Secrets are very big these days. Makes you wonder how things so secretive get so much press. The secret I'm about to reveal shouldn't be kept quiet.
Certainly it's no secret that technical proficiency tops the list of contractor skills. A full 78% of contractors enter the field because they know how to repair or install. Sadly however, the degree of skill does not have a corresponding success rate.
There are a couple of skills that separate the successful contractor and the not-so-successful ones, which aren't contracting at all.
Management is one of those skills. How to hire, train, motivate, and incentivise people to operate a repeatable business "system".
These two skills - technical proficiency and management - will die unless a third element shows up: Paying customers. They are the fuel for the machine. Unceremoniously, we call them sales on top of our P&L, which resulted from appointments (unless you can sell without leads).
All of these leads are a result of marketing.
Under-stocked trucks and having one too few technicians do not cause a business to die. Businesses do not die from having one technician too few or too many.
A ringing telephone can keep that from happening, but your phone won't ring unless you properly tell your market what you do, how you do it better, and most importantly, why they should care.
For many contractors, marketing is a confusing subject. Some think it's advertising. And it is. Some think it's sales. And it is. Some think it's the image, esteem, promotion, recognition, and customer service represented in your company. And, yes, it is that too.
I would also be confused. Except the real definition fits on one line: Marketing is the ethical acquisition and retention of customers.
Most people understand the first part of the definition. You use marketing to acquire customers. The secret is in the second part.
The Secret is Being Forced Out of Hiding
What separates the winning contractors from the losing contractors is customer retention. Marketing is a must if you want to retain your customers. In this economy, there is no better source, no better list, no better or more reliable source of income that current customers.
Retention marketing keeps customers. That's its purpose in life, which is a very good purpose to have. A retention campaign is not about pumping a sale in someone's face with each contact. It is about maintaining credible, reliable, trustworthy relationships with your client base.
"Why do I need to market to my customers? They're already my customer." a contractor may ask. If your marketing is only "selling" with every contact, your customer's loyalty is only as good as his next check to you. There is no love lost if all he has to do is stop using you.
What's easier to replace "just a contractor" or a "relationship?" People buy from people they like. To "like you" requires the establishment of some type of relationship. A relationship that is built on retention marketing will pay you handsomely over time.
Odds Are In Your Favor
A retention program that is strong is more powerful than any other forms of marketing, and dollar for dollar, is a better investment for you to make.
Most contractors "say" they believe in Customer Retention, but few act on it. Nearly 90% of plumbing contractors admit to having no customer retention program. It is unfortunate but it makes it very easy for a contractor with a customer retention program to stand out.
5 Easy Components of a Powerful Retention Program:
After each sales or service call, send a thank you note. It'll cost you about 45 cents to do this, and likely be the only contractor who ever sent them a thank you.
2. Thank you call after same. Often opens the door for error correction, satisfaction survey, killer testimonial, upsell to a Maintenance Agreement, or referral. Why are you NOT doing these?
3. Referral request with discount service certificate. So easy, natural, inoffensive and oh yea, effective as all get out.
4. Automatic "upsell" to next service or program. Can be for equipment, upgrade, or agreement. Just staying in touch and offering a benefit each time.
All of the above are "transaction events" triggered by the original invoice and are easy and recommended. The "program" that will benefit you the most is one that is recurring, renews, and allows you to keep the contact going.
You can achieve this by having a Customer Retention newsletter. If you don't know what a newsletter is supposed to be, read on.
Here's what it's not: A newsletter is not an ad for your company or industry. You have lost the point if you turn the newsletter into pure promotion.
Instead, your newsletter should position you as an authority on matters of home importance, regardless of the application within your industry. In other words, it isn't all about plumbing. A simple four-page newsletter, cleanly laid out, with subtle not overt sales hints that cement a deeper customer relationship works wonders, especially in this economy.
A common element among our clients who set sales records in 2008 was they all do newsletters. Was it a coincidence? They don't think so.
Depending on how you choose to send out newsletters just two to four times a year, the degree of difficulty and expense vary. Among your options:
* Do it in-house. This way takes research, staff, time, and resources to create, but can be beneficial. However, most contractors stay very busy and that makes producing a newsletter very difficult and it becomes hard to maintain.
* Hire a freelance writer and graphic artist. You'll get a more professional job and it removes the burden of doing it yourself. But because writers and artists charge fees based on their experience and what the market will pay, costs can vary widely. Ask for estimates, samples, and referrals upfront.
* Use a semi-custom "syndicated" newsletter. This is a newsletter that's essentially 'turn-key' ready with the exception of certain items (logos, ads, editorial) that make it uniquely yours. There are many out there for contractors and each has its own identity.
While customer newsletters are very effective and the least expensive way to stay in touch with your customers, they are also a "soft step" toward the second retention weapon - maintenance agreements. This is a smaller group than your entire base, but they pay to be a regular customer, which is a nice benefit.
Becoming a successful contracting company is not a one-shot deal. It takes managerial and technical skills, along with marketing expertise, all put together into cohesive systems. To prosper in most any economy, stare right at the asset that allows you to stay in business: the customers who stay, pay, and refer. They'll pay attention to you, as long as you pay attention to them.
Certainly it's no secret that technical proficiency tops the list of contractor skills. A full 78% of contractors enter the field because they know how to repair or install. Sadly however, the degree of skill does not have a corresponding success rate.
There are a couple of skills that separate the successful contractor and the not-so-successful ones, which aren't contracting at all.
Management is one of those skills. How to hire, train, motivate, and incentivise people to operate a repeatable business "system".
These two skills - technical proficiency and management - will die unless a third element shows up: Paying customers. They are the fuel for the machine. Unceremoniously, we call them sales on top of our P&L, which resulted from appointments (unless you can sell without leads).
All of these leads are a result of marketing.
Under-stocked trucks and having one too few technicians do not cause a business to die. Businesses do not die from having one technician too few or too many.
A ringing telephone can keep that from happening, but your phone won't ring unless you properly tell your market what you do, how you do it better, and most importantly, why they should care.
For many contractors, marketing is a confusing subject. Some think it's advertising. And it is. Some think it's sales. And it is. Some think it's the image, esteem, promotion, recognition, and customer service represented in your company. And, yes, it is that too.
I would also be confused. Except the real definition fits on one line: Marketing is the ethical acquisition and retention of customers.
Most people understand the first part of the definition. You use marketing to acquire customers. The secret is in the second part.
The Secret is Being Forced Out of Hiding
What separates the winning contractors from the losing contractors is customer retention. Marketing is a must if you want to retain your customers. In this economy, there is no better source, no better list, no better or more reliable source of income that current customers.
Retention marketing keeps customers. That's its purpose in life, which is a very good purpose to have. A retention campaign is not about pumping a sale in someone's face with each contact. It is about maintaining credible, reliable, trustworthy relationships with your client base.
"Why do I need to market to my customers? They're already my customer." a contractor may ask. If your marketing is only "selling" with every contact, your customer's loyalty is only as good as his next check to you. There is no love lost if all he has to do is stop using you.
What's easier to replace "just a contractor" or a "relationship?" People buy from people they like. To "like you" requires the establishment of some type of relationship. A relationship that is built on retention marketing will pay you handsomely over time.
Odds Are In Your Favor
A retention program that is strong is more powerful than any other forms of marketing, and dollar for dollar, is a better investment for you to make.
Most contractors "say" they believe in Customer Retention, but few act on it. Nearly 90% of plumbing contractors admit to having no customer retention program. It is unfortunate but it makes it very easy for a contractor with a customer retention program to stand out.
5 Easy Components of a Powerful Retention Program:
After each sales or service call, send a thank you note. It'll cost you about 45 cents to do this, and likely be the only contractor who ever sent them a thank you.
2. Thank you call after same. Often opens the door for error correction, satisfaction survey, killer testimonial, upsell to a Maintenance Agreement, or referral. Why are you NOT doing these?
3. Referral request with discount service certificate. So easy, natural, inoffensive and oh yea, effective as all get out.
4. Automatic "upsell" to next service or program. Can be for equipment, upgrade, or agreement. Just staying in touch and offering a benefit each time.
All of the above are "transaction events" triggered by the original invoice and are easy and recommended. The "program" that will benefit you the most is one that is recurring, renews, and allows you to keep the contact going.
You can achieve this by having a Customer Retention newsletter. If you don't know what a newsletter is supposed to be, read on.
Here's what it's not: A newsletter is not an ad for your company or industry. You have lost the point if you turn the newsletter into pure promotion.
Instead, your newsletter should position you as an authority on matters of home importance, regardless of the application within your industry. In other words, it isn't all about plumbing. A simple four-page newsletter, cleanly laid out, with subtle not overt sales hints that cement a deeper customer relationship works wonders, especially in this economy.
A common element among our clients who set sales records in 2008 was they all do newsletters. Was it a coincidence? They don't think so.
Depending on how you choose to send out newsletters just two to four times a year, the degree of difficulty and expense vary. Among your options:
* Do it in-house. This way takes research, staff, time, and resources to create, but can be beneficial. However, most contractors stay very busy and that makes producing a newsletter very difficult and it becomes hard to maintain.
* Hire a freelance writer and graphic artist. You'll get a more professional job and it removes the burden of doing it yourself. But because writers and artists charge fees based on their experience and what the market will pay, costs can vary widely. Ask for estimates, samples, and referrals upfront.
* Use a semi-custom "syndicated" newsletter. This is a newsletter that's essentially 'turn-key' ready with the exception of certain items (logos, ads, editorial) that make it uniquely yours. There are many out there for contractors and each has its own identity.
While customer newsletters are very effective and the least expensive way to stay in touch with your customers, they are also a "soft step" toward the second retention weapon - maintenance agreements. This is a smaller group than your entire base, but they pay to be a regular customer, which is a nice benefit.
Becoming a successful contracting company is not a one-shot deal. It takes managerial and technical skills, along with marketing expertise, all put together into cohesive systems. To prosper in most any economy, stare right at the asset that allows you to stay in business: the customers who stay, pay, and refer. They'll pay attention to you, as long as you pay attention to them.
About the Author:
Adams Hudson is president of Hudson, Ink, a creative marketing firm for contractors. For a free newsletter sample, readers can send their request to freestuff@hudsonink.com. Readers can also receive free marketing articles and reports by visiting the link provided.
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