Do You Need Customer Relationship Management Software?

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.

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.

Available Packages

Back in the 1990s, dozens of software companies offered CRM packages. Eventually, the market determined the winners and the losers. The following packages have survived and are considered to be reliable and functional.

Packages for small and medium sized companies:

• ACT!—ACT! is the most popular CRM program, primarily due to its user-friendliness and comprehensive features. ACT! is easy to install on a single computer, easy to learn and full of powerful features to help you run your business profitably.

• GoldMine—Like ACT!, GoldMine survived the consolidation. It trails ACT! in popularity, but has a loyal following and offers most, if not all, of the features of ACT!. Several consultants install and train GoldMine.

• Microsoft Outlook—Although Outlook is not a full-featured CRM program, it does perform the basics well. Outlook does not provide the sales management piece that many CRM packages do.  Outlook works well as an introduction to electronic contact management.

Packages for large companies:

• www.Salesforce.com—As the name implies, this is a full bore customer relationship management program.  As the “.com” implies, it is designed to run over the Internet. It has powerful sales management features. It is accessible anywhere Internet service can be found. It can download the contact information to your computer, which prevents you from having to go online to check your schedule or access a contact’s information.

• Microsoft Dynamics CRM—Dynamics CRM is Microsoft’s attempt to turn Outlook into a true CRM program. Microsoft designed Dynamics CRM to work seamlessly with Microsoft Office and other Microsoft programs. Dynamics CRM works inside of Microsoft Outlook. It is highly customizable and highly adaptive to various access needs (onsite, over the Internet or with handheld devices).

CRM Selection

Once you’ve decided your business needs to start using customer relationship management software, here’s how to pick the right package.

Your CRM choice should be governed by:

• The number of people who are going to use it

• Whether you are going to put it on a server

• Whether you are going to synchronize it to a cell phone or PDA

• Whether you will need to access the information remotely and the availability of expert support

When Choosing a CRM System:

1. Write down the types of tasks you wish to perform and the automation you would like to have.
2. Interview a handful of CRM consultants. Show them your list of expectations. Quiz them on the features of the packages they are expert in. Ask them about available training (preferably online videos).
3. If you can’t find a qualified CRM consultant locally, look for one who can work with you over the telephone and via the Internet.
4. Narrow your choice down to two consultants. Check their references. Select the one who best understands your needs and will be the easiest to work with.
5. Choose the software that the consultant recommends.

CRM Implementation

Step 1—Hire a temp or part-time high school student to gather up your business cards and rolodex entries and type them into your CRM program. You might find buying a CardScan ($259.00) to be worth the cost. It’s not completely hands-off, but it will greatly speeds up the process of transferring business card information.

Step 2—Have your consultant set up the software for you. The software is almost always more capable than your business needs it to be. Have the consultant install the software, customize the interface to your exact needs and set up a back-up procedure.

Step 3—Train everyone on the software. This will require an onsite visit from your consultant, an online seminar (called a webinar) or step-by-step videos.

Step 4—Set the guidelines for CRM use. Make sure everyone uses it properly.  No short-cuts allowed.

When you run a people business yet fail to stay in touch with the people who bring you work, you are going to live a feast-or-famine existence.

Construction Business Owner, December 2007