"Market downturn calls for more intrusive and aggressive marketing."
Last week another call came in. The story was the same; "Mike, I invested in a website and started showing some new bath remodeling products at a kiosk at the mall. Guess how many phone calls I've had from the kiosk at the mall? Exactly two in the last month. What am I doing wrong?"
The sad truth is that this discouraged contractor isn't doing anything wrong, he's just not doing enough right! While the web page and the kiosk at the mall surely would have gotten appreciable responses during the recently expired hypermarket, in today's market we need more aggressive, more intrusive marketing. If we added another activity on top of these two that we’ve just put into place we might make the web page and mall display pay off. Let me explain.
There are several levels of marketing based on.
1. how
active our involvement needs to be,
2. how
intrusive we are in delivering our message, and finally
3. how
aggressive we are in our search for prospects. The ultimate level of aggression is reached when we start to look outside our normal sphere of influence to find prospects at large—strangers.
The first level is
“basic,” so much so that most of us start here when we begin to think about marketing; letterhead, business cards, yellow pages ® ad, jobsite sign, vehicle signs (including jobsite trailers), telephone message, and bumper stickers.
Next comes
“passive/non-intrusive” which includes; calendars, company brochures, Wikipedia, wearables (shirts, jackets, caps for employees/past customers), a sign or label that is permanently attached to our finished product, press releases, company brochures inserted in all outgoing mail, and more. This activity is pretty passive (doesn’t require a lot of energy on our part) and we’re not really intruding into the space of the prospect.
Further up the staircase comes
“active/non-intrusive” including a website, past customer surveys which collect testimonials and referrals, keeping a ‘wish list’ for each customer, project cards (business cards specific to a project) showing before and after photos (including logo and contact info delivered to the homeowner following completion), calendars with photos of past projects delivered to past customers, the website, the unmanned mall display, bus bench and/or bus signage, a
youtube movie linked to our website, press releases, entering competitions (more content for press releases). Can you see the level of activity is higher here while and we are moving outside our comfortable circle of influence, but we’re still not intruding.
So far the marketing described has been targeted at what we commonly call repeat and referral business. The next step moves us beyond that relatively comfortable zone. We reach a level of aggression that is uncomfortable for many--we start looking for total strangers in addition to the more familiar repeat and referral customers.
Active/intrusive activities include that periodic newsletter and/or blog to past customers and prospects, special events with a crowd we will feel more comfortable with—an office party for trade partners, arranging to take over the phone number of your failed competitors, mailing letters to past customers, following up on the ‘did not buy’ list, mailing seasonal cards to past customers, canvassing around existing jobs, refrigerator magnets mailed to past customers and new homebuyers, (join 'Welcome Wagon' to find these people), promoting the business through hobbies and/or social interests.
The
Active/Intrusive/Aggressive level of marketing spreads to even more people with whom you have no connection. Depending on our target this can be a real stretch for the comfort zone because these people may be intimidating. For these reasons you likely need a profile of the prospect to stay on track. Perhaps you might formulate this by looking back at past customers to see whom you have been selling to. For example;
Dual income couple in their late 40’s jointly earning $200,000/yr who have lived in their home for 5 years and are located in zip codes beginning with ###.
Don’t discard the idea of coming up with a new target if the past customer profile doesn’t look promising in this market. For example;
Retired but active empty nesters who belong to the City Country Club and are living in zip codes beginning with ###.
Notice that both of these profiles address annual income. In this market we equate higher income to greater ability to buy. Armed with this information you can choose the correct delivery tool among a broad range; newspaper, magazine, radio advertising, radio show, direct mail, canvassing of target neighborhoods. The manned mall display or trade show booth, networking groups, chamber of commerce, association membership (for your specific product/service as well as property managers, realtors, home builders, etc) can come next. Consider special events for a more challenging crowd—an office or jobsite party for the general public, prospects and past customers, home tours, seminars. Add to this list; speaking as a white knight or industry expert, radiated telemarketing, radiated mailing around existing jobs, door hangers, canvassing, magnetic business cards mailed to new homebuyers.
The goal is to get a response. Chances of getting a response increase as you increase the number of senses involved by the recipient of your marketing materials. Job signs are visual, mail is visual and kinesthetic, radio or telemarketing is auditory. Combine various marketing activities to include as many as possible/affordable.
Monitor and measure your results in terms phone calls, emails or other inquiries. Also track sales results—don’t throw money away on activities that don’t work. If an activity doesn’t work, try something else or add a complementary activity. Study the outcome and compare each marketing activity to the others in terms of;
1. how many leads you generate for each dollar spent (cost/lead),
2. how much each lead sold produces in revenue (production/lead),
3. how many leads it takes to make a sale (leads/sale).
You will accidentally create name recognition among those people who don’t or can’t buy today. This is almost impossible to measure so consider name recognition to be a gift, not an objective. It may increase sales at some later date. Remember four things;
1. If done correctly, marketing is an investment that provides predictable, measurable results.
2. Marketing should continue non-stop even though the specific activities in the marketing mix may vary depending on the market conditions.
3. Have realistic expectations. For example; understand that getting two or three return calls from every 100 postcards mailed is good. For this reason mail should usually be sent by the thousands, not the hundreds.
A good idea!
What works today may not work tomorrow. What was right last year may not be enough today. Lets take the activities we started with at the top of the page (website and mall display) and add direct mail (a complimentary activity) to our target market. Be sure to spell out the prospect’s choice of actions; call us directly or go to the website or to the mall and then contact us by phone or email. Perhaps we could build in some urgency by including a special offer (not a lower price, but an additional feature, choice, or upgrade with an expiration date), for example; “Replace 8 windows before the end of June and we’ll include low-e glazing at no charge.” Or, "Buy six windows and get one free."
Think of the market like this; last year there may have been three people on every city block who wanted and had the ability to buy our product/service. Today, while there may be as many who want the product/service there may be only three people every square mile who have the ability to buy. The job of finding these few people is much more difficult.
For a more indepth look at some of the marketing ideas I mention above, read on...
The Thirty-Second Infomercial. This is the tool I use to reply to the question; “What kind of work do you do?” I have an answer that is short and complete. I find myself automatically using this everywhere from the neighborhood holiday party to parent’s night at school. The answer runs off my tongue very smoothly and without hesitation. My reply includes the story of;
· My company.
· My product/service.
· The unique solution my product provides.
· What I do better or different than my competition.
· My company is big/small.
· How does my size benefit my client?
· Why should anyone buy from me?
Networking Groups. In your city there are likely to be business networking groups that limit membership to one member in each category of business; one doctor, one remodeling contractor, etc. No competitors are allowed to join the group. If I am the contractor, builder, remodeler, decorator, designer or building scientist in the group and a potential competitor inquires about membership, my blessing is required before membership can be approved. I may or may not decide to allow the membership based on the whether the applicant would compete or stimulate opportunities for new business for me.
Generally, each member is expected to attend the weekly meeting and share names of people whom he or she encountered the previous week with the members in the group who offer the respective products/services desired. Everyone exchanges leads. Everyone at the meeting stands up in turn and gives their “Thirty-Second Infomercial” which is used as an introduction. I like to follow this up with more information that could change at every meeting;
“A good customer for me this week would be someone who owns a house and wants to take advantage of tax credits and energy conservation incentives from our local power company while remodeling their home. I specialize in ________.
Or…
“A good customer for me this week would be someone who just moved into a new house and has mentioned a need for remodeling. Studies show that people are most likely to spend more money on their homes within the first two years of ownership. I specialize in ________.
Or…
“We love to finish basements in the winter. The weather is not a consideration, unlike a room addition, for example. Last winter we finished a basement for Mr. and Mrs. Client, the project included a home theatre and a wine cellar. These photos (while holding up snapshots) might give an idea of the type of work we do and the quality we aim for.
With twenty to eighty members in each group, things can really happen fast. Look in the local business insert of the local newspaper under ‘meetings’ to find groups like;
Leads Club (www.leadsclub.com )
Business Networks International (www.bni.com )
Not the same, but also try the local Chamber of Commerce; “Business After Hours” meetings. The difference here is that there is no limitation on competitors being present at the chamber of commerce and the meeting is usually not structured around exchanging leads and thus not as productive for most attendees.
Good networkers don’t stop when the weekly meeting is over. I talk to everyone I meet and enthusiastically describe what I do. Enthusiasm is contagious. If I’m standing in line somewhere, I’ll often smile and ask the person next to me; “If you knew someone who told you they wanted to build/remodel/decorate their house, would you know who to refer them to? This kind of question likely ends in an opportunity to hand out my business cards, two at a time. Serious networkers are never off duty. Networking is so natural to me that I can be found networking in the grocery store line, at the doctor's office and while picking the kids up from school, as well as at all types of meetings.
Note: as a result of the economy membership in networking groups has dropped as well. However, I believe that when the upturn happens these groups will be a good indicator of recovery.
Letters. Write to past customers asking for more work, reminding them of what you do. For example;
On company letterhead
Dear Past Customer,
I just wanted to take the time to say hello and remind you that (your company name) is standing by with solutions to all your home improvement needs. When I think of all the reasons clients tell me they decided to remodel, repair or otherwise improve their homes, I could not begin to list them here, but here’s a few examples;
Children leaving home or returning home
Replacement of outdated cabinets, fixtures or appliances
Replacement of old roofs or windows
Organizing storage spaces, basements and garages
Improving the efficiency and comfort of heating and/or cooling systems
Handicap or disability needs
Maintenance issues involving painting, gutters, concrete repair, drainage, door and window operation
High utility bills, drafts, lingering odors, hot or cold areas in the home
Room additions, patios, decks, garages, carports, basements
I like to keep in touch with past clients in case some need or wish for remodeling or repairs pops up.
Whether you’ve seen some new windows that caught your eye, heard about ways to make your home more energy efficient, or feel you deserve a new kitchen, deck or addition, we would like to share our expertise while making the process simple and enjoyable. As you may know, we have been doing this for homeowners in your neighborhood for over XX years. We value you as a past customer and we’d love to serve you again.
Finally, I invite you to call me. Whatever questions you have relating to your home, feel free to call me personally. I look forward to hearing from you. Pick up the phone now, we answer 24/7. If you don’t reach me personally, I promise to get back to you promptly. You’ll find our telephone number above.
Sincerely,
your name
your title
Write letters to all past customers. If you want to beat the one or two percent response rate for direct mail that I mentioned above send these letters out in batches of 25-50 each week--only as many as you can follow up on by telephone. Follow each letter with a phone call one week after the mailing and mention the letter. As an alternative to the follow up telephone call, mail again five days after the first mailing.
Postcards. Send postcards to homes surrounding your jobs--this comes under the heading; “proximity marketing.” Chances are if you have a job in a particular neighborhood, there are likely more to be had, based on the profile of both the age and value of the homes and the income levels of the residents. A key ingredient with post cards is a job sign. Jobsite signs in the front yard should be perpendicular to the street and include a weather tight tube or box for a brochure, see; www.smsproducts.com. If you would like a night light on the sign, check out;
http://www.listinglight.com./
For postcard printing and mailing, check out;
http://www.zipmailusa.com/
http://www.postcardmania.com/
http://www.expresscopy.com/
Ask about a mailing list for homes surrounding your jobs in with a radius of 10 blocks or for 1000 names for example. The most economical list might direct the mail to ‘occupant’ at the street address. Using computer data bases, the printing company can address the cards in the exact order the post office delivers the cards, earning the lowest price. You might find that post cards can be printed and mailed in this manner for less than the price of a postage stamp.
Think about mailing three times. Each post card could easily be different on both sides and on each card. On the front side of the card, some ideas;
First—tell them you’re coming;
“Look for the sign of (excellence, craftsmanship, a well run job) in your neighborhood.” This message insets into a photo of a project house with a job sign in front.
Second—remind them you’re there;
“Progress continues in your neighborhood.” This message is inset into a photo of a job in progress.
Third—let them know the status;
“Almost finished—can we start on yours?” This message is inset into a before and after photo of a job, almost finished.
On the back side of the card, along with your logo and the request that they visit your website and contact you, some ideas;
“We aim to be good neighbors. Please save this card with our contact information and contact us at any time you desire with any questions, suggestions or concerns.
“You may have seen our signs in your neighborhood. We specialize in ______________.
And finally, for the last post card, nothing is more powerful than a testimonial from the client.
Write to; Buyers of Recently Sold Homes. Send a welcoming letter or postcard congratulating the new owner on their purchase and listing your services and capabilities. If you’re more ambitious, make it a letter and include you business card mounted on a magnet (available at office supply stores in packages of 20 or so.) Find lists of new homeowner’s or new moves at your local tax assessor’s office or local newspaper. Here’s a sample letter;
On company letterhead
Hello,
Greetings from (your company name), we would like to congratulate you on the purchase of your home. We also know that once you are settled, if not before, you likely will want to make some changes. This is where the fun begins, creating the perfect atmosphere to fit your lifestyle!
Whether you’ve seen some new windows that caught your eye, or you heard about ways to make your home more energy efficient, or feel you deserve a new kitchen or addition we would like to share our expertise in making the process simple and enjoyable. We have been doing this for homeowners in your neighborhood for over XX years. Most of our work comes from repeat and referral customers and we’d love to add you to our list of satisfied customers.
Whatever questions you have relating to your home, feel free to give us a call. We’ll look forward to hearing from you.
Sincerely,
Enclosure: magnetic refrigerator card
Door Hangers. I like to explain what the company is doing in the neighborhood with this notice—this could be done most simply by stamping my company tri-fold brochure with the message; “we’re in your neighborhood.” With a rubber band, I hang it on the doors of ten houses across the street and five doors on each side of the job. If my work is visible from the backyard, I’ll include the ten houses behind my job. Alternately, the handbills might be the “pardon our dust” kind of notice with the company’s information as well as emergency contact numbers. Include a list of the “TOP 10 REASONS TO DO BUSINESS WITH US” on the back. I’m sure to explain what work is being done to the neighbor’s home and why, along with lots of ways to contact me. My lead carpenter or I will knock on the door and hand them out, or I’ll hire the local Boy Scout troop for distribution if I have lots of jobs to take care of at once. If I’m really serious about making a good first impression, I’ll find out the owner’s name before I go to the door and address them by name. Check local laws and customs. Consider a ‘good will’ discount coupon on one side with a small neighborhood discount for a limited time frame to create urgency. For better response, follow the door hanger with a post card or letter and a phone call.
Write a press release. Include a ‘head shot’ with those press releases explaining everything from; recent training you have received, new hires, new products, new location, state of the art equipment. Some contractors write a press release every time they sneeze, it seems. As a result, prospects may perceive the company as much bigger and better than it is. Press releases cost nothing other than a little time and effort to type and mail, fax or email. Look in the local newspaper for the name of the editor of the business or real estate section. He or she is waiting for your story. Customize this press release;
FOR IMMEDIATE RELEASE
For additional information…
Contact: Nick Drummer
Daytime Phone: 123-333-3333
Evening Phone: 123-333-4444
Date:
Name of newspaper:
Address:
City, state, zip:
Attn:
name of editor or section
LOCAL REMODELER EXPLORES COMPUTERIZED ESTIMATING
Nick Drummer, of Capital City, has recently attended training in the field of computerized estimating for remodeling contractors and custom homebuilders. Nick, of Nick Drummer, builder/remodeler, became familiar with the efficiencies of computerized estimating for remodeling and homebuilders in a seminar presented by Mike Gorman and TechKnowledge. TechKnowledge (
http://www.techknowledgeonline.net/) has trained and consulted with contractors in various subjects relating to sales, marketing, estimating and continuing education for more than 20 years in Florida and throughout the U.S.
Nick Drummer has served Capital City since 1996 providing residential remodeling and custom homebuilding services. Most of Nick’s clients result from repeat and referral business. The company specializes in design-build construction throughout the metropolitan area. Nick can be reached by calling 123-333-3333 or check the web page at www.sawdustcentral.com.
enclosure: head shot photo
(note: change italicized words as appropriate to personalize this piece for your business)
Hold an Open House. As you finish your jobs, notify the neighbors with door hangers (within a two-block radius of the job,) and post card (within perhaps five blocks) of the Open House you are sponsoring in your client’s newly remodeled home. Provide finger food from the deli and refreshments. Have a sign in book and gather phone numbers and email addresses of those attending while at the same time getting their permission to call. Some projects might prompt us to hold the open house as an educational event while the job is in progress; during a re-roof or window replacement for example.
Create Photo Project Cards for your Clients. Look back over recent or current projects and select those that have good photo impact. Create a business card with an
after photo of the job on the front (a before photo on the back might be good on those jobs which are particularly striking.) Include your company name and contact info on the business card. Create twenty-five of these for each job on your own computer. Maybe you even want to trot down to the local office supply store to have them embossed. Deliver them to the homeowner and suggest that perhaps they might want to show off their project to friends by giving them a photo card.
Buy Leads. I don’t like most lead generating companies, however no conversation on marketing would be complete without touching on these lead generation services. I hear mixed results from companies using these and other nationwide sources of leads. If you are interested in giving them a shot, try;
http://www.servicemagic.com/
http://www.trusthss.com/
Check various prices and policies of these services. The upside;
- I usually can turn on and off the faucet, so to speak, according to my needs leads.
- the leads are relatively inexpensive on a per lead basis.
The downside;
- because these services usually furnish the name of more than one contractor to those homeowners who inquire, they might offer marginal leads for those in more common activities.
- I may have to pay for leads even though I am never able to meet with the prospect, so I must open my eyes to the big picture and look at my costs per lead and production per lead over a several month period.
Strategy; be among the first to respond to the lead. The leads may become more lucrative for those offering unique or less common kinds of products and services, or those in sparsely populated areas or with little competition.
Contractor.com is somewhat unique because they will sell you a semi-exclusive territory and then charge you for leads that turn into jobs.
http://www.contractor.com/
Along with Contractor.com, I do like the concept of Urban Referrals (
http://www.urbanreferrals.com/) in Denver, CO, one of reportedly 400 “Home Referral Networks” (HRN’s) in 45 states. According to my information, Contractors pay HRN’s only for the jobs they complete, based on a pre-negotiated percentage of the job cost. Urban Referrals typically gives the homeowner just the name of one source. All this makes for a more attractive twist to the lead purchasing scenario. To look for an HRN in your area, visit
http://www.homereferralbiz.com/ .
Some contractors love lead sources like these while others hate them. I prefer to generate my own leads rather than buy them from a third party if the leads are likely to be in the hands of too many competitors. However, because I hear such mixed reviews, you may wish to cautiously experiment.
Get Online. If you intend to be a player in this industry, you must have a website, in this day and age. For many years I’ve told contractors that they must have an address on their business cards and any printed materials. Now I say the same about a web site. More and more homeowners will check you out on the web before calling you. Even a simple web site may be sufficient to prove to them that it is worthwhile to call you.
Learn to sell! Many of you are leaving money on the table when you sell your jobs, sometimes lots of
money. I personally know of remodelers who tell me they routinely sell their work for 30-50% or more than their competition. We sometimes get lazy and become ‘order takers’ in the good times. Visit my web site at
http://www.techknowledgeonline.net/ or click to find an order form and save $10.00 at the followling link;
https://docs.google.com/Doc?docid=0AaY6QBOoCxQ_ZGZtN2RuaGhfOWhoZHB2NHhr&hl=en and Grab my book on sales, written specifically for remodelers;
