“I’m not getting the leads” says one contractor. “I’ve got too many leads” says another. Both are right, both are wrong.
Not getting leads sounds like the bigger problem, so we’ll attack it first. The questions I go through with each call like this are: What have you done to build leads and keep customers for the last 3 months? (You’ll note the question is NOT “what have you done this morning”.)
If that answer includes adherence to a marketing plan with a good supply of response-oriented ads sifted into the market with a portion of every sales dollar earmarked for retention, then that’s really good.
I’ve spoken with only 4 people this year (out of 400) who have legitimately done this and NOT seen their market results flourish. That’s a pretty decent “hit rate” on results, understandably resultant from strategy, not panic. It’s that old “pro-active vs. reactive” argument, for the 100th time. Those who have done MOST of the right stuff have faltered somewhere in the “monkeying” around with otherwise proven ads, or “sort of forgot” to do customer retention. That party has a way of coming to an abrupt halt, which brings me to this —
Those with “too many leads” sometimes short-circuit their success by saying, “I’m so busy, I don’t really need to market anything.” Had a guy call and cancel his summer newsletter for this very reason. So the very things that got him busy, he’s willing to cut off in the busy season, not recalling that “all this business” will not be there in the Fall, or in the winter without an attempt of retaining them.
As I’ve oft repeated, marketing is a mix of math and behavioral psychology. If one of those doesn’t “hit”, then they both fail. Often the “hits” are made in combinations of efforts, such as we’ve discussed.
The killer newspaper ad – if not followed up with good sales skills, timely installers or techs, service reminders and newsletters – is no better than a LOUSY newspaper ad because the “bottom line results” don’t really change. Remember, keeping a customer costs 1/6 of getting him. Generally his referrals are free.
Get a plan. Work the plan. If you’re successful with it – like most of those of you who do follow the strategies we advise – then let it continue to pull customers, rather than leaving you in the unenviable position of having to push yourself on them later.
Thursday, June 19, 2008
Wednesday, June 11, 2008
Forget The Politics Of The Following
This editorial has nothing to do with Global Warming (or that my 430 horsepower car is contributing to it, so just BACK OFF!), or Health Care issues, or even hanging chads. It has everything to do with presentation of your message. Whew. I bet I still get hate mail, sued, or potentially both.
McCain won New Hampshire. Romney came in second. McCain is the best speaker and presenter. Romney is second best. Please notice the parallel. No, this isn't always the case, but for a job in which your presentation can override presumption, it is of tremendous, far-reaching consequence.
I have blabbed to you frequently about "image" and "relationship building," which I realize are weenie and conceptual topics for this contracting audience. I knew that then; I know it now. But it doesn't mean the value is diminished. Quite the contrary. Here we are talking about the Presidency of the United States, where everything is measured, weighed, and scrutinized including whether there's an over-abundance of ear hair before entering the voting booth. And yet "we the contractors" feel the public turns a blind eye when inviting a "trustworthy, reliable, and honest" person into their home.
It's "packaging," boys and girls. And if I don't like yours, I'm not calling. If I KNOW that "Toothless and T-shirted Larry" can frame a wall or unstop a drain or bang in shingles better than you, then he's proven himself. But if I don't know that as 100% of his hopeful "acquisition market" does NOT, then he's not getting the call. Doesn't matter how cheap he is, and it sure doesn't matter how good he is because I'm never going to find out.
The market has moved. The retailization of Contractors isn't just here, it's being modified as we speak.
The bar has moved. "Fast Service" is a sad threshold to tout, as nullified as saying "Color TV!" on your Hotel Marquis. Quantify your service speed and excellence to me.
The sales environment has moved. When Og heated his cave with a stick fire, that was "good enough" for Ug. Sadly, Og's commodity-thinking is still pervasive (with commensurate image) in product, solution, and presentation. Homeowner's are 3 clicks, 1 cell phone call, or 0.2 seconds from specific, personal, adaptive, custom solutions for virtually every whim they have. When your online florist reminds you of your anniversary AND your wife's preference AND suggests a complimentary gift for your receptionist (strategy right there), it'd be reasonable that your contractor could remind, schedule, and professionally upsell with appreciated services, too. All automated, by the way. Og'll never know what hit him.
The credibility quotient has moved. You think I need to read another story about elder rip-offs, break-ins, child abduction, or assorted scams to think "just any contractor" is fine in my house with my wife and children? Sorry, welcome to the millennia of unquenchable skepticism countered only by burden of proof, most of it yours. Did we mention your image and relationship building yet?
3 Strategies to Differentiate in 2008
Effective "packaging" and presentation strategies are well-known. We've been pushing a few, worth re-mentioning (and more detail in the links below) but make your move toward: 1) Customer Retention with a referral campaign linked inside it. This has moved way beyond newsletters: live or electronic follow ups, automated reminders, website involvement. 2) Publicity and PR. Huge this year. The ACCA Conference has an entire seminar devoted to it; some of the strategies revealed have NOT been popular with everyone! 3) Cluster Control of neighborhoods. Sequential surround mail, door hangers, thank you's, all intertwined.
These are exciting times. Made more exciting by the contractor willing to change his or her thinking to embrace. Know that the marketing methods we squawk about are less about lining my pocket and more about you raising your company's image and "attractor factor" now. More than ever, 2008 is poised to surge contractor choices in your market, thus "distancing" your company from the other candidates will never be more important.
Regardless of who provides your marketing solutions, make sure your "Differentiate in 2008" campaign cry is well-known. Let the "voters" choose you. The attraction to great packaging is not "debatable" nor is it new...
Post-debate television interviews, for the first time ever, were able to calculate millions of voters who "instantly" shifted their Presidential preference to a well-packaged candidate named John F. Kennedy in late September of 1960. All due to their admitted bias that "He just looked and sounded so good."
I'm voting for you to do the same.
McCain won New Hampshire. Romney came in second. McCain is the best speaker and presenter. Romney is second best. Please notice the parallel. No, this isn't always the case, but for a job in which your presentation can override presumption, it is of tremendous, far-reaching consequence.
I have blabbed to you frequently about "image" and "relationship building," which I realize are weenie and conceptual topics for this contracting audience. I knew that then; I know it now. But it doesn't mean the value is diminished. Quite the contrary. Here we are talking about the Presidency of the United States, where everything is measured, weighed, and scrutinized including whether there's an over-abundance of ear hair before entering the voting booth. And yet "we the contractors" feel the public turns a blind eye when inviting a "trustworthy, reliable, and honest" person into their home.
It's "packaging," boys and girls. And if I don't like yours, I'm not calling. If I KNOW that "Toothless and T-shirted Larry" can frame a wall or unstop a drain or bang in shingles better than you, then he's proven himself. But if I don't know that as 100% of his hopeful "acquisition market" does NOT, then he's not getting the call. Doesn't matter how cheap he is, and it sure doesn't matter how good he is because I'm never going to find out.
The market has moved. The retailization of Contractors isn't just here, it's being modified as we speak.
The bar has moved. "Fast Service" is a sad threshold to tout, as nullified as saying "Color TV!" on your Hotel Marquis. Quantify your service speed and excellence to me.
The sales environment has moved. When Og heated his cave with a stick fire, that was "good enough" for Ug. Sadly, Og's commodity-thinking is still pervasive (with commensurate image) in product, solution, and presentation. Homeowner's are 3 clicks, 1 cell phone call, or 0.2 seconds from specific, personal, adaptive, custom solutions for virtually every whim they have. When your online florist reminds you of your anniversary AND your wife's preference AND suggests a complimentary gift for your receptionist (strategy right there), it'd be reasonable that your contractor could remind, schedule, and professionally upsell with appreciated services, too. All automated, by the way. Og'll never know what hit him.
The credibility quotient has moved. You think I need to read another story about elder rip-offs, break-ins, child abduction, or assorted scams to think "just any contractor" is fine in my house with my wife and children? Sorry, welcome to the millennia of unquenchable skepticism countered only by burden of proof, most of it yours. Did we mention your image and relationship building yet?
3 Strategies to Differentiate in 2008
Effective "packaging" and presentation strategies are well-known. We've been pushing a few, worth re-mentioning (and more detail in the links below) but make your move toward: 1) Customer Retention with a referral campaign linked inside it. This has moved way beyond newsletters: live or electronic follow ups, automated reminders, website involvement. 2) Publicity and PR. Huge this year. The ACCA Conference has an entire seminar devoted to it; some of the strategies revealed have NOT been popular with everyone! 3) Cluster Control of neighborhoods. Sequential surround mail, door hangers, thank you's, all intertwined.
These are exciting times. Made more exciting by the contractor willing to change his or her thinking to embrace. Know that the marketing methods we squawk about are less about lining my pocket and more about you raising your company's image and "attractor factor" now. More than ever, 2008 is poised to surge contractor choices in your market, thus "distancing" your company from the other candidates will never be more important.
Regardless of who provides your marketing solutions, make sure your "Differentiate in 2008" campaign cry is well-known. Let the "voters" choose you. The attraction to great packaging is not "debatable" nor is it new...
Post-debate television interviews, for the first time ever, were able to calculate millions of voters who "instantly" shifted their Presidential preference to a well-packaged candidate named John F. Kennedy in late September of 1960. All due to their admitted bias that "He just looked and sounded so good."
I'm voting for you to do the same.
Steps to Counter the Economic Slide
Please choose the one that most accurately describes your feelings about the Contracting Service Profession:
During a recession, many business owners wish their services were commoditized. Though the recent boom created more millionaires than any period in history (who can still spend according to their created lifestyle) many "optional" services will be crippled or eliminated.
Yet, the contracting service businesses will likely see little real downturn in need. Many contractors will perceive a downturn, largely of their own making, and "choose" to pull back in their marketing, customer retention, training, and acquisition strategies. This will doubtless prove them "right" in their gloomy economic outlook.
Fearfully, these contractors will cut back on marketing and advertising. They'll quit contacting their customers as often, choose not to restripe the truck, or update the website, and pull their presence to a shadow of its former self. This creates an interesting scenario...
- "It's a pure commodity. My prices are too low and I still can't sell a job. No one will pay more for a job than the lowest going rate. In fact, I'm thinking about losing money on every job but making it up in sheer volume. It would be great if the phone would ring soon. Ooops, I have to go now, Judge Judy is on.
- "It's a price-elastic commodity, with a tremendous upline. In the leanest times, my services are still required. Preventive maintenance is even more important to avoid or eliminate costly 'surprises'. If my fearful competition pulls back, I can win customers even more easily (including his). I can aggressively attract customers, turn them into clients, and hold them for years, simply and strategically.
During a recession, many business owners wish their services were commoditized. Though the recent boom created more millionaires than any period in history (who can still spend according to their created lifestyle) many "optional" services will be crippled or eliminated.
Yet, the contracting service businesses will likely see little real downturn in need. Many contractors will perceive a downturn, largely of their own making, and "choose" to pull back in their marketing, customer retention, training, and acquisition strategies. This will doubtless prove them "right" in their gloomy economic outlook.
Fearfully, these contractors will cut back on marketing and advertising. They'll quit contacting their customers as often, choose not to restripe the truck, or update the website, and pull their presence to a shadow of its former self. This creates an interesting scenario...
- How much would you pay RIGHT NOW to PROHIBIT HALF or more of your competition from advertising? I mean, consider the possibilities. Looks like that’s on the verge of happening. Or this…
- Remember how you were all worried about the shortage of ‘good technicians’ out there? Not for long. Due to construction cut-backs, they’ll be applying to work so often you may want to consider selling tickets. Choice hires are coming.
- Since customers may rightly cut back on some ‘big ticket’ purchases, preventive maintenance will be bigger than ever. Get ready.
- Likewise, they’ll be “cocooning” more, meaning in-home comfort and services to improve health and energy savings will be in bigger demand. This opens the door to…
- Set up additional income streams through alternative products and services. IAQ analysis, humidity controls, water purification and filtration, home security measures - - basically whatever services you can offer that improve the ‘at home’ experience for your customers, go for it… with a vengeance because you can.
Remember that the fearful contractor is NOT advertising, is NOT hiring, and is likely losing customers to the non-fearful contractor, who kept his head and refused to be intimidated.
Also understand that the flood of job-seekers has two potential downsides: 1) More low ball bidding, and 2) More ‘scam’ stories headed our way. (Desperate people do desperate things.) My point: Separate yourself NOW.
Rigidly control your customer base, enhancing the relationship, step-up credibility measures, increase your request for ‘ratings’ by your customers at sites that allow AND for testimonials on your website, to use in your other marketing. If anything, now more than ever is time to PROVE you’re the contractor of choice for even more reasons.
It’s time to choose. Will you participate and support the natural economic lemons of life… or will you make lemonade? Your reaction is your future.
Leadership In Readership
Whoo boy, changes everywhere. After my last speaking gig - which are always fun while being nearly permanently exhausting - the variety of questions and personalities interesting...
One contractor would be in line, looking downward, asking me to sign a copy of his book but admitting, "Looks like this is going to be a slow year; I've got to cut back on Yellow Pages; I've got to get the phone to ringing; I've got to..." and it was all a bunch of painful, if not overwhelming, demands placed on himself by.
The NEXT guy in line would say, "Oh man, I am SO fired up! I can't wait to cut my YP budget down to size; but first to clobber the doomsdayers with that service postcard from the PowerPack and put some money in the bank! Plus, I'm starting on the Cluster Control campaign in May! Awesome!"
And there I'd be, meeting person after person at the same event, in the same business, facing the same opportunities, with MOSTLY the same need... and approaching them as differently as if they were alternate species.
“Hello, Sad Sack Contracting, how may I make your day somewhat miserable?”
Those with the ‘downtrodden, victimized, woe is me’ syndrome are usually like that in everything. Their success rate corresponds, as does their circle of friends. Further, the corporate “personality” likely borders on marginal bitterness, though others in the company might do their best to combat. Yet it’s hard to remain sweet living in a Pickle jar.
Sales and referrals probably parallel the mood, in mildly dirty environs – from trucks to office to warehouse. I have a hard time seeing slap-happy company picnics in this crowd. Overall, the owner feels a little “alone” in his misery, though sharing it subconsciously.
“Thanks for calling Contrarian Contracting, where our biggest differentiation is you!”
The more upbeat companies have an attitude of not just surviving, but thriving. New days bring new challenges, and even in trouble, an opportunity exists. A missed sale is a reason not to “sigh” but to ask “Why” and gather seeds for the next one. Their attitude is also magnetic.
I am thinking of two cases of very positive contractors, who are also friends… who are also competitors in the same town. They work off each other, sharing and mutually referring jobs they do not or cannot perform. They figure, “Hey, if I can’t get the job, he may as well.” They have streams of worthy job applicants, keeping the current staff not only thankful but feeling mildly on the button. A good thing. The upbeat never feel alone, seeking help, companionship, sharing, like-mindedness.
Can a contractor go from being one to the other? I know of several cases, but none where the contractor didn’t a) Admit he couldn’t do everything himself. b) Accept help from others, even if he initially disagreed. c) Was finally willing to let a+b mean he MUST share the credit for the success with others; take only the blame of failure.
In other words, a leader. And the one thing all leaders have in common, regardless of background or personality is followers.
One contractor would be in line, looking downward, asking me to sign a copy of his book but admitting, "Looks like this is going to be a slow year; I've got to cut back on Yellow Pages; I've got to get the phone to ringing; I've got to..." and it was all a bunch of painful, if not overwhelming, demands placed on himself by
The NEXT guy in line would say, "Oh man, I am SO fired up! I can't wait to cut my YP budget down to size; but first to clobber the doomsdayers with that service postcard from the PowerPack and put some money in the bank! Plus, I'm starting on the Cluster Control campaign in May! Awesome!"
And there I'd be, meeting person after person at the same event, in the same business, facing the same opportunities, with MOSTLY the same need... and approaching them as differently as if they were alternate species.
“Hello, Sad Sack Contracting, how may I make your day somewhat miserable?”
Those with the ‘downtrodden, victimized, woe is me’ syndrome are usually like that in everything. Their success rate corresponds, as does their circle of friends. Further, the corporate “personality” likely borders on marginal bitterness, though others in the company might do their best to combat. Yet it’s hard to remain sweet living in a Pickle jar.
Sales and referrals probably parallel the mood, in mildly dirty environs – from trucks to office to warehouse. I have a hard time seeing slap-happy company picnics in this crowd. Overall, the owner feels a little “alone” in his misery, though sharing it subconsciously.
“Thanks for calling Contrarian Contracting, where our biggest differentiation is you!”
The more upbeat companies have an attitude of not just surviving, but thriving. New days bring new challenges, and even in trouble, an opportunity exists. A missed sale is a reason not to “sigh” but to ask “Why” and gather seeds for the next one. Their attitude is also magnetic.
I am thinking of two cases of very positive contractors, who are also friends… who are also competitors in the same town. They work off each other, sharing and mutually referring jobs they do not or cannot perform. They figure, “Hey, if I can’t get the job, he may as well.” They have streams of worthy job applicants, keeping the current staff not only thankful but feeling mildly on the button. A good thing. The upbeat never feel alone, seeking help, companionship, sharing, like-mindedness.
Can a contractor go from being one to the other? I know of several cases, but none where the contractor didn’t a) Admit he couldn’t do everything himself. b) Accept help from others, even if he initially disagreed. c) Was finally willing to let a+b mean he MUST share the credit for the success with others; take only the blame of failure.
In other words, a leader. And the one thing all leaders have in common, regardless of background or personality is followers.
It's All About Balance
This is a year of adjustment. And a good one at that. Yes, I used the word "good." There are times that competition is just too thick (real estate) or the money too easy (sub-prime mortgages) and the result is a watershed. Natural ebb and flow. Don't expect this editorial to be a regular face-washing of fearsome facts; expect instead practical responses, techniques, and adaptive recourses. Strength required.
Fortunately, the strong will get stronger. Had a teleconference last week with 88 of the strongest students/fellow marketers (but posing as contractors!) I could've ever wanted. The 11 "Gold" members had questions, one after another, about doing better this year than last, news be torpedoed along with those silly enough to cower as a result. Amen to their commitments, and happy to stride together on that.
Yet, no matter WHAT time of ANY year, I hear this all the time: "I NEED MORE LEADS!"
Thus, most all contractors would contend, the more leads you get the better. True to a point but keep a couple things in mind, oh ye of hyper-aggressive tendencies...
If you want to see your customers again and again (THE GOAL of in-home service contracting, by the way), this method is better reserved for late night infomercials. It also happens to be an excellent way to be targeted in your local news' next contractor sting. Just a thought.
It's about balance. And right now, working to generate a ton of leads, while working to build a real customer relationship with each of them is the far wiser path. Leads to more referrals, more upsells, less stress over "where are my sales coming from?" Hey, they overwhelmingly come from warm prospects and customers, far more rarely from complete strangers.
Many upcoming opportunities to move into "known" realm among your market exist.
Fortunately, the strong will get stronger. Had a teleconference last week with 88 of the strongest students/fellow marketers (but posing as contractors!) I could've ever wanted. The 11 "Gold" members had questions, one after another, about doing better this year than last, news be torpedoed along with those silly enough to cower as a result. Amen to their commitments, and happy to stride together on that.
Yet, no matter WHAT time of ANY year, I hear this all the time: "I NEED MORE LEADS!"
Thus, most all contractors would contend, the more leads you get the better. True to a point but keep a couple things in mind, oh ye of hyper-aggressive tendencies...
- A flood of leads that creates diminishing service thereto is the easiest way I know to screw up a good reputation... with great unlikeliness of gaining it back easily.
- Pushing the "BUY ME NOW" coercion button with your trusted, coveted customer base, is an excellent way to force loss of same. You have any friends you can do that with? You have any EX-friends who used to try to sell you something every time they saw you?
- Having a "Best Offer Ever! No, I Really Mean It This Time" every other week is a fantastic method of credibility destruction.
If you want to see your customers again and again (THE GOAL of in-home service contracting, by the way), this method is better reserved for late night infomercials. It also happens to be an excellent way to be targeted in your local news' next contractor sting. Just a thought.
It's about balance. And right now, working to generate a ton of leads, while working to build a real customer relationship with each of them is the far wiser path. Leads to more referrals, more upsells, less stress over "where are my sales coming from?" Hey, they overwhelmingly come from warm prospects and customers, far more rarely from complete strangers.
Many upcoming opportunities to move into "known" realm among your market exist.
- The Guerilla marketing tactics for being 'known' (TOMA) are in your PowerPack.
- Home Show results are actually stronger this year, so far. (Could it be the "Chicken Little" theory already in place?) Your TradeShow Secrets book is full of info on that. (If you don't have a PowerPack, half of what I suggest may sound daunting to recreate, or like gibberish. Sorry. I assume "customership" for most of you. A tactic you'd be wise to emulate when speaking to 'your' market.)
- Gold-plated opportunities for the aggressive Retention expert abound. Thank you cards, requests for testimonials, requests for referrals, movie passes, fruit or chocolate gifts will endear and differentiate you. I will be playing heavily upon the "work your customer base" theme for the next 90 days. Either take notes and take action or take offense and look elsewhere.
- AutoResponder sophistication on your website - More 'easy' ways to sign up, better communication thereafter, relationship building throughout. THIS IS NOT A REPLACEMENT for REAL MAIL follow- up, by the way. That backlash has already occurred. Advanced Tip: Your website is a way to calm and educate customers about "real" ways to save and stay comfortable that have NOTHING TO DO with anything you sell. You get creds for that, my friend.
Right and Wrong, Can’t We All Get Along?
No need to worry – I won’t be a contractor anytime soon. So, you can take me off the list of wanna-be competitors.
I got the opportunity to work alongside a real contractor and subs for a day and half helping build a home for a family who lost their’s during Katrina.
Yes, two and one-half years later, they’ve suffered the ravages of homelessness not of their doing, the sufferings of living inside a cramped trailer not of their choosing, and the sufferings of getting formaldehyde poisoning as a result. Life hasn’t dealt them an easy hand, and yet this describes many. The story of this project (taken on by our Novus Sunday School Class) is told here. It has ABSOLUTELY NOTHING to do with marketing. But this does…
The General Contractor is busy. Most of his competitors are not. He’s got 2 commercial renovations underway, another one scheduled (mine), a handful of residential projects going, and is “completely leaned out” in his overhead. He got lean about a year ago, sensing both a construction decline and a general disdain for supporting “dependents” that don’t share his last name.
The GC’s I know who are not busy have had bid after bid fall away, a few reliable employees have left (in search of a paycheck) and overhead continues to munch away at non-existent cashflow. One contractor I called to do a residential renovation last September told me, “I’m not taking on any more work; call me later if you can’t get anyone else. I’m just too busy.” He never got my name, but remembered our mutual contact. A week ago he called, almost begging for work, any work. Although I told him my job was being handled, I neglected to tell him the person that got it is also getting two other referred jobs for acting like he cared. A lesson in relationships.
My question for them and for you: What are you doing today that’ll impact your pipeline in 6 months? If the answer is nothing, generally so is the outcome.
The subcontractors were busy… for now. Most of their competitors are not. One of them follows the lead of the GC, shadowing his work, making himself regularly available for bids. His quality is quite high and though his competitors have dropped prices to “get the job”, he hasn’t had to resort to such shenanigans. Why? “Because I don’t need to” came the simple answer, which lead to this...
“Most of the time I remind them of how picky their clients are, and that ‘cheap’ and ‘quality’ are rarely the same… just like these contractors.” A pretty good line, that just happens to be true AND resonate with those who consider themselves quality.
The reason I put “for now” with the sub is that he’s got too many eggs in one basket; way too much dependence on a singular contractor’s current fortune.
Reliance on many potential income streams would be advised. That is, multiply the efforts of one with many.
The subs I know who are not busy tend to “think” its price but since they have no relationship to fall back upon, they’re partly right. They don’t “shadow”, they wait. They don’t stay in touch, they assume. Thus their “reason” to not get a job MUST be price.
My question for him and for you: In what areas are you overly dependent on business? (What happens if that dries up?) How can you maintain the current level of sales with the “one” yet leverage that for several others? (There are many methods, discussed in these pages often.)
I got the opportunity to work alongside a real contractor and subs for a day and half helping build a home for a family who lost their’s during Katrina.
Yes, two and one-half years later, they’ve suffered the ravages of homelessness not of their doing, the sufferings of living inside a cramped trailer not of their choosing, and the sufferings of getting formaldehyde poisoning as a result. Life hasn’t dealt them an easy hand, and yet this describes many. The story of this project (taken on by our Novus Sunday School Class) is told here. It has ABSOLUTELY NOTHING to do with marketing. But this does…
The General Contractor is busy. Most of his competitors are not. He’s got 2 commercial renovations underway, another one scheduled (mine), a handful of residential projects going, and is “completely leaned out” in his overhead. He got lean about a year ago, sensing both a construction decline and a general disdain for supporting “dependents” that don’t share his last name.
The GC’s I know who are not busy have had bid after bid fall away, a few reliable employees have left (in search of a paycheck) and overhead continues to munch away at non-existent cashflow. One contractor I called to do a residential renovation last September told me, “I’m not taking on any more work; call me later if you can’t get anyone else. I’m just too busy.” He never got my name, but remembered our mutual contact. A week ago he called, almost begging for work, any work. Although I told him my job was being handled, I neglected to tell him the person that got it is also getting two other referred jobs for acting like he cared. A lesson in relationships.
My question for them and for you: What are you doing today that’ll impact your pipeline in 6 months? If the answer is nothing, generally so is the outcome.
The subcontractors were busy… for now. Most of their competitors are not. One of them follows the lead of the GC, shadowing his work, making himself regularly available for bids. His quality is quite high and though his competitors have dropped prices to “get the job”, he hasn’t had to resort to such shenanigans. Why? “Because I don’t need to” came the simple answer, which lead to this...
“Most of the time I remind them of how picky their clients are, and that ‘cheap’ and ‘quality’ are rarely the same… just like these contractors.” A pretty good line, that just happens to be true AND resonate with those who consider themselves quality.
The reason I put “for now” with the sub is that he’s got too many eggs in one basket; way too much dependence on a singular contractor’s current fortune.
Reliance on many potential income streams would be advised. That is, multiply the efforts of one with many.
The subs I know who are not busy tend to “think” its price but since they have no relationship to fall back upon, they’re partly right. They don’t “shadow”, they wait. They don’t stay in touch, they assume. Thus their “reason” to not get a job MUST be price.
My question for him and for you: In what areas are you overly dependent on business? (What happens if that dries up?) How can you maintain the current level of sales with the “one” yet leverage that for several others? (There are many methods, discussed in these pages often.)
American Idol
American Idol – or since it induces epidemic levels of inactivity could be more suitably renamed, “Idling Americans” – teaches many marketing lessons.
I separate it from the realm of sheer “reality” TV. American Idol actually has a premise far beyond the chair-throwing, gender-swapping godawfulness that pervades the vile voyeurism that are an embarrassing entertainment mainstay. At the core of AI, is talent, pure and simple.
Just below that is a desire from the viewers (let’s call them what they really are: “customers”) to “align” with that talent in 3 ways: 1) Identify with ‘their’ contestant, 2) Agree/disagree with the judges as the arbiters of good taste (always a hot topic) and 3) The ability to vote, play a part, stay involved, be “counted”.
While being handily entertained, we are simultaneously brainwashed into buying a Ford, drinking a Coke, borrowing from Lending Tree, and wearing our dialing fingers to a nub (remember: normal Text Messaging rates apply.)
So the above is a great lesson in entertainment, but what is there in the marketing?
Same things exactly. Not one element has changed. It works in every major fan club, it works for NASCAR, it works for television mega-successes, it works for your company.
Your customers seek your talent, first and foremost. They ain’t picking you for your looks. They’re in need, distress, or desire. Once they’ve landed on you, the groundswell of resurgent popularity is up to you to build… or let erode. (Many do nothing, which is the same as Option 2.) The other option is the winners course.
Your Strategy: Develop a firm stance in your marketing aimed squarely at your most desired targets. I’ve contended for years that if you advertise cheap prices “to get more calls”, you’ll get more calls… but mostly from price shoppers. Thus, if you act exclusive you’ll get exclusive prices; if you act more professional and corporate, you’ll attract more customers of that ilk; if you act as if you want and appreciate referrals, you’ll get more referrals. Yes, I realize that’s simple, but why aren’t you doing it?
Conversely, if you promote maintenance agreements as the key to life, your staff had all better have them or you’re an opportunistic liar. Customers will align stance and action. Build the one most attractive to your desired customers, let the chaff fall away. Sorry, that’s part of it.
The ability to be “counted”. This is huge. The now overused feel-good query is “Name the three richest, or the three Nobel winning, or the three ‘Best Actor’ or whatever” which no one can do. The punchline is, “Now name the 3 people who’ve meant the most to you”. Okay, wipe back the tears. I’m talking about you. AI does it’s best to give customers a voice; so does Disney, Coke, Amazon, NASCAR, you name it – there’s a component of “You matter” firmly interlinked, entrenched in the culture. Overlook this at your peril.
Your Strategy: Prove to customers that you know they breathe, eat, sleep, evolve, live, work, and have worries (just like actual human beings) by staying in touch with them. So simple, so overwhelmingly disregarded. Seems once the invoice is handed over, most contractors merely wait for the next drain to clog, the next breaker to break, the next condenser to uncondensed. Great strategy. I think the Egyptians tried that by focusing on the afterlife, which oddly gave them all the audience with the dead and buried they ever wanted. A rather lonely future.
Your business is a living ministry. And unless I have failed to grasp this correctly, you’re also in the “service” business, which does NOT confine itself to “fix and forget”. Whoever started that nasty rumor either didn’t run a business, didn’t have friends, or both - which is understandable. I didn’t say go play Pictionary with all your customers, I said “Stay in touch”. There are no relationships that flourish through non-contact, and the corollary is that great relationships do.
Thank you’s, newsletters, agreement programs, birthday gifts, holiday cards, ‘celebration’ or ‘customer only’ specials, referral prizes, survey cards, follow up calls, reminder calls, anniversary of service/product, company contests, feedback forums, reactivation cards, price change/product change alerts… I’m tired of writing but I think that was sixteen examples that prove you give a rip.
Plan your recontact as a system, not happenstance. Put it on a schedule, not a whim. Let it be a program, not an event.
Those 3 elements are not only key to American Idol’s success, within are the keys to your very own. Look around, the examples abound, among them somewhere, your path is found.
I separate it from the realm of sheer “reality” TV. American Idol actually has a premise far beyond the chair-throwing, gender-swapping godawfulness that pervades the vile voyeurism that are an embarrassing entertainment mainstay. At the core of AI, is talent, pure and simple.
Just below that is a desire from the viewers (let’s call them what they really are: “customers”) to “align” with that talent in 3 ways: 1) Identify with ‘their’ contestant, 2) Agree/disagree with the judges as the arbiters of good taste (always a hot topic) and 3) The ability to vote, play a part, stay involved, be “counted”.
While being handily entertained, we are simultaneously brainwashed into buying a Ford, drinking a Coke, borrowing from Lending Tree, and wearing our dialing fingers to a nub (remember: normal Text Messaging rates apply.)
So the above is a great lesson in entertainment, but what is there in the marketing?
Same things exactly. Not one element has changed. It works in every major fan club, it works for NASCAR, it works for television mega-successes, it works for your company.
Your customers seek your talent, first and foremost. They ain’t picking you for your looks. They’re in need, distress, or desire. Once they’ve landed on you, the groundswell of resurgent popularity is up to you to build… or let erode. (Many do nothing, which is the same as Option 2.) The other option is the winners course.
“Identify” with the company. At the level of AI’s feverish fan support, it’s less about the talent and more about the personality. The most costly NASCAR spokesperson is the most popular, NOT the most talented. (Dale Earnhardt, Jr. Don’t spew your hydrocarbons at me; he hasn’t won a major race since 2004. We still love him.) The talented jerks are still talented, still jerks, and commensurately supported. As a human trait, we applaud their demise when no one is looking.
Your Strategy: Make your company a “personality” that people want to identify with. You think I get kicks out of telling you how much your ads stink when they say stupid stuff like, “We’re The Best Plumber In Town!” Would you want to even know someone who said that about themselves? And I don’t mean “literally”, but figuratively in all the braggart-prone comments about your superiority. Your personality has to be true, real, honest, authentic, empathetic, delivered in an air of assumed excellence. That is, your “positioning”. Reread the Customer Retention newsletter sample we sent you – from Editorial to ads – and see if that’s not the consistent message.Agree/disagree with judges. People love to have someone else challenge the authority in area where they may be lacking the, um, ballistic nature to do so. The most popular swayers of opinion have done this for centuries. So, do you wonder why my direct mail letters “pick on” the government? Manufacturers? Or why I “defend” small business in the face of overwhelming odds? It’s because every one loves the slightly acidic but well-justified opinion as a supporter or detractor.
It’s the mamby-pamby “middle” that no one likes or can remember. People love to “hate” Simon, but he’s the most remembered, best known, and most highly compensated. Neither his praise nor his rates are cheap.Your Strategy: Develop a firm stance in your marketing aimed squarely at your most desired targets. I’ve contended for years that if you advertise cheap prices “to get more calls”, you’ll get more calls… but mostly from price shoppers. Thus, if you act exclusive you’ll get exclusive prices; if you act more professional and corporate, you’ll attract more customers of that ilk; if you act as if you want and appreciate referrals, you’ll get more referrals. Yes, I realize that’s simple, but why aren’t you doing it?
Conversely, if you promote maintenance agreements as the key to life, your staff had all better have them or you’re an opportunistic liar. Customers will align stance and action. Build the one most attractive to your desired customers, let the chaff fall away. Sorry, that’s part of it.
The ability to be “counted”. This is huge. The now overused feel-good query is “Name the three richest, or the three Nobel winning, or the three ‘Best Actor’ or whatever” which no one can do. The punchline is, “Now name the 3 people who’ve meant the most to you”. Okay, wipe back the tears. I’m talking about you. AI does it’s best to give customers a voice; so does Disney, Coke, Amazon, NASCAR, you name it – there’s a component of “You matter” firmly interlinked, entrenched in the culture. Overlook this at your peril.
Your Strategy: Prove to customers that you know they breathe, eat, sleep, evolve, live, work, and have worries (just like actual human beings) by staying in touch with them. So simple, so overwhelmingly disregarded. Seems once the invoice is handed over, most contractors merely wait for the next drain to clog, the next breaker to break, the next condenser to uncondensed. Great strategy. I think the Egyptians tried that by focusing on the afterlife, which oddly gave them all the audience with the dead and buried they ever wanted. A rather lonely future.
Your business is a living ministry. And unless I have failed to grasp this correctly, you’re also in the “service” business, which does NOT confine itself to “fix and forget”. Whoever started that nasty rumor either didn’t run a business, didn’t have friends, or both - which is understandable. I didn’t say go play Pictionary with all your customers, I said “Stay in touch”. There are no relationships that flourish through non-contact, and the corollary is that great relationships do.
Thank you’s, newsletters, agreement programs, birthday gifts, holiday cards, ‘celebration’ or ‘customer only’ specials, referral prizes, survey cards, follow up calls, reminder calls, anniversary of service/product, company contests, feedback forums, reactivation cards, price change/product change alerts… I’m tired of writing but I think that was sixteen examples that prove you give a rip.
Plan your recontact as a system, not happenstance. Put it on a schedule, not a whim. Let it be a program, not an event.
Those 3 elements are not only key to American Idol’s success, within are the keys to your very own. Look around, the examples abound, among them somewhere, your path is found.
Voice of Experience
The elderly gentleman approached me during a speaking break and startled me with his first comment as he stuck out his hand. “I retired broke. I wish I’d a’met you 25 years ago.”
Half-flattered and half-saddened I looked at him sincerely, searching his grey-green eyes for pain but could detect none and asked, “What would you have done differently?”
“I’d a quit thinking that other broke people were going to float my business and gone after people who could pay for quality instead. I’d a marketed my fanny off!”
We laughed, and he ensured me his son (in attendance) was going to do just that. There was wisdom in his humor. He realized his “inaction” led to inactivity. He knew it now, destined to break that cycle with his son.
At the very end of the seminar which included a section on “Marketing to the Affluent” he brought his son by, hand clasped firmly but lovingly around the 20 something year old’s shoulder. “Meet your marketing department!” he said jovially as he got us to enjoin a handshake.
I came to find out that this company was very similar to many in the crowd of 400, but without the mentoring guidance of the elder generation. (More likely, it was the younger generation prompting the elder to “Get with it!”) Many seemed to…
Be “stuck” in their “We’ve always done it this way” marketing. They were now even more jittery with the “R” word in the economy. The cause and current effect are directly related. Sorry.
My thoughts on #4. If you position yourself as “cheap” you’re going to miss the higher-spending and ever-growing group because you lack value. They can afford quality. Cheap and quality do not comfortably co-exist outside of a commodity. Therefore, “Next contractor please.”
Understand that the affluent are very influenced by brands, exclusivity, and reputation. This means a couple of things. “Known” brings more money, gets referred more, is heightened by association. So in this group, you’re “known” for your position and whom you’ve worked for. So if you’re “The Contractor” in your area you’re at the enviable point of price elasticity (more money for the same job with no customer loss). A good place to be, and more like the Grail of Sales.
Also, a second marketing message within the above: When your marketing “matches” the upper requirements of the affluent, you also attract and become more desired for those seeking affluence. Should that include you, your wish can be granted by eliciting behavior that is consistent with the desire. In other words, “What recession?”
Simple Fix
Position yourself as the contractor with the most value and you’ll gain them. If you can afford to position yourself in near exclusivity, you’ll be in even better shape. Do NOT immediately say, “That won’t work for me” because of market size. We’ve got clients in several sub 50k population areas who “own” the mid and upper market, with 60% replacement margins and virtually “required” Agreement programs, hanging on to mid-teen nets.
They got there by being known, staying in touch, and being referred systematically. Marketing to the affluent (more cogent during a recession in case you were wondering) is exactly the same as your other marketing in that it MUST be systemized. Change lightly the message, and possibly the media; change none-at-all the matrix.
My new elder friend and his son walked off, still one arm on the shoulder. A comment he made rang in my ears on the plane coming home.
“I can’t go back and do what I now know I should’ve done back then. I can only hope my example is one not to follow, and my words of encouragement at this late stage are.”
To echo your words dear friend, “I’m going to help your son ‘market his fanny off.” And it’ll be my pleasure.
Half-flattered and half-saddened I looked at him sincerely, searching his grey-green eyes for pain but could detect none and asked, “What would you have done differently?”
“I’d a quit thinking that other broke people were going to float my business and gone after people who could pay for quality instead. I’d a marketed my fanny off!”
We laughed, and he ensured me his son (in attendance) was going to do just that. There was wisdom in his humor. He realized his “inaction” led to inactivity. He knew it now, destined to break that cycle with his son.
At the very end of the seminar which included a section on “Marketing to the Affluent” he brought his son by, hand clasped firmly but lovingly around the 20 something year old’s shoulder. “Meet your marketing department!” he said jovially as he got us to enjoin a handshake.
I came to find out that this company was very similar to many in the crowd of 400, but without the mentoring guidance of the elder generation. (More likely, it was the younger generation prompting the elder to “Get with it!”) Many seemed to…
Be “stuck” in their “We’ve always done it this way” marketing. They were now even more jittery with the “R” word in the economy. The cause and current effect are directly related. Sorry.
- Have forgone two MAJOR hits to their profit picture: a) No Customer Retention and b) Virtually no Maintenance Agreement programs.
- “Word of Mouth” as the Holy Grail of marketing.
- A feeling that they “couldn’t” raise prices and sustain business.
My thoughts on #4. If you position yourself as “cheap” you’re going to miss the higher-spending and ever-growing group because you lack value. They can afford quality. Cheap and quality do not comfortably co-exist outside of a commodity. Therefore, “Next contractor please.”
Understand that the affluent are very influenced by brands, exclusivity, and reputation. This means a couple of things. “Known” brings more money, gets referred more, is heightened by association. So in this group, you’re “known” for your position and whom you’ve worked for. So if you’re “The Contractor” in your area you’re at the enviable point of price elasticity (more money for the same job with no customer loss). A good place to be, and more like the Grail of Sales.
Also, a second marketing message within the above: When your marketing “matches” the upper requirements of the affluent, you also attract and become more desired for those seeking affluence. Should that include you, your wish can be granted by eliciting behavior that is consistent with the desire. In other words, “What recession?”
Simple Fix
Position yourself as the contractor with the most value and you’ll gain them. If you can afford to position yourself in near exclusivity, you’ll be in even better shape. Do NOT immediately say, “That won’t work for me” because of market size. We’ve got clients in several sub 50k population areas who “own” the mid and upper market, with 60% replacement margins and virtually “required” Agreement programs, hanging on to mid-teen nets.
They got there by being known, staying in touch, and being referred systematically. Marketing to the affluent (more cogent during a recession in case you were wondering) is exactly the same as your other marketing in that it MUST be systemized. Change lightly the message, and possibly the media; change none-at-all the matrix.
My new elder friend and his son walked off, still one arm on the shoulder. A comment he made rang in my ears on the plane coming home.
“I can’t go back and do what I now know I should’ve done back then. I can only hope my example is one not to follow, and my words of encouragement at this late stage are.”
To echo your words dear friend, “I’m going to help your son ‘market his fanny off.” And it’ll be my pleasure.
Drop The Unimportant
“I don’t even look at that anymore” said the calm voice on the back row. “All I know is our revenues are up, our bonus payments are up, and our customers are happy. Oh, and my hours are actually down.”
Well, that got everyone’s attention.
The question posed on the seminar floor was, “How do you track all your ad revenues, per media, per ad?” and the answers involved software, tracking questions, and solid follow up. That was when Mr. Calm spoke up. His answer caused most of the heads in the room to swivel.
He referenced that “…I used to try and keep up with all the pennies I was spending. But then I noticed all the dollars I was missing” he laughed. My mind drifted to wonder how many of the $3.5m he’s doing now in a medium sized eastern town he’d actually missed. The inevitable break of the silence…
“So what DO you keep up with? Don’t you want to know how all your leads are coming in?” asked the intelligent lady in row 1.
“Sure, that sounds reasonable” he answered, “but if I had to count my friends only by how many called to wish me a happy birthday, I’d feel pretty lonely.” Another round of laughter. I half considered asking him to finish the seminar. “I’ve got another way” he suggested. And with that, I took notes.
Save Twice What You Spend
“We follow that method up there on the screen” he said referring to a pie chart of media allocation. (Send a polite email with the request, and we’ll send you one.) “But every year for the past 5, I’ve dropped my Yellow Pages by 5% and put 2.5% into Retention.”
He continued, “I’m now down to what Hudson calls a ‘Conservative’ but I’m getting as many or more leads than ever, way more referrals, and we don’t jack around with as many time-wasters.” Another bit of laughter. I’m undoing my microphone at this point.
“What I came to figure out is that I can’t count every bloomin’ lead traced back to every possible penny invested in each media…so I don’t. I just know that my customers tell me they aren’t going anywhere, and they nearly force their friends and neighbors to call me. My ad expenses are down from 5 years ago as a percentage of sales, but my sales and profits are up. The Yellow Page guy doesn’t seem to share my excitement though!” I’m clipping the microphone to his lapel.
In 5 years, his Yellow Page expenses are down 25% (to 24% of his total budget), and his Retention investment is up to 10% of his total. Almost exactly where we peg a “Conservative” marketing platform. Uncanny. He’s spending less, getting more, and quite plainly doesn’t feel the need to analyze it within an inch of its fruitful life.
“Carry on young man” he said with a hand gesture. “I think you’re doing a fine job… except that I can’t hear you anymore.”
EPILOGUE: I spoke to this gentleman following the seminar and thanked him for his enlightened input.
A point unmade in his commentary is that part of the Retention investment was in Maintenance Agreement marketing, with the other part in thank you cards, gifts (to bigger purchasers and referrals) plus newsletters. I looked back at our records, and as he indicated, his Newsletter investment here has gone up, like clockwork. Now if I could just get him to write my speeches.
Well, that got everyone’s attention.
The question posed on the seminar floor was, “How do you track all your ad revenues, per media, per ad?” and the answers involved software, tracking questions, and solid follow up. That was when Mr. Calm spoke up. His answer caused most of the heads in the room to swivel.
He referenced that “…I used to try and keep up with all the pennies I was spending. But then I noticed all the dollars I was missing” he laughed. My mind drifted to wonder how many of the $3.5m he’s doing now in a medium sized eastern town he’d actually missed. The inevitable break of the silence…
“So what DO you keep up with? Don’t you want to know how all your leads are coming in?” asked the intelligent lady in row 1.
“Sure, that sounds reasonable” he answered, “but if I had to count my friends only by how many called to wish me a happy birthday, I’d feel pretty lonely.” Another round of laughter. I half considered asking him to finish the seminar. “I’ve got another way” he suggested. And with that, I took notes.
Save Twice What You Spend
“We follow that method up there on the screen” he said referring to a pie chart of media allocation. (Send a polite email with the request, and we’ll send you one.) “But every year for the past 5, I’ve dropped my Yellow Pages by 5% and put 2.5% into Retention.”
He continued, “I’m now down to what Hudson calls a ‘Conservative’ but I’m getting as many or more leads than ever, way more referrals, and we don’t jack around with as many time-wasters.” Another bit of laughter. I’m undoing my microphone at this point.
“What I came to figure out is that I can’t count every bloomin’ lead traced back to every possible penny invested in each media…so I don’t. I just know that my customers tell me they aren’t going anywhere, and they nearly force their friends and neighbors to call me. My ad expenses are down from 5 years ago as a percentage of sales, but my sales and profits are up. The Yellow Page guy doesn’t seem to share my excitement though!” I’m clipping the microphone to his lapel.
In 5 years, his Yellow Page expenses are down 25% (to 24% of his total budget), and his Retention investment is up to 10% of his total. Almost exactly where we peg a “Conservative” marketing platform. Uncanny. He’s spending less, getting more, and quite plainly doesn’t feel the need to analyze it within an inch of its fruitful life.
“Carry on young man” he said with a hand gesture. “I think you’re doing a fine job… except that I can’t hear you anymore.”
EPILOGUE: I spoke to this gentleman following the seminar and thanked him for his enlightened input.
A point unmade in his commentary is that part of the Retention investment was in Maintenance Agreement marketing, with the other part in thank you cards, gifts (to bigger purchasers and referrals) plus newsletters. I looked back at our records, and as he indicated, his Newsletter investment here has gone up, like clockwork. Now if I could just get him to write my speeches.
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