In technological parlance, “digital transformation” refers to many businesses’ ongoing efforts to digitalize all their processes. One area of your construction business you may have yet to digitally transform is how you manage contact information related to customers and other parties. For many years, companies in other industries have used customer relationship management (CRM) software for this purpose. But can contractors? You bet!
How Does CRM Software Benefit Construction Companies?
CRM software benefits construction companies by centralizing data across teams, eliminating information silos, and providing cloud-based mobile access to real-time project histories.The primary purpose of CRM software is to enable users to put all customer- and prospect-related data in one central repository. That way, the most current version of this information is accessible to everyone authorized to see it. The software eliminates having redundant or outdated bits and bytes of customer and prospect data scattered across multiple systems or hidden in employees’ email or phone contacts.
Breaking Down Industry Information Silos
Construction companies tend to have far more contacts than just traditional customers and prospects. A specialized construction CRM helps track data across your entire professional network:
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Project Partners: Architects, engineers, real estate developers, and agents.
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Field Teams & Logistics: Subcontractors, suppliers, vendors, inspectors, and consultants.
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Financial Stakeholders: Lenders, investors, and professional financial advisors.
By centralizing all that data, CRM software eliminates the information silos that often happen when, for instance, estimators work with some contacts and project managers work with others. Everyone has access to the same comprehensive, regularly updated data set.
Contact information can include more than the basics of name, address, phone number, and email. You also might add project history, email exchanges, and notes about conversations. Individual contacts can be grouped however you choose—including by project, company, and subcontractor specialty.
Plus, most CRM solutions are now cloud-based, allowing users to remotely access information via a mobile device anywhere, any time. This can automate processes and speed up all phases of construction, from estimating to bidding to completing the work itself.
What Features Should Contractors Look For in a CRM?
Contractors should look for CRMs that offer bid libraries, quick team-formation tools, and deep reporting features to track historical project profitability.
CRM software is more than just a digital storage depot. It can serve as a library of past bids and projects that estimators can reference when writing up proposals. You may be able to use it to form project teams more quickly and easily. And all the while, you and your leadership team can run various reports to identify key strategic points such as:
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The most fruitful lead sources.
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The most winning and profitable project types.
Some construction businesses even retain their employees’ contact information to track and leverage those relationships if staff members change employers.
At-a-Glance: Construction Challenges vs. CRM Solutions
| Construction Challenge | CRM Software Solution |
| Siloed Communication | Centralized database accessible by both estimators and field project managers. |
| Inaccurate Estimates | Historical bid library to reference past winning proposals and project types. |
| Mobile Disconnect | Cloud-based updates accessible on-site via mobile devices. |
Shopping Smart for Industry Software
There’s no doubt CRM software could do a lot for your construction company. But that doesn’t mean it’s a must-buy item right away. If interested, shop smart by researching specialized platforms, evaluating the total cost of ownership (including staff training, ongoing maintenance, and cybersecurity), and ensuring tight compatibility with your existing systems.
