For a residential contractor, repeat business is key to long-term sales and success. All businesses, residential contractors included, need customers. Basically the customers are the business.
So why do many residential contractors tend to invest more time and resources on customer acquisition versus customer retention? By comparison, it is NOT a wise investment on your part if your goal is to grow your contracting business and profits.
Residential Contractor Statistics
According a recent article in Forbes, the majority of potential customers give a business only one shot. Think about that. One shot.
Residential contractor repeat business requires about 20% of the cost to retain and nurture versus attracting a new customer. And if you can increase your repeat business by 5%, this will increase your profits from 25-95%.
When you focus more on your existing customers, you will lower costs and increase your business profits. Basically it just makes good business sense.
Here are some tips to increase your residential contractor repeat business and see more money in your bank account.
Start With The Basics
In order to get repeat business you need to get business in the first place. Certainly sounds pretty obvious, doesn’t it? In order to do that you need to be AVAILABLE to perspective and former customers, like basically all the time.
In other words, answer the telephone call and respond to your voice mail, email or social media inquires promptly. Besides, if you aren’t available, these valuable sales contacts will go elsewhere. Finally, if you are too busy, get staff to support you.
Whatever marketing activities you might employ to develop your contractor business, your goal is to stimulate customer action, resulting in some type of contact. Consequently value the importance of these contacts.
Build Customer Trust and Loyalty
Trust and loyalty are the building blocks of a strong contractor customer base. Consequently they are essential for earning long-term repeat customers. Also, beyond residential contractor repeat business, 83% of customers say they would recommend a business they trust to others.
Customer trust and loyalty are earned. Basically, like any personal relationship, it starts by doing what you will say you will do. Additionally, this means arriving at the scheduled appointment time, having the professional quote ready, delivering the project on time, with the quality expected by the customer.
Your repeat customers expect the same level of quality and consistency as their first time. As long as you focus on meeting their expectations of consistency, then your customers will reward you with their loyalty and word of mouth reference to potential new customers.
Trust And Transparency
For your customers to trust you, you need to be deserving of their trust. Accordingly that means being honest and transparent about what they can expect from your company’s services.
You should be as clear as possible about what your contractor company has to offer and provide clear project quotes to establish accurate customer expectations from the start. Basically your customers do not want surprises, but rather simply quality work, done on time, at a reasonable price.
Every customer should know exactly what to expect before signing your project contract and making a deposit payment. Especially it is much more important to the long-term growth of your contractor business that all of your customers are satisfied with their experience versus generating as many sales as possible.and making a deposit payment.
As can be seen, residential contractor repeat business is based on a highly satisfied customer base. As a result, these customers, who have made an informed decision, will be appreciative and will know that they can trust you in the future.
Loyalty Retention Program
When you offer some type of incentives/rewards for repeat business, you give your customers a clear incentive to stick with your residential contractor business instead of switching to one of your competitors. When you offer a discount on the next remodeling project, a special invitation for a complementary home service, or a complementary gift for a new customer referral, your existing customers will remember your company and mention it to perspective customers.
As an illustration, you should extend the concept of your loyalty retention program to Activate Your Advocates. That is to say you want to leverage your existing customers, by adding referral opportunities to increase your residential contractor brand.
Regardless of the exact loyalty retention program your offer, the goal is to make it more advantageous for your customers to continue working with you than to test out their other options. Consequently, the more your business relationship caters to their needs, the more effective you will be in getting residential contractor repeat business.
Conclusion – Residential Contractor Repeat Business
It is pretty basic to increase your contractor repeat business. To sum it up, you simply need to be the type of residential contractor that customers want to work with.
What do you need to do? Basically provide excellent quality and service, be punctual and complete your projects on time. Also, be transparent and honest, setting the proper expectations with your customers beforehand.
Your the goal is to put your customers first and to make sure that they know they are your business’ top priority. To that end, be the type of residential contractor that you would hire yourself.
For additional information on home improvement leads for contractors and how they can help you grow your business, please Contact Us for a free, no obligation conversation.