Why are you in business? Everyone may answer that question in a slightly different way, but the real reason always comes back to profits. In the residential electrical industry, your ability to make a profit rests solely on your ability to serve clients. However, some contractors continue to run their businesses in ways that anger, alienate, and aggravate customers. Practices like these quickly drive away your clients one by one, destroying your success inch by inch.
Why is it so important to stop client attrition? Can’t you just get new customers? It’s critical because of where most of your profits come from in the residential service industry. The lion’s share of your revenue comes from repeat clients — not from first-time clients. When you service a client for the first time, there are so many costs associated with getting him or her to call you in the first place that you may not make much of a profit at all. For instance, if you spend $150 to attract a new client via a marketing piece — and you only run one call to the home for an invoice of $200 — you’ve actually gained very little. Once you pay your overhead for that call, such as your technician’s wages and the costs of getting them to your client’s door, you may have even lost money.
To boost profit margins, you must have a steady stream of repeat clients to go hand-in-hand with the new ones you add into the fold. When a client calls you again and again, you’ll generate greater revenue because you won’t have those initial costs of customer acquisition — not to mention they’ll most likely invest more in their system because they like and trust you. It’s this kind of relationship that is vital to your success — and why it’s so important that you avoid the following client killers.
Not being there
Few things get a homeowner hotter under the collar than wasting his or her time. In today’s world, time is often more valuable than money. Time is so valuable, in fact, that clients will pay a premium for service that gives them a guaranteed timeframe. With that in mind, nothing destroys your client’s faith in you faster than being late, or worse yet, not showing up at all. Such behavior will not only throw your clients into a rightful fit, but it just may also send them over to your competition. Showing up late gives customers the wrong first impression, making you seem sloppy and unprofessional. So when you say you’ll be there, be there.
Client Saver Tip #1: Things happen occasionally, so if you’re going to be late or unavailable, give your client as much advance notice as possible. When you do finally arrive, be sure to apologize right off the bat for the inconvenience. A good client saver idea is to offer your clients a small “we’re sorry” gift to try and ease their frustration. Give them a gift certificate to a local restaurant or, better yet, a discount on future services. If you can’t make it to the call at all and have to reschedule, offer them something even more substantial. Simple gestures like these help you on so many levels. It not only creates a feeling of obligation to you from your client because you’ve given them a gift, but it also reduces the chance they’ll paint you in a bad light when talking to friends and family. It also greatly increases the probability that they’ll call you again in the future.
Not fixing the problem
Clients don’t simply call you out to their homes and pay you just to visit. They’ve called you to fix a specific problem and get their lives back to normal. If you’re not solving their problems, then you’re not doing your job — and you’re killing any chance you have of them ever calling you again.
What would happen if you took your car to a mechanic to fix your brakes only to drive away after paying and discover that they don’t work any better than they did before. You’d think the mechanic was incompetent and would probably never take your car to him again. Right? The same thing happens in the electrical service business.
Client Saver Tip #2: It goes without saying that your job is to fix the problem. However, we all know accidents happen, and even the best workers make mistakes on occasion. Realize that this scenario is your client’s worst fear. So your greatest ally in putting your client’s fears to rest is showing him you stand behind your work with a guarantee.
When it comes to offering guarantees, it’s one thing to tell your clients about them; it’s another to show them. The power of a written guarantee is enormous, and it’s simple to do. Create some type of official-looking certificate stating your guarantee, and present it to your clients. This basically allows them to hold their peace of mind in their hands. Doing so will increase the trust they have in you and put them at ease for the rest of the call. This really works.
Leaving a trail
When you enter a client’s home, you’re there to protect it as well as ensure the customer’s comfort and safety. Nothing will destroy your image faster than leaving their house in ruins. Just be sure to clean up after yourself. Don’t leave any extra parts lying around for your client to find and wonder, “Shouldn’t this be attached to something?” Be sure to wear shoe covers to avoid tracking dirt into your client’s homes. Small actions make a huge difference when the customer sees you protecting their home.
Client Saver Tip #3: Keep an eye on your truck outside to make sure it isn’t making a mess while you’re inside. Even the tiniest of oil or fluid leaks can leave your client with a tarnished reminder and unpleasant memory of your service visit. For that reason, park your service van or truck in the street whenever possible. If you must park in your client’s driveway, you may want to carry a piece of cardboard to place under your vehicle to avoid leaving a stain. When all is said and done, the proper preventive measure in this situation is to keep your trucks up to date with regular maintenance to avoid those leaks altogether. That way, you’ll protect your employees, your clients, and your image.
Kennedy started Mister Sparky in 1996 in Atlanta. That location is now one of the largest and most successful residential electrical service companies in the Direct Energy Services portfolio, based on sales volume. Kennedy currently owns and operates the Mister Sparky franchise serving the greater Sarasota, Fla., area. He can be reached at [email protected].
