You work so hard to get the phone to ring, but once you visit new customers, are you turning them into lifetime clients? Here’s a quick review of some basic principles that lead to success in the service industry.
Let’s start with a quick profitability puzzle for you. Which of these scenarios mean more to your company?
Scenario 1: A homeowner calls you from the Yellow Pages. You run a service call to their home, generating a large amount of revenue. However, they never call you again.
Scenario 2: Another homeowner calls you from the Yellow Pages. You run a service call for them and fix a minor problem they were having. The resulting revenue is way below your average, but the good news is that they call you again. In fact, they continue to call you whenever there’s a problem. You develop a relationship with them, and you eventually wind up doing the larger jobs for them, such as replacing their electrical panel and/or main service.
Obviously, the second scenario will mean more to your company’s well-being in the long run. The first option might boost your numbers for the moment, but it’s the continued service that leads to sustained income and growth.
With that in mind, how do you go about turning Scenario 1 into Scenario 2? What’s the secret to turning a one-time customer into a lifelong client?
Step 1: Unparalleled Service
First off, you must provide first-time customers with the service experience of their lives. Give them a reason to call you again. The secret to outstanding service is going above and beyond expectations. What can you do to exceed expectations? Do you wear shoe covers to protect your client’s home from wear and tear? Let your clients know why you’re doing it. Explain that you’re looking out for their home from the get-go. What else can you do?
Do you give your customers options on their repair, like good, better, best, allowing the customer to make the
decision that is right for them? Compliment your customers, explain the problem and the solutions, and then clean up when you’re done. You can even leave a small gift, like a box of chocolates, with first-time customers.
All of those are elements of an above-and-beyond service experience that will compel your customers to call you again.
Step 2: Stay in Touch
The second element of creating a client is keeping your name and identity on the forefront of their minds. Too often, contractors forget to stay in touch with their existing clients as the marketing budget gets pushed into the Yellow Pages and direct mail for new customers. But don’t forget about the people who got you where you are today. Constant communication is a pillar of client retention.
Make it easy for clients to call you again. Use promotional items to keep your name and phone number in front of them. Communicate with your current clients, whether it’s by email, newsletter, or even a letter once a month to stay in touch. Offer an open house so you can show off your shop.
The list of ideas for client retention is practically endless. Stay in touch with your customers, and build a relationship that creates a client for life.
Step 3: Join the Club
The most powerful element of creating clients is getting your customers to join your club membership program. This is a powerful tool that ties clients to you and creates a constant stream of revenue without accounting or renewal headaches. Offering club memberships to your customer is a new concept for most electrical contractors, but the HVAC and plumbing industries have been doing this for years.
Does the homeowner need a routine electrical inspection/checkup to keep his home and family safe? Would that checkup save them from potential expensive repairs in the middle of the night? Explain that if caught early while they were still a small expense, these repairs will save them money in the end. Then start offering them to your customers today.
Memberships also tend to benefit you and your company in terms of work by providing you with opportunities to perform inspections. You can schedule these annual inspections for times when you might be slow and your team needs some work.
Overall, these three strategies will help you turn one-time customers into repeat clients. You’ll create revenue through continued service calls. And, if you’ve provided continual above-and-beyond service, that client may refer his family and friends, giving you the opportunity to create even more clients.
Now go to work creating clients, and you’ll be creating success along with it.
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].
