due to the unyielding deadlines, contractors tend to spend their available time getting the work done while letting slide their sales and marketing efforts. You probably could use a reminder to set aside the fire fighting and make the calls, write the letters and go to the meetings that keep your network alive and vibrant.

The tool that gives you that much needed reminder is a contact management system—your calendar, your address book and your to-do list. We all have them in one form or another. Some of us use post-it notes and a rolodex file. Others use blackberry’s. Yet, others rely on their personal assistants. (Who wouldn’t love to have one of those?)

What about Customer Relationship Management Software (CRM Software)?

How about a little test?

• Do you have a photographic memory for names and personal information?
• Do you have less than ten customers and prospects?
• Do you have enough repeat business?
• Do you land work with one phone call?
• Can you find letters, proposals and e-mails quickly and easily?
• Are you the only person in your office needing access to your contact information?
• Do you get your five most important to-do’s done every day?
• Are you always on time for meetings and scheduled phone calls?
• Do you recall every deadline from the top of your head?
• Would a systematic direct mail advertising campaign be a complete waste of time?

If you answered “No” to any of these questions, you might benefit from CRM software.

If you answered “No” to more than half of them, you should be using CRM software.

If you answered “No” to most of the questions, you need CRM software.

Paper Versus Computer

As noted, many contractors jot down to-do lists, appointments and contact information on note pads and calendars. They feel this approach works perfectly fine for them. In most cases, it doesn’t. If you are relying on a paper system, you are probably missing out on quite a few sales opportunities.

If you were a commercial plumber or electrician, could you be cost competitive using ladders to reach twenty feet high structures when your competition was using lifts? No. The same holds true for contact management systems. Paper systems just don’t provide the results that CRM software provides.

It’s time to join the twenty-first century. CRM software offers so many advantages over paper systems. It keeps you from missing important meetings and appointments. It reminds you of important tasks. The quick access to contact information eliminates wasted time, no matter where you happen to be. (Wait until the first time you find yourself in need of someone’s number or address, and you remember it’s right there in your cell phone because you keep it synchronized to your computer.) CRM systems help you track your income opportunities and provide powerful reports for managing the growth of your business.

There are two primary benefits of using a computer-based CRM. First, everything can be found in one place—every e-mail, letter, appointment, call and to-do is listed in the contact's screen (see image below).

Second, what happens when you do not complete a task in your planner? You have to rewrite that task on a future date (if you remember!). An electronic CRM automatically rolls over your uncompleted calls and to-do's.

However, the true value of a CRM program is its ability to be useful out-of-the-box. Most programs integrate seamlessly with your current e-mail program and word processor making your life easier by streamlining tasks. You should have virtually no downtime when you install a CRM once you get your contact information loaded.