The Black Eye of Contractor Marketing
It is said that 90% of contractors do not have a retention program. Meaning, no mailing list of past customers, no email address collection, no seasonal thank you cards or service reminders, just dead silence. Generally, the attitude is “project completed, got paid, on to the next client”. This is what we refer to as the “Black Eye” of contractor marketing. You need to look at retention marketing as investing in the future of your business by staying connected to your past. By staying connected to your “sold” customers, you are holding on to an ever increasing client base that is already sold on calling “You” and not your competition. It is 70% easier to sell to a past customer than it is to close potential new clients.
Initially, you may be reluctant to invest in costs associated with direct mail reminders or thank you cards. However, even with just two direct mailers going out to your client list each year, you are likely only looking at about a one dollar per client investment. Meaning, you are spending $1 per year to keep that customers future business, as opposed to the larger $$ and effort that it takes to initially sell a new customer. Why casually toss aside all that hard work of obtaining the client in the first place? Along with staying connected to your customers, you are also reaping the added benefit of word-of-mouth marketing. Think of it as reminding your secondary sales team (which is as larger as your connected client base) that you are still in the neighborhood.
Reminding your past client base of your presence and reaping the overflow of word-of-mouth marketing are two of the most powerful marketing advantages that are lost in the contractors toolbox.