Is social media applicable to construction and should construction businesses rely upon it to gain work? In construction, for non-domestic customers, B2B clients are very unlikely to be using Facebook as a method to select who they procure from. So, despite what some social media marketeers tell you, you will be wasting your time if this is your market.
The Features of the Non-Domestic Construction Market
To find the most appropriate method of gaining work in the non-domestic construction market you must consider what the features of the sector are. Those in the sector will recognise that: few organisations buy; it is highly fragmented; each project is unique; it is a service industry; lowest price usually wins; and it's a cyclical sector.
Taking these features, it becomes apparent that to secure profitable work: cost, relationships and knowledge of the market must be perfectly aligned.
Bid-No-Bid: Be Selective
For a business to secure profitable work, the organisation structure and capabilities need to be matched to the work being undertaken. There is no point in bidding work you are overqualified for — you will be bidding against leaner businesses. There is no point bidding if you will incur costs for working out of area. Aim to bid work you are good at and have a track record in.
Before you consider bidding any project, be brutally honest and decide if you have a reasonable chance of winning it. Having a robust Bid-No-Bid policy cuts out waste and enables your business development staff to focus on the right targets.
Building Relationships and Finding Leads
Finding the clients who match your requirements is not easy — this is where relationships play their role. Ideally you should know the players in your part of the market well and be aware of projects before they come to market. Until you are in this situation, you will have to segment leads from lead generation sources such as Barbour ABI, Glenigan, Planning Pipe or Builders Conference. Then identify your priorities and start making contact via mutual acquaintances or carefully considered cold calls followed up with an engaging email.
Building the relationship takes time but ultimately will lead to opportunities if the research was well founded. To keep track of leads and follow-ups, the use of a CRM is recommended.
Your Digital Presence
Those people you contact will ultimately start to research you. Make sure what you are telling them is supported appropriately. They will look at your website, your LinkedIn business page profile, check your credit ratings and ask around in the market about your performance. If you can arrange for them to meet with advocates of your service, then a virtuous circle of opportunities will emerge.
Public Sector Routes
If your business strategy is to bid public sector projects, you commence by registering on the Government portal at gov.uk/contracts-finder. Once registered, you will be notified when contracts are available to bid which meet your specified criteria. The advantage of the formal process is that you will be bidding against businesses of a similar standing, and there is a requirement for formal feedback on your bid — which will help with subsequent bids.
