Introduction
The competition in the construction industry is increasing day by day. That is why, as per the BuiltWorlds 2024 Report, 64% contractors reported switching to Customer Relationship Management software or CRM. How does CRM help them? A CRM system helps construction businesses manage all their clients’ information and track their projects. If a construction company implements the CRM correctly, it can get good quality leads and win profit-making bids. However, to get there, there are certain pitfalls a construction company needs to be aware of. Here are 7 common CRM mistakes construction companies make that you should avoid to make the most of your CRM investment.
- Introduction
- The Importance of CRM in Construction
- Mistake 1: Choosing the Wrong CRM System
- Mistake 2: No Training and Onboarding
- Mistake 3: Poor Data Management and Quality
- Mistake 4: Lack of Integration with Other Systems
- Mistake 5: Overlooking Mobile Functionality
- Mistake 6: Failing to Customize and Adapt
- Mistake 7: Neglecting Regular Maintenance and Updates
- Conclusion: Maximizing CRM Success in Your Construction Company
The Importance of CRM in Construction
Before we dive into the common CRM mistakes to avoid, let’s briefly discuss why CRM is important for construction companies. A well-implemented CRM system can help you:
- Organize and track client information
- Manage project-related tasks with more efficiency
- Improve communication with clients and team members
- Make the sales processes less complicated
- Keep the customers satisfied and retain them for a long time
Now that we understand the value of CRM in construction, let’s explore the mistakes you should avoid when you are implementing your CRM.
Mistake 1: Choosing the Wrong CRM System
This is a very common problem. Construction companies often pick a CRM that might not have all the features that they need (read more on how to select the best CRM for a small construction business). There are hundreds of CRM tools in the market, some very popular, but it is important to select the right one. A rule of thumb you can follow is to go for a niche-specific CRM rather than a generic CRM. For instance, Zoho, Hubspot & Salesforce are well-known, but they will be of no use if they don’t solve your unique challenges.
Why it’s a problem
A CRM system that isn’t tailored to the construction industry may lack features such as:
- Project management tools
- Bid tracking module
- Features to track Vendors and Subcontractors
- Document management for blueprints and contracts
- Easy API integration with construction-specific software
How to avoid it
To choose the right CRM system for your construction company:
- Do a thorough research of your needs and goals
- Research CRM solutions designed for the construction industry. See if you can find an all-in-one construction management software
- Compare features and pricing of different CRM tools
- Request for demos and trials before making a decision
- Consult with other construction professionals about their CRM experiences
If you are thinking of getting a CRM system for your construction firm, you should check out bldon.com
Mistake 2: No Training and Onboarding
This is the second common mistake. Many construction company owners assume that their employees will adapt to a new CRM system without guidance. However, your team won’t be able to work with a CRM system unless they are properly trained and onboarded on the software. Moreover, if they are poorly trained, they might use the new CRM software for a while before they switch to their previous methods.
Why it’s a problem
Here are some issues that you can face when your employees are not trained on the newly bought CRM software:
- The adoption rate of the software among the employees will stay dramatically low
- Incorrect data entry and management
- They might not be able to utilize all the CRM features
- Your employees will resist using the new system for their tasks and will remain frustrated
How to avoid it
So, how do you make sure that your CRM system is implemented properly and is adopted by the users?
- Develop a comprehensive training program for all users
- Offer both group and individual training sessions
- Create user guides and resources for ongoing reference
- Designate CRM champions within your organization to support others
- Provide regular refresher courses and updates on new features
By investing in proper training and onboarding, you’ll increase the chances of successful CRM adoption and maximize the benefits for your construction company.
Mistake 3: Poor Data Management and Quality
For a Construction CRM, data is the most important element; it’s the lifeblood of the system. If your team isn’t paying attention to managing that data properly, even the most expensive CRM won’t deliver results. It’s quite common for construction companies to overlook the need for clear guidelines when it comes to data entry and maintenance.
Why it’s a problem
Poor data management can result in:
- Saving the wrong client information
- The sales team, missing opportunities and follow-ups due to the information not being available readily
- Difficulty in tracking project progress
- The team, not being able to report or analyse the available data properly
- Your team, slowly losing trust in the CRM system and switching to old methods
How to avoid it
To maintain high-quality data in your CRM:
- Establish clear data entry protocols and standards
- Regularly clean and update your database
- Implement data validation rules to prevent errors
- Train employees on the importance of data accuracy
- Conduct periodic audits to ensure data quality
- Use data enrichment tools to enhance and verify information
By prioritizing data management and quality, you’ll ensure that your CRM system provides valuable insights and supports informed decision-making for your construction business.
Mistake 4: Lack of Integration with Other Systems
Many construction companies make the mistake of treating their CRM as a standalone system. They fail to integrate it with other essential tools and software such as project management, bidding, etc. This lack of integration can create information silos and inefficiencies in your project operations.
Why it’s a problem
Failing to integrate your CRM with other systems can lead to:
- Duplicate data entry and increased manual work
- Inconsistencies between different software applications
- Difficulty in obtaining a holistic view of your business
- Reduced productivity and efficiency
- Missed opportunities for automation
How to avoid it
To make sure your construction company gets the maximum benefit out of your CRM system:
- Identify key software applications used in your construction business
List all essential tools, like project management, accounting, or estimating software, that your team already uses regularly.
- Check if the CRM you are looking to purchase offers integration capabilities with these tools
Ensure API-ready or pre-built connectors exist for systems like ERP, PMS, accounting, and estimating software.
- Prioritize integrations based on their potential impact and how easy they are to implement
Rank by ROI and complexity: e.g., bid-to-estimate sync first, then timeline/milestone updates, and document clear data flows.
- Work with IT professionals or CRM consultants to ensure that the software is integrated without any issues
Engage experts to build and test integrations. Make sure that the integration meets compliance requirements while setting up automation/API workflows.
- Regularly review and optimize your integrated systems
Use dashboards and KPIs like pipeline health or data accuracy metrics to monitor and refine connection points.
By integrating your CRM with other Construction tech tools, you will create a smooth and efficient workflow for your construction teams.
Mistake 5: Overlooking Mobile Functionality
Convenience is key in the modern construction world. Your construction teams, especially those working in the field, should be able to access and update company information on the go. Construction companies that don’t use a mobile-friendly CRM often face issues during project execution. Check how mobile CRM can help construction workers.
Why it’s a problem
Not using a mobile-friendly CRM system can result in:
- Delays in project updates and communication between teams
- Inefficient field operations
- Missed opportunities to capture important information on-site
- Reduced adoption rates among field staff
- Decreased productivity and responsiveness
How to avoid it
To ensure your CRM system supports mobile work:
- Choose a CRM with robust mobile capabilities
- Ensure the mobile app is user-friendly and intuitive
- Train field staff on using the mobile CRM effectively
- Implement security measures for mobile access
- Regularly gather feedback from mobile users and make improvements
By prioritizing mobile functionality, you’ll empower your team to stay connected and productive, whether they’re in the office or on the job site.
Mistake 6: Failing to Customize and Adapt
Every construction company has unique processes and requirements. A common CRM mistake to avoid is failing to customize and adapt the system to fit your specific needs. Many construction business owners make the error of using the CRM “out of the box” without tailoring it to their workflows.
Why it’s a problem
Lack of customization can lead to:
- Inefficient processes that don’t align with your business needs
- Underutilization of CRM features
- Difficulty in tracking construction-specific metrics
- Reduced user adoption due to poor fit with existing workflows
- Missed opportunities to improve and streamline operations
How to avoid it
To ensure your CRM system works for your construction company:
- Identify your unique business processes and requirements
- Work with your CRM provider or consultant to customize the system
- Create custom fields, forms, and reports specific to your needs
- Develop automated workflows that match your business processes
- Regularly review and refine your CRM setup based on user feedback and changing needs
By customizing your CRM to fit your construction company’s specific requirements, you’ll maximize its value and improve overall efficiency.
Mistake 7: Neglecting Regular Maintenance and Updates
The final common CRM mistake is not maintaining and updating your system regularly. Many construction company owners implement a CRM and then forget about it, missing out on new features and improvements.
Why it’s a problem
Not paying attention to maintaining and updating the CRM system can result in:
- Security vulnerabilities in the CRM system
- Missed opportunities to leverage new features
- Decreased system performance over time
- Incompatibility with other updated software
- Frustration among users due to outdated functionality
How to avoid it
To keep your CRM system running smoothly:
- Stay informed about updates and new releases from your CRM provider
- Schedule regular maintenance checks and updates
- Train your team on new features and improvements
- Regularly back up your CRM data
- Monitor system performance and address issues promptly
- Consider working with a CRM consultant for ongoing support and optimization
By prioritizing regular maintenance and updates, you’ll ensure that your CRM system continues to meet your construction company’s evolving needs and remains a valuable asset to your business.
Conclusion: Maximizing CRM Success in Your Construction Company
Yes, a CRM system can change the way your construction company operates when you avoid the 7 common mistakes while implementing the CRM. When you choose the right CRM, train your construction team on the system, maintain the quality of data you feed into the software, and integrate the tool with other construction tech tools such as field management, document management, estimating, etc.
Moreover, when you purchase a CRM software that is mobile-friendly (read more about the benefits of a mobile CRM) and can be customized to your company’s requirements, and keep the system up to date, your CRM can increase the profits on your construction projects.
Always remember, implementing a CRM is an ongoing process. You should keep gathering feedback from your team and keep making improvements in the system. Then, and only then, can you build stronger relationships with your clients.
As you move forward with your CRM strategy, keep these common CRM mistakes to avoid in mind. By doing so, you’ll be well-positioned to leverage the full potential of your CRM system and drive your construction company’s success in an increasingly competitive industry.
How do you manage customer data at your construction company? Have you implemented a Construction CRM yet? Did you know 22% of companies have left their traditional tools to move to a CRM?
