In place of the word “weather,” you can also put basically any “condition” you want: the economy, competitors, cheap customers, whatever. The more things you put in the blank, the less control you have over results, as you’ll see in a moment.
When we review the “Marketing Needs Analysis” for members, the overwhelming, Number One problem (by a long shot) is “No plan.” Many arrive here lost, with no map. The time to have the map is before you enter the woods. (Do you want the map? We can send you a “Contractor Marketing Needs Analysis” below.)
Two points about this:
- This is why we exist as a company. I don’t unclog drains, wire generators, fix roofs or replace heat exchangers. If I went on one service call for your company, something would catch on fire and people would be sued.
- Having “no map” has nothing to do with the quality of your contracting. You can be very skilled and have very quiet phones. Marketing is how you turn your skills into dollars in your bank account.
So, marketing runs your contracting machine, not the other way around. Your sales are directly related to leads, which – unless you’re selling door-to-door – are coming directly from your marketing efforts.
Marketing is a system, with parts that work together toward a common goal, exactly like a plumbing, HVAC or electrical system. For results that lower your stress, raise your sales and put you more in control, a plan is required. Not optional.
- Step 1: Set a Goal
- Step 2: What Do You Need to Get There?
- Step 3: How Will You Measure, Improve, Repeat?
An example for a simple goal might be “less weather dependence.” (This example can work with any “condition” you pick, so just follow this through.) Firm up vagaries by saying your goal is to “Increase sales volume in off-peak months by 20%.”
How many months in off-peak? Call it 6. Look at sales last year in those seasons, add 20%. Great. How many unit sales will that take? Great.
What’s your closing ratio? (Note: Could it improve?) No matter, now you know how many leads it’s going to take to reach that goal. You just did that in about one minute.
Enter marketing. Now what?
- Look at your top 3 lead sources from last year. (If you’re NOT keeping up with this, get our Lead Tracker.) Name other underutilized lead sources here.
- Invest to generate the number of leads it’ll take to reach the 20% increase. (There are 3 ways you don’t have to generate any more leads. See below.)
- Set the calendar for those sources, over the 6 off-peak months.
Now, you’ve got a goal, the time frame, budget, media and month of attack. All you do is measure the results from here. Then yell at whoever is responsible, including yourself.
A couple more measurements to help:
- Cost per lead. Critical
measurement. If you’re paying $500 a month on a PPC campaign that’s
bringing a 20:1 sales ratio, what would happen if you spent $1,000? Who
cares if paying for 1st Class postage costs you $1,000 more dollars than
standard if you get faster and more leads because of deliverability.
Review what the marketing expense brings you. It’s an investment,
remember?
- Higher margins. This (and the next two) is how you can reach your sales goals without generating a single additional lead. With unique marketing, you can ask and get more for your goods. Try 2% or 5% more to start. My guess is that you won’t lose one customer, except for Mickey McCheap. Our lead generation ads openly tout increased benefits without saying a word about how “cheap” the service is. I’d advise this in your marketing too.
- More upsells. Pick two items that are
‘naturals’ for each service or product you offer in off-peak. An
agreement with a tune-up. Bio-clean with a de-clog service. Three
outlets for the price of two. Whatever. Train your techs for these items
with every call. Which brings me to…
- Better closing ratio. Sales training is NOT an expense. It’s an educational investment designed to pay rewards.
Bottom Line:
Better to have a plan than no plan. Why be “surprised” by the weather, economy or competitors. They’ve always been there, and are always coming. Your marketing plan RUNS the sales machine that IS your contracting business.
Everything from a better local search results, to good oversized postcards, to powerful Social Media posts, to newsletters people actually read – it all adds up to a smart marketing “system” and a successful contracting business.
In this way, you run the business instead of it running you. Isn’t that the real goal?
Not a Coaching Member? Are you nuts? How in the world can you go wrong having a team of marketing experts “in your back pocket” for $47 a month? I don’t know, so go here to join.