How About Those On-Line Leads?

Have you thought about purchasing leads from an on-line lead source?

I know that some remodeling professionals seem to do fairly well (or at least that’s what they say) with on-line leads.

But to be honest, I’ve never had good luck with on-line leads. First, the same lead is sold to many remodeling contractors, not just you. So you are paying for the privilege of automatic competition.

Second, unless you call the lead immediately, you may not even get an appointment because the lead already has what he or she considers to be enough appointments.

And, third, on-line leads are expensive when you take into account that you are not the only contractor receiving the lead.

Tread lightly if you are thinking of using on-line leads. Make sure that you understand the lead generation firm's policies, especially regarding how many contractors will receive each lead and any refund policies. Try a few and ask the lead lots of questions about his or her experience. This will give you a fairly good idea if on-line leads will work for your remodeling business.

Fire Your Worst Customers

It may seem counter-intuitive to fire a customer. Especially now when the economy is in a downturn and remodeling is not on the top of everyone’s buying list.

But firing a customer may be just the thing you need to create room in your business for more happy customers.

Now I’m not talking about the person who has a few questions or asks you to fix an item that they don’t think is correct. Using good communication skills, you should be able to deal with just about all customer concerns and questions.

But you’ll run into one or two people who aren’t happy people. No matter what you do or how you do it, they aren’t satisfied. Or they are just down people. They like to complain. They bring everyone around them down. And they take up an awful lot of your time and your company’s time. Plus they are not going to give you referrals.

We had a customer that we did several jobs for. All of the projects came out great and she was satisfied with everything. But she is just not a happy person. I’m sure that there are reasons behind her unhappiness but we found her attitude was wearing on everyone in our company. So we made a decision to remove her from our mailing lists. She doesn’t receive any marketing that we send out to our past customers. Of course, we will cover any warranty issues that she may have. But we most likely would not do any more work for her, no matter how large or small the project.

Firing a customer can be a liberating feeling once it’s done. But before you make that decision, make sure that you and your staff have done everything you possibly can to create a satisfied customer.

Gather the E-mail Addresses of Your Customers and Leads

E-mail is becoming the communication tool of choice for many people. I know that I like to use it because I can send an e-mail from any place at any time. It also gives me the opportunity to be more specific in what I want to say.

Are you gathering the e-mail addresses of your leads and customers?

With an e-mail address, you can follow up with a lead or remind a customer about a product selection. You can also make future contact with a past customer about upcoming promotions.

An e-mail address can greatly cut your marketing costs. Make sure you are collecting e-mail addresses from your customers and leads.

Why We Don't Always Choose the "Best" Option

As I was driving home from my remodeling business the other day (a 15 mile drive that takes me approximately 25 minutes), I was thinking about why I always choose the same route. After all, I have lots of options. I could take the interstate which is shorter and may take me more or less time, depending on the traffic. I could take a shorter local route that would send me past the industrial area. But no, I seem to favor a route that is a little longer in mileage and time but winds me near a national park and through some areas with pretty landscaping. I thought about why I do that. And it dawned on me. I actually like the slower more circuitous route because it is a prettier and more relaxing drive. I enjoy the drive more.

This is exactly why prospects and past customers will use your service, even if you are more expensive. They know and like you! You make the process easy for them. They enjoy using your services!

What's The #1 Skill A Salesperson Needs?

You know what I really don’t like? I don’t like telling people when I first meet them that I’m a salesperson.

The reason may surprise you.

You see, it never fails that when I tell someone I’m a salesperson I get a response like “Oh, I’ve always thought I’d make a great salesperson. I love to talk to people!”

Well, I’ve got news for you! Sales is not about talking. It’s about listening!

A good salesperson will listen to the customer, asking questions to find out what the person really wants and needs, and then design a solution that fits.

Thinking about cutting your advertising until the economy improves?

Don’t do it!

For many business owners, including remodeling company owners, the first reaction to a tightening economy is to cut costs. There is nothing wrong with that in theory. But be careful which costs you choose to cut.

For example, advertising. Advertising gets your name out to your potential customers. Without it, how will those potential customers find you?

The trick is to concentrate your marketing dollars on advertising that brings in leads rather than advertising that builds brand awareness. You want a name, contact information and permission to make contact.

Concentrate your marketing budget on activities that generate actual leads for your remodeling business.

100% Referrals? Hmmmm . . . . .

“I don’t advertise. All of my leads are referrals.”

That is a myth that many remodeling contractors buy into. It is a great idea, one happy customer refers another. That happy customer refers two more. It’s the law of compounding that works great when it comes to interest on your savings account but not so great for a business.

Why? Because you have no control. If you rely on others to tell their friends when they feel like it, you may be waiting for quite some time. Life happens and, although your happy customer said she would tell Aunt Sally to call, it completely slipped her mind.

And anyway, Aunt Sally’s bridge buddy already told her about her experience with another contractor, your competition, and she called him.

Now, this may seem like a contradiction but you should be asking for referrals from your customers at all times. Why? Because a referral lead is golden. Your happy customer has already warmed up the lead for you by telling him or her of their wonderful experience working with your company. And there are definitely methods you can use to guide the referral process.

But relying on referrals to bring in one hundred percent of the leads to your remodeling business is a mistake.

Ask for referrals and follow up with them. But include referrals as one element of your well-rounded marketing plan.