The Simple Marketing Secret Most Contractors Overlook

Let’s say you meet someone for the first time, and during that meeting, you have a great conversation and realize you have some common interests.  You seem to look at things the same way. 

You just get a feeling that this is a good person, and you may think, “You know, we could be friends.” 

“Could be” is the key phrase, of course.   Because, I’m sure you realize, it would take some specific actions to move from “we could be friends” to “we are friends.”  And one of the things you’d have to do is stay in touch.  You’d have to talk again.  You’d have to be in contact with each other. 

Now, if you’re starting to ask yourself why I’m telling you something so obvious, it’s because experience has shown me that a lot of contractors act as if “staying in touch” is a principle they've never heard of. 

And frankly, that’s scary. 

In most cases, it costs you in marketing expenses around $275-$325 to gain a new customer.  If you don’t keep that customer, you've spent an awful lot for a “one-time” service call.

Each name in your database only represents “could be” customer potential.  No, they’re not active customers any more than a one-time meeting with someone qualifies them as a friend. You've got to take action for that to happen.

The simple fact is this:  regular contact keeps customers.  That involves a number of tried-and-true techniques, such as:

•  Follow-up visits with thank you cards, calls, or emails: This simple act speaks volumes of your company and can boost your image. Have your techs keep a stock of thank you cards with pre-stamped envelopes and they can fill them out right after the service call. This two minute task will let your customer know that you appreciate their business.
• Offer maintenance agreements: How great is it to have a customer pay to remain a customer? This loyalty program is a mutual investment between the consumer and the provider. In a maintenance agreement a customer could get a higher level of service, exclusive discounts, special treatment, or even guarantees. What you get out of this is a reliable income stream. Maintenance agreements can even out your cash flow and provide a year round income.
• Reactivation Letters: Never throw away a list of names. An ex-customer will reactivate and spend money if you say the right things. Tell them that you miss them and if you've done something that might have offended them that you want to make it right with something free or a discount. By getting a response from this list you've saved money that was headed straight for the trash.

Equally important are holiday cards, “customer only” direct mail offers and a customer retention newsletter. 

If done correctly, that last item – the newsletter – is the centerpiece of a well-run customer retention program. In fact, if you only do one thing, make it a newsletter that goes out at least twice a year. 

Fill it with interesting “home care” tidbits so it’s not perceived as “advertising,” and thus forges a far better image and strengthens the relationship. Better relationship equals better retention. 

How to Get a Customer Newsletter

1. You can do it yourself. If you’re prone to writing, designing, graphics, editorial layout and have experience crafting an informative newsletter that can also sell, then go for it! Many times I speak with contractors who do it themselves the first time, then “run dry” for info on subsequent efforts. Therefore, there’s option 2…
2. Hire it out. An ad agency or newsletter creation service can create a special one for you, customized exactly as you want it. Unless your database is over 10,000 or so, the costs can be significant. This is why there’s option 3…
3. Use a “syndicated” newsletter. This is also known as “semi-custom.” It is very fast since the template for the newsletter and most of the content is already done. This also makes it far less costly. Some companies offer ‘ads’ for your company. Stay away from the overly slick fluffy ones since they don’t appear “local” enough to consumers.

A good syndicated customer retention newsletter costs less than $6 a year per customer, including postage!  Not a bad return on investment, especially since it involves returning customers.  Every customer who has written you a check or swiped a card in the last 48 months should be receiving your newsletter. 

All high performing newsletters will have an online component. A QR code can link your printed newsletter to your online version. Hudson, Ink can provide Newsletter customers with an online newsletter portal that is updated monthly with new content and offers for your customers. This improves your online presence, gives you content you can share on your social channels and provides even more helpful and useful information to your customers.

Sending a Newsletter to your customer is like having a cup of coffee with your customers at regularly specified times each season. It’s low pressure and keeps your company at the top of your customers mind.

Always remember, your company’s current customers are the absolute #1 source of your future sales. Loyal customer will end up spending 33% more with your company and sending 107% more referrals to your business than non-loyal customers. And speaking of referrals, newsletters are a great place to utilize referral requests. Most contractors think that referrals “just happen” but that’s usually not the case. If each of your customers referred one other then you would double your customer list right now. For free. 

When you lose customers, you lose all of their future business and all of their referrals to your competition.  When you keep customers, you keep that pool of sales for yourself.  And isn’t that a scenario worth considering?