Help me. I posed a question to all readers, got a ton of responses, some of which were actually correct and devoid of curse words. ALL were interesting. Very cool to get different perspectives.
Summarized question: “There are four elements in your ‘Marketing Equation’. Two mentioned in the article were ‘incoming leads’ and ‘conversions’ (or commonly ‘closing ratio’). What are the other two?”
Before you read the answer, my intention was to gather the four BIG elements for those of you not running your marketing by formula. I said in the article, “other numbers are just fluff”.
Since I uttered that statement, I’ve been asked to step down by Democrats, Republicans, and the Sham-Wow guy, who is now the Slap-Chop guy. I regret any convenience I may have caused and humbly apologize to everyone except the Yellow Pages.
Admittedly, there ARE other meaningful numbers and I’ve given credit where due.
Here are the winners AND numbers to know in your Direct Response marketing formula, plus another highly insulting remark to the Yellow Pages.
1.Leads generated– only attributable to Direct Response marketing. Direct Response ads have – as their name implies – a lead generation component and are accountable thereto. If you sent out a Holiday Card or TOMA or Retention piece and were hoping to count “leads” as a result, you may as well plant a strawberry vine and start looking for cumquats.
2.Leads converted – Often based on #1 per campaign, but also as a general measure of closing ratio for all leads. I do NOT like blending “all leads” together since a customer calls in as a lead with a 70-80% closing average vs. a ‘first time caller’ with a 30% closing average.
3.Cost per lead – This figures in the media and fulfillment costs and as such, gives you a baseline for measurement. Advertising during the SuperBowl might get you 1,000 leads, but the CPL will likely be rotten. This figure generally runs between $75 and $200, still a potential loser at the lower price (insolvent unsellable prospects) or very profitable at the higher figure. Has to do with transaction size and of course…
4.Profit per sale (I’d have accepted ‘transaction size’ too, since that’s way easier to figure, is more part of marketing than operations.) People often ask, “How many leads should I expect from this campaign?” and there are general numbers (1% from Direct Mail a long accepted but now shrinking ‘standard’) yet even these overlook this more revealing figure. Not only is the list smaller for an $8000 bath remodel for example, it’d take far more $79 drain cleanings to make them equally profitable.
The above is why it is very important to know and use the “Break Even Rate” in direct response marketing, which is revealed below, but FIRST…
The Winners Circle:
There were several correct answers yet the most concise AND correct answer goes to Chris Kowalski who had a 7 word email that said, in its entirety:
1.Cost per lead
2.Profit per closed lead
I like it when people get to the point! All who submitted a correct answer will get a copy of Marketing Secrets. Hope you’ll write us a review!
Yet since I’m completely unfair, biased, and make up the rules as I go along, I’ve decided to award 2 honorable mentions –
The Runners Up:
1.Keith Calicoat wrote, “Decrease acquisition cost per customer and raise the frequency of transaction per customer”, which gets partial credit. Keith also put in, “If I win, I don't want the hot dogs!” Fair enough. That makes two of us.
2.J.S. Woolery from Home Energy suggested “raise average order size”, which is a great way to increase profits NOW from virtually every sale. I still contend that most contractors could increase prices by 10% today, not lose one customer (okay, the cheap ones) and put the entire bump on your paycheck.
BONUS feature today is the Break Even Rate Formula:
A/B = C
(C/D) x 100 = E
(E/F) x 100 = Break even response rate
A= Cost of Direct Response campaign
B = Profit per job/service offered in ‘A’.
C = Minimum job/services needed to break even
D = Average conversion (closing rate) on leads for this type job
E = Number of total leads needed to break even
F = Number of pieces mailed/audience
Obviously, the goal is to exceed “D” and “E” by the largest number you can. Now you know why the combination of these factors rules your fortunes.
I recommend a break even rate on ALL Direct Response ads you do for 2010. But then again, I recommend the slap chop, but only if the Yellow Page ad rep’s finger is in close proximity.
Have an awesome day. Let us help you make it even more of one!
Wednesday, February 3, 2010
No Private Investigator
One of the biggest complaints I hear from contractors is, “I just need more leads.” And for the most part, the more leads you get the better. (There are negatives to “too many leads”, but I’m getting ahead of myself which isn’t that hard to do.)
Anyway, absent the need for more leads, we’ll assume you’re getting leads at rate ‘x’ and converting ‘y’ to sales. Ridiculously, MOST contractors focus way harder on the ‘y’ (closing or conversion rate) than increasing ‘x’.
The trick to massive sales growth is increasing both.
NOTE: There’s a ‘third’ and ‘fourth’ element in this equation that are the ONLY numbers worth following in your sales stream. Most everything else is just fluff. The next 10 people to tell me EITHER of those will win either a) A pack of unrefrigerated hot dog wieners or b) A first-class marketing book that I just happened to write. If you choose ‘a’, I’ll assume you have a copy. The email link to send your answer is found after the ‘click’.
So, delving into your current leads – the ones you’re getting today, right now - there are two questions to consider:
1. Where did they come from? (Media source, which includes your own database.)
2. What happened after the call?
About 70% of contractors DO NOT gather the source. Since all marketing should have an ROI, this is like not asking the bank about the interest rate. This economy rewards prudency. The days of “guessing” with unproven marketing are over.
As far as “What happened” after the call, slightly more than 70% only know TWO things: It sold. It didn’t sell. And that boys and girls, is flat out silly.
I’ll get right to it:
The five things are –
1.Sold: Transaction size? Previous/new customer? Attempted upsell? Attempted Agreement sale? Equipment survey? (That is, do they need IAQ, adding a bath, discuss security lighting? etc.) The survey alone is free, leads to far more gold from the database in this ONE step.
2.Sold: Follow up procedure. Thank you call with referral bump. Thank you letter with referral bump.
3.Sold: Relationship and referral procedure started. (Added to hard copy Newsletter, ezine list.) A 30 day schedule of recontact becoming more prevalent, but if you have none, every 90 to start.
4.Didn’t sell: Reason? Elimination of reason? Set follow up appointment? Incentive to call YOU back? Clearly state next action step.
5.Didn’t sell: Result of follow up contact. (Minimum of 3: >Phone call plus email. >Letter/postcard. > Phone call. If remains unsold, then low cost relationship procedure started. Email reminders, always included in direct mail campaigns.
If you can just change your response to the outcome, you can generate far more sales with very little effort or out of pocket costs. You’ve already PAID for the lead, why not extract full value? (Yes, I’m cheap.)
And now for the promise to improve your CSR’s performance today -
Tracking leads is important because if not, you might be wasting money on dud ads. It’s so easy to do. All you have to do is instruct your customer service representatives (or whoever answers the phone and fills appointments) to simply ask the customer how they found out about you.
You may be shocked by what you discover. What media brings the best ROI? How strong is your word of mouth? How many referrals are you getting now? How can you triple that?
Even better, you get a chance to prove your superiority on the phone. First, I make no secret that I hate automated attendants. The world in fact, would like to strangle the next auto attendant they see.
Yet even if your callers aren’t forced to press buttons for five minutes or aren’t on hold for listening to some top 40 station – a CSR can still blow it. Here are 3 things your customer service reps should always avoid saying:
1.“Well, you’re going to have to…” No. The first thing the customer is going to think is, “Come on! I don’t have to do anything!” Ask nicely. Try, “In order for us to provide you the best service, would you mind…” or “Could you please provide me with this information so that we can be sure to omit any possibility for a mistake?” Let the customer know that he or she is helping to facilitate the fixing and they’ll be much more likely to respond with something other than a quick hang-up.
2.“I’ll try…” Don’t try. Either say you’ll do it or tell them no. If you don’t give huge discounts on new systems, then say you can’t do that at present. Don’t say you’ll try to get them a discount if you know it won’t happen! Customers resent a lack of commitment, so don’t show that weakness.
3.“It’s against our policy.” It’s hard to dodge this for one main reason. The company policy is there because it needs to be followed. Just don’t use this phrase. Customers can’t stand to hear it and it has become one of those horrid business clichés that CSRs use as a scapegoat to avoid extra work or explanation. You owe the people who pay your bills (your customers) an explanation. At the very least, substitute this worn out phrase with words like “our best procedure” or “proven approach”.
Okay, I’ve given you more than your money’s worth for today (especially considering the price) and ask you to pick an action to go implement.
Soon you can be reading a profitable book or have a nice lunch to send your competitors.
Anyway, absent the need for more leads, we’ll assume you’re getting leads at rate ‘x’ and converting ‘y’ to sales. Ridiculously, MOST contractors focus way harder on the ‘y’ (closing or conversion rate) than increasing ‘x’.
The trick to massive sales growth is increasing both.
NOTE: There’s a ‘third’ and ‘fourth’ element in this equation that are the ONLY numbers worth following in your sales stream. Most everything else is just fluff. The next 10 people to tell me EITHER of those will win either a) A pack of unrefrigerated hot dog wieners or b) A first-class marketing book that I just happened to write. If you choose ‘a’, I’ll assume you have a copy. The email link to send your answer is found after the ‘click’.
So, delving into your current leads – the ones you’re getting today, right now - there are two questions to consider:
1. Where did they come from? (Media source, which includes your own database.)
2. What happened after the call?
About 70% of contractors DO NOT gather the source. Since all marketing should have an ROI, this is like not asking the bank about the interest rate. This economy rewards prudency. The days of “guessing” with unproven marketing are over.
As far as “What happened” after the call, slightly more than 70% only know TWO things: It sold. It didn’t sell. And that boys and girls, is flat out silly.
I’ll get right to it:
The five things are –
1.Sold: Transaction size? Previous/new customer? Attempted upsell? Attempted Agreement sale? Equipment survey? (That is, do they need IAQ, adding a bath, discuss security lighting? etc.) The survey alone is free, leads to far more gold from the database in this ONE step.
2.Sold: Follow up procedure. Thank you call with referral bump. Thank you letter with referral bump.
3.Sold: Relationship and referral procedure started. (Added to hard copy Newsletter, ezine list.) A 30 day schedule of recontact becoming more prevalent, but if you have none, every 90 to start.
4.Didn’t sell: Reason? Elimination of reason? Set follow up appointment? Incentive to call YOU back? Clearly state next action step.
5.Didn’t sell: Result of follow up contact. (Minimum of 3: >Phone call plus email. >Letter/postcard. > Phone call. If remains unsold, then low cost relationship procedure started. Email reminders, always included in direct mail campaigns.
If you can just change your response to the outcome, you can generate far more sales with very little effort or out of pocket costs. You’ve already PAID for the lead, why not extract full value? (Yes, I’m cheap.)
And now for the promise to improve your CSR’s performance today -
Tracking leads is important because if not, you might be wasting money on dud ads. It’s so easy to do. All you have to do is instruct your customer service representatives (or whoever answers the phone and fills appointments) to simply ask the customer how they found out about you.
You may be shocked by what you discover. What media brings the best ROI? How strong is your word of mouth? How many referrals are you getting now? How can you triple that?
Even better, you get a chance to prove your superiority on the phone. First, I make no secret that I hate automated attendants. The world in fact, would like to strangle the next auto attendant they see.
Yet even if your callers aren’t forced to press buttons for five minutes or aren’t on hold for listening to some top 40 station – a CSR can still blow it. Here are 3 things your customer service reps should always avoid saying:
1.“Well, you’re going to have to…” No. The first thing the customer is going to think is, “Come on! I don’t have to do anything!” Ask nicely. Try, “In order for us to provide you the best service, would you mind…” or “Could you please provide me with this information so that we can be sure to omit any possibility for a mistake?” Let the customer know that he or she is helping to facilitate the fixing and they’ll be much more likely to respond with something other than a quick hang-up.
2.“I’ll try…” Don’t try. Either say you’ll do it or tell them no. If you don’t give huge discounts on new systems, then say you can’t do that at present. Don’t say you’ll try to get them a discount if you know it won’t happen! Customers resent a lack of commitment, so don’t show that weakness.
3.“It’s against our policy.” It’s hard to dodge this for one main reason. The company policy is there because it needs to be followed. Just don’t use this phrase. Customers can’t stand to hear it and it has become one of those horrid business clichés that CSRs use as a scapegoat to avoid extra work or explanation. You owe the people who pay your bills (your customers) an explanation. At the very least, substitute this worn out phrase with words like “our best procedure” or “proven approach”.
Okay, I’ve given you more than your money’s worth for today (especially considering the price) and ask you to pick an action to go implement.
Soon you can be reading a profitable book or have a nice lunch to send your competitors.
Tuesday, December 22, 2009
Let’s Play Stump the Stumpy Guy
I usually do the interviews for our coaching calls. I actually like being on that side of the mike, hopefully helping “decomplicate” the expert’s topic, cutting volumes of information into bite-sized chunks, suitable for complete digestion.
But last Thursday, at 5:30 pm, it was my turn to squirm. Copywriting and marketing superstar Dan Kennedy called to interview me for his apparently information-starved Copywriting Students. In my world, being interviewed by Dan Kennedy is like having Jimmy Johnson ask you to drive him around the block.
For one hour, I had to fake my way through sounding intelligent. And in this smart, tough crowd with a fairly expensive $30,000 annual tuition, that wasn’t going to be easy. So, in-between making up big words and ending every other sentence with “in this economy” to sound relevant, I attempted to offer advice.
The REAL reason I was on the call was for having been the idiot who won a new car last year, but turned it down in exchange for an equal amount ($35,000) of copywriting work from contest sponsor Kennedy. Yes, I – the self-proclaimed copywriter – sort of “paid” 35 large for 8 pages of work.
Whatever. I didn’t need the car, but felt I could use learning from a good coach. (Can’t we all?) Of course, those winnings became yours because we took what we learned and applied it to not only our marketing, but to what we offer you.
But during the interview, amid all these people ‘tuned in’ to hear the answers, Dan throws me a curveball. He asks, “If you had all your copywriting tools taken away except 3, what would they be?” There I am, mildly choked to answer, clock ticking, sweat forming. And it’s below.
Whether you’re copywriting “student” or not, the answers still go to the core of marketing. Remember, this was not a “beginner” crowd, so my answers aren’t the normal “big headline, bold guarantee, and hot bullet points” that you’re sick of hearing. And shockingly enough, in the light of day, I still stick by these answers…
Below, you’ll see my answer. I’ve put in italics how you can use this hint in your business, whether marketing, selling, or negotiation. They work for all, and that’s a promise. So, a peek behind the marketing curtain…
AH: “Well Dan, I’m a big fan of the Provocative Headline, Big Promise Headline, The Killer Offer, Powerful Guarantee, and all that, but I assumed – hopefully correctly – that your students (and I frankly) have enough resources on those topics from you and other training. Here are the ones I consider more advanced, more stealthy, that you do NOT hear about much, but generate massive results for us and our clients -
1. I’ll call the first one ‘Planting Psychic’ Seeds. Some may call it ‘empathy’ but its more than that. I like to write as if I’m listening in on what keeps these guys up at night, and shock them with the well placed ‘prediction’ of that state.
The “You’re probably wondering…” is a nearly worn-out but effective version of that. I want to let my clients know that I understand what keeps them up at night, or the problems they’ve faced, or even where their mind is at the moment.”
Contractors – you too want to do this. Force your marketing language, website, sales presentations to enter your customer’s subconscious. Make them say, ‘YES! That’s what I was just thinking!” and you will magnetically gain acceptance. People want to be understood without having to explain themselves.
2. Curiosity Accelerators – I often drop in a foreshadowed thought, hinting at something yet to come. I try to give the readers’ subconscious a moment to dwell, then DESIRE the object of their curiosity. Such as, “I’ll explain that in a moment, but first, here’s why nobody’s doing it…” See? They hear, they hang, anticipation and momentum are built.
Contractors – This is done WAY too little in your websites, and especially your sales presentations. Your Maintenance Agreement forms are the WORST at this. Why? They tell too much, too quickly, ending forever the ability to let the customer ‘weigh’ out the value before you blurt it in their face OR attempt to defend it! An example:
Websites stupidly put, “Read what others say” as if anyone really goes to read a bunch of bragging. Curiosity is OVER. We all know it’s awesome or you wouldn’t put it there. Instead, pepper it ‘inside’ the message, such as “You’re probably thinking I’m full of beans, but so did David Wanker from Canker who said…”
See the difference? Don’t make ‘em hunt it down. Make them want it. Also…
Most Agreements typically line up a bunch of gobbledegook on a page that is SUPPOSED to seem beneficial, but it’s tiresome, boring, hogwash to a customer. All they’re scanning for is the price, but nothing else means anything to them. Instead, you should line up and explain why the bullet point is tantalizingly valuable, THEN put your price in the two-tier method, compared against an UNmaintained system failure.
3. My next most crucial element is “The Turn” as Maxwell Sackheim called it. This is very difficult for most amateur marketers and salespeople. This is where you go from consultive coach to presenting the offer they should accept. I mean, if they’ve expressed a need, it is your duty to present a viable offer.
Contractors – too much of your marketing, and many of your “salespeople” simply spout off specs, scribble something down, and blurt out a price as if magically people’s Visa cards will float from their highly guarded wallets. Ain’t gonna happen. That’s called “Order taking” not “Selling”.
The turn is where you skillfully build a communication “bridge” from “I know you, and know you have this problem” to “Now that we know each other, here’s how to solve it. Just look.”
Your presentations and marketing sales pieces have 3 parts: the opener, the presentation, and the close. These are essentially seamless except for a clinical sales discussion, and the turn is between presentation and close. So, if you’ve got great presentation skills and a lousy closing ratio, it is THE TURN that is causing you to fall flat.
All successful infomercials have “the turn”; watch them. (Heck, all great movies and books have “the turn”) Become a student of the turn.
So, there’s your look into a formerly secretive ‘list’ of items I use to persuade you, and you to persuade others, now advising you to use in your marketing and selling. Happy Sales!
Adams Hudson
Questions:
□ If I took all your marketing tools away except 3, what items would YOU keep?
□ How effectively are your sales presentations at any of the 3 items on MY list above?
□ Do your sales presentations need a makeover?
□ Does your marketing need to be polished up for 2010?
But last Thursday, at 5:30 pm, it was my turn to squirm. Copywriting and marketing superstar Dan Kennedy called to interview me for his apparently information-starved Copywriting Students. In my world, being interviewed by Dan Kennedy is like having Jimmy Johnson ask you to drive him around the block.
For one hour, I had to fake my way through sounding intelligent. And in this smart, tough crowd with a fairly expensive $30,000 annual tuition, that wasn’t going to be easy. So, in-between making up big words and ending every other sentence with “in this economy” to sound relevant, I attempted to offer advice.
The REAL reason I was on the call was for having been the idiot who won a new car last year, but turned it down in exchange for an equal amount ($35,000) of copywriting work from contest sponsor Kennedy. Yes, I – the self-proclaimed copywriter – sort of “paid” 35 large for 8 pages of work.
Whatever. I didn’t need the car, but felt I could use learning from a good coach. (Can’t we all?) Of course, those winnings became yours because we took what we learned and applied it to not only our marketing, but to what we offer you.
But during the interview, amid all these people ‘tuned in’ to hear the answers, Dan throws me a curveball. He asks, “If you had all your copywriting tools taken away except 3, what would they be?” There I am, mildly choked to answer, clock ticking, sweat forming. And it’s below.
Whether you’re copywriting “student” or not, the answers still go to the core of marketing. Remember, this was not a “beginner” crowd, so my answers aren’t the normal “big headline, bold guarantee, and hot bullet points” that you’re sick of hearing. And shockingly enough, in the light of day, I still stick by these answers…
Below, you’ll see my answer. I’ve put in italics how you can use this hint in your business, whether marketing, selling, or negotiation. They work for all, and that’s a promise. So, a peek behind the marketing curtain…
AH: “Well Dan, I’m a big fan of the Provocative Headline, Big Promise Headline, The Killer Offer, Powerful Guarantee, and all that, but I assumed – hopefully correctly – that your students (and I frankly) have enough resources on those topics from you and other training. Here are the ones I consider more advanced, more stealthy, that you do NOT hear about much, but generate massive results for us and our clients -
1. I’ll call the first one ‘Planting Psychic’ Seeds. Some may call it ‘empathy’ but its more than that. I like to write as if I’m listening in on what keeps these guys up at night, and shock them with the well placed ‘prediction’ of that state.
The “You’re probably wondering…” is a nearly worn-out but effective version of that. I want to let my clients know that I understand what keeps them up at night, or the problems they’ve faced, or even where their mind is at the moment.”
Contractors – you too want to do this. Force your marketing language, website, sales presentations to enter your customer’s subconscious. Make them say, ‘YES! That’s what I was just thinking!” and you will magnetically gain acceptance. People want to be understood without having to explain themselves.
2. Curiosity Accelerators – I often drop in a foreshadowed thought, hinting at something yet to come. I try to give the readers’ subconscious a moment to dwell, then DESIRE the object of their curiosity. Such as, “I’ll explain that
Contractors – This is done WAY too little in your websites, and especially your sales presentations. Your Maintenance Agreement forms are the WORST at this. Why? They tell too much, too quickly, ending forever the ability to let the customer ‘weigh’ out the value before you blurt it in their face OR attempt to defend it! An example:
Websites stupidly put, “Read what others say” as if anyone really goes to read a bunch of bragging. Curiosity is OVER. We all know it’s awesome or you wouldn’t put it there. Instead, pepper it ‘inside’ the message, such as “You’re probably thinking I’m full of beans, but so did David Wanker from Canker who said…”
See the difference? Don’t make ‘em hunt it down. Make them want it. Also…
Most Agreements typically line up a bunch of gobbledegook on a page that is SUPPOSED to seem beneficial, but it’s tiresome, boring, hogwash to a customer. All they’re scanning for is the price, but nothing else means anything to them. Instead, you should line up and explain why the bullet point is tantalizingly valuable, THEN put your price in the two-tier method, compared against an UNmaintained system failure.
3. My next most crucial element is “The Turn” as Maxwell Sackheim called it. This is very difficult for most amateur marketers and salespeople. This is where you go from consultive coach to presenting the offer they should accept. I mean, if they’ve expressed a need, it is your duty to present a viable offer.
Contractors – too much of your marketing, and many of your “salespeople” simply spout off specs, scribble something down, and blurt out a price as if magically people’s Visa cards will float from their highly guarded wallets. Ain’t gonna happen. That’s called “Order taking” not “Selling”.
The turn is where you skillfully build a communication “bridge” from “I know you, and know you have this problem” to “Now that we know each other, here’s how to solve it. Just look.”
Your presentations and marketing sales pieces have 3 parts: the opener, the presentation, and the close. These are essentially seamless except for a clinical sales discussion, and the turn is between presentation and close. So, if you’ve got great presentation skills and a lousy closing ratio, it is THE TURN that is causing you to fall flat.
All successful infomercials have “the turn”; watch them. (Heck, all great movies and books have “the turn”) Become a student of the turn.
So, there’s your look into a formerly secretive ‘list’ of items I use to persuade you, and you to persuade others, now advising you to use in your marketing and selling. Happy Sales!
Adams Hudson
Questions:
□ If I took all your marketing tools away except 3, what items would YOU keep?
□ How effectively are your sales presentations at any of the 3 items on MY list above?
□ Do your sales presentations need a makeover?
□ Does your marketing need to be polished up for 2010?
Repeating History’s Repetition
For some reason, a group of historian type people want to tour our offices this Sunday. Further, they’ve asked me to speak to them in some meaningful fashion, relating the historic mission for downtown and our role in it. Personally, I feel they’re really hoping I’ll say nothing but serve Bourbon.
Long time SMI readers will remember that our renovation of this 1880’s building (5 years ago) employed most every tradesperson in 3 counties, including trades that hadn’t been invented at the time. I was billed virtually every time they inhaled, and charged overtime for their exhales.
There were many excellent, pleasant, skilled techs and companies that came through here, doing exquisite work that has withstood great use. There were also a few tradespeople with skills and attitudes that rival meth-addicted wharf rats, except with less dexterity.
Of all those trades folks – perhaps 20 in all – I still use exactly 3.
That coveted group includes:
The electrician (charges more per hour than a cosmetic surgeon, but worth it… darn it), the roofer (needs shock therapy to return a phone call, but competent and fair) and the HVAC company (undermarketed to a fault, but fair and reliable.)
Why do I still use them? And why will I unhesitatingly recommend them to the 30 or so assembled ‘influence peddlers’ on Sunday, and any other time? The reasons you’ll read are the exact same as why they’re doing well in this economy, and the others, well, aren’t.
A “hint” given first …
The historic group this Sunday is touring properties to see and hear firsthand: 1) How does a historic building function into today’s business environment? 2) What obstacles and advantages does a commercial restoration entail? And 3) How does an overly-critical short guy ever get to manage anything? Plus, why can’t he spell “INC” properly?
In addition, every time there’s a tour through here, people also ask “Who” did the work? What’s generally implicit in the question is “Who would you recommend?” (Pointless to give names of the UNrecommended.) And there’s a free lead source for the contractors who understand and work this angle. I may only be telling 30 or so people on Sunday, but they all have homes (I think) and are “influence peddlers” to their peer group. Very important. Somewhere in your town, right now, someone’s asking a knowledgeable person “Who do you use for your?”
How did these 3 companies get to be the answer?
1) Relentlessly regular contact. I promise you, I could not – at gunpoint – tell you the name of the plumber. Or the tile setter, landscaper, brick mason, window man, painter, or locksmith… all of whom I’ve needed several times since, and been asked about umpteen times more. But the “chosen” tradespeople have stayed in touch, making them a) Stand out against the sea of ‘call-me-if-you-need-me’ nincompoops who FORGOT that people FORGET (ironic isn’t it?), and b) Rise to the top of ‘recall heirarchy’ as Maslow said it or TOMA as we say it, plus c) They become the default choice for referrals. Smart to recontact. They stay in touch ‘mostly’ through mail, occasionally by phone. Two attempted ezines earlier, but those floundered and were systemically eliminated in favor of regular mail.
2) They use Professionalism as a Competitive Advantage. This is going to make some of you mad. Whatever. Trades in general do NOT have a very professional demeanor, thus status, assumptions, and price points are commensurate. I don’t make the rules, but you tell me – Two guys have IDENTICAL diamonds for sale. One guy is in an exquisitely elegant, hushed environ, immaculately dressed and as polished as the gem he represents. The other is wearing an Alice in Chains T-shirt, hasn’t shaved, and smells vaguely of Vienna Sausage. Which one are YOU going to confidently pay WAY more money to? Oh, silly me, I never mentioned that either one spoke. Guy #1 coulda been on out work release and Guy #2 a graduate gemologist, but you didn’t wait to make your judgment either. You got that impression purely by the professional ‘aura’ presented. Don’t expect your customers to be any different.
3) Great Customer Service Creates Price Elasticity and Pain of Disconnect. That’s a mouthful, but a high degree of Customer Service means I “pay” more but “get” more… though largely intangible and without ‘cost’ to the company. This is attributable to general courtesy, appointments confirmed, neatness, prices submitted upfront, material options presented, follow-ups initiated by the company, and thank you via phone and with invoice. After that, I’m in their “sequence” (newsletter, recontact, see #1.) The “Pain of Disconnect” is a direct response marketing term for a loyalty creation that is hard to ‘unhook’, thus, “going back” to the non-Customer oriented contractor makes an odious comparison. Good customer service is by nature, relatively rare, highly attractive, and very “sticky”. Train for this and financial gains naturally flow.
Maybe you read this and say you “knew” these 3 elements, are sick of hearing of them in some form or fashion, and were looking for something “new”. Why? History, as they say, is a great teacher.
Questions for You:
1. What is your ‘system’ of recontact? There is no “winging it” in a system.
2. What is ONE THING you could do TODAY to bump your professionalism? (Phone courtesy, uniforms, truck rewrap, new logo, better ads, scripted presentation, burn the Alice in Chains shirts?)
3. Scale of 1-10, what is your company’s customer service ranking? How could you make it go up today?
Long time SMI readers will remember that our renovation of this 1880’s building (5 years ago) employed most every tradesperson in 3 counties, including trades that hadn’t been invented at the time. I was billed virtually every time they inhaled, and charged overtime for their exhales.
There were many excellent, pleasant, skilled techs and companies that came through here, doing exquisite work that has withstood great use. There were also a few tradespeople with skills and attitudes that rival meth-addicted wharf rats, except with less dexterity.
Of all those trades folks – perhaps 20 in all – I still use exactly 3.
That coveted group includes:
The electrician (charges more per hour than a cosmetic surgeon, but worth it… darn it), the roofer (needs shock therapy to return a phone call, but competent and fair) and the HVAC company (undermarketed to a fault, but fair and reliable.)
Why do I still use them? And why will I unhesitatingly recommend them to the 30 or so assembled ‘influence peddlers’ on Sunday, and any other time? The reasons you’ll read are the exact same as why they’re doing well in this economy, and the others, well, aren’t.
A “hint” given first …
The historic group this Sunday is touring properties to see and hear firsthand: 1) How does a historic building function into today’s business environment? 2) What obstacles and advantages does a commercial restoration entail? And 3) How does an overly-critical short guy ever get to manage anything? Plus, why can’t he spell “INC” properly?
In addition, every time there’s a tour through here, people also ask “Who” did the work? What’s generally implicit in the question is “Who would you recommend?” (Pointless to give names of the UNrecommended.) And there’s a free lead source for the contractors who understand and work this angle. I may only be telling 30 or so people on Sunday, but they all have homes (I think) and are “influence peddlers” to their peer group. Very important. Somewhere in your town, right now, someone’s asking a knowledgeable person “Who do you use for your
How did these 3 companies get to be the answer?
1) Relentlessly regular contact. I promise you, I could not – at gunpoint – tell you the name of the plumber. Or the tile setter, landscaper, brick mason, window man, painter, or locksmith… all of whom I’ve needed several times since, and been asked about umpteen times more. But the “chosen” tradespeople have stayed in touch, making them a) Stand out against the sea of ‘call-me-if-you-need-me’ nincompoops who FORGOT that people FORGET (ironic isn’t it?), and b) Rise to the top of ‘recall heirarchy’ as Maslow said it or TOMA as we say it, plus c) They become the default choice for referrals. Smart to recontact. They stay in touch ‘mostly’ through mail, occasionally by phone. Two attempted ezines earlier, but those floundered and were systemically eliminated in favor of regular mail.
2) They use Professionalism as a Competitive Advantage. This is going to make some of you mad. Whatever. Trades in general do NOT have a very professional demeanor, thus status, assumptions, and price points are commensurate. I don’t make the rules, but you tell me – Two guys have IDENTICAL diamonds for sale. One guy is in an exquisitely elegant, hushed environ, immaculately dressed and as polished as the gem he represents. The other is wearing an Alice in Chains T-shirt, hasn’t shaved, and smells vaguely of Vienna Sausage. Which one are YOU going to confidently pay WAY more money to? Oh, silly me, I never mentioned that either one spoke. Guy #1 coulda been on out work release and Guy #2 a graduate gemologist, but you didn’t wait to make your judgment either. You got that impression purely by the professional ‘aura’ presented. Don’t expect your customers to be any different.
3) Great Customer Service Creates Price Elasticity and Pain of Disconnect. That’s a mouthful, but a high degree of Customer Service means I “pay” more but “get” more… though largely intangible and without ‘cost’ to the company. This is attributable to general courtesy, appointments confirmed, neatness, prices submitted upfront, material options presented, follow-ups initiated by the company, and thank you via phone and with invoice. After that, I’m in their “sequence” (newsletter, recontact, see #1.) The “Pain of Disconnect” is a direct response marketing term for a loyalty creation that is hard to ‘unhook’, thus, “going back” to the non-Customer oriented contractor makes an odious comparison. Good customer service is by nature, relatively rare, highly attractive, and very “sticky”. Train for this and financial gains naturally flow.
Maybe you read this and say you “knew” these 3 elements, are sick of hearing of them in some form or fashion, and were looking for something “new”. Why? History, as they say, is a great teacher.
Questions for You:
1. What is your ‘system’ of recontact? There is no “winging it” in a system.
2. What is ONE THING you could do TODAY to bump your professionalism? (Phone courtesy, uniforms, truck rewrap, new logo, better ads, scripted presentation, burn the Alice in Chains shirts?)
3. Scale of 1-10, what is your company’s customer service ranking? How could you make it go up today?
Minority Rule
An old adage: “When the word on the street is ‘buy’, it is definitely time to sell.” This supports the contrarian’s favorite point that the grand herd called “they”, are generally far behind, already approaching irrelevance, since the leaders have long since left the party.
Zig whenever “they” zag. It is true elsewhere.
Those rare folk who sold at the height of the market – deemed idiotic at the time – are now considered enlightened. The crowd moves in huge swells and sways, while leaders in thought and action pull away, immune to the self-appointed critics. The top 14% of the earners in the U.S. out-earn the remaining 86% combined, all of whom are certain “their” way must be right. It sure doesn’t seem that way…
Currently, about 40% of the population spends exactly what they earn or less – zero or negative savings. Another 40% eke out a living, with less than 10% of their income for ‘non-essentials’ including savings, recreation.
The next 15% up are considered the new mass affluent ($155,000 household income and higher, a group 23% larger than just 10 years ago. Yes, even now.) The top 5% generate over $500,000, some way over. Categorically, they’re considered “thought leaders, business leaders, community leaders” – and there’s just one word consistent in those descriptions.
Before I continue with the peep show (a marketing hint right there) let me back up a sec.
This has not been the most fun year for the contracting majority. You can’t pick up a newspaper or listen to news without being reminded. Those of us in business, out to slay the daily dragon, now get to hear the constant chorus of wails and moans in the background.
“They” begin to seep into our dreams, leaking from under the foundation, causing a less enthusiastic voice answering the phone, a less than committed upsell, a pulling back on the marketing reins, and a tail slowly tucking inward because “they” are all doing the same.
“They” are usually wrong. So accepting that and responding accordingly is Step #1 of the vastly more successful, tiny minority. In other words, they zag quite regularly.
They are deaf to the crowd’s advice. They are mute to chiming in on the “me, too” Pavlovian response to bad news. They’re blind to seeking crowd approval. (And yet, ironically, their self-esteem supremely well-intact.)
And in contracting, despite the fact that consumers are spending less and more resistant to the optional than ever, small numbers of very successful contractors tout the rarely discussed “good”. They draw it inside their ranks, becoming “bad news immune” and thus a magnetically more confident company. This too is contagious.
Supporting that –
□ Consumer Trends found out what we all know: “Nearly ¾ of the American public has tired of the recession news, some openly resisting same. Buying pattern increases indicate a renewed attraction toward durable, reliable, trustable.” Advice: Same for the past year – Good news is attractive. Reliably market your reliability. If you go silent in your marketing, your phones follow.
□ “A drop in new housing starts is bringing renewed interest in existing home-improvement, energy upgrades, environmentally-sound investing.” Advice: Pay attention to the word “investing”. Unlike the “norm”, now is not time to low ball every bid. Flaunt your higher priced upgrades that can demonstrate a sound investment. (Hint: Your Proposal Books and online consumer videos need updating.)
□ More good news: “Is the do-it-yourselfer dead?” HGTV saw massive drop in popularity of “flipping” and “do it yourself” shows in favor of maximizing value, with the subtext of professional trade contracting. (Holmes on Homes, Renovation Nightmares both illustrate “false economy” of unprofessional and DIYer.) Trends to watch: Shows for contractors supporting model customer service, smart marketing, image-enhancement. Advice: As in a recent editorial, some “normal” contractors send homeowners (me!) to a big-box to “save me some money”. If you’re a professional, you should either support professionalism or quit the profession. Fair enough? The successful minority shows the risks of DIY and unprofessional work on their websites, newsletters, and publicity.
□ Customer service is becoming the great “separator”. People are tired (and distrusting, see first bullet) of the low-image, slacker contractor – rudely handled phone calls, the follow-up that never happens, the unanswered after hours phone, the static and self-absorbed website all indicate “old” think. Consumer buying, repeat buying and referring all follows superior customer service. Advice: The majority falsely believe they’re “saving money” by cutting training and expertise.
Do the different thing, contractors. Follow the advice of the successful minority. Tap into that however, and whenever you can. Be willing to do what’s different from the crowd, most of who are complaining. That alone will get you noticed.
I believe that 2010 will widen the gaps in the “haves and have nots”. The “haves” will not have gotten there by following the masses, that’s a promise.
Questions for you:
1. What are you doing differently in your marketing? Sales presentations? Customer service? How is the “language” in your shop different from that of the “normal” contractor?
2. Do you regularly “shop” the competition to see how they either blend in or stand out? (Our Competitive Intelligence guide in your PowerPack is an outline in doing this, or you can do it yourself.)
Before You Hit “Delete” or Run out the Door…
We've all heard enough 'bad' news this year to last for several more. Yet, if you believe we still live in a great country, if you still have enough health to get through the day, and still have the love of family and friends among you, you can indeed be thankful.
And regardless of your income, the many blessings you have – and even enumerate in your conscious now – makes you a very rich person.
Zig whenever “they” zag. It is true elsewhere.
Those rare folk who sold at the height of the market – deemed idiotic at the time – are now considered enlightened. The crowd moves in huge swells and sways, while leaders in thought and action pull away, immune to the self-appointed critics. The top 14% of the earners in the U.S. out-earn the remaining 86% combined, all of whom are certain “their” way must be right. It sure doesn’t seem that way…
Currently, about 40% of the population spends exactly what they earn or less – zero or negative savings. Another 40% eke out a living, with less than 10% of their income for ‘non-essentials’ including savings, recreation.
The next 15% up are considered the new mass affluent ($155,000 household income and higher, a group 23% larger than just 10 years ago. Yes, even now.) The top 5% generate over $500,000, some way over. Categorically, they’re considered “thought leaders, business leaders, community leaders” – and there’s just one word consistent in those descriptions.
Before I continue with the peep show (a marketing hint right there) let me back up a sec.
This has not been the most fun year for the contracting majority. You can’t pick up a newspaper or listen to news without being reminded. Those of us in business, out to slay the daily dragon, now get to hear the constant chorus of wails and moans in the background.
“They” begin to seep into our dreams, leaking from under the foundation, causing a less enthusiastic voice answering the phone, a less than committed upsell, a pulling back on the marketing reins, and a tail slowly tucking inward because “they” are all doing the same.
“They” are usually wrong. So accepting that and responding accordingly is Step #1 of the vastly more successful, tiny minority. In other words, they zag quite regularly.
They are deaf to the crowd’s advice. They are mute to chiming in on the “me, too” Pavlovian response to bad news. They’re blind to seeking crowd approval. (And yet, ironically, their self-esteem supremely well-intact.)
And in contracting, despite the fact that consumers are spending less and more resistant to the optional than ever, small numbers of very successful contractors tout the rarely discussed “good”. They draw it inside their ranks, becoming “bad news immune” and thus a magnetically more confident company. This too is contagious.
Supporting that –
□ Consumer Trends found out what we all know: “Nearly ¾ of the American public has tired of the recession news, some openly resisting same. Buying pattern increases indicate a renewed attraction toward durable, reliable, trustable.” Advice: Same for the past year – Good news is attractive. Reliably market your reliability. If you go silent in your marketing, your phones follow.
□ “A drop in new housing starts is bringing renewed interest in existing home-improvement, energy upgrades, environmentally-sound investing.” Advice: Pay attention to the word “investing”. Unlike the “norm”, now is not time to low ball every bid. Flaunt your higher priced upgrades that can demonstrate a sound investment. (Hint: Your Proposal Books and online consumer videos need updating.)
□ More good news: “Is the do-it-yourselfer dead?” HGTV saw massive drop in popularity of “flipping” and “do it yourself” shows in favor of maximizing value, with the subtext of professional trade contracting. (Holmes on Homes, Renovation Nightmares both illustrate “false economy” of unprofessional and DIYer.) Trends to watch: Shows for contractors supporting model customer service, smart marketing, image-enhancement. Advice: As in a recent editorial, some “normal” contractors send homeowners (me!) to a big-box to “save me some money”. If you’re a professional, you should either support professionalism or quit the profession. Fair enough? The successful minority shows the risks of DIY and unprofessional work on their websites, newsletters, and publicity.
□ Customer service is becoming the great “separator”. People are tired (and distrusting, see first bullet) of the low-image, slacker contractor – rudely handled phone calls, the follow-up that never happens, the unanswered after hours phone, the static and self-absorbed website all indicate “old” think. Consumer buying, repeat buying and referring all follows superior customer service. Advice: The majority falsely believe they’re “saving money” by cutting training and expertise.
Do the different thing, contractors. Follow the advice of the successful minority. Tap into that however, and whenever you can. Be willing to do what’s different from the crowd, most of who are complaining. That alone will get you noticed.
I believe that 2010 will widen the gaps in the “haves and have nots”. The “haves” will not have gotten there by following the masses, that’s a promise.
Questions for you:
1. What are you doing differently in your marketing? Sales presentations? Customer service? How is the “language” in your shop different from that of the “normal” contractor?
2. Do you regularly “shop” the competition to see how they either blend in or stand out? (Our Competitive Intelligence guide in your PowerPack is an outline in doing this, or you can do it yourself.)
Before You Hit “Delete” or Run out the Door…
We've all heard enough 'bad' news this year to last for several more. Yet, if you believe we still live in a great country, if you still have enough health to get through the day, and still have the love of family and friends among you, you can indeed be thankful.
And regardless of your income, the many blessings you have – and even enumerate in your conscious now – makes you a very rich person.
Wednesday, October 14, 2009
The Power of Referrals
Andrew Leslie is a man they don’t make anymore. Hard-working, Cajun born, duty driven. If the deep caramel skin (that’s about as smooth) and the tell-tale accent reeling quick witted tales didn’t make you question his age, his overbooked work ethic would.
Though just days from an age 65 retirement, I’d suggest training if you tried to keep up with him. I’ve seen his own shadow almost give up in frustration.
He had a full time career with J.R. Smith, helping assemble a few million specialty plumbing products, then moved into receiving, spanning as he told me, “23 years, 5 months, 2 days and about 6 hours… or thereabouts.” Andrew is rarely without supporting evidence.
Yet his “other” full time job was being a father to son, Eric, who’s with the Federal Railroad and daughter Rachelle, vice president of a bank. Andrew also unhesitatingly calls his nieces Kerry and Kimberly – both business owners – his “daughters” since they raised them as well. His wife, Eva, was equally active, but Fibromyalgia and Arthritis had other plans, enlisting Andrew as supportive caretaker for the last 14 years.
And his other full time job was lawn maintenance. He probably did other things, but I am getting tired of listing them all. Yet atop all this…
He was also a master of generating referrals, as many as he wanted, when and where he wanted. At the price he said, and here’s how he did it.
He was our lawn maintenance guy. Did it by himself too. Pulled a neatly-crafted and packed trailer behind his trusty silver Dodge Ram truck. Weed eaters, blowers, and a Snapper Mower than was more an extension of his hands and feet than a separate machine. Many a Saturday, I’d see Andrew, turning a zero radius circle around one of too many pine trees, never dropping a shaving of bark nor the ash of his Kool, with the fluidity of an ice skater, (yet thankfully in khaki instead of spandex.) Where he willed, the Snapper went.
And if our yard wasn’t enough, he had the neighbors to the left. And the right. And two doors down, plus the next one, and a couple more he’d hit on his way home. Master of efficiency, he had to “disengage” from one customer who was well off the route. “I had to tell her the drive was too much for an old man” he said to me once, adding “She wasn’t all that darn nice either.” I laughed, but he wasn’t done. “I hope she doesn’t move to a yard that’s more convenient”.
You can tell by the ‘connection’ to customers that if Andrew got one job, he’d get all the other ones he wanted, where he wanted, at the price he said. Shopping was over. Why? Because Andrew’s referrals were so enthusiastic you’d half question if there was some pyramid scheme of sudden riches coming to the referring party.
He got jobs – at will – in our neighborhood of yard-crazy people (historic neighborhood in the deep south, need I say more?) that is regularly patrolled by the ‘big’ companies. Their postcards were tossed, their TV commercials rendered us blind, the radio ads made us deaf. All we knew when prodded was, “Andrew does our yard,” usually recited like unwavering, slobbering robots. And we were.
Until Andrew retired from us.
Finding his “replacement” will be in word only. Oh sure, the “new” guy may have a little more bounce in his step, some more “moderness” to the approach, and potentially more eagerness for additional clients. But he ain’t gonna be Andrew, and that’s a fact. The beauty of Andrew’s legacy, only briefly shared herein, has a marketing thread of fascination for me in that he scored 100% of the jobs he wanted, sans price-shopping.
He “Advertised” his work while doing his work. A neat truck, parked out front, with good well maintained equipment was better than an interstate of billboards. If you’re NOT doing this, plus yard signs, and/or parking pylons, and/or door hangers, and/or windshield signage, how are the neighbors to know you’re ‘endorsed’?
Focused marketing efforts. Andrew controlled his jobs instead of the other way around. Sure, he could’ve gotten jobs in multiple inconvenient locations, but he focused on a particular customer, in a particular area, and “owned” that area.
Pricing insensitivity. Andrew could price a job since he had to move his truck a few feet, spreading the ‘windshield time’ over the adjacent yards, where others had to quote from a ‘rate sheet’ that unwisely assumed a trip charge regardless of relative proximity. Smart.
Established a Referral chain. Each new job came with a blessing and endorsement from the previous. This was the ‘first step’ in a three step process that followed with…
Asked a simple question of the potential referrer: “If I introduce myself to your neighbors, is it okay if I tell them that I do your work?” Who’s gonna say ‘no’ to that? No one did. Thus the near simultaneous 3rd step…
Qualified Introduction: Andrew would introduce himself as being the lawn maintenance professional for and wondered, “I love this area and these great lawns. If you’re looking for someone to take care of it, I’d be honored. The said it’d be okay to call them to ask anything you’d like about my service.”
Generally a phone call would ensue, which began the blathering, which ended in “SOLD!”
Regular re-endorsement and relationship building – We got an invoice monthly, sometimes with a hand written note (bill stuffer anyone?) and a Christmas card every year. It’s the small stuff that can make the strongest glue.
If Andrew had been a “company” of more than one, I’d have recommended all these, but using media to broaden the message. The message remains the same…
Your referrals will not “just happen” in the numbers you could get if you “made them happen”. Andrew made his happen. You must target, ask, follow up, and perform as promised, then repeat. If you do this for 23 years, 5 months, 2 days and about 6 hours… or thereabouts, you can grow your referrals and retire happy too.
Happy retirement Andrew. Me and my overgrown yard already miss you.
Questions for You:
■ What “ACTIONS” do you take to ensure that one customer leads to many? I’d suggest a 7 step follow up procedure, beginning on the first day following a new customer contact, spread over the next 120 days, with 2-4 ‘programmed’ contacts until they moved, died, or told you to go away.
■ What “SYSTEM” is in place to make sure the actions don’t get “forgotten”? This is a biggee. Our “Endless Referrals” program is designed to be just that, putting a single person in charge of this (should take 20 minutes a month) to enact.
Though just days from an age 65 retirement, I’d suggest training if you tried to keep up with him. I’ve seen his own shadow almost give up in frustration.
He had a full time career with J.R. Smith, helping assemble a few million specialty plumbing products, then moved into receiving, spanning as he told me, “23 years, 5 months, 2 days and about 6 hours… or thereabouts.” Andrew is rarely without supporting evidence.
Yet his “other” full time job was being a father to son, Eric, who’s with the Federal Railroad and daughter Rachelle, vice president of a bank. Andrew also unhesitatingly calls his nieces Kerry and Kimberly – both business owners – his “daughters” since they raised them as well. His wife, Eva, was equally active, but Fibromyalgia and Arthritis had other plans, enlisting Andrew as supportive caretaker for the last 14 years.
And his other full time job was lawn maintenance. He probably did other things, but I am getting tired of listing them all. Yet atop all this…
He was also a master of generating referrals, as many as he wanted, when and where he wanted. At the price he said, and here’s how he did it.
He was our lawn maintenance guy. Did it by himself too. Pulled a neatly-crafted and packed trailer behind his trusty silver Dodge Ram truck. Weed eaters, blowers, and a Snapper Mower than was more an extension of his hands and feet than a separate machine. Many a Saturday, I’d see Andrew, turning a zero radius circle around one of too many pine trees, never dropping a shaving of bark nor the ash of his Kool, with the fluidity of an ice skater, (yet thankfully in khaki instead of spandex.) Where he willed, the Snapper went.
And if our yard wasn’t enough, he had the neighbors to the left. And the right. And two doors down, plus the next one, and a couple more he’d hit on his way home. Master of efficiency, he had to “disengage” from one customer who was well off the route. “I had to tell her the drive was too much for an old man” he said to me once, adding “She wasn’t all that darn nice either.” I laughed, but he wasn’t done. “I hope she doesn’t move to a yard that’s more convenient”.
You can tell by the ‘connection’ to customers that if Andrew got one job, he’d get all the other ones he wanted, where he wanted, at the price he said. Shopping was over. Why? Because Andrew’s referrals were so enthusiastic you’d half question if there was some pyramid scheme of sudden riches coming to the referring party.
He got jobs – at will – in our neighborhood of yard-crazy people (historic neighborhood in the deep south, need I say more?) that is regularly patrolled by the ‘big’ companies. Their postcards were tossed, their TV commercials rendered us blind, the radio ads made us deaf. All we knew when prodded was, “Andrew does our yard,” usually recited like unwavering, slobbering robots. And we were.
Until Andrew retired from us.
Finding his “replacement” will be in word only. Oh sure, the “new” guy may have a little more bounce in his step, some more “moderness” to the approach, and potentially more eagerness for additional clients. But he ain’t gonna be Andrew, and that’s a fact. The beauty of Andrew’s legacy, only briefly shared herein, has a marketing thread of fascination for me in that he scored 100% of the jobs he wanted, sans price-shopping.
He “Advertised” his work while doing his work. A neat truck, parked out front, with good well maintained equipment was better than an interstate of billboards. If you’re NOT doing this, plus yard signs, and/or parking pylons, and/or door hangers, and/or windshield signage, how are the neighbors to know you’re ‘endorsed’?
Focused marketing efforts. Andrew controlled his jobs instead of the other way around. Sure, he could’ve gotten jobs in multiple inconvenient locations, but he focused on a particular customer, in a particular area, and “owned” that area.
Pricing insensitivity. Andrew could price a job since he had to move his truck a few feet, spreading the ‘windshield time’ over the adjacent yards, where others had to quote from a ‘rate sheet’ that unwisely assumed a trip charge regardless of relative proximity. Smart.
Established a Referral chain. Each new job came with a blessing and endorsement from the previous. This was the ‘first step’ in a three step process that followed with…
Asked a simple question of the potential referrer: “If I introduce myself to your neighbors, is it okay if I tell them that I do your work?” Who’s gonna say ‘no’ to that? No one did. Thus the near simultaneous 3rd step…
Qualified Introduction: Andrew would introduce himself as being the lawn maintenance professional for
Generally a phone call would ensue, which began the blathering, which ended in “SOLD!”
Regular re-endorsement and relationship building – We got an invoice monthly, sometimes with a hand written note (bill stuffer anyone?) and a Christmas card every year. It’s the small stuff that can make the strongest glue.
If Andrew had been a “company” of more than one, I’d have recommended all these, but using media to broaden the message. The message remains the same…
Your referrals will not “just happen” in the numbers you could get if you “made them happen”. Andrew made his happen. You must target, ask, follow up, and perform as promised, then repeat. If you do this for 23 years, 5 months, 2 days and about 6 hours… or thereabouts, you can grow your referrals and retire happy too.
Happy retirement Andrew. Me and my overgrown yard already miss you.
Questions for You:
■ What “ACTIONS” do you take to ensure that one customer leads to many? I’d suggest a 7 step follow up procedure, beginning on the first day following a new customer contact, spread over the next 120 days, with 2-4 ‘programmed’ contacts until they moved, died, or told you to go away.
■ What “SYSTEM” is in place to make sure the actions don’t get “forgotten”? This is a biggee. Our “Endless Referrals” program is designed to be just that, putting a single person in charge of this (should take 20 minutes a month) to enact.
Monday, October 5, 2009
Calendar Marketing
I don’t like it when contractors read the weather page to see whether they’ll be busy or not. To me, an utter loss of control. Yet in the 5 “Ms” of marketing, “month” is number 4 and thus mightily important. (This week’s poll: What are the other “M’s”? Guess and you may win fame, shame, or something in between.)
There is great validity to marketing within a known field of “timing” relevance. That is, chocolates during valentines, anti-depressants during the evening news, stuff like that. For another example…
At last report, it had rained 732 times in the past 4 days. It’s so wet, the fish are complaining and I’m going to see if Al Gore can arrange some “Global Drying”. This is neither politics nor weather.
This is about relevant timing and opportunity. In the past 45 days…
We have called a plumber for persistent drainage problem. A roofer for small leaks in two buildings. An HVAC contractor about dehumidifier in one of those buildings. An electrician for a leak-related fault in some track lighting. A neighbor about his gutter system (that he couldn’t see). A landscaper about a diverting berm and French drain.
There were 2,600,000 homes (NOT including commercial) affected in the recent high rainfalls in the southeast alone. Though I’ve occasionally felt like it, I trust I’m not the only one who needed a contractor. Multiply that by at least 6 trades, that’s lots of service calls.
Question: You want them Google searching or YOUgle Searching? Thought so.
This applies to the first cold snap. Most lightning strikes. Most burglaries (for home lighting and security). Most rain, hottest, driest. Energy prices up, energy prices down. And for you, your slowest months need the most attractive off-season offers. (See “Swimsuits in the Winter” ads in your PowerPack and many others, for example.)
All have a timely relevance in the mind of the homeowner, and YOU need to be in their mind when the need hits.
So, while other contractors are scanning the weather page, crime reports, or moaning about how energy prices have risen, you’re forcing your way into their conscious mind, up front and out front of the others leaving it up to chance.
Look at your calendar right now. There is your ‘map’ to marketing relevance. Each month, a wave of consciousness overtakes and replaces the previous. Your job is to be in front of that wave to get the call, as opposed to behind it waiting and hoping. Big difference.
If your “negative” voice is saying, “Hey, WHAT IF I market for an item in a month that does NOT produce the highest need for that product?” Then what have you lost?
Was it second highest? Did it only make new 3 times instead of 5?
You may wonder, “What if something just HAPPENS and it was not on the calendar?” Then you readily and aggressively market that.
Quick Case Study: Tornados had stricken an area, resulting in much insurance-covered roofing work. Yet HVAC contractors started getting calls for repairs that should’ve been part of the now-released coverage. Our tactic: Created newspaper, postcard, and radio scripts that began, “Do NOT settle with your Insurance Company until you readthis”. And that my friends, landed millions in necessary, legitimately covered work for hundreds of happy homeowners.
The market has a barrier of relevance and you want to penetrate it, with consistent regularity. Be the company who’s “there” in their consciousness as the needs arise. Lead the market, don’t trail it.
Questions for you:
The opportunities are there. Are you? Contact us for help.
There is great validity to marketing within a known field of “timing” relevance. That is, chocolates during valentines, anti-depressants during the evening news, stuff like that. For another example…
At last report, it had rained 732 times in the past 4 days. It’s so wet, the fish are complaining and I’m going to see if Al Gore can arrange some “Global Drying”. This is neither politics nor weather.
This is about relevant timing and opportunity. In the past 45 days…
We have called a plumber for persistent drainage problem. A roofer for small leaks in two buildings. An HVAC contractor about dehumidifier in one of those buildings. An electrician for a leak-related fault in some track lighting. A neighbor about his gutter system (that he couldn’t see). A landscaper about a diverting berm and French drain.
There were 2,600,000 homes (NOT including commercial) affected in the recent high rainfalls in the southeast alone. Though I’ve occasionally felt like it, I trust I’m not the only one who needed a contractor. Multiply that by at least 6 trades, that’s lots of service calls.
Question: You want them Google searching or YOUgle Searching? Thought so.
This applies to the first cold snap. Most lightning strikes. Most burglaries (for home lighting and security). Most rain, hottest, driest. Energy prices up, energy prices down. And for you, your slowest months need the most attractive off-season offers. (See “Swimsuits in the Winter” ads in your PowerPack and many others, for example.)
All have a timely relevance in the mind of the homeowner, and YOU need to be in their mind when the need hits.
So, while other contractors are scanning the weather page, crime reports, or moaning about how energy prices have risen, you’re forcing your way into their conscious mind, up front and out front of the others leaving it up to chance.
Look at your calendar right now. There is your ‘map’ to marketing relevance. Each month, a wave of consciousness overtakes and replaces the previous. Your job is to be in front of that wave to get the call, as opposed to behind it waiting and hoping. Big difference.
- Did you get your free 12 Month Marketing map yet? We publish about 2,000 per year, and give all of them away, with ZERO chance of “reprinting” once they’re gone. Friendly advice: Make a polite request and get one now. You are now in competition with 12,000 other contractors.
If your “negative” voice is saying, “Hey, WHAT IF I market for an item in a month that does NOT produce the highest need for that product?” Then what have you lost?
Was it second highest? Did it only make new 3 times instead of 5?
You may wonder, “What if something just HAPPENS and it was not on the calendar?” Then you readily and aggressively market that.
Quick Case Study: Tornados had stricken an area, resulting in much insurance-covered roofing work. Yet HVAC contractors started getting calls for repairs that should’ve been part of the now-released coverage. Our tactic: Created newspaper, postcard, and radio scripts that began, “Do NOT settle with your Insurance Company until you read
The market has a barrier of relevance and you want to penetrate it, with consistent regularity. Be the company who’s “there” in their consciousness as the needs arise. Lead the market, don’t trail it.
Questions for you:
- What are the TOP ‘calendar driven’ items coming up in the next 90 days?
- What products and services help solve problems related thereto?
- What marketing pieces do you have exactly relevant to that solution?
The opportunities are there. Are you? Contact us for help.
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