Paul Riddle
Contributing Writer
Success Group International
Common Mistakes All Service Contractors Make that Alienate Their Customers & Kill Any Chance for Repeat Business!
Why are you in business? Everyone may have a different answer for that question, but the real reason is to make a profit. In the residential service industry, your ability to make a profit rests solely on your ability to serve your clients.
Since that’s the case, why do some contractors persist in running their businesses in ways that anger, alienate, and aggravate their customers? Practices like these drive away your clients one by one and destroy your success inch by inch.
Why is it so important to stop client attrition? Can’t I just get new clients? It’s so important because of where most of your profits come from in the residential service industry. The lion’s share of your profits will come from your repeat clients not from your first time clients. When you service a client for the first time, there are so many costs associated with getting that client to call you that you may not make much of a profit. For instance, if you spend $150 to attract a new client via a marketing piece and you only run one call to their home for an invoice of $180, you’ve actually gained very little. Once you pay your overhead for that call, such as your technician’s wages and the costs of getting them to your client’s door, you may have even lost money.
To create killer profits, you must have a steady stream of repeat clients with new clients added into the fold. When a client calls you again and again, you’ll generate greater revenue since you won’t have the same costs associated with acquiring a customer for the first time. Not to mention, they’ll most likely invest more money with you since they like and trust you. It’s this sense of liking and trusting that is so vital to your success…
That is why it’s so important that you avoid these 3 Client Killers.
1. Not Being There
Few things get a homeowner hotter under the collar than wasting his or her time. In today’s world, time is more valuable than money. Time is so valuable that clients will even pay more for service that gives them a guaranteed timeframe. With that in mind, nothing destroys your client’s faith in you quicker than being late, or worse, not showing up at all. Such behavior will not only throw your clients into a rightful fit, but it will send them over to your competition, as well. Can you blame them for not calling you again, though, if you never showed up in the first place? Even showing up late gives your customers the wrong first impression. It makes you seem sloppy and unprofessional. When you say you’ll be there, be there.
Client Saver Tip: The first rule of thumb is that if you’re going to be late or unavailable, be sure to give your client as much notice as possible. When you do finally arrive, be sure to apologize right off the bat for inconveniencing your client. A good client saver idea is to offer your clients a small “we’re sorry” gift to try and ease their frustration at you for being late. Offer them a gift certificate to a local restaurant or give them a discount on future service, whatever you choose. If you can’t make it to the call at all and have to reschedule, offer them something a little more. Simple gestures like these help you on so many levels. It creates a feeling of obligation to you from your client because you’ve given them a gift. It eases their frustration and reduces the chance that they’ll paint you in a bad light when talking to their friends and family. It also increases the chances that they’ll call you again in the future.
2. Not Fixing the Problem
I’m assuming that most of your clients don’t simply call you out to their home and pay you just to visit. They’ve called you to their home to fix their problems and get their life back to normal. If you’re not solving their problems, then you’re not doing your job, and you’re killing any chance you have of them calling you again in the future.
What would happen if you took your car to a mechanic to fix your brakes only to drive away after paying and discover that your brakes don’t work any better than they did before. You’d think the mechanic was incompetent and would probably never take your car to them again. The same thing will happen if you fail to solve your client’s problems. They’ll see you as incompetent, and they’ll think twice before calling your company again.
Client Saver Tip: It goes without saying that your job is to fix the problem that you’re in the home to fix. That’s why they called you in the first place. However, we all know that accidents do happen and, occasionally, even the best do something wrong. That scenario, however, is your client’s worst fear. Your greatest ally in putting your client’s fears to rest is showing them that you stand behind your work with your guarantees.
When it comes to having guarantees, though, it’s one thing to tell your clients about them, but it’s another thing to show them. The power of a written guarantee is enormous, and it’s simple to do. Create some type of official looking certificate with your guarantee on it that you can present to your clients. Let them hold their peace of mind in their hands. Doing so will increase the trust they have in you and set them at ease for the rest of the call.
3. Leaving a Trail
When you enter a client’s home, you’re there to protect it. You’re there to ensure their comfort and safety, so nothing will destroy your image as protector faster than leaving their house in ruins. Just be sure to clean up after yourself. Don’t leave any extra parts laying around for your client to find and wonder, “Shouldn’t this be attached to something?” Be sure to wear shoe covers to avoid tracking dirt into your client’s homes. They’ll see that you truly care about protecting their home.
Client Saver Tip: You also need to keep an eye on your truck to make sure it isn’t making a mess while you’re inside the house. Even the tiniest of oil or fluid leaks can leave your client with a tarnished reminder and an unpleasant memory of your service visit. For that reason, park your service van or truck in the street whenever possible, or if you must park in your client’s driveway, you may want to carry a piece of cardboard to place under your vehicle to avoid leaving a stain on their driveway. When all is said and done, the proper preventative measure in this situation is to keep your trucks up to date with regular maintenance to avoid those leaks altogether. That way, you’ll protect your employees, your clients, and your image.
Those are three quick client saver tips to help you avoid these client killers. You’re in business to serve your clients, so make your service the best it can be.
About the Author: Paul Riddle, Vice President, Success Group International
Paul Riddle has over 25 years of hands‐on experience as GM, COO, CEO, and owner of service companies specifically in the mechanical and restoration segments. Throughout his career, he has personally trained the owners and employees of hundreds of businesses, including several turnaround situations. His hands‐on training for owners and their employees has been in the areas of business planning, sales & marketing, and company culture. Paul enjoys applying his knowledge and experience working directly with business owners and their employees to increase profits, improve the company’s present value, and unlock the intrinsic value of the business when sold. Paul joined SGI in 2009 as the VP of Operations.