Customer Retention: Your Best Source Of Low-Cost New Business
Get more business from your existing and past customers. It is 5x times cheaper and easier than paying for new jobs.
Does your business just do this?
If you hope that a happy customer will call you next time they need a home services job done, you are not maximising your customer value and the money you paid to acquire your customer.
The Problem With A Focus On Doing The Job
Doing Just The Job
Mick, a mate of mine, had problems with some lights and wiring in his house. He looked up Google and found a local electrician. Perhaps he clicked on a Google Ads ad. Perhaps he clicked on a local directory listing. It doesn't matter.
The local electrician invested money in getting a local presence online, and it worked. Let's say the marketing cost per sale is $225. The job cost Mick $425 so the margin for the Elecrician is $200. That's a profitable first sale.
A day later, the job was done. Mick was happy with the service. And he told the electrician so. Yet there was:
- No request for a review.
- Nothing left behind (except the receipt which is now long gone).
- No request for a referral.
- No follow-up communication about the service.
- No newsletters, emails or letters about other services the electrician could offer.
Mick has now completely forgotten who the electrician was, and when he next needs one, he'll return to Google to find another electrician.
This must go down as a wasted opportunity by the electrical business. They had a great opportunity to make more from the customer relationship and get more sales from an existing customer at much less than $225 per job.
Retain & Gain
It's better and more cost effective for your home service business to get more business from existing customers than to acquire new ones. Here are just some of the reasons why:
Lower Costs: Acquiring a new customer can cost five times more than retaining an existing one. This includes marketing costs, sales efforts, and onboarding expenses.
Higher Conversion Rates: Existing customers are more likely to buy from you again. The success rate of selling to a current customer is 60-70%, while the success rate of selling to a new customer is only 10-30%.
Upselling and Cross-Selling Opportunities: Customers are more open to additional services once purchased.
While attracting new customers for business growth is still important, focusing on customer retention can lead to higher profitability. And if you are not maximising your efforts, you are definitely leaving money on the table.
Retain & Gain Helps Your Home Service Business Earn More Profits From Your Customers
A strategic approach to upselling, reselling and retaining customers so you don't have to keep spending to get new jobs all the time
To really grow out of your skin, you need to maximise the value your business gets by converting jobs to customers.
We can set you up profitable marketing systems save you time, boost conversion rates and to resell to existing customers. Find out more.