In case you missed the news because you were out pounding nails, the housing market has started to recover. Sales rose in all four regions for the 3rd time in a row in June, which hasn’t happened since the boom in 2004. Once people start building confidence in the market, they’ll be calling you for the job they’d been putting off. What does this mean for you? You need to stay visible.

Website Awareness

Website presence is a big plus. It will give your company added exposure. Consumers like to see your work. This is the perfect medium to show before and after pictures of past projects. If you don’t want to mess with domains and piecing it together from scratch, try a turnkey website offered through companies like Homestead. It’s an easy way to get your site up and running fast. Get a magnetic sign for your truck’s door and include your website.

Google Search

Getting around Google’s search rankings is another way to reach potential customers when they enter keywords to search for local businesses.

Log into Google and see if you’re listed by typing your business name and town or keywords and your location, e.g. electrical contractors in Sarasota, Fl. The results will show a map and the local businesses will always come first. Are you listed?

If you’re not in the local database, you’re missing out on some free business.

Here are the easy steps to get you in that local directory:

• Go here and submit your company’s information.
• In two weeks, you’ll receive a letter from Google with your pin number. Enter the pin number in the URL they give you.
• Log into your new Google account, where you can enter your company’s contact information, services, special niches, coupons, specials and hours of operation.

Realtor Referral

Right now, I have 5 contractors working on my new (old) home. I’ve got an electrical contractor, painting contractor, a general contractor that’s helping me with a thousand small jobs, and two bathroom contractors who are partners.

Why am I telling you this? Because three of those contractors were highly recommended to me by my realtor – and I didn’t shop around. Stay visible by networking with realtors. Attend their weekly meetings. If you don’t know where and when the meetings are, then call a realtor and ask.

Take a Walk

Canvas neighborhoods. I’m not talking about door-to-door sales because that’s annoying.  But if you have a niche, like roofing, painting, siding, windows, fencing, etc, and you can see from the street that a house desperately needs work in any of those areas, approach the homeowner and say, “I noticed your roof is missing some tiles, which might indicate the roof is nearing its lifespan… lucky for you, I work in this area a lot and specialize in roofing.” Treat the homeowner with concern about their problem and it won’t seem like a sales call. You never know, a harmless conversation about a certain flaw like missing tiles could turn into a big job for you.

Thank You

Don’t forget to write thank you letters!

Besides the quality of work, what separates great contractors from so-so contractors is attitude. The difference between like and love is referrals.

Surrounded by contractors – who will I refer?

Paint contractor – I told him I wanted the entire house painted except for the ceilings. He gave me a flat-rate quote, including paint. He didn’t have a checklist and he didn’t ask me any questions, except for how many colors I wanted. I told him he had two weeks to get the job done because I had bathroom contractors lined up for the following week and hardwood floor installation after that.

Results:

• He took a week to prep.
• He gets to the job site every day around 2:00 p.m. and paints until around 6:00 p.m.
• He rinses painting equipment in my kitchen sink and leaves paint all over the sink and counter. He also rinses equipment on the ground cover in my front yard, leaving paint everywhere.
• In the middle of the job, he left to go work on another house for three days.
• When I saw that he hadn’t sprayed the closets, I asked about it. His response? “You never said anything about painting closets.” Frustrated, I replied, “I told you I wanted the entire house painted.” This is why checklists are a good thing. Communication stunk.
• He’s taken over three weeks and the job is still not done. Now he and the bathroom contractors are bumping into each other. The walls are sprayed, but the touch-up work is not finished.
• He accidentally over-sprayed onto the ceilings in every room.
• He painted over the over-sprayed spots with white satin (my ceiling finish is flat) and the whites don’t match at all. So now, we’re looking at having to paint entire ceilings.
• He asked for an additional $300 because according to him, “At this rate, I’m only making $17 per hour,” and I said, “If you didn’t over-spray and you worked faster, you’d be making $40 per hour.”

Will I refer him? No. No. No. 

General contractor – I gave him a checklist of about twenty items I wanted fixed, changed, taken down or added.

• I wanted three posts that housed outdoor lighting removed and electrical cut. He took the posts out and killed the electrical, but left long electrical cords sticking out of the ground. I felt it was sloppy work because he didn’t cut the wires to ground level.
• He keeps telling me that he’s going to make a cover for my fuse box. But he’s already been paid through escrow for this little job and hasn’t fixed the problem yet. It’s been over a month.
• He charged $25 per light fixture to hang exterior lights (on existing boxes) on both sides of my driveway. Since I plan on changing all of my light fixtures inside and out, as well as adding fans, I learned how to do it myself.

Will I refer him? Yes, because he is available for lots of little odd jobs, but I’ll tell my friend that sometimes he doesn’t complete work and that you have to stay on him. I suppose that for the most part, he was a decent contractor.

Bathroom contractors – they asked detailed questions about every aspect of the job and advised me on different solutions. They gave me a flat rate and wrote down all the work that would be done for that rate.

• They show up early in the morning and work hard until 5:00 or 6:00 p.m. every day.
• They call every afternoon to give me updates and their plans for the next day.
• They used their own backer board because they had extra in their trailer at no extra charge.
• They used their own cement at no charge.
• When they tore out the tub, there was a big hole in the sub floor and a missing or damaged joist. They used their own plywood that they had in a shed to fix the sub floor and then fixed the joist for free. One of the contractors had to lie in the crawl space in mud (from the dripping tub when they moved the pipes) and work on his back and they didn’t charge me for labor or materials.
• One of the contractors is an electrical contractor whose advice was badly needed one day. I was disconnecting a light fixture (from a soffit in the family room addition) in order to attach my new fixture. Upon pulling the fixture from the wall, I noticed that the wire looked like an extension cord instead of electrical wires. He said he’d climb through the attic, check it out and fix the wiring if he could get to it. The next day, when I walked into the house, the new light was attached, again at no charge.
• They went shopping with me to help with the vanity dimensions and tile ideas.

The bathroom is still under construction. All that’s left is the tile grout and shower door installation. I took them to lunch yesterday and told them how much I appreciated their hard work and thanked them for the “no charge” work. Their response? “It all comes back full circle.”

Will I refer them? Absolutely. In a heartbeat. No question about it.

Are you getting enough referrals?

So we have a market that encourages remodeling, however hesitant consumers are to spend, and an Internet that is fast becoming a home improvement tool in its own right. This combination has spawned a major rise in online referral services. These companies, such as CalFinder, offer homeowners an online resource on a smorgasbord of home improvement topics and an easy-to-use link to contractors in a given area. You, the contractor, pay to have these homeowners connected to your company, in the form of their contact information.

Working with these Internet leads can be a bit tricky, requiring more work on your part than traditional leads. As Dave Lupberger pointed out in a related post for Qualified Remodeler, an Internet lead will likely fall short, in terms of information provided, when compared with traditional referrals. Unless you work with a service like CalFinder that pre-qualifies every lead, you generally won’t have a personal view of the homeowner, you won’t know how serious they are, you won’t know their budget situation, and you won’t know when they want to start.

What you will have is their contact information, which is something to work with. Homeowners are generally serious about wanting to remodel, but they may be very hesitant, given today’s economy, to jump right in. Therefore Internet leads may require a little work on your part, some more aggressive marketing. Lupberger put it very nicely when he stressed the importance of developing “a good marketing pipeline.”

You note and keep track of homeowners, Internet-lead or not, that have expressed interest in your services in the past. You then be sure to make regular contact (every few months at least) with these prospects, by way of marketing tools like company newsletters, new project notifications, open houses, and more. The idea is to engrain your company’s name and services into the minds of these homeowners, so that when they are ready to remodel, it is your name that will first come to mind, and your phone that will ring.

Of course when you get a homeowner’s contact information, do not simply send them your next quarterly newsletter. Be sure to make contact with them, offer free estimates and start building a professional relationship with them. Online referrals allow you to specify the region or areas which your company services.

You know the neighborhoods and relative income levels of your best past clients. You can use this a priori knowledge, combined with a lead’s contact information, as clues to who your best prospects are likely to be. But in this day and age it is unwise to ignore any lead, especially as personal referrals give way to Internet leads as a major marketing source. Develop your pipeline and work to expand it; these are the benefits of Internet leads and your task at hand.

That means that contractor-seeking homeowners are likely bombarded with lines like, “We do quality work” or “I have years of experience” or “I am honest, I work for you!” Nowadays it takes more than a smile and a handshake to get work. It takes some creative selling. So the question becomes: What is your unique selling proposition? Your USP?

The USP is not new to marketing. Today a number of businesses and corporations search for and use their USP to the fullest extent. And in a highly competitive market it is vital that you realize and utilize your company’s unique selling point. A recent post from Qualified Remodeler offered some good advice for contractors seeking out their own USP.

That advice includes something that many of you are likely already doing — contacting past clients. But instead of contacting them simply to maintain a relationship and check on past work (an increasingly important approach in its own right), you can use them as a marketing research tool. Surely there is some reason that those past clients chose you in the first place; something about your company that somehow appealed to them more than your competition.

So the deal is to call some of your favorite, most successful clients past, of course check up on the finished project and offer any assistance needed, but also schedule a rendezvous (i.e., dinner, lunch, etc.) where you can probe them as to why they hired you. As Qualified Remodeler suggests, do this with about five of your favorite clients and look for a theme to arise, the odds are good that you will find one. This may very well by your company USP.

Of course you can also search within. Your competitive bids and quality of work will speak for themselves. Is there anything else you have to offer? Perhaps some specialized skill that you can capitalize on? It could be a unique work method that ensures fast work without sacrificing quality. In what ways are you inventive? How do you go about your work differently than the competition?

Your unique selling proposition lies below the surface and only you can know it. It may seem a bit difficult to come by at first, but once you’ve grasped it, it will be as easy as A-B-C. Just don’t forget to include past clients in the search. They will be your most informative and valuable resources during your search. Surely it is past clients who can best reveal exactly what it is about you that will appeal to future clients.

The concept is simple. Past clients are a familiar resource whom you’ve worked for in the past. Their repeat business or recommendation to a new client has a certain, predisposed measure of validity that is just not possible with strangers. Now, in 2003 when the original survey was taken, times were very different. The housing boom was coming into its own and contractors had more freedom to pick and choose projects.

Those times may have come and gone but the fundamentals of remodeling and lead generation remain, even though it may be contractors calling past clients to check in rather than the other way around. Yet despite the fact that homeowners are in the driver’s seat, you are still more likely to generate quality leads from past clients because both homeowners and contractors tend to trust the word of a friend or known client than a phone book or random ring of the phone.

Another interesting trend that came out of the 2003 survey and remains relevant today is the need for personal interaction. Most contractors surveyed stated that they put “gut reaction” and face-to-face conversation on a higher pedestal than any number on a lead sheet. The lead sheet may itself lead to the interview, but it would always be the interview that took precedent.

Again, now that the tables are turned and it is often the contractor doing the hunting, the same rules apply. Better leads come from past clients and should be prioritized. Homeowners running through the phone book or search engine are essentially window shopping. That is not to say that every lead isn’t important — there is a contractor for every job regardless of lead origin — but the odds are much better when familiarity is involved, not to mention contact onsite.

The point of all this being that keeping in touch with past clients is an excellent idea. The remodeling season is soon forthcoming, the stimulus package is pouring plenty of money into weatherizing and home repair, and every quality lead starts with the mention of your name…now may be a good time to make sure past clients remember it.

Let’s take a step back and think about ordering a pizza with just 1 or 2 or 3 toppings on different sides. Yes, this will appeal to the actual people who are ordering the meal.

But what happens if some friends come over who have not been involved in the ordering of your pizza? What if they just don’t like pepperoni and are allergic to cheese? They don’t get to eat with you. In fact, they may go out and eat elsewhere.

Or what happens if that pepperoni half (or third) falls on the floor? You’ve lost a major portion of your dinner. Either some people are going to go hungry or you’re going to have to spend more money on dinner to feed everyone.

Please, follow the analogy through. The choice of lead generation marketing channels (like pizza toppings) probably has the same affect on your potential customers. Almost everyone will react more favorably to certain advertising media and totally ignore or dislike others for whatever reason(s). Just like some people like onions, peppers, and mushrooms and others hamburger, sausage, and pepperoni.

For example, if you send a solo Direct Mail piece to a household that totally ignores the 4-letter words “junk mail,” you could literally send a $10,000 personal check to them and it will probably get tossed in the trash. However, that same household may think the world of a co-op mailing envelope (think ValPak, etc.) and open it eagerly to see the saving coupons for “product.” Alas, you’re not in there…but your competitor is. Who’ll get the business? Probably not you.

I know of a fairly sizable company in the New York Metro area that relied on Telemarketing for about 20% of it’s business and solo Direct Mail for another 15% of so. After 9/11, even with telephone redundancy, with all the phone lines down, this company couldn’t make calls for over 2 weeks. To compensate, they mailed literally over 100,000 additional Direct Mail pieces out of New Jersey. You’re right – anthrax. This company, while spreading their risk better than many others, lost approximately one-third of their business for several weeks in addition to the cost of the lost mailing. They lost 1/3 of their pizza dinner.

This company, “A,” relies on Telemarketing for 40% of their leads and Event Marketing for 38%. These two lead sources represent 78% of their business! What happens if one or both of those employee intensive channels fail – even temporarily? Their revenue is vastly decreased. They are only using 6 advertising channels total that rapidly decrease to 10% for Internet programs, solo Direct Mail, and the company website for 5% each and Referrals for 2%.

The greater the number of marketing channels or sources, the greater the opportunity you have of reaching the greatest potential audience for your products and services. With more channels, you’re increasing the opportunity for more customers to see your ads and do business with you. Lastly, you’re ensuring your company that if one channel fails to perform up to expectations, your down-side losses are minimized.

On the other hand, company “B” has 9 marketing channels it uses with the greatest percentage being 15% each for Events, Internet and Referrals with 10% each for Magazines, Broadcast Media and Telemarketing and the remaining 3 advertising sources at 5%. They are reaching broader customer awareness and decreasing their risk for any one or several sources under-performing.

I certainly am not advocating that you have to advertise in every media that knocks on your door wanting your business; however, I am counseling you to review what channels you are currently using and the percent of both leads and revenue that come from those channels. Hedge your bet as best as you can. Each of you know what advertising sources are available in your area and with proper tracking and testing (the topics of our next 2 articles), you can possibly use more channels to reach potentially un-tapped customers. Advertising in more sources also helps ensure your business has continued success if some of those sources “fall off the table.”

“Look For Lots Of Ideas. ‘The best way to get a good idea,’ recommends chemist Linus Pauling, ‘is to get lots of ideas.’ The next time you have a problem, don’t stop with the first right answer. Look for other right answers. How do you keep a fish from smelling? Cook it when you catch it. Throw it back. Keep a cat near. Burn incense. Cut its nose off.” – Roger von Oech, Creative Think and author of “A Whack on the Side of the Head” and “A Kick in the Seat of the Pants.

Have a pizza party and order as many ingredients on different slices of your pizza as you can so that everyone you invite over will find a slice they want to eat. And please remember, “Keep Your Attitude Half-Full, not Half-Empty!”

John Clements is a Direct Response / Lead Generation Marketing consultant.
www.ClementsMktgGroup.com