Let’s face it, the key to any successful business is sales. To compete in this competitive market, a sales strategy is necessary. The bigger guys spend 25% of their time getting new customers by focusing on generating new projects and leveraging the current customer base.
Here are the top five revenue tips that are doable for any size contracting business.
#1 Advertising for Contractors
Advertising is a great way to get in front of people you wouldn’t have normally. There are many ways you can advertise, and the most profitable methods usually included professionally painted trucks, job signs that stand out, door hangers, and a professional web site showcasing your work.
Job signs are a great as neighbors are always interested in what each other is doing to their home. Get creative with your marketing materials to make an impact.
Don’t forget about social media advertising. List yourself on Yelp, this is a great place to showcase your customer referrals and images of your job to create a trusted brand. Facebook is inexpensive and has the best audience profiling of any online advertising channel. In their Ads Manager section, you can narrow down your target audience with the count of how many people you will contact per day.
#2 Targeting Potential and Retargeting Existing Customers
Ever get a sale or potential sales and once the job is done you never contact these people again? Create a targeted sales lists to keep in touch with potential and existing customers. This will help with an upsell, referral or new projects. A strong sales list is from 50 to 300 contacts that include all completed jobs or bids in the last 3-5 years. Plus, add potential customers you would like to reach and contact them at least once a quarter. Know how you would like to approach them to avoid an awkward conversation.
#3 Nurture the Customer’s Relationship with Your Business or Services
Anytime a potential customer shows interest, give them a small bit of information and ways to contact you. Stay in touch with them and nurture the relationship. It’s important on follow up calls to ask about their general areas of need. Some questions you might want to ask …
“How long have you considered getting this project done?”
“Where are you in determining the right way to get this work completed?”
“Have you developed a forecasted budget for what you would like to have completed?”
“Is this work part of a plan for expansion, updating, etc.”
To get closer to the close, schedule the appointment to further address their needs. If the appointment is a few days out, it is a nice touch to send them a thank you note that is focused on your recent conversation and include a piece of literature that will help them solve their problem. This shows your commitment and keeps them interested in you if they are shopping around.
During your in-person meeting, find out more about the customer and the level of interest they have. This is not a good time to hard sell them as they will let you know if they are ready to hire you. Instead, ask more questions so the customer will recognize exactly what they want and if you are a good fit.
After the meeting send them a thank you note and again any piece of literature that may help them make a final decision.
#4 Stay Connected to Customers
Make it easy for current and potential customers to contact you. We all know it means having a phone number and email handy, but how about contact avenues you haven’t thought about. Can a potential customer tweet or text you, online chat, send you a Facebook or LinkedIn message?
Ensure an open line of communication and be available to respond within a timely manner. The easiest way to have all these methods of communication in one place is on your smart phone. Your customers will be thrilled about your fast response time and you’ll be more likely to get that new project over your competition.
#5 Freebie Marketing Works: Offer a Free Touch Up
Sometimes “Free” is not always the best way but your customers will be impressed. Offer a free touch up or inspection for your past customers. Find out what touch-ups are needed and personally go down to get opportunities to visit with neighbors or drop your information with them.
When you arrive, this is a chance to point out the things that need additional work and ask for referrals.
The best advice, know your customers and their needs, keep leveraging and focus on working new businesses 25% of your time. Customers like contractors who are professional and are the expert at what they do. With a solid sales plan, your business will see the results.
Express Capital is a direct lender. We specialize in funding for small businesses and offer short-term working capital loans. Approvals are fast and funds are deposited the same day.
If you have any questions on how Working Capital can help your cash flow or to learn more, please give us a call at 888-513-9937.