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How to set up commission in QuickBooks Online

Find out how to set up commission in QuickBooks Online and improve your commission tracking process in this article.

How to set up commission in QuickBooks Online Read More »

Commission provides your employees an incentive to deliver the best results for your company. However, employee commission is a little trickier to calculate for payroll than consistent periodical salaries, since commission changes every paycheck.

Luckily, many accounting software solutions accommodate commission tracking, including QuickBooks Online. The key is knowing how to set up QuickBooks Online commission tracking in a way that makes the most sense for your business.

Keep reading to find out how to set up commission in QuickBooks Online, as well as how to automate the commission tracking process to ensure that you get more done in less time.

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The importance of sales commission tracking

Before learning how to set up commission in QuickBooks Online, you must first understand the importance of sales commission tracking.

Sales commission tracking is the process of recording your employees’ sales for the purpose of calculating their commission.

Accurate commission tracking is essential for payroll and employee motivation. On an individual level, sales commission tracking allows your sales reps to track their progress. It provides a clear indication of how close they are to their goals.

On a broader level, sales commission tracking enables you to evaluate your business’ success and the efficiency of your sales teams.

For QuickBooks users, tracking commissions is important for accounting and payroll purposes. This begs the question: How does QuickBooks Online commission tracking work?

Does QuickBooks Online track sales commissions?

The short answer is yes, QuickBooks Online can track sales commissions. However, it’s a manual process. This is because you can’t calculate commission on QuickBooks.

While you’re limited on commission calculation in QuickBooks, you can still track your sales in a way that simplifies commission tracking. Let’s walk through the steps that outline how to set up commission in QuickBooks Online.

How to set up commission in QuickBooks Online

You can set up commission in QuickBooks Online in three simple steps.

Step 1: Choose between commission as salary or additional pay

In QuickBooks Online, you have two options for recording commission. You can set them up as part of your employees’ salary or as additional pay. The one you choose depends on your business’ pay structure.

You’ll want to record commission through employee salary if your employees’ entire pay is based off commission.

If your employees have a base salary and you pay commission on top of that, you should choose additional pay.

Step 2: Start recording commissions in Payroll

Here’s how to set up commissions in QuickBooks Online:

From the ‘Payroll’ menu, go to ‘Employees’.
Select your employee.
You should see ‘Pay Types’. Select ‘Start’ or ‘Edit’.

From here, the process depends on whether commission is your employee’s salary or additional pay.

Step 3: Process commissions depending on your chosen type

If you choose to set up commission as employee salary, select ‘Commission only’ from the ‘Pay types’ drop-down menu. Then, hit ‘Save’.

If you choose to set up commission as additional pay, look for the ‘Common pay types’ section and select ‘Commission’. You can change the commission name by selecting ‘Edit’. Save the new details and you’re done!

While these steps for recording commissions are easy enough, the process is a lot simpler with a commission tracker. This isn’t a current offering for QuickBooks, but there are tools that you can use for QuickBooks Online commission tracking without disrupting your workflow.

Let’s take a look at how to track commissions in QuickBooks with a tracking tool.

QuickBooks Online commission tracking tools

If how to set up commission in QuickBooks Online is your first concern, the next should be how to improve the commission process in QuickBooks Online. The answer is simple: A commission tracker.

A commission tracker is a tool used to track your sales reps’ commission. The top commission tracking tools calculate your commission to simplify QuickBooks payroll and ensure that your team gets paid on time.

With QuickBooks Online, you can record commission and pay it out, but you must calculate it manually. The classic way of doing this is by using spreadsheets such as Excel or Google Sheets. However, this method is time-consuming and inefficient.

Commission tracking software automates your commission process for maximum efficiency. It also ensures accuracy and provides transparency for your sales representatives.

The only problem with commission tracking software is that every business is different. A one-size-fits-all solution might not suit your current QuickBooks Online commission tracking process. Luckily, there’s a way to solve this: Custom sales commission software.

Wish you could get more from QuickBooks? Method makes it possible.

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Strengthen your commission tracking process with Method

If you’re looking for flexible sales commission software, Method is the solution for you.

Method is a fully customizable software solution that simplifies the way you manage your customers, sales, and overall business. As the #1 QuickBooks CRM, Method enhances QuickBooks Online commission tracking and makes it one smooth process.

With Method, you can build a commission tracker that’s specifically modeled after your business. You can build the software yourself or get Method’s customization team to bring your vision to life.

Custom commission tracker screen in Method CRM

Here are some features you can include in your commission tracker:

Search function to easily find commission amounts.
Commission management (i.e. organizing by date range).
Custom commission reports.

As a result, you save time and gain a clearer view into the work your sales reps put in and the commission they get paid.

The best part is that your Method tracker can integrate with your QuickBooks Online account thanks to Method’s two-way QuickBooks sync. This way, you’ll never lose track of your sales reps’ commissions.

Wondering how to track sales commission in QuickBooks Desktop? Good news — Method also integrates seamlessly with QuickBooks Desktop.

QuickBooks Online commission tracking FAQs

Here are other questions that users wondering how to set up commission in QuickBooks Online ask.

How do I create a commission report in QuickBooks?

To create commission reports in QuickBooks, follow these steps:

Go to the ‘Reports’ menu.
Select ‘Sales’.
Click ‘Sales by Rep Detail’.
Select ‘Customize Report’, then choose ‘Cash basis’ under the ‘Display tab’.
Go to the ‘Filters’ tab.
In the ‘Search Filters’ field, enter and select ‘Transaction type’.
Under ‘Transaction Type’, select ‘Invoice’.
Set the ‘to’ and ‘from’ dates, then select ‘Refresh’.

If you’re already tracking commission in Method, you can create custom commission reports in just a few clicks.

How do I set up sales reps in QuickBooks Online?

To set up sales reps in QuickBooks Online, start from your ‘Sales’ page under ‘Settings’. From there, select ‘Custom fields’. Name the field ‘Sales rep’ and save.

Now, when you process invoices, you should see a ‘Sales rep’ field where you can write the name of your assigned sales rep.

How do I categorize sales commissions in QuickBooks?

Since QuickBooks does not have a robust commission tracking feature, it’s difficult to categorize sales commissions outside of categorizing your sales.

That said, with Method’s personalized solution, you can categorize your sales commissions in a way that makes the most sense for your business.

Bottom line: Simplify your sales commission calculations and save time

If commission is at the core of your employee payment process, knowing how to set up commission in QuickBooks Online is only the beginning.

It’s important to track commission accurately and efficiently to ensure that your employees get paid what they’re worth, and on time. Commission tracking software is the best way to achieve these results and make commission payroll quick and easy.

This way, your sales reps spend less time worried about their pay and more time bringing in revenue.

Tracking commission in QuickBooks is a breeze with Method CRM. Start your free trial today!

Image credit: Anna Shvets via Pexels

5 best sales commission tracking software for your business

Sales / By Sarah Majumder

Automate the process of managing commissions, saving time, money, and aggravation.

5 best sales commission tracking software for your business Read More »

No matter what, as your business grows, it gets more and more difficult to stay on top of things. One of the hardest aspects of managing your scaling business is keeping track of sales commissions. Luckily, you don’t need to handle things on your own any longer.

With sales commission tracking software, you automate the process of managing commissions, saving you time, money, and aggravation.

In this article, we’re covering the top 5 commission tracking software to boost your business and reduce costly mistakes.

But first, what is sales commission tracking all about?

How does sales commission tracking work?

Sales commission tracking is your system for monitoring employee performance and managing commission payouts.

It records data about your sales activities, including customer purchases, discounts, and commission rates for each sale. This allows you to track how much money each salesperson has earned in commissions throughout their time at your business.

You can use sales commission tracking software to calculate commission payments more accurately, as you can tailor it to your business. For example, it can account for factors such as seasonal sales fluctuations or special promotions at certain times of the year.

Proper sales commission tracking ensures your employees receive fair compensation for their efforts, and that everyone’s base salary remains competitive within industry standards.

Is commission tracking software worth the investment?

Commission tracking software is absolutely worth the investment because it pays itself off over time and then some. This is because you:

Save valuable time and reduce human error.
Ensure complete openness with and between your team.
Close deals faster and more reliably.

Save time and reduce human error

With sales commission tracking, you automate your commission entry process and make manual spreadsheet entry a thing of the past. This means you significantly reduce the chances of human error. So, you don’t have to worry about someone adding an extra zero, deleting important information, or making an incorrect calculation.

What results is that you and your employees save valuable time, not only because you have less mistakes to fix. But also, because you eliminate the time-consuming process of entering commissions manually.

This means that your sales reps have greater capacity to take on more deals and earn more commissions.

Increase transparency with your team

When you use software to track commissions, there’s never confusion or mistrust from your team about their pay. Establishing your sales commission policy early on with your sales team is crucial, and configuring it in an automatic system sets that policy in stone.

There won’t be any suspicion or jealousy between your employees, because you’ve laid everything out on the table for them. With a commission tracking system, your sales reps know exactly how they’re performing and how you’re rewarding that performance.

This transparency improves employee morale and increases loyalty. Openness and honesty regarding pay go a long way, especially when it concerns those who are bringing in revenue to your business.

Close more deals

Commission tracking software boosts productivity and efficiency at your business. Its capacity for automation saves you valuable time, as it means one less manual workflow to worry about.

So, not only do you close deals faster, but you can reinvest the time you save into generating more of them.

Also, when your sales reps have a centralized dashboard view of their performance and commissions, they’re more likely to generate results. Laying out your commission pay structure in an easily readable interface makes it clear to your employees that better performance yields better financial results.

So, it’s easier for your team to set and track sales goals, which will only increase their bank accounts — as well as that of your business.

Recap: How to choose the best commission tracking solution for you

Overall, the best commission tracking solution for you depends on the requirements and intricacies of your business’ commission plan. There’s no one-size-fits-all solution to sales commission tracking.

So, only once you’ve weighed the pros and cons of each solution, should you make your decision. Commission tracking software boosts efficiency and saves valuable time, but it’s up to you to find the right fit for your business.

Commission tracking software FAQs

What does sales commission tracking software do?

Sales commission tracking software keeps an automatic record of the money your salespeople earn when they make a sale. It ensures that everyone on your sales team gets the right amount of commission for their work.

How does commission tracking software differ from sales management software?

Commission tracking software differs from sales management software in that it helps you manage employee compensation, rather than your sales. It reads data from your sales management system to ensure that all your employees are paid commissions fairly and on time.

Should I track my sales commissions manually?

You should not track your sales commissions manually. When you do, you risk jeopardizing your business over even the smallest mistake. Instead, you should consider sales commission tracking software that eliminates issues caused by manual entry.

See for yourself how Method CRM helps you track your sales commissions!

Image credit: LinkedIn Sales Navigator via Pexels

How CRM improves small business customer experience

Customer Experience / By Sarah Majumder

This blog post covers all you need to know about creating the best small business customer experience.

How CRM improves small business customer experience Read More »

In today’s competitive environment, it’s becoming more important than ever to invest in small business customer experience. But how do you go about creating an enjoyable experience that keeps customers coming back?

Through this blog post, you’ll answer the question, “How do CRM systems improve customer experience?” You’ll also learn some tips to get the most out of your CRM and improve your small business customer experience.

Let’s jump right in!

What is a CRM?

To answer the question, “How do CRM systems improve customer experience?”, first let’s take a look at what a CRM is.

Put simply, Customer Relationship Management (CRM) is a tool for managing all your company’s relationships and interactions with customers and leads.

A good CRM:

Simplifies processes.
Strengthens connections with customers.
Improves profitability.

What is customer experience?

Customer experience often gets mistaken for customer service. But, whereas customer service is a single event in the customer journey, customer experience (CX) refers to your customer’s holistic perception of their experience with your business or brand.

CX encompasses how you interact with your customers at every stage of their buying journey, including your marketing, sales, and customer service efforts.

Why is customer experience important to small businesses?

Huge corporations have the resources to provide the best possible customer experience, but it’s easy for cash-strapped small businesses to overlook the importance of investing in CX.

However, failing to have a customer experience strategy has a negative impact on your brand, as well as your bottom line.

In fact, according to PWC’s Future of CX report:

A positive customer experience results in a 16% price premium and increased loyalty for a product or service.
32% of customers would walk away from a brand they love after one bad experience.
82% of US customers and 74% of non-US customers crave a more human experience in the future.

To put that in simple terms, your small business earns more sales, customer retention, and strong relationships when investing in customer experience.

How do CRM systems improve customer experience?

So you’ve seen why small business customer experience is crucial to stay ahead of the curve. But what role does a CRM play?

It’s time to answer the question, “How do CRM systems improve customer experience?”

Keep in touch with your customers

When it comes to providing a great small business customer experience, ongoing and meaningful communication is vital. Each interaction we have with a customer influences their decision between staying or going elsewhere.

So how do CRM systems improve customer experience to ensure customer satisfaction and loyalty? One answer is by helping you keep in touch!

A CRM tracks and stores customer data such as:

User behavior.
Purchase history.
Conversations.
Sales interactions.

It tracks customer behaviors through your website, social media, and marketing campaigns. Then, it guides your customer through the sales funnel by alerting a sales rep of their interest or sending a triggered email.

With this information, you can keep your customers updated on company news, sales, offers, campaigns, or other initiatives. A CRM also segments your customer base so that you send the right customers the right message.

Personalize your communications

Even as a small business, you’re faced with an overwhelming list of contacts. It’s difficult to determine who in that list actually wants to see an email about your new product.

A CRM makes it easy to identify the right contacts by segmenting your contact lists based on criteria. These criteria can be location, gender, age, buyer stage, and more.

As a result, you send emails that reflect customers’ preferences, interests, and values by segmenting recipients into groups using your CRM. So, even though your responses are automated, they are not impersonal. Instead, your email interactions are tailored to each customer.

The useful information that your CRM captures over time helps you give customers a unique experience. The software automatically pulls data from your contact information in order to customize each customer interaction. For example, you can automatically add their name to emails or predict when they call.

When customers receive an email with a personal touch, it signals that you’ve specifically tailored your message to them, making it feel less like spam.

Ensure a consistent customer experience

When it comes to small business customer experience, consistency plays a big role in building a strong customer relationship.

An effective CRM:

Tracks all your customer interactions and unifies your communication channels.
Stores all your customer information in one place.
Streamlines customer communication.

If a customer chats with a representative today, they shouldn’t have to repeat all the information they sent in an email yesterday. Customers need quick and appropriate responses with consistent messaging whenever they reach out.

And CRM systems allow you to accomplish this by automating responses, support requests, and more. As a result, you ensure consistent communication while learning where to improve processes.

Centralize your customer information

A CRM provides a centralized database with all your customer information. Storing all your information in one place makes it easy for anyone in your company to access it when needed.

For example, if a customer has previously interacted with your company, your sales representatives can see what products that customer is interested in.

A CRM tracks all your customer interactions, which guide your marketing efforts and sales pitches. Without having to dig through files and records, you save time and elevate your small business customer experience.

Provide fast support

Today, customers expect you to provide everything in an instant — and that includes answers. Luckily, a CRM sends out internal notifications so your team can deal with a customer the second they send a service request.

With time-based alerts, you’ll never worry about customer requests falling through the cracks. Take it a step further by connecting your CRM with Google Chat, Slack, Telegram, or the other communication channels your team uses.

If you notice multiple customers reaching out over the same problem, you can even save your solutions and responses in your CRM as email templates to accelerate customer support.

Additionally, a CRM increases your capacity to get customer feedback through automated surveys, scheduled follow-ups, and emails that measure customer satisfaction.

Better yet, offering self-service portals empowers customers to get the information they need through your knowledge base, FAQs, and more.

Small business customer experience tips

As a small business, it’s intimidating to start prioritizing customer experience. Where do you start? Here are some tips to help you achieve the best small business customer experience!

1. Learn from customer feedback

Now that you’ve answered the question, “How do CRM systems improve customer experience?”, you know that they increase your capacity to gather feedback. But in order to really improve your small business customer experience, you need to learn from this feedback.

For example, if trends show that many of your customers face issues with customer support, then investing more in training or resources for your staff will enhance your small business customer experience.

As a small business owner, always make sure that you guide your efforts by your customers’ opinions. Whether it’s through customer surveys, open invitations, or online platforms, your customers will be pleased to know that they’re being listened to.

2. Map your ideal customer journey

The next tip to create an exceptional small business customer experience is to map your ideal customer journey. It’s hard to see where your opportunities and pain points lie when you don’t fully understand your customer journey.

Journey mapping involves creating customer personas. It means identifying your customers’ goals and listing all the touchpoints they interact with.

By breaking down the activities in each phase of your customer journey, you’ll fully understand your customers’ needs to create the best small business customer experience.

3. Look for pain points in the journey

Pain points are moments in the customer journey that cause your customers frustration and give them a negative perception of your company. They are the root cause of a negative small business customer experience, so identifying them should be a priority.

Using analytics tools that measure customer experience and satisfaction is a good way to identify pain points. Customer feedback provides valuable insights — and it isn’t just limited to surveys.

You can reach out via email, SMS, or even live chat to dig deep into what your customers think about your small business customer experience.

Take the time to identify your customers’ biggest frustrations and work out solutions for them. For example, if they’re frustrated by long wait times for support, then offer self-service options through customer portals so they can resolve issues quickly and independently.

4. Standardize operations to eliminate inconsistencies

As a small business, you have limits in terms of your finances and staff. So, in order to keep your customer experience consistent, accurate, and pleasant, automate what you can. By automating low-level, repetitive tasks, you save time and increase productivity.

Although each customer experience should be a little different from the last, standardizing it to make experiences similar ensures:

Increased efficiency.
Consistent service.
Fewer errors and oversights.
Increased accountability.

As your team delivers using a standardized approach, they provide the most streamlined service. And when you clearly define, document, and review your processes to uncover inconsistencies, your team is less vulnerable to errors.

5. Put your customers first, always

Using a ‘customer first’ strategy means putting your customer at the center of everything you do and every decision you make. When you prioritize your customers ahead of your products and services, you stay ahead of the competition.

Customers want to know that someone is listening to them. And they want to reach out in ways that they feel comfortable. That’s why you should offer multiple channels for them to contact you.

It’s important to ask questions on social media and surveys. But to truly listen and amplify your small business customer experience, you need to respond and make the necessary changes.

Whether it’s improving the live chat feature on your website or switching to better product packaging, the best way to show customers you hear them is by turning their feedback into actionable changes.

Build strong customer relationships with Method CRM

So you’ve looked at the tips to build a good small business customer experience. But imagine having a powerful tool that transforms your customer experiences for you? Enter Method CRM.

With Method CRM’s customer portals, your customers are empowered to manage their relationship with your business, on their own schedule. They’re no longer getting frustrated by long wait times when sending you emails.

Customers have 24/7 access to their accounts, where they can update their information independently. Better yet, they can view and pay their invoices online at the click of a button. Gone are the days of chasing your customers for a payment!

The best part: all of this information syncs to QuickBooks or Xero. So you never have to worry about keying the information twice. It’s that accurate!

You can also imagine how disorganized your QuickBooks or Xero account gets when managing both your lead and customer information there. So why not handle your leads in Method CRM, and then have them sync to your accounting software once they become paying customers? Method CRM makes it easy.

It also makes things simpler for your team. Imagine your sales rep wants to find out what the best way to target a customer is. Instead of digging up past files and records on that customer, all their details, past interactions, and activity is available through a centralized 360-degree customer view in Method CRM.

All your sales rep has to do now is sit back as they deliver an exceptional experience to your customer.

Bottom line: CRM is key for small business customer experience

You should not overlook the importance of investing in small business customer experience, as it generates more sales and strengthens customer relationships.

A CRM software such as Method CRM makes this easy for you with features including:

Self-service portals to retrieve invoices, make payments, and more.
A powerful two-way sync with QuickBooks and Xero.
A 360-degree view of your client history.

Elevate your small business customer experience with a free trial of Method CRM.

Image credit: Viacheslav Yakobchuk via Adobe Stock

How to create the best customer experience in 2025

Customer Experience / By Sarah Majumder

This blog post dives into the best ways to create a great customer experience to increase loyalty and boost sales.

How to create the best customer experience in 2025 Read More »

In 2025, customer experience is going to play a bigger role in businesses than ever before. To stay ahead of the curve and create a good customer experience, companies need a clear customer-centric strategy.

This blog dives into some of the ways you can provide the best customer experience. You’ll also learn how to measure and analyze customer experience.

Lastly, you’ll take a look at the power of coupling a customer portal with CRM software to take your customer experience to the next level.

What is customer experience?

Customer experience (CX) refers to what your customers feel when dealing with your business or brand.

It’s their holistic perception of and experience with your touchpoints at every stage of their buying journey, from browsing your website or storefront to customer service.

Is customer experience the same as customer service?

Whereas customer service refers to a single event in the customer journey, customer experience describes all the experiences your customer has with your brand.

Although customer experience is often mistaken for customer service, there are clear differences between them.

While customer service managers are mainly responsible for the customer service aspects of your business, your entire business plays a role in shaping customer experience through various touchpoints.

Why a good customer experience matters

Unsurprisingly, when a customer receives a good customer experience, they’re willing to pay more. But every good experience influences more than just one customer.

In fact, 71% of customers recommend a product or service to others after receiving a good customer experience.

Overall, according to data from Forrester’s Customer Experience Index, brands with superior CX grow revenue five times faster than those who lag in CX.

What’s more is when a customer receives a good customer experience, they’re motivated to come back again.

In fact, 64% of organizations believe that creating unforgettable customer experiences is the best way to increase Customer Lifetime Value (CLV), which is the total income a business can expect from a customer over their entire relationship.

How to create the best customer experience

Now that you’ve understood how crucial a good customer experience is for your business, you’ll want to know how to create the best customer experience!

Let’s dive into some strategies you can use to achieve this in 2025.

1. Understand who your customers are and what they need

In order to create a good customer experience, you need to empathize with your customers to understand their needs.

One way to bring your customers to life is to segment them and create personas or customer profiles. Assign them a name and personality, and list the goals and pain points they might have. Are they tech-savvy? Or, do they need clear instructions?

Another tool used to better understand customer needs is an empathy map. It allows you to build a complete picture of your customer and the actions they might take based on their beliefs, emotions, and behavior.

When you pay close attention to who your customers are and how to create the best customer experience based on that, you turn them into fans and brand advocates. This sets you up for success.

2. Map the ideal customer experience journey

Once you understand who your customers are, mapping your ideal customer experience is the next step.

By creating personas and identifying customer goals, you can better understand your audience to create an ideal customer experience map.

A customer experience map breaks down activities in each phase of the customer journey, and lists all customer touchpoints.

Through an experience map, you see the entire experience from your customer’s point of view, so you can highlight all their pain points and opportunities. This way, you can figure out how to create the best customer experience when supplying your products and services.

Although it can be easy for customer experience maps to become internally-driven process flows, it’s important that you base your customer experience maps on actual customer research.

3. Always prioritize and listen to your customers

When you prioritize your customers ahead of your products and services, you create a culture that differentiates you from the competition. Customers want to know that someone is listening to them.

It’s important to ask questions on social media and in surveys. But even more so, to create a good customer experience, you need to listen, respond, and make the necessary changes.

Whether it’s fixing bugs on your website or switching to sustainable packaging materials, the best way to show customers that you hear them is by responding to their feedback.

4. Train your team to provide the best service

It’s easy to overwhelm your employees with complex information and resources. Even worse, your training plan might be irrelevant or impractical. Giving your employees the right training is crucial to providing a good customer experience.

Start by gathering feedback from customers to figure out pain points or the highest ROI opportunities. Then, use your findings to guide the next step.

For example, if customers deal with slow customer service, invest in software and customer training systems. On the other hand, if customers face trouble in being understood, then investing in soft skills training is the solution to how to create the best customer experience for them.

5. Create an emotional bond with your customers

Since more than 50% of a consumer experience is based on emotion, emotions therefore play a large role in a customer’s decision-making process.

Storytelling can bring human elements back into a digital customer experience. And people love a good story. Customers love to tell stories too, so asking them about their journeys, needs, and successes all make your client relationships more personal.

Similarly, brands use nostalgia and personal touches in their marketing to further build positive emotional bonds and create a good customer experience.

When you form a positive emotional bond and a customer remembers how they feel when using your product or service, they become loyal customers.

6. Learn from customer feedback

Customer feedback, whether positive or negative, can help you create a good customer experience. It’s natural to feel discouraged by negative feedback. But even if you run the most popular company in the world, you’re guaranteed to have customers who are displeased.

You can use negative feedback as an opportunity to accelerate your growth. By hearing the thoughts and sentiments of your customers, you can figure out how to create the best customer experience.

Also, you’ll know what to avoid. For example, Nike received backlash recently for releasing shoes that some believed had racist implications. Nike immediately recalled the shoes, demonstrating cultural sensitivity and respect for their audience.

7. Optimize the customer journey as you grow

It’s necessary to optimize your customer journey as your business grows to prove you’re trustworthy and care to provide a good customer experience.

This involves looking at every interaction a customer has with your brand and determining how to create the best customer experience at every step.

Although this may seem tedious since the number of channels, devices, and touchpoints makes the customer journey longer, it’s worth the effort!

A small mishap or flaw in your customer journey can take away from a good customer experience, and will lead to losses in your customer base. This flaw could be anything in the journey, like the design of your webpage, the checkout process, or even your customer support.

To make sure your conversion rates increase, it’s important to regularly collect feedback and measure customer experience.

How to measure and analyze customer experience

So you’ve looked at the different ways on how to create the best customer experience… But how do you measure it to figure out if you’re actually getting results and creating a good customer experience?

Net Promoter Score (NPS)

Net Promoter Score (NPS) is used as a measure of customer satisfaction, as well as loyalty. The score determines how likely it is for customer to recommend your company to a friend or a colleague.

You calculate it by taking the percentage of respondents who are promoters and subtracting the percentage of respondents that are detractors.

The formula is as follows: (Number of promoter scores/ total number of respondents) – (Number of detractors/ total number of respondents).

A score of 0 does not mean that you’re doing a bad job! Instead, analyze your results in comparison to competitors and focus on improving the score according to your customer feedback.

You can dive deeper by using reporting tools to analyze your results. For example, you can create custom reports that analyze NPS ratings by customer type. This allows you to understand the different types of customer sentiments and work out how to create the best customer experience for everyone individually.

Time to resolution (TTR)

Time to resolution (TTR) is the average time it takes your customer service reps to resolve a ticket or issue after your customer opens it.

You can measure it in days or business hours, and calculate it by adding up all the TTR and dividing that by the number of resolved cases.

According to CX trends, the number one cause of a frustrating customer experience is a long wait or response time. So, it’s crucial to track and find ways to improve your TTR for a good customer experience.

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) is a CX metric you can calculate to measure how satisfied or unsatisfied your customers are with your product or service on average.

The survey scale is typically 1-3, 1-5, or 1-7, and you calculate your satisfaction score by adding up all the scores and dividing by the number of respondents. It’s best to try and get a CSAT score within 15 minutes of an interaction.

It’s important to do something with your insights once you gather the data and find out what your CSAT is.

Although your CSAT score is a great reporting benchmark, you’ll find the real cause of those scores in the open-ended comments.

Foster a good customer experience with customer portals

Many companies today realize the importance of customer portals, as they put the power in your customer’s hands.

A customer portal solution provides a centralized hub for customers to perform tasks independently and manage their relationship with your business.

On-demand information

During the customer journey, there are many instances when a customer needs immediate access to information.

Traditionally, when a customer needs information, they’re required to reach out to the company and wait for an executive or service rep to respond to them. This can take a lot of time, and it also takes your employees away from their work.

When integrated with a CRM, a customer portal allows customers to perform tasks such as:

Checking the status of their support requests.
Changing their account information.
Viewing their invoices and quotes.

Method CRM is a popular software choice because it gives customers 24/7 access to self-service portals where they can view and pay invoices. Not to mention, with Method, you’ll enjoy a powerful two-way sync with QuickBooks and Xero.

Increased security

Customer portals (especially cloud-based ones) allow your customers to upload information securely and access sensitive information such as bank details or their home address in one place.

Thanks to SSL encryption, firewalls, virus protection, VPN, and other features, information is only accessible to authorized users. This is impossible with email or traditional post.

In comparison to other customer support channels such as SMS and email, a customer portal also allows customers to upload higher-quality documents with larger file-size limits.

More efficient support

We live in a world where customers expect things to be done instantly. A customer portal improves customers’ satisfaction as it empowers them to meet their needs on their own schedule.

Self-service options allow your customers to handle tasks themselves so that your support staff can focus on more critical requests.

Even better, when coupled with a CRM, a customer portal allows you to create automated workflows, like sending out immediate notifications to support staff when they’re responsible for a customer support request.

And your customer can track the status of that open support ticket, so they’re not left in the dark!

After a while, you’ll notice that your customers face similar problems that your team can tackle with similar solutions. Save your responses to common problems in your CRM as email templates and automate them, so that no customer requests fall through the cracks.

Recap: How to effectively create a good customer experience

Creating a good customer experience boosts sales and increases customer loyalty. It’s important to invest in strategies that help you achieve this at every stage in your business’ customer journey.

When you connect your customer portals with software such as Method CRM, you take your business to the next level with:

Self-service portals to retrieve invoices, make payments, and more.
A powerful two-way sync with QuickBooks and Xero.
Time-saving automated email templates and workflows.

Watch how Method CRM transforms your customer experience!

Image credit: Yakobchuk Olena via Adobe Stock

5 reasons why you need customer portal solutions

Customer Experience, Customer Service / By Ryan Flanigan

Customer portal solutions are the key to providing a good customer experience. Read more to find out 5 reasons to use them, and our 10 favorite solution providers.

5 reasons why you need customer portal solutions Read More »

Customer portal solutions are becoming more and more popular as technology continues to evolve. Business owners are beginning to realize how effective customer portals are at saving time and money.

Indeed, customer portal solutions streamline customer-facing workflows and automate your support services.

But what exactly is a customer web portal, and how does it work? And why does your business in particular need them?

Keep reading to better understand customer portals, and learn five reasons why you need them in your business.

What are customer portal solutions?

Customer portal solutions are dedicated web-based customer service and support hubs. They provide customers with a secure and personalized customer experience.

Customer portals allow your company to manage customer interactions more quickly, efficiently, and reliably through features like:

Self-service tools.
Secure online access to data and documents.
Knowledge repositories for your products or services (i.e. how-tos, guides, and FAQs).
Customer feedback surveys.
Payment processing and tracking.
Discussion forums.

Why you need a customer portal

There are several reasons why customer portal solutions are a great fit for any business. That being said, here are our top five reasons why you need a customer portal.

1. On-demand information and support

Customer portals enable their users to securely access relevant data, documentation, and support anywhere and at any time.

This way, your customers don’t need to jump through hoops like contacting your support team or Googling your services. Instead, they can independently access what they’re looking for with ease in a centralized location.

Client portals are also accessible 24/7, which means that your employees don’t need to be on the job at all times in order for your customers to get what they need.

2. Reduces internal workload

Implementing a customer web portal isn’t only beneficial to your customers. It also improves internal work processes, and takes some of the stress off you and your employees.

Customer portals reduce internal workload by automating customer-facing workflows. Since your customers can access what they need independently, your support team will not be as busy with individual issues.

This is especially helpful for small businesses that are experiencing growth, but are having difficulty handling it.

Customer portals also automate:

Employee ticketing.
Client communications.
Order tracking.

Some even feature AI chatbots that manage incoming service requests, which saves your employees’ time.

3. Simplifies your payment process

A customer web portal is a secure and centralized hub that streamlines the payment process for each user.

Portals ensure that your customers can easily access their estimates and bills. They also make tracking and managing transactions a breeze.

What’s more, companies can choose to set up payment gateways in customer portals. If they do, customers are then able to pay bills directly through their portals.

Customer portal solutions remove the hurdles from your payment process. As a result, you have a better chance of receiving what you’re owed.

4. Builds customer engagement

Naturally, the most significant part of a customer web portal is how it opens the floor for better customer engagement. What results is happier customers and more business opportunities down the road.

Customer portal solutions build customer engagement through:

A direct, ongoing line of communication to your support team.
Informational resources like how-tos, guides, and FAQs.
Online community forums for customers to share thoughts and help each other.
Relevant blog content.

5. Enhances overall client experience

Customer experience is a crucial factor in the health of your business and your potential for future growth.

Even after all is said and done with a deal, customers who have had a negative experience can seriously harm your business. For example, they could:

End their business relationship with you.
Damage your reputation in online reviews or by word of mouth.
Switch to one of your competitors.
Request a refund.

Customer portal solutions work to avoid these outcomes. They give customers what they want, when they want it.

This makes for a seamless client experience and ensures your customers keep a positive outlook on your business.

What should a customer portal include?

Customer portals differ depending on the companies they serve. However, there are a few client portal features that every customer web portal should include.

Ways for customers to get support

Perhaps the most crucial aspect of a customer web portal is that it allows for customers to get immediate and self-sufficient help on any issue.

Through resources like blogs, community forums, and guides, a customer web portal should give users the materials to solve their own problems.

Personalized client portal software solutions are also accessible 24/7, meaning that your business doesn’t need to be open for your customers to get support.

Customer information

Another key component of customer portals is that they allow your customers to securely access their relevant data and documentation with your company. This includes things like:

Account details and history.
Bills and estimates.
Statuses on current orders.

A customer web portal gives you and your customer a centralized view of their information, so that everything is easily accessible and all in one place.

Transaction history

As your business relationship grows, both you and your customers will be interested in tracking transaction history.

Customer web portal users are able to log in and view their transaction history, so that there’s no confusion about past bills and payments.

Branded customization

One thing you might not have considered about customer portal solutions is the inclusion of your company’s branding.

Your customer portals should feel like they’re a part of your business. Branding accomplishes this by visually linking your services so that they feel unified and safe to use.

It’s only a visual change, but branded customization gives your services a sense of coherence that customers are sure to appreciate.

10 best customer portal solutions

1. Method CRM

Method CRM is the top choice for those seeking a robust customer web portal. Method offers to set up its users with customer portals out of the box. This means that you don’t need any coding background to configure them exactly how you like.

Not to mention, Method CRM users get a suite of tools and integrations that improve efficiency and automate daily business tasks. Method CRM also helps your business’ accounting through its powerful two-way sync with QuickBooks and Xero.

Key features

Customizable customer portals with features like transaction tracking.
Drag-and-drop workflow automation.
Estimates, invoices, and payments instantly sync with QuickBooks or Xero.
Automated lead collection via web-to-lead forms.
Centralized view of contact details and contact history.
Mobile app.

Pros

Improves customer experience.
Powerful, two-way QuickBooks and Xero integrations.
Unlimited customization.
Reusable report, transaction, and email templates.
Easy to convert estimates into invoices.
Several third-party integrations.

Cons

Only available in English.
Limited to QuickBooks and Xero users.

Pricing

Method CRM offers three pricing plans:

Contact Management: $25 per user per month.
CRM Pro: $44 per user per month.
CRM Enterprise: $74 per user per month.

Method CRM offers a 14-day free trial with no credit card required.

2. SuiteDash

Product shot example of a SuiteDash customer portal

Image credit: AppSumo

Next up on the list of customer portal solutions is SuiteDash. It’s an all-in-one business management software that’s known for its easy-to-use client portals.

Key features

User-friendly customer portals that are easy to configure.
Learning module system.
CRM tools such as contact tracking.

Pros

Vast customization options.
Affordable pricing.
Good customer service.

Cons

Occasional server interruptions.
Reports of a steep learning curve.
Lacks some basic CRM functionality.
Outmoded layout.

Pricing

SuiteDash has three pricing plans:

Smart: $19 per month.
Thrive: $49 per month.
Pinnacle: $99 per month.

SuiteDash also offers a 14-day free trial, discounted rates on annual subscriptions, and a lifetime price for each plan.

3. Zendesk

Product shot of a Zendesk customer portal.

Image credit: Zendesk

Zendesk Suite is a software package offering a range of CRM tools, including customer portals. It’s designed to improve sales management and sales performance.

Key features

Customizable customer portals.
Help center page builder to create self-service knowledge bases.
Reports and analytics on a pre-built dashboard.
A call and text log.
Email marketing features like sync, alerts, templates, and automatic email tracking.

Pros

Portals have automated knowledge bases.
Good ticketing system.
Extensive time tracking options.
Useful reporting options.

Cons

Has a steep learning curve.
Expensive for small to midsize businesses.
Recurrent performance issues.
Reports of poor customer support.
Lacks training resources.
Customization is time-consuming.

Pricing

Zendesk Suite has three pricing plans:

Team: $49 per user per month.
Suite Growth: $79 per user per month.
Suite Professional: $99 per user per month.

It also offers a free 14-day trial.

4. Onehub

Product shot example of a Onehub client portal.

Image credit: Onehub

The next top customer web portal software is Onehub. It specializes in file storage and sharing, but also offers impressive customer portals.

Key features

Customizable client portals.
Secure virtual data rooms.
Branded workspaces.

Pros

Easy to use.
Expansive file sharing and storage.
Strong customer support.
Affordable pricing.

Cons

Reports of performance issues.
Lacks some functionality.
Occasional service delays.
Providing access to customers is difficult.

Pricing

Onehub has four pricing plans:

Standard: $15 per user per month.
Advanced: $25 per user per month.
Data Room Edition: $375 per month.
Unlimited Edition: $575 per month.

Onehub also offers up to a 20% discount on annual subscriptions, and a 14-day free trial.

5. Huddle

Product shot example of a Huddle customer portal

Image credit: Semrush

Huddle is another software solution that is popular for those looking to incorporate customer portals.

Key features

Bespoke, secure client portal solutions.
Customizable workspaces.
Robust file management tools.
Mobile app.

Pros

Attractive dashboard.
Handles large documents well.
Intuitive and easy-to-use interface.

Cons

Lacks features like timelines, document collaboration tools, and time tracking.
Limited third-party integrations.
Reports of poor customer service.

Pricing

Huddle has three plans, beginning at $10 per month:

Huddle Starter.
Huddle.
Huddle Plus.

Huddle has a bespoke pricing model, so you’ll have to contact Ideagen for your specific price. It also offers a 30-day free trial.

6. HappyFox

Product shot of a HappyFox customer portal.

Image credit: GetApp

Up next on the top 10 customer portal solutions list is HappyFox. It’s a cloud-based CRM help desk system that also lets users create self-service portals.

Key features

Self-service customer portals with client forums, a support center, and an FAQ knowledge base.
Powerful ticketing system.
Mobile app.

Pros

Practical, user-friendly interface.
Easily customizable.
Great out-of-box functionality.
Good third-party integrations.
Supports over 35 languages.

Cons

Mobile app needs improvement.
Overwhelming amount of sections and menus.
Lacks notifications and alerts.
Reports of poor customer service.

Pricing

HappyFox has plans for agent-based pricing and for unlimited agents.

It has four agent-based pricing plans:

Mighty: $39 per user per month.
Fantastic: $59 per user per month.
Enterprise: $79 per user per month.
Enterprise Plus: $99 per user per month.

These plans have increasingly discounted rates for annual, 2-year, and 3-year subscriptions. HappyFox also offers a 14-day free trial.

It also has four pricing plans with unlimited users:

Starter: $1,499 per month.
Growth: $1,999 per month.
Scale: $2,999 per month.
Scale Plus: $4,999 per month.

The unlimited user plans are only available on an annual basis, and offer discounted rates for 2-year and 3-year subscriptions. They also offer a 14-day free trial.

7. SupportBee

Screenshot example of a SupportBee customer portal

Image credit: SupportBee

SupportBee is also a good client portal software option. It’s particularly useful for customer support email management, but offers a strong customer portal as well.

Key features

Client portals to track and send tickets.
Robust customer support email management.
Helpful knowledge base creation.

Pros

Automated ticketing removes the need for case IDs.
Affordable and unique pricing model (based on amount of tickets instead of users).
Extensive help resources online.
Ability to differentiate between product lines.

Cons

No designated space for client feedback.
Slow loading times in-browser.
Easy to lose track of tickets.
Limited customization options.
No options for forms available.

Pricing

SupportBee has two pricing plans:

Startup: $15 per user per month.
Enterprise: $20 per user per month.

SupportBee also offers a 13% discount on annual subscriptions, and a 14-day free trial.

8. Accelo

Product shot example of an Accelo portal.

Image credit: Accelo

The next top customer web portal is Accelo. It’s an end-to-end CRM platform that helps manage your business. Plus, it lets you configure your own customer portals.

Key features

Customizable customer portals.
Automated workflows.
Integration with accounting software like QuickBooks and Xero.
Gantt charts.
Mobile app.

Pros

Fully customizable.
Flexible billing and reporting.
Easy to convert quotes into invoices.
Space for branding.

Cons

Setting up portals requires education and is a time-consuming process.
Mobile app is buggy and needs work.
Outdated training and help resources.
Steep learning curve.

Pricing

Accelo has two pricing plans:

Plus: $24 per product per user per month, with a 5-user minimum.
Premium: $39 per product per user per month, with a 5-user minimum.

Accelo also offers a 14-day free trial.

9. Freshdesk

Product shot example of a Freshdesk portal example

Image credit: Freshdesk

Freshdesk is a popular cloud-based help desk software that also provides users with customer portals.

Key features

Customer portals and centralized portal management.
AI-powered chatbots with minimal code development.
Messaging templates.
Collaborative ticketing system.
Freshchat platform that merges all messages from a customer into one inbox.

Pros

Good email tracking and organization.
Clean and simple user interface.
Good internal collaboration capabilities, like the ability to rearrange tickets between teams.
Solid third party integrations.

Cons

Customer portals require some foundational coding knowledge.
Reports of weak customer service.
Contact management and searching needs work.
Limited reporting options.
Recurrent performance issues.

Pricing

Freshdesk has four pricing plans:

Free: $0 and up to 10 users.
Growth: $18 per user per month.
Pro: $59 per user per month.
Enterprise: $95 per user per month.

Freshdesk also offers a discounted rate on annual subscriptions, as well as a 21-day free trial.

10. Nifty

Image credit: Software Testing Help

Finally on this list of top customer portal solutions is Nifty. It offers simple customer portals on top of its dynamic project management tools.

Key features

Customer portal app.
Collaborative workspaces.
Ability to automate daily processes.
Task assignment tools.

Pros

Intuitive user interface.
Loads of project management options.
Quick loading times.
Great for collaboration.

Cons

Customer portals are not customizable.
Accessibility issues.
Only account administrators can communicate with each other, so it can’t replace employee or client interactions.
Adding attachments is difficult.
Limited storage space.

Pricing

Nifty offers five pricing plans:

Free: $0 per month, with 100 MB storage and two active projects.
Starter: $5 per user per month. You get 100 GB of storage and 40 active projects.
Pro: $10 per user per month. You get 250 GB of storage and 100 active projects.
Business: $16 per user per month, with unlimited storage and active projects.
Enterprise: Contact the company, with unlimited storage and active projects.

Nifty also offers a 14-day free trial.

Build your customer portal with Method CRM

Method CRM is a customer relationship management software solution that boosts efficiency and automates work processes.

It also allows you to easily incorporate customer portal solutions into your business. This process is so easy that Method CRM does all the work for you.

Method CRM helps you customize the perfect customer web portal, right out of the box. You don’t need to know a thing about computer programming.

Plus, with all the time customer portals save, you can start exploring your new CRM tools and improving your business even more.

Recap: Why you need customer portal solutions

Customer portal solutions are an effective way to improve customer experience and simplify your customer-facing processes. They give your customers quick and easy access to:

Relevant data and documentation.
Help resources like guides and blog posts.
Account settings.
Tracking options.
Payment processing.

Customer portals allow your customers to solve their own issues and access what they need without contacting your support team.

This doesn’t just mean enhanced client satisfaction and engagement. Customer portal solutions also reduce the workload on your staff to boost efficiency across your entire business.

Kickstart your customer portal journey with a free trial of Method CRM.

Image credit: Vlada Karpovich via Pexels

How to create a customer experience portal

Customer Experience / By Ryan Flanigan

Providing a good customer experience is essential for any business. This article lays out why a customer experience portal helps you achieve that goal, and the steps on how to create one.

How to create a customer experience portal Read More »

No matter the industry, customer experience is a huge part of your business success.

You should never neglect your customers’ wants and needs. If you do, you risk jeopardizing your relationships and the opportunity to develop new ones in the future. Instead, you should strive to exceed customer expectations.

An effective way to improve customer satisfaction is to incorporate a customer experience portal into your business.

But what exactly is customer experience, and how do portals improve it? Keep reading to find out!

What is customer experience?

Customer experience is how people feel when they buy or interact with your products and services. It includes things like customer service, the quality of the product or service sold, customer support, customer convenience, and more.

Enhancing the customer experience is crucial to your success. And it doesn’t matter how good the current state of your customer experience is — you can always build on it and make it better.

How important is the customer experience?

Customer experience is one of the most important factors in becoming a successful company. Implementing a customer experience strategy demonstrates dependability and improves customer loyalty.

Even if you close a sale, those who have had a negative customer experience can do serious damage to your business. These customers might choose to:

Cancel future business with you.
Leave negative reviews online.
Choose one of your competitors instead.
Request a refund.
Damage your reputation by word of mouth.

On the other hand, happy customers help your business grow. They might choose to do repeat business with you or provide positive customer feedback online.

Is customer experience the same as customer service?

Customer experience and customer service are interrelated, but not the same.

You can think of customer experience as an umbrella term that includes customer service. In other words, customer service is just one part of customer experience.

You establish customer service in the way you interact with your customers and the support you provide them.

Consider the quality of your customer experience (and the crucial role that customer service plays within it) to stand out among your competition.

Why do you need a customer portal?

A customer portal is one of the most helpful tools you can implement when striving for better customer satisfaction. Customer portals specialize at enhancing the customer experience.

If you don’t know what a customer portal is yet, don’t worry — you’ll be an expert in no time. Let’s start with a visual of a customer portal.

Essentially, it’s a dedicated hub where your customers can access information and services from your company. This means that if a customer faces an issue, they can identify and solve it without the need for your support team.

Because they allow your customers to get help by themselves, customer portals ensure an easy and convenient customer experience. At the same time, this gives you and your staff more time and resources to focus on other areas of customer experience.

Benefits of a customer experience portal

There are many benefits to incorporating a customer experience portal into your business. With these portals, you’ll:

Increase customer convenience.
Automate your operations.
Save time and money.
Provide personalized service at scale.
Store large customer files securely.

Customer convenience

A customer experience portal is one of the best ways to maximize customer convenience.

No one likes picking up the phone or drafting a support request email, especially for something that they’ve purchased.

With a customer portal, your customers can educate themselves on your product or services and self-serve. Portals are accessible 24/7, which means that your customers can find help even when your business is closed.

This also makes for a more efficient customer experience because it removes employee response time from the equation. Through portals, customers have instant access to the self-service options you enable.

Your customers are sure to appreciate this convenience, and it carries over to you as well. Customers will only feel the need to contact you once they’ve exhausted the options in their personal portal.

Automate your operations

Customer experience portals automate a significant portion of your customer support operations. The workflows you can automate include:

Reviewing and approving invoices.
Managing and paying bills.
Tracking orders.
Support ticket tracking.

Some customer portals also feature AI chatbots that manage incoming service requests. This saves your support team from sifting through a sea of requests every time they come back to work.

Customer portals come with most CRMs. Some providers like Method CRM even offer to set up customer portals for you themselves.

Not to mention, because of customer portals’ capacity for automation, your employees can refocus their efforts into other manual workflows that need improvement.

Save time and money

In the long run, customer experience portals save you time and money, which you can reinvest in your business to accelerate your growth.

Without a customer portal, you spend time and money on customer support on an ongoing basis.

One common approach is to hire more customer service employees. However, while it might mean that your customers receive support faster, your expenses will skyrocket when you factor in these new salaries.

The better option here is to take advantage of customer experience portals. Granting your customers the ability to self-serve saves on employee hires and gives you more time to focus on other areas.

Personalized service

Not all of your clients’ wants and needs will overlap fully, if at all. This is why a personalized customer experience is crucial to your success.

In fact, an Accenture study found that 91% of customers are more likely to buy from companies that:

Know their name.
Provide personal recommendations.
Understand their preferences.

Customer experience portals are a great way to personalize your customer service. Since each customer portal is tailored to your respective customer, they engage with your business from a perspective that is uniquely theirs.

The result is that your customers feel seen and heard because you’ve provided them a space where they can get exactly what they need from your business instantly.

How to create a customer portal

If you’re wondering how to build a customer portal, you have three options. You can:

Program it yourself from scratch.
Configure it using no code tools in a dedicated system like Method CRM.
Have a company that specializes in customer portals set it up for you.

While the first option permits unlimited customization, it requires advanced programming skills and a large chunk of time to configure.

The second option is a much quicker and easier process. Since you don’t need coding skills, a personalized customer experience portal setup is possible.

Here is an example of a custom portal built in a no-code platform, Method CRM.

The third option gives you a nice balance between customization capability and practicality.. Some service providers that offer customer portals as a feature also do the setup process themselves free of charge.

Add ways for customers to engage with your business

Of course, the most important aspects of your customer experience portal are how it allows your customers to engage with your business.

Whether it’s an educational resource or an area of self-service, every interactive element you give your customers betters your customer experience.

Some examples of how portals increase your customer engagement include:

Knowledge repositories, like help resources and guides for your products or services.
Informative blog content focusing on your target industries.
A community forum where customers can contribute their thoughts.
Access to bills and other relevant documents.
Updating payment methods.
Checking statuses on support requests.

Prioritize security

It’s paramount that you prioritize the security of your portal users. If your customers don’t feel safe storing and accessing their confidential information within their portals, then there’s no point in implementing them in the first place.

Make sure that your customers feel secure by incorporating security measures into their portals. Examples include:

A secure cloud-based file storage system.
A password management system with multi-factor authentication services.
File encryption to protect sensitive data.

When your customers feel that you’re able to keep their confidential information safe, their trust in your company stays strong. This results in more deals and customers down the road.

Update in real-time

Ensure that your customers always stay in the loop with live, real-time updates. A hub that displays outdated data is of no use to your customers, so consider how you can provide updated information on a consistent and timely basis.

Things at your business are bound to change at some point, no matter how small. Billing rules get revised, people switch addresses, and accounting information constantly evolves.

Nothing is set in stone, so it’s crucial to ensure that your portals are adaptable.

This is not something you want to neglect, as your quality of customer experience regarding these portals hinges on their ability to provide accurate and up-to-date information.

Add your own branding

One thing that’s often overlooked about customer experience portals is branding. Including your company’s brand in your customer portals is beneficial for a few reasons.

A customer experience portal that uses a default layout is much less approachable than one that is clearly connected to your business. Especially with the rise of phishing attacks and cyber crime.

It’s important that your portals feel unified to your business as a whole. Branding accomplishes this by linking your services so that they feel like they come from the same place.

This is the type of thing that is strictly visual, but goes a long way regarding user experience. Below is an example of Method CRM’s secure portals branded for the company Best4UServices.

If your company’s name, voice, and style stay recognizable across all of your designated tools, then it doesn’t matter how differently those tools function. Your customers will feel more comfortable using these tools when they are visually tied together and to your company.

Create your customer experience portal with Method CRM

Method CRM is a customer relationship management software solution that sets its users up with a customer experience portal out of the box. It is best for small and mid-sized businesses that use QuickBooks or Xero to power their operations.

Here is an example of how portals work in this Method’s CRM system.

Method CRM gives you the benefits customer experience portals create without any of the hassle. You won’t need to worry about knowing how to build a customer portal from scratch, but still get the flexibility to make the portal your own.

Plus, you can continue to automate workflows and improve organization using Method CRM’s other tools such as:

Lead-management.
E-signature capture.
Email campaigns.

Method CRM understands the importance of customer experience, and works hard to optimize it for all its users.

Customer experience portal FAQs

What are the best practices for building a customer portal?

The best practices for building a customer portal are to:

Personalize your portal for each customer’s wants and needs.
Focus on the education of your customers with help resources like guides.
Create a user interface that is approachable and easy-to-understand.

Why is a self-service portal important?

A self-service portal is important for several reasons, all of which revolve around enhancing the customer experience. Some of the perks of implementing a self-service portal include:

Quicker turnaround time on support requests.
Customers can fix problems themselves.
Takes stress off your support team.
Improved customer satisfaction.
A centralized view of customer information, for both you and your customer.

What are the features of a customer portal?

The features of every portal are unique, but generally, a customer experience portal offers:

Self-service options.
Online payment processing.
Educational content with categorized information about your products and/or services (i.e. how-tos, guides, and FAQs).
Secure cloud-based access to relevant data and documentation.

Get customer experience portals with your free trial of Method CRM!

Image credit: Andrea Piacquadio via Pexels

The ultimate guide to creating great customer experiences

CRM, Customer Experience / By Sarah Majumder

Learn how to create great customer experiences through 7 customer experience improvement strategies.

The ultimate guide to creating great customer experiences Read More »

Creating great customer experiences is essential for any business. It makes the difference between your customers staying with you or taking their business elsewhere.

In this ultimate guide, you’ll look at how to measure customer experience, and 7 customer experience improvement strategies you can use to create an exceptional customer journey.

Let’s get started!

What is customer experience?

Customer experience is your customers’ holistic perception of their experience with your business or brand. It refers to how you engage with your customers at every stage of their buying journey, including your marketing, sales, and customer service efforts.

Is customer experience the same as customer service?

Although customer experience can be mistaken for customer service, there’s a clear difference between the two.

Customer service refers to a single event in the customer journey. Customer experience, on the other hand, is all the experiences your customer has with your brand.

Why creating great customer experiences is important

Now that you’ve learned what customer experience is, it’s crucial to understand why it’s so important for your business.

Let’s dive into the top reasons for creating great customer experiences.

Boost your sales

Companies with a superior customer experience bring in 5.7 times more revenue than their competitors.

Put simply, customers are willing to pay more for a better experience. But it’s more than just influencing that one customer. 71% of customers recommend a product or service after receiving a great experience.

If your customer’s experience is not meeting their needs, it’s worth creating great experiences to support their journey.

Increase your customer loyalty and retention

What’s the best way to build customer loyalty? By offering an unforgettable experience.

When a customer feels satisfied with their purchase process and the relationship they have with your brand, they are motivated to come back again.

In fact, 64% of organizations believe that creating great customer experiences is the best way to increase customer lifetime value (CLV). CLV is the total income a business can expect from a customer over their entire relationship.

How to measure customer experience

So you’ve decided to focus on creating great customer experiences. But how do you measure your current customer experience?

Survey customer satisfaction

While there are different options available for customer satisfaction surveys, there’s no agreement on which one is best. A few popular ways to measure customer satisfaction are:

Customer Satisfaction Score (CSAT): Measures on average how satisfied or unsatisfied customers are with your product or service. It’s best to try and get a CSAT score within 15 minutes of an interaction.
Customer Effort Score (CES): Very similar to CSAT, but instead of asking how satisfied the customer is, you ask how easy their experience was.
Net Promoter Score (NPS): Gauges how likely it is that a customer would recommend your company to a friend or a colleague. You get to measure satisfaction as well as loyalty by subtracting the percentage of detractors from the percentage of promoters.

Identify reasons for customer churn

Customer churn refers to the percentage of customers that stop dealing with your product or service during a certain time period.

Having some customer churn is inevitable, but when you have a high churn rate, you want to narrow down the reasons.

Some common reasons are that you don’t understand your target audience well enough, or that your service simply isn’t up to scratch.

By listening to your customers you can discover the emotion, intent, and effort behind their behavior. Usually, customers indirectly tell you their reason for churning before they leave.

You can conduct a churn analysis to really nail down the cause of a high churn rate.

Analyze support ticket trends

There’s a wealth of information coming from customers in support tickets. Analyzing this data at a large scale with AI helps you pinpoint the issues your customers are facing.

It can also shed light on customer suggestions for improvement and in turn, create customer experience improvement strategies for you to action.

The impact of a bad customer experience

There are some expensive consequences to a bad customer experience.

In fact, 32% of customers say they stop dealing with a brand after one bad experience. Not to mention how quickly news of that negative experience spreads through word of mouth.

Aside from venting their frustrations out on social media, highly unsatisfied customers start looking for other providers right away.

7 customer experience improvement strategies

So, now that you know the value of creating great customer experiences, what’s next?

Let’s look at the top customer experience improvement strategies for 2023.

1. Map your ideal customer experience

When it comes to customer experience improvement strategies, mapping your ideal customer experience is the first step.

A customer experience map breaks down activities such as the phases of a purchasing journey, listing all their touchpoints.

It helps you see your customer experience to highlight pain points and opportunities.

It’s important your customer experience maps are based on customer research, so that they’re not internally-driven process flows! Creating customer personas and identifying customer goals goes a long way in creating your ideal experience.

2. Build emotional connections with your customers

Great customer experiences are achieved when you create an emotional connection with a customer.

Building an emotional connection can be as simple as offering perks on a customer’s birthday or helping them during their time of need. For example, upon hearing that a customer’s mother had passed away, Zappos arranged to pick up their product for return and sent flowers, at no cost.

When a customer is emotionally attached and remembers how they feel when using a product or service, they become loyal customers.

3. Take customer feedback seriously

It’s important to not only assess what’s working for your customers, but deal with negative feedback constructively to improve their experience. When you respond to a customer’s concerns, they feel heard and appreciated.

In an ideal world, hearing the thoughts and sentiments of every customer would be possible. But as your small business grows, it’s not possible to have a 1:1 conversation with each customer.

Luckily, technology allows you to take open-text feedback from customers and analyze it at scale, so you can increase your capacity to listen.

For example, tools like Text iQ make it possible to process large volumes of written feedback and give you the big-picture trends you need to know.

4. Develop quality frameworks for your team

A customer experience framework is a key part of customer experience improvement strategies. A good customer experience framework allows you to focus on what matters the most — your customers.

A popular customer experience model is the 5 Category Framework model which has five central focuses: senses, processes, communication, expertise, and relationships.

According to the model, your aim is to improve each of these categories as it has a direct impact on your customer’s experiences.

5. Optimize your tech stack to meet customer needs

AI and machine learning are built for creating great customer experiences. Some examples include chatbots available for your customers 24/7 and natural language processing that allows you to understand what customers mean in free-form texts.

The latest technology allows you to scale faster and more affordably while meeting your customers needs. It’s essential to use them to your advantage in your customer experience improvement strategies.

6. Empower your customers with the information they need

Customer empowerment is about creating great customer experiences with valuable information and tools.

When customers feel confident that they can control specific issues, their overall satisfaction and loyalty towards your product or service increases.

Not to mention, your costs drop and efficiency increases when customers have the ability to resolve issues themselves.

A few ways to focus on this strategy includes:

Access to free video resources.
Online chats with customer service in real-time.
Proactive emails based on personalized product recommendations.

7. Personalize your touchpoints with customers

Customers today have endless options to choose from, so it’s important to differentiate your offering. One way to do this is by personalizing experiences across the customer journey.

For example, a website usually serves as your storefront or the first interaction with your brand, so think about how it affects the way your customers feel about your product or service.

User data from website visitors can help you create targeted promotions and recommendations. For example, Amazon offers shoppers personalized recommendations once an item is added to their cart.

An Accenture study found that 91% of customers are more likely to buy from companies that:

Know their name.
Provide personal recommendations.
Know their preferences.

But remember, creating great customer experiences doesn’t stop at the purchase stage.

Building rapport by following up with a thank-you email or finding relevant, cross-selling opportunities are excellent ways to take your customer experience improvement strategies to the next level.

Use CRM to create the best customer experience

A CRM tool allows you to go above and beyond expectations to deliver amazing experiences. Below are some of the ways a CRM takes you further.

Track customer interactions

Consistency is key in creating great customer experiences and building customer loyalty. Imagine that your customer connects with a live chat representative today but is forced to repeat all the information they sent in an email yesterday.

It wouldn’t be the best experience for them, would it?

An effective CRM:

Tracks all customer interactions.
Stores all your customer information in one place.
Streamlines customer communication.
Builds a successful digital experience for your customers.

Solve support requests

A good CRM allows you to create automated workflows that send notifications to your team to deal with a customer the second they send a service request.

Ideally, you connect your CRM with Google Chat, Slack, Telegram, or the other communication channels you use.

After a while, you notice that your customers face similar problems that can be tackled with similar solutions.

Save your responses to common problems in your CRM as email templates to simplify your process and serve your customers sooner.

Use time-based alerts from your CRM to take it a step further by ensuring that no customer requests fall through the cracks.

Offer self-service with customer portals

Method CRM's online customer portal view showing two open transactions and a balance of $3,205 for a man named Kevil Parker

Customers want to be in charge of their service experience, and resolve issues quickly without waiting for service reps.

A self-service portal empowers customers with access to the resources they need to perform tasks independently.

It’s a single entry-point to your business’ self-service functions, which include your knowledge base, FAQs, administrative capabilities, and more.

Enter Method CRM

Method CRM is a powerful tool that transforms your customer experiences.

Method CRM’s customer portals allow customers easy, 24/7 access to their accounts online. Through these self-service portals, customers view and pay their invoices as well as update their information instantly.

All their information syncs to QuickBooks or Xero, so there’s no need to worry about double-data entry.

Instead of cluttering your accounting data in QuickBooks or Xero with leads, you can manage your information in Method CRM. Then, have leads sync to your accounting software when they become customers.

Method CRM also makes it easy to access client history anytime. You get a centralized view of past interactions, project details and accounting transactions. This makes it easy to deliver exceptional service to customers.

Recap: Creating great customer experiences

The experience that a customer has with your brand at every stage of the buying journey is critical, as it influences your sales and builds customer loyalty.

Creating great customer experiences is possible with Method CRM, as it includes:

Self-service portals to retrieve invoices, make payments, and more.
A powerful two-way sync with QuickBooks and Xero.
A 360-degree view of your client history.

See how to transform your customer experience with Method CRM!

Image credit: Odua Images via Adobe Stock

Celebrating International Women’s Day: What it means to us

Method News / By Filipa Alves

International Women’s Day is a time for celebrating the wonderful women in our lives. Find out what IWD means for Methoders!

Celebrating International Women’s Day: What it means to us Read More »

On this International Women’s Day (IWD), we recognize the progress that has been made to empower women in the tech industry.

In the same vein, we know there is still a long way to go — after all, women make up only 26% of the STEM workforce.

“Women hold only 26.7% of all tech-related jobs.”
— Statistia, 2021.

With the recent tech layoffs, it’s estimated that 45% of those impacted were women.

Currently, women make up over 10% of CEOs of Fortune 500 companies. And although this is an improvement from the last few years, only 3% of these are women of color.

“Women CEOs run over 10% of the Fortune 500 companies.”
— Fortune, 2023.

This year’s IWD theme is #EmbraceEquity. It reminds us that we must continue pushing for greater equality and representation in the tech space and beyond.

As we celebrate today and strive for a better tomorrow, let’s remember to put equity at the forefront of our journey toward gender parity.

What International Women’s Day means to Methoders

The first International Women’s Day happened in March 1911, when a million people rallied to support women’s rights in Europe. The day gradually gained traction and became a global celebration.

Today, IWD recognizes the social, economic, political, and cultural achievements of women while acknowledging that there’s more progress to be made.

Here’s what International Women’s Day means to some of our very own:

A day for inclusivity

“For me, International Women’s Day is about celebrating the accomplishments of women across borders and industries. IWD is about an intersectional approach to inclusion and progress for womxn no matter their race, sexuality, or religion. It’s a day that is especially important for those in STEM to recognize as, without gender equity, global innovation remains stagnant.”
Eilis McCann, Manager of SEO and Content Marketing

Recognizing the experiences of the women in our lives

A friend in university once told me that a guy in her high school computer science class once told her she’d “never be a good developer.” She took the comment in stride and used it to fuel her throughout her degree, not to prove to him that she could do it, but to prove to herself that comments like that wouldn’t stop her from achieving anything she wanted to.

I want to foster an environment where women aren’t fueled by a need to prove anything but simply follow their passions. That being said, my friend crushed her degree and is now a well-established developer!
Khamil Alhade, Product Manager

“Nearly 60% of women from all racial backgrounds experienced unwanted comments or jokes about their gender.”
— Lever, 2021

Having the support to do it all

For working moms like me, IWD means recognizing that women in the workplace often juggle supporting their families and accomplishing their professional goals. Raising kids requires a lot from women, especially in recent years, where we’ve gone through multiple lockdowns and have been informed of school closures with little notice.

Having an employer like Method that’s flexible, understanding, and supportive of the life of a working mom has allowed me to put my family first — something that is very important to me.
Julia Poon, Digital Marketing Manager

Knowing that the sky’s the limit

As Manager of Human Resources, I strive every day to create a space where women feel empowered to reach their full potential and ensure they feel valued for their immense contributions. On this Women’s Day, I wish for us to continue striving for equality for all.

Growing up in South America, women often have their paths laid out for them from the time they’re born. Many women there barely finish high school before getting married off to a suitor. I always questioned this custom until my hero, my aunt, showed me that it’s okay for women to follow their own path.

Today, my aunt is the proud owner of her own business, and I work for a company where I feel respected by my peers. So for me, IWD should be a time for women to celebrate themselves and one another, as well as work together to help others pave their own paths.
Saudia Allie, Manager of HR, Finance, and Operations

Acknowledging the women who cleared the way

“My mom has naturally always been a very influential person in my life, and I’m very proud of her accomplishments. She earned her engineering degree from Polytechnique in Montreal, the school where 24 women were shot in 1989 simply because they were women studying engineering.

IWD helps me remember those victims and their potential contributions to society that were lost. I acknowledge that if my mom had started/finished her degree a few years later, she might have been one of those victims. She has shared with me some stories of the difficulties she endured throughout her career, and I try to think about what might have been different if her path hadn’t been so difficult.”
Phil Cote, Product Manager

Shifting the narrative for future generations

“So much of who I am today I owe to the women of my family. I grew up hearing the stories of my grandmothers who never had an education because the day they married was the day their fate was sealed. I listened to their tales of interrupted dreams, of leaving their home country and working menial jobs to ensure their children would have a better shot at life.

It is the work and legacy of the women who raised me that pushed me to accomplish everything they weren’t allowed to. I am the first woman in my family to get a degree and work in STEM. For me, IWD is all about appreciating those who paved the way for us and committing to work harder to create an even better tomorrow for our children.”
Filipa Alves, Content Marketing Strategist

The takeaway: Go beyond International Women’s Day

International Women’s Day reminds us of the issues women face in the workforce and every other aspect of their lives and what we need to do to address them. It’s a chance to reflect on the achievements of the women around you and re-evaluate how you support them daily — not just yearly.

This International Women’s Day, let’s commit ourselves to creating a more equitable world for everyone. By educating ourselves and others about gender disparity, supporting women and BIPOC-owned businesses, speaking out against inequality, and making our workplaces more inclusive, we can create lasting change.

At Method, we celebrate the amazing women whose contributions play a huge role in our success and who we continue to learn from every day.

Learn about one expectant mother’s journey navigating the job market in this blog!

Image credit: Ketut Subiyanto via Pexels

Xero for contractors: All you need to know

Construction, Xero / By Sarah Majumder

This article explores the features that make Xero for contractors an ideal solution for your business.

Xero for contractors: All you need to know Read More »

If you work in the construction industry, you know the challenges that come with keeping your finances and accounting in check.

Chances are, you’re working on several projects simultaneously, spending hours, even days on each. You deal with issues such as:

Having employees who come and go.
Payroll that changes on a weekly basis.

But with the use of proper technology, this can change.

This article explores Xero as an accounting software for construction contractors. Keep reading to understand:

Is Xero good for small business?
The key features that make Xero for contractors an ideal solution.
How connecting Xero with your CRM takes your business to the next level.

Xero for contractors overview

Xero dashboard showing visual charts and graphs of business bank account, account watchlist and invoices owed to you. — *Image credit:* *Intuitive accountant*

Xero is one of the most popular cloud-based accounting software. When it comes to Xero for contractors, it’s easy to use and less expensive than competitors such as QuickBooks Online.

One of its most notable benefits is that you don’t get charged for additional users with any of its subscription plans.

What also makes Xero for contractors ideal is that it includes a robust mobile app and suite of reporting tools, allowing you to see your business performance while you’re on-site.

Another plus is that Xero allows you to create and customize invoices quickly Xero also integrates with over a thousand different applications, making it easy for you to get the most out of your software.

How online accounting helps small businesses

Online accounting makes managing your small business finances simpler and more efficient.

Rather than losing track of disorganized spreadsheets, you access up-to-date financial information quickly through a software. Even better, through its integrations, you get to stay on top of scheduling your employees at all times without any stress.

The best part is that you don’t need to install any software on your desktop — all you need is an internet connection.

A good accounting software manages and automates tedious work so that you save time. With Xero for contractors, you get easy-to-use invoicing, automated tax returns, and online payment collection.

Is Xero good for small business?

With all the software options available, you may wonder, “Is Xero good for small business?”

Your business may start small, but as it grows, you need an accounting program like Xero.

It’s pricing plans aren’t based on the number of employees, so it’s easy to accommodate the changing stages of your business.

So whether you’re a handyman starting out in your business or a project manager looking to grow your company, you won’t ever need to stress about additional costs.

As you scale your business and move into high phases of growth, you’ll likely require integrations and add-ons to keep things running smoothly. Xero connects with over 1,000 third-party apps, which is among the most of any accounting software.

What’s more, Xero keeps its interface simple and user-friendly to help you even if you’re new to running a business. It makes the most complex accounting information easy to grasp.

Xero features for trades and construction

Invoicing and quotes

An invoice with service details for gardening services shown on the Xero accounts page. — *Image credit:* *More than accountants*

Generate detailed quotes from templates in minutes with Xero for contractors. Then, send them online to customers for fast approval.

Once accepted, turn your quote into an invoice within the mobile app or by logging into Xero from a web browser.

Once your job is done, customize and send professional invoices from your desktop or app.

Another benefit is that you won’t need to chase customers for payments anymore. Give them a gentle nudge with Xero’s automatic reminders.

Track project profitability

Xero's profitability dashboard showing an overview of profit, invoiced amounts and costs, with figures, profit graphs and percentages shown. — *Image credit:* *Xero*

Xero Projects allows you to manage your business projects and keep track of their profitability in real time.

Use the profitability dashboard in Xero Projects to get a clear view into the state of your project. The visual charts give a detailed breakdown of a job’s costs vs. the amount invoiced to your customers.

Xero Projects integrates with the rest of the Xero platform to make creating and sending invoices simple.

The profitability dashboard also tracks the time spent on each project, as well a link to quickly see which members of your crew is working on that project.

Budgeting

Xero's budget manager showing overall budgets for a company including income minus the cost of sales. — *Image credit:* *More than accountants*

Access built-in budgeting features in Xero Budget Manager and compare budgets against performance for different periods.

Once your budgets are entered for each month, generate comprehensive reports to get a clearer picture of your revenue.

For example, with the budget variance report, you see the budget and actuals for a specific period, as well as the variance in dollars and percentage.

With Xero Budget Manager, your budgeting tasks as a general contractor gets a whole lot simpler.

Integrations

Xero connects thousands of the most popular apps, so that you save time for what matters most — growing your business.

For example, its integration with Beyond takes your budgeting to the next level. It allows employees to see what’s important to them and create budgets in many ways including top-down and bottom-up.

If you’re a small business, building entire payment infrastructures to power your online business is just not feasible.

That’s why Xero’s integration with Stripe makes it possible for cloud-based businesses to accept debit and credit payments from your customers.

Do even more and improve your customer experience with Xero’s powerful CRM integrations.

How Method CRM improves Xero for contractors

When it comes to Xero for contractors, connecting to a CRM simplifies your construction workflows even more. It allows you to understand your customers through data-driven insights.

Use Method CRM to extend the power of Xero with:

Personalized workflow automation.
Email marketing capabilities.
Online portals for your customers to self-serve 24/7.

And you no longer have to jump between platforms as Method CRM integrates with popular tools you use such as Gmail and Outlook, making communication easier. Below is an example of how Method CRM brings the customer data you need from your CRM and Xero into your inbox.

Aside from communication, Method CRM, simplifies every aspect of your building process, from winning bids sooner to automatically creating quotes. Stop spending your time verifying data and re-keying information thanks to Method CRM’s powerful two-way sync with Xero. This feature allows you to focus on growing your business and closing sales.

What’s even better is that you get to customize your software to fit exactly to your business needs as you grow. And if you’re stuck, Method CRM offers incredible support systems to guide you. That’s why Xero users love Method CRM.

Bottom line: Is Xero the best accounting software for contractors?

Xero is your go-to cloud accounting system when it comes to running your business more efficiently.

But it can’t do everything. Maximize how Xero helps you run your business with Method CRM. It simplifies your workflows with capabilities such as:

Two-way, real-time sync with Xero.
Poweflow workflow automation.
360-degree view of customer data.

Xero for contractors FAQs

What size business is Xero suitable for?

Xero is suitable for all sizes of businesses, from sole traders to large corporations.

Xero for contractors provides a straightforward accounting system that makes it easy to manage on your business finances.

If you’re wondering ‘Is Xero is good for small business?’, the answer is yes. It provides the financial insights and automation you need along with a user-friendly interface.

Is Xero good for a construction company?

Absolutely! Xero for contractors is one of the most comprehensive accounting solutions for construction companies.

With features such as invoicing, payroll, budgeting, and project management it’s no surprise so many businesses in this sector choose use Xero.

It also offers best-in-class security, making Xero for contractors a safe and reliable choice.

What is the best software for a small construction business?

The best accounting solution for your small construction business is Xero. Here’s why.

The software gives you powerful features and automation capabilities. Its pricing plans are not based on the number of users, so rest assured that you’re costs never go up as you grow.

If you struggle with understanding accounting statistics, worry not! Xero has an easy-to-use interface, making the most complex information easy to understand. So is Xero good for small business? Definitely, yes.

Want to know how Xero integration takes your business to the next level?

Get your free download of our Xero e-book.

Image credit: Cherryandbees via Adobe Stock

How to become a general contractor

Construction, Small Business / By Ryan Flanigan

Want to know how to become a general contractor, and how to start a general contractor business? This article lays it all out.

How to become a general contractor Read More »

Want to learn how to become a general contractor this year? Find everything you need to know in this blog.

Are you good at motivating people? Do you have great organizational skills? And do you dream of being your own boss?

If you answered yes to any of these questions, a career as a general contractor is right up your alley.

Keep reading to learn how to become a general contractor, as well as how to start your own contractor business.

What’s more, this article provides answers to questions such as:

How much do general contractors make?
What is a general contractors license?
How do you hire subcontractors for your business?

Finally, you’ll get a sneak peak into the best general contractor software to give your business a head start.

What is a general contractor?

Step one to learning how to become a general contractor is understanding what exactly a general contractor does.

General contractors are responsible for the oversight of construction projects. In many ways, you can think of them as construction managers.

You can be a residential contractor, a commercial contractor, or a combination of both.

As a general contractor, you are responsible for managing and supervising other people who are part of the project at hand, such as:

Plumbers.
Electrical contractors.
Framers.
Roofers.

The main tasks of a general contractor include:

Being the main point of contact for customers.
Sourcing materials.
Managing budgets.

General contractor vs. handyman

While the two jobs are sometimes confused, learning how to become a general contractor and how to become a handyman are two different processes.

A handyman is a professional who is skilled at repairs and small projects. You can think of a handyman as someone you call when you need something fixed around your house. Examples include changing light bulbs and quick paint jobs.

A handyman rarely needs anything beyond a business license. On the other hand, general contractors often have stricter licensing requirements, depending on where you live.

We’ll go more in depth into how to become a general contractor in a moment, but first, let’s address the question on your mind: how much do general contractors make?

How much do general contractors make?

The answer to “How much do general contractors make?” may not be as straightforward as you’d hope.

While Indeed notes that the average salary of a general contractor in the United States is $103,842 per year, the amount that self-employed general contractors make varies largely.

Factors that affect your potential annual salary include:

Where you live.
Prices set by your competition.
General contractors license cost.
Liability insurance amount.
The amount of jobs you take on.
Overall overhead costs.

The good news is that running your own business means that there’s no cap to how much you make. The harder — or smarter — you work, the more you’ll make.

Convinced that the contracting business is for you? Let’s check out how to become a general contractor.

How to become a general contractor

Let’s get right into it: here’s how to become a general contractor.

Step 1: Education requirements and training

The first step towards becoming a general contractor is to ensure you fulfill any educational requirements.

There are generally two paths to becoming a general contractor: higher education and hands-on experience. The most successful contractors have a combination of the two.

Generally, any education in the construction industry provides you with the contracting skills you need. A degree or diploma in subjects such as construction management or civil engineering prepare you for a career as a general contractor.

Having hands-on experience is equally as necessary, whether it’s through a trade program or an apprenticeship.

What’s more, as a potential business owner, there are additional skills you need that aren’t specific to construction, such as:

Project planning.
Business management.
Budgeting and financial management.

Step 2: Get licensed

In most states, general contractors are legally required to get licensed in order to work. In many of these states, this involves taking a licensing exam.

Be sure to review the license requirements in your area before starting your business.

Even if your area doesn’t have contractor license requirements, you should still consider getting accreditation of some kind. Customers are more likely to trust a licensed contractor over an unlicensed one.

Finally, no matter where you are, don’t forget to get a business license.

Step 3: Earn some experience

Getting real-world experience is a crucial step to becoming a successful general contractor. While your job is primarily to oversee the work of others, you still need to be skilled at doing (at least some of) the work that you’re supervising.

If you’ve been working in the construction industry for a while and are making a career change, you can skip this step. But, if you’ve never picked up a hammer in your life, you should consider working for established construction companies to gain experience before starting your own construction business.

Step 4: Calculate your rates

Part of learning how to become a general contractor is learning how to calculate your rates.

As mentioned, the short answer to “How much do general contractors make?” is “It depends.” What it depends on is how you calculate your rates.

Once you figure out your overhead costs, you can calculate how much you need to charge to make a profit.

Contractors sometimes charge an hourly rate for their services, but this is rare, due to the nature of the job. Most general contractors charge a percentage of the total cost of the job, or even a fixed price.

Pro-tip: using robust accounting software simplifies the way you keep track of your revenue. For example, using Xero for contractor projects is a great way to keep track of your sales, profits, and success.

Step 5: Seek out jobs

Once you have the required licenses, experience, and a plan for your business, you’re ready to seek new jobs.

There are several ways that you can market your business and find new customers:

Online ads.
Social media.
Word of mouth.
Flyers around town.

Finally, people are often in search of general contractors to oversee a project they’ve already started. So don’t forget to regularly search if there are any jobs in your area that you can apply for.

There’s one part of a general contractor’s job we haven’t discussed yet: hiring subcontractors. Let’s see what that involves.

Hiring subcontractors for your general contractor business

Learning how to become a general contractor is one thing. Learning how to hire subcontractors is a different wheelhouse, and can be a whole job within itself.

General contractors are often required to hire subcontractors so they can complete projects on time. Your customer is trusting you to find the best, so it’s essential to hire skilled subcontractors whom you are confident in.

In most cases, the biggest challenge in finding the right subcontractors is sticking to your customer’s budget. That’s why it’s best that your initial estimate includes the cost of each potential subcontractor, so your customer isn’t blindsided.

To start, there are a variety of websites available for general contractors and construction managers to find subcontractors. Examples include BuildingConnected and Associated General Contractors of America (AGC).

Some of these sites require you to post a Request for Proposal (RFP). In these cases, interested contractors will submit a proposal for your consideration.

From there, you should establish a prequalification process for your potential subcontractors to go through, to test if they meet the needs of your project. This process can include:

Verifying licenses.
Calling references.
Testing knowledge and skill.

Once your subcontractor of choice passes your tests, you’re ready to bring them up to speed on the job.

Lastly, don’t forget to build relationships with your subcontractors so that you don’t have to keep repeating this process. Building a network of reliable subcontractors is what keeps your general contractor business efficient and profitable.

Recap: How to become a general contractor

Now that you know the answer to “How much do general contractors make?” and how to determine the licenses you might need, you’re ready to start your own general contractor business and take on new projects.

However, if you’re looking to skyrocket your business growth, you need to consider implementing a software solution to give you that extra push. Along with the business tools and features they offer, general contractor software like Method CRM allow you to:

Keep better track of job progress.
Pull up customer and project information on the go.
Organize your subcontractors and their rates.

General contractor FAQs

How do you become a licensed general contractor?

How to become a general contractor depends on the state where you live and the licensing requirements in your area. For the most part, the process consists of five steps:

Determine which level of government controls general contractor licenses in your area.
Fulfill educational requirements, such as a pre-license education course.
Gain hands-on experience and skills in the field.
Take any applicable exams.
Fill out your license application.

How much do general contractors make?

General contractors make upwards of $100,000 if they have a successful business.

However, this amount depends on factors such as where you live and your contractor rates.

If you own your construction business, there’s no limit to how much you can make as a general contractor.

How much do general contractors charge?

General contractors usually charge 10-20% of a project’s total construction costs.

Most general contractors determine their rates based on how much their subcontractors charge. Based on those figures, a general contractor’s mark-up could be as high as 40%.

See how Method CRM can help jumpstart my contractor business.

Image credit: Borevina via Pixabay

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Multi-entity CRM

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Lead management

Opportunities

Email

Invoicing

Customer management

Estimates

Customer portals

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Grow your business without leaving QuickBooks Online.

The importance of sales commission tracking

Does QuickBooks Online track sales commissions?

How to set up commission in QuickBooks Online

Step 1: Choose between commission as salary or additional pay

Step 2: Start recording commissions in Payroll

Step 3: Process commissions depending on your chosen type

QuickBooks Online commission tracking tools

Wish you could get more from QuickBooks? Method makes it possible.

Strengthen your commission tracking process with Method

QuickBooks Online commission tracking FAQs

How do I create a commission report in QuickBooks?

How do I set up sales reps in QuickBooks Online?

How do I categorize sales commissions in QuickBooks?

Bottom line: Simplify your sales commission calculations and save time