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"The #1 Costliest Marketing Mistake in the Contracting Industry"

One common mistake is driving your customers right to the competition.        

You've worked hard to get leads. You've spent money, time, and energy getting prospects to call. Your receptionist, salespeople and techs work hard to convert the precious few from "prospects" to "customers".

What happens next is among the most costly errors in the contracting industry.

Experts agree that it costs - on average- $325 to gain a customer. (If you only service him once, you probably lost money!) The trick is to keep them as "your" customers, continually building profits and referrals over years.

Yet contractors assume that customers are sort of "captive" and that you'd almost have to offend them to leave you. So perhaps you send a tune-up or maintenance agreement request. But you pretty much leave them alone. That may have worked before, but now it's a killer.

Customers, buying habits, competition, and loyalty have all changed. Customers today leave with alarming regularity and don't tell you, or warn you. Why does this profit stream gush away?

You may say it's because of "No customer loyalty" but the real question is, "Are we loyal to them?" Unless we earn their loyalty, why should they be loyal? There's a big difference between "customers" and names on a list.

Why Your Customers Leave

  • 55% Say "Company indifference" or "No contact". Over half leave you because you showed no interest in them staying!
  • 16% Accepted a competitive offer. You weren't there, but your competition was!
  • 12% Are disappointed with the company. Most contractors think this is the #1 reason.
  • 9% Became unserviceable. They moved, passed away, changed needs. Can't help this one.
  • 4% Felt pricing was unfair. They weren't given enough "value" reasons to stay.

As you can see, the two biggest groups on the list left for the same reason: You didn't pay attention to them but the competition did. That means that 71% of lost customers were pleased with your company, but left because there was no relationship to lose! They just thought "why not" and started buying from your competition.

Why They Stay… and What They Pay

Here's what a major study by Imperial Financial revealed about why customers buy from you:

  • 37% said the relationship was most important.
  • 22% said they owned another product of yours.
  • 14% were referred by a friend or family member.

Add those up and 73% of your business has a relationship tie-in. Yet nearly 90% of your marketing money is chasing "new customers" with whom you have no relationship! No wonder we lose them.

Another study shows how your relationship with customers promotes higher tickets and referrals:

  • Loyal customers spend 33% more than non-loyal.
  • Loyal customers refer 107% more than non-loyal.
  • Most referrals happen within 60 days of contact.

A Simple Solution For a Costly Problem

Now, how can we use this information to keep your customers buying and referring? How can it be done simply, efficiently and with minimal expense?

The solution is all found in the enclosed HomeSense newsletter or newscard. It informs, entertains and - best of all - contains psychological "sales triggers" like no other newsletter available.

Each HomeSense is customized for you. It has your logos, signature, ads and special offers. (Even your photo if you wish!) When used regularly, it becomes a customer-retention machine.

HomeSense builds sales, referrals and real relationships. Isn't this why you're in business?

Ready For Your Newsletter Sample?

 

"When customers leave, they take their business plus their referrals… and give it to your competition."

No, it's not nice, but it is understandable…

Do you recommend restaurants where you no longer eat? Would you recommend a service you had chosen to quit using? Your customer is no different.

If the business that wins a customer stayed in touch, treated him fairly, remained valuable and continued to build the relationship, he couldn't help but use and refer them! 

All it takes is a small, regular investment in a well-designed "Retention Marketing" program. This investment can pay huge dividends in loyalty, upsells, resells, backend sales, and referrals.

Your Hudson, Ink newsletter program is a totally turn key, automatic system of staying in touch with customers with informative, entertaining, and sales-building newsletters.

The Program:  We create your customized newsletter 2, 3, or 4 times per year (your choice). Each expertly designed issue is "season specific" and filled with news and tips of interest to customers.

Each issue also contains a minimum of 12 discreet sales triggers that send "call/ buy/ refer" signals to your customers. Plus, you get your own "ad space" of professionally designed ads, coupons, or specials that reinforce these triggers!

The Investment:  Our average contractor invests less than $3 per customer a year in this automatic, "turn-key" Customer Retention program! Under $3 a year to boost sales and referrals from a customer that cost you over $300 to get. Not a bad return.

The Bottom Line:   Your customers leave when they get no attention. You've seen that a good newsletter can keep them as "your customers", buying and referring all the while. It's simple, inexpensive, and highly effective.

Special Bonus:  As a Hudson, Ink newsletter client, you get free membership in our Marketing Coaching Club – The Nation's First Marketing Club for contractors. Your membership includes regularly delivered marketing advice, call-in coaching, plus expert Teleseminars and on-going support. This comes with your newsletter order at no charge!  We’ll send you more information on this one-of-a-kind Coaching Club when you order your free newsletter sample.

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