A Key Reason Using a CRM Is a Must for a Contractor

Posted by David Chism | Fri, Aug 4, 2017

If you are in the home improve­ment busi­ness and not using a Cus­tomer Rela­tion­ship Man­age­ment (CRM) pro­gram yet, you need to move this to the top of your list. Not hav­ing or using a CRM will hurt the growth and prof­its of your busi­ness. This post is for con­trac­tors who take their busi­ness seri­ous­ly and want few­er dips in their lead flow. There are plen­ty of ben­e­fits to using a CRM. Yet in this post, I want to focus on one key rea­son and how it will help your lead flow ebbs and flows.

Prospect­ing = More Sol­id Leads & Sales

The one key rea­son you should be using a con­tact man­age­ment pro­gram is so you can keep care­ful track of your prospects, leads, and cus­tomers. Ok, so you keep care­ful track of your deal­ings with con­tacts. So what! How is that help­ful? It all comes down to help­ing you prospect bet­ter and keep your leads and sales stronger. It is strict­ly a num­bers game, folks. If you learn how to use your CRM prop­er­ly, you will have a gold mine of data to help prospect. By the way, you should always be prospect­ing. If you do not make prospect­ing a part of your dai­ly or week­ly task, you will see more ups and downs in your lead flow. Sum­ma­riz­ing what Jeb Blount said about dai­ly prospect­ing in his book Fanat­i­cal Prospecting:
The 30-Day Rule states that the prospect­ing you do in this 30-day peri­od will pay off for the next 90 days. It is a sim­ple, yet pow­er­ful uni­ver­sal rule that gov­erns sales, ignore it at your per­il… When you inter­nal­ize this rule, it will dri­ve you to nev­er put prospect­ing aside for anoth­er day. The impli­ca­tion of the 30-Day Rule is sim­ple. Miss a day of prospect­ing and it will tend to bite you some­time in the next 90 days.
Then about the ben­e­fits of a CRM, Jeb goes on to say:
There is no weapon or tool in your sales arse­nal that is more impor­tant or impact­ful to your long-term income stream than your prospect data­base. Noth­ing. Your data­base of prospects is what helps you make a liv­ing now and in the future.”
As much as I know most of you do not like typ­ing in data about your prospects and cus­tomers, I do know that the more you know about your con­tacts, the bet­ter you will be at reach­ing out and clos­ing more sales. Using your CRM prop­er­ly can help you in time man­age­ment by giv­ing you bet­ter data! Here is a quick sug­ges­tion of what I mean: With­in most CRMs, you can tag or cat­e­go­rize your con­tacts. I would rec­om­mend orga­niz­ing your con­tacts by your rela­tion­ship with them. You might want to try some­thing sim­ple like this: A) Rav­ing Fan, B, Hap­py Cus­tomer, C) Cus­tomer: Now and Then, D) Prospect: Aware of Our Com­pa­ny, E) Prospect: Not As Aware, F) Do Not Con­tact, etc. You can make up cat­e­gories that work for you. Then you can use these cat­e­gories as a rat­ing sys­tem. When you need a good call list, you can sort by A‑E con­tacts. Start with your best con­tacts first and work your way down the list. Any­thing you know about your prospects, put it in the CRM. Your data will just get stronger! If you com­mit to using a CRM and keep­ing care­ful records about your con­tacts, you will begin to see a more con­sis­tent lead flow. As a reminder, the CRM does not do the work for you. You have to use the data from your CRM and com­mit to prospect­ing. Prospect­ing and a sol­id CRM work togeth­er to grow your busi­ness. Prospect­ing with­out a CRM just does not work. You will for­get impor­tant details about your con­tacts. If you want to learn more about prospect­ing, I’d encour­age you to read Jeb Bloun­t’s Fanat­i­cal Prospect­ing book. In fact, have every­one read it in your company!

About David Chism

David Chism started his business out of a passion for helping small contracting businesses grow, be more profitable and become better known to their target clients. One lifelong hobby of David is using techie gadgets. So this blog is a place where he writes about technology, marketing ideas, just for fun (humor), personal thoughts on small business and more.


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