Talk to Contractors
about their company and you’ll find that almost every one of them is either “The
Biggest” or “The Best” and they ALL provide Outstanding Customer Service even though
everyone knows this isn't true and about 50% will drive themselves out of
business in the first five years.
Contractors can say they’re dedicated to Superior Customer Service,
but the reality is that most either don’t really know what it is or they have
no intention of actually providing it. They’re focused on creating one-time Satisfied Customers rather than Loyal, Repeat Customers. But Satisfied Customers are simply those that feel they received at least a
fair value for what they paid for. While no one would argue that Satisfied
Customers are essential, building a base of Loyal Customers – Customers that
are beyond satisfied – is much more important to the profitability and long-term
success of a business.
According to the SBA, “7 out of 10 new employer firms
survive at least 2 years, half at least 5 years, a third at least 10 years, and
a quarter stay in business 15 years or more”. Roof-A-Cide has participated in
the Florida Roofing and Sheet Metal Expo (FRSA) each year for the last ten years and
we see this holding true as we have to scratch 25-30% of our contacts each year
because they have gone out of business.
There are many reasons why startups have such a high failure
rate, but we have seen that the disconnect between landing a job versus
creating a profitable relationship with Customers is a major contributing
factor in the Roofing, Painting, and Property Maintenance industries. Too many Contractors
are willing to compete almost solely on price to land a job without any real prospect
of the relationship being much more than barely profitable. They have no plan
for creating long-lasting and mutually beneficial relationships with Customers.
And
since many of them don’t even want one, it’s not surprising that they soon find
themselves closing up shop and going to work for someone who does.
How can You be Different?
- A quality product or service is basic and it’s to be expected from any reputable Contractor – but that only creates Satisfied Customers. Successful companies are looking to create Loyal Customers – Customers For Life.
- Most Contractors talk about Superior Customer Service, but since they don’t really differentiate themselves, they get caught up in competing mainly on price. When they’re competing on price, they lose the moment the Customer finds a better price or they end up throwing in extras that make the job less profitable. Bring something to the table that your competitors aren't.
- Survey after survey finds that Customers are not only willing to pay more for a better Customer Experience, but they tend to be more loyal – which means referrals and related sales. If they trust you, they will be more interested in other products and services that you offer and price is not the deciding factor. If you can anticipate what your Customer is going to want or need after the initial sale, you can plan to offer these things as cost-effectively as possible and make them a part of the Customer Experience with your company.
- Recognize that if you’re not creating Loyal, Repeat Customers then your business is constantly chasing after New Customers. New Customers are typically the most expensive to convert into sales, they are typically the ones that are most sensitive to price, these will usually be the least profitable, but yet these are the Customers that most Contractors are going after. Focus more on building and strengthening a relationship with your new and existing Customers.
For many Customers, hiring a Contractor is going to be a
major expense – especially when it comes to big ticket items like Roofing or Remodeling.
But many Contractors don’t empathize with the Customer.
If you’re trying to understand your potential Customers
better, maybe you can relate their experience to buying a car:
You’re going to buy a new car. So you do some research on
the Internet to find the right car for you and what you should expect to pay
for it.
- Dealer #1 offers you the car at exactly what you expected to pay for it – nothing more and nothing less.
- Dealer #2 offers the same car at the same price, but also anticipates what you’re going to need or want to fully enjoy the car, maintain it properly over the next ten years, and make sure it holds its value. They provide scheduled maintenance, a rewards program, Customer Loyalty discounts – AND they don’t offer these for free, but they offer it at a reasonable price.
Dealer #1 is looking
for a sale. Dealer #2 is looking for a Customer.
Where are you buying your car?
If you’re a Roofing, Painting, or Property Maintenance
Professional that would like to learn more about offering your Customers a
better Customer Experience, contact us for our Free Maintenance Program
Analysis.
Links:
- Are You Looking For A Job? A Lot Of Contractors Are.
- Customer Service, Customers For Life, & Profitability
- The Customer Care Connection
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