Benefit 1
With a CRM System, a builder can out position, and out perform, their competition.

Benefit 2
With a CRM System, a builder can minimize pricing mistakes on options and inventory.

Benefit 3
With a CRM System, a builder can get immediate access to accurate results and make real time qualified decisions.

*There are dozens of additional benefits!

IMPLEMENTATION
Implementation varies widely depending on several factors, including, the level of capability (functionality) in the system chosen, the skill level of the staff involved, and the amount and type of support the vendor company offers the builder. The investment costs of implementation from the vendor company for the solution can vary tremendously as well. This can range from nothing for a self-implemented system, to many thousands of dollars. Some systems offer methods for the builder to self-implement and/or utilize highly skilled project managers, usually for an additional investment. Factor the return on investment against the cost of the system, cost of implementation, ongoing technical support costs, and version upgrades, if any.

SUMMARY
BuildTopia has been helping builders of all sizes and types, as well as thousands of their trade partners, for over 10 years. We hope you find this information helpful in your search to improve your company performance and maximize your potential to profit. The questions and answers are in their original conversational style. They were asked from a wide variety of builders in residential construction.

CRM Systems: Real World Q &A

What does CRM stand for?

Customer Relationship Management. But the term “CRM” typically refers to a system or software application that allows for processing all the elements of the “day in the life of” a contact. Industry specific systems manage leads to prospect to homebuyers to home owners.
_
What is a lead management system?

Leads are just one type of contact. A lead management system can be a stand alone system, but is really only one part of a total CRM system.
_
What is the difference between a CRM, a CMS and a Sales System?

A CMS is a Contact Management System. Typically, a CMS is not as in-depth in terms of ability or functionality. It is managing a contact in terms of data, as opposed to a total relationship.  A CRM system provides in-depth customer relationship issues, such as tasks, multiple emails, multiple phone numbers, notes, documents, dates, contact information, etc. It allows you to not just track contact data, but ultimately, the entire relationship with marketing campaigns, lead sources, reporting tools and more. A Sales System is a CRM system that is industry specific and takes CRM to a whole new level with added functionality. For this industry, it would include management of contracts, options, incentives, campaigns, survey cards, associated people such as Realtors, Brokers and harmonious things such as interaction points with the consumer, such as home buyer home pages (portals).
_
How do you use sign-in cards in a system or electronic database?

You have to transfer the information from that paper card to the application, typically done manually. Entering leads on a daily basis, from paper, requires one to enter the prospect directly in to the system. For uploads of many contacts, one puts those in to a spreadsheet, like , so they can be uploaded in mass. For mass transfer of paper to system, hire an intern or college student to type it in  for a very inexpensive solution. Preferably still, get an  based template for the system you are transferring in to, and then have that person cut and paste in mass. You will be flying in no time. Then give them a reference letter. Young people need your help! However, for sales people on a daily basis, they must do this immediately or they are de-positioning themselves and your company! We know the prospect may go somewhere else too. If that other sale person does a more immediate job of follow up, who is more likely to get the sale?
_
How do you categorize & organize leads in your database?

With a code. The code can denote Origin, Source, Status, and much more. You can take it a step further if you have a code that answers questions. For example, if you kept track of specifications demographics or sources. Was this lead from a “Retirement Living Magazine” ad, or from a home show, or from a 3rd party lead generation company such as New Home Source, etc. You can create campaigns based on these demographics. For a comprehensive prospect code list, contact me. I will just send it to you. Think of it like a huge box of toys. In option 1 you have one box full of all your toys, including Barbie dolls, Hot Wheels cars, Lego bricks, stuffed animals and battery operated dinosaurs. In this option, if someone asked you to build a Lego house, that would be a pain because you have no easy way to separate out all the Legos from the junk you don’t want. But, in Option 2, if you had put all your toys in to several boxes, or buckets based on the type of toy, building a Lego house would be easy and fast. Leads and prospects are like money making little toys. How you use, or leverage them, is the art of business.
_
How do you know when a lead is really dead?

When they tell you to take a hike, have unsubscribed, or when they have threatened you…seriously…when they tell you they are dead. Otherwise, a CRM will allow you to easily market to them long term AND with automation.
_
How can I get the sales staff to buy into using the system?

One approach is “use it or else”, but it is a weak choice. The system is really the sales person’s friend. They may not know that, but that is your job as a leader to show them how easy it is to use, how it will help them do more, how it will allow them to work smarter, not harder, how it will drive THEIR (not your) conversion ratios, how it will help them make money….that is it. THE SYSTEM has to make them money, and then, that will make you money.
_
How do you handle 55+ year old sales people having to learn a bunch of new software?

I train them, and 55 is young; it isn’t old! Personally, I do not discount someone because of age. When you get your champion, age is irrelevant.  No matter their age, they need training. What you want to have, or hire, are people with experience with a computer. Really, what you are looking for is flexibility, attitude, personality, etc. and of course, a person who is mature enough to recognize change is the only constant and you can profit from change. They have to want to make money and be flexible enough to do what it takes to make money. Then, age is irrelevant.
_
What’s your experience with the 55+ market and using touch screen kiosks in sales centers? Will they use them?

YES.  Remember that a touch screen monitor is just a special monitor and a software program. I have never seen hesitancy to use touch screens based on AGE. I have seen hesitancy if you make them stand in front of loud music, annoying voices, there are too many questions, the screen is not big enough, you put the screen to far back on the table so they had to lean forward, etc. There is an art to effectively using touch screens, but most of it is common sense and not age related.
_
What’s better, some system I load on to my computer, or an ASP model?

First of all, ASP, which stands for Application Service Provider, is an older term. The new term is SaaS, which stands for Software as a Service. In both cases, it is a company’s software system you use on the web via the internet.  Now, the benefits, typically, are huge. Loading software puts the burden on you to maintain it or pay for it, keep up with updates, new enhancements, etc. Also, think farther. Once a company sells you the software, if it is on your computer, what is the incentive for them to stay in business unless you pay them for tech support? There is no recurring revenue. SaaS companies are usually very profitable, maintain a relationship with you long term, which is good for you. Most of them continue to develop the system to make it better and better.
_
Are there a standard number of times you follow up with a lead before you give up on them?

YES, see my follow up schedule. If you want an extreme follow up schedule, email me at ecofield@buildtopia.com. Typically, if you are using a CRM, you could have 15 touch points and it is easy to manage that. I know you are laughing at me, but it is true. You can manage leads like a Super-Hero! Since we don’t know the buying cycle exactly, the difference in builders who follow up long term and those who are sort of, amateurs, is a CRM system, because having one makes it so much easier for the builder and sales team, especially over a long period of time with many touch points.
_
What do you do when the sales people won’t do the follow up?

Well, that is really not about a CRM, it is more about your leadership, training, and motivational approach with your sales team. But put yourself in their shoes. Why should they? Answer that question and you will have a new direction for your training.
_
I am confused because there are like a million CRMs out there.

Okay, and what is your question? Just kidding. Yeah, there are and it is tough because most builders are not software geeks, or even necessarily sales people! Ultimately, you have to decide if your company will use it. You do that by whittling down the competition on price, features, functions, support, history, etc. If it doesn’t do most of what you need, or you won’t use it, who cares what the price is? If it is more than you can imagine, ask them to show you the ROI. You should be able to quickly pick out 3-5 that are contenders. Do you want the trick?  Ask them if it handles a contact from cradle to grave. If the company says no, that system may not make it to round 2.
_
Why do I need a total system? Why can’t it just process sales?

It is tied to your profit and the expected ROI. If all you do is process sales, that is all you need. But builders do much more than process sales. They process email leads, live leads, warm bodies, walk ins, qualified leads, prospects of every type, realtors, brokers, converted prospects, home buyers, home owners, referrals, VIP programs…etc. No matter your business, you should be processing customized personalized touch points, not just pushing out irrelevant emails. That is why you need a total system. There really is a before and after to managing the sales part.
_
I have an Internet Home Consultant. Is there software for that job role?

YES. Your Internet Home Consultant is also known as Online Sales Counselor. Most good “builder” CRM systems have that workflow built in. Think about it. If they didn’t, are they really industry specific? That is a great question to use to weed through competitive systems.
_
Can a CRM system send you a lead’s contact information on your PDA?

YES, most of them do that, and you should use one that does, but, truthfully, you should also be in the system during normal working hours. But in the case of using an OSC (Online Sales Counselor), many of them will respond if they are awake, so yes, this notification function is really mandatory in my book.
_
Do all CRM systems allow you to do mass email marketing?

They should or they are going to be out of business. I don’t know any that don’t.
_
What does “per seat” mean?

Some software gets sold on a per user basis. Per seat is a term for “per user”.
_
How much should a good CRM system cost, or like a range maybe?

Well, I have seen some for free, some are expensive. But in my opinion, the real investment is in using them and adjusting processes to match them.Good ones go for like $1 a day on up, and I mean, way up, like $100 grand.
_
Do you generally get what you pay for, like are more expensive ones better?

NO, absolutely not. Unfortunately, pricing is not linear nor does it necessarily match capability.
_
Which systems would you recommend?

Well, I shouldn’t compare company names or products. I used to get paid to do that, so I have the ability, but you have to keep in mind every company out there with a CRM that is worth a dime should be adding new features and benefits. SO, anyone that tells you they know all the other companies is not telling you the truth. The question is a good one, but I don’t know your needs or issues. The right answer is based on the needs of your company. It is actually easy to get to your short list though.
_
Can a CRM system allow you to upload documents like your contracts?

YES, and MUCH more. Think of all the things your sales people touch. Images, spec sheets, contracts, options lists, HTML emails, and a lot of things right. So, yes, you want to have these things at the finger tips to your staff. Remember a CRM is a sales person’s friend.
_
Should I have to pay for tech support? Is that normal? I have 26 sales people.

Well, that depends. If the system is dirt cheap, you are likely going to have to implement it yourself, or pay something for someone to help you implement it. BUT, that is not the same as tech support. If the system is inexpensive, then tech support may cost extra or you may be limit to email support and help systems. If you are paying a lot for the system, tech support should be included, in my humble opinion. I have advised builders to go with something that includes tech support. Also, if you don’t, then you never really know what the system will cost, or how to budget for it. Paying for tech support could be unending. That being said, if you are buying something to download on your computer, the company is probably going to be charging for tech support.
_

About BuildTopiaAs the most widely used web-based construction management software for residential builders, BuildTopia streamlines and integrates all core construction business processes in one powerful, yet easy-to-use system. Builders, developers and trade partners rely upon BuildTopia to dramatically improve the effectiveness, efficiency and profitability of their businesses. For more information about BuildTopia, visit www.buildtopia.com  - ### -