According to recent studies, it costs a company five times as much to gain a new customer than it does to keep one. The probability of a company selling to an existing customer is, on average, 65%. The probability of selling to a new customer, if one can be acquired, is no more than 20%. Existing customers are 50% more likely to try a brand’s newest product than prospective buyers.
With these statistics in mind, it makes good business sense for a company to strive to retain their existing customers. Companies that nurture their business relationships with customers improve their profits and reputations. There are several ways to do this.
Customer relationship management (CRM) is a process or platform that helps a business manage their customers’ entire lifecycle, which consists of the following steps:
Discovery of the Product/Service – a customer learns about the product or service.
Customer Engagement– a customer follows a brand on social media, email newsletters, and shows interest in offerings.
Customer Research– a customer researches the brand.
Customer Sale – a customer buys what the brand offers (either a product or service)
Customer Experience– This entails the actual quality of the product and the customer service offered
Customer Loyalty/Referral– how a brand connects with a customer via its product and customer service. At this stage, satisfied customers may even recommend the product or service to others.
Companies can employ a CRM system to stay connected to customers, streamline processes, and improve revenue. CRM platforms can also track customer activity such as purchases in order to track potential interest in a product or service. Having clear insights into customers habits can help determine what new products will go to market and what will remain unreleased.
CRMs for contractors is no different than any other. A CRM platform can help construction firms manage leads, schedule a client meeting, and follow up with a client. CRM automates tasks like these to allow contractors to focus on building, not messing with paperwork.
CRM for Contractors A CRM platform really is an all-in-one management tool. One designed specifically for contractors can offer some of the following features:
Easily create estimates
Job site tracking
Simple job proposals
Order and expense monitoring
Organized client communication
CRM access from anywhere
CRM Saves Time and Money A CRM excels at automating repetitive tasks. Scheduling appointments and data entry eat up a lot of time. A CRM can free staff up so they can perform more important work. Or staff can simply be freed up, reducing a company’s expenses. A CRM also reduces a company’s paperwork. The average office worker uses around 10,000 sheets of copy paper per year. That comes out to roughly $76 a year per employee. Multiply that amount by the number of employees and that total can get out of hand. A CRM can slash money spent on redundant supplies.
Detailed Monitoring and Fast Access A construction company might have multiple clients at one time. Monitoring each project's performance helps ensure a project will be completed on time and under budget. It also helps when a client requests a status update. Giving the client accurate news in a timely manner can only improve a company’s reputation.Information entered into a CRM is organized and ready for viewing anytime by anyone with access. Finding particular details concerning a project could be difficult if handwritten notes are misplaced or an email can’t be found. A CRM keeps all of that information in one centralized location.Witnessing how organized and efficient a company is sticks with a customer. People appreciate reliability. People also want results and they want them yesterday. CRM gives everyone a reliable, fast method of doing business.
The Cost of CRM The cost of a CRM depends on the number of features it offers. Some CRM platforms start as low as $49 and can reach upwards of $499 a month. There are 2 questions companies should ask themselves before purchasing a CRM platforms
How much time can CRM save us?
How much money will we lose if we don’t have a CRM?
A company’s budget should include funds for CRM. A company might not think they need one because they are too small, but CRM can increase a customer base beyond expectations. At that point of success, CRM would become mandatory to maintain revenue and popularity. The cost of CRM is small compared to the business a company would lose out on if it didn’t have it.
Ultimately, the end goal of CRM is to forge better relationships with customers that will hopefully turn into sales. The construction industry has suffered immense economic pressure during the past few years. In order to remain profitable and operating, companies are trying to find cost-effective ways to become more efficient. CRM is the fastest growing system to help construction firms stay alive and grow.