2. BEFORE WE BEGIN…
You don’t have to be a Contractor Prosperity member to get a load of value
from guide. Within minutes of sitting down and reading this, you are going
to understand the 3 Steps to Taming the 800 LB Gorilla in Your Market. With
this information you’ll be able to make informed decisions about what is
probably the most important activity in your business – how you will create
and retain customers, while defending your business from the competition
and growing your revenues.
3. THE 800 LB GORILLA IN YOUR MARKET
There’s an 800 LB Gorilla in your city.
He made his entrance suddenly, buying up one of your competitors and
beating his chest loudly to announce his arrival.
(In fact, you might have more than one of these hairy behemoths, declaring
his dominance in what used to be YOUR territory.)
The rapid growth of corporately owned contracting divisions, franchised
companies and big-box retailers entering the market SHOULD be of great
concern to you.
In fact, it’s the biggest threat to the independent contractor that the
industry has ever faced.
Reading that statement you either shrug or shiver. If you merely shrug –
rationalizing that “it’s just a phase in the industry” – you’re whistling past the
graveyard. You shiver if you realize that this rapid expansion into the
residential market is unsustainable in the near-and-long-term without the
collapse of the independent contractor. The fact is we passed the crisis point
long ago and are sliding toward extinction if we don’t address the problem
today, and start adapting, specializing and differentiating.
Where is the real threat in these 800 LB Gorillas?
The simpler question to answer is “where is there NOT a threat”? All one has
to do is look at the residential HVAC industry, where utility providers have
shifted their focus from utility contracts to long term customer value with
HVAC equipment rentals and service contracts.
Even large, established independent contractors can’t compete against their
multi-million dollar advertising budgets, bulk purchasing power,
manufacturer kick-backs and most concerning, the willingness and ability to
sell equipment at a loss to secure a long term customer.
Across the globe Mom & Pop shops have been shuttered as Wal-Mart
entered the market, providing one-stop shopping at “everyday low
prices.” Most contractors barely took notice. Even as Home Depot and
4. Lowe’s carved out their chunk of the residential construction market, our
industry reacted with a collective burying of heads in the sand.
There is a stead-fast denial that the way in which the independent contractor
does business will need to change in order to stay relevant.
So what do you need to do to tame the 800 LB Gorilla charging through your
market?
A lot.
But, there is good news: by taking immediate action, you can not only build
an iron fortress around your business but you can gain an unfair advantage on
your competition who are slow to drain the sand from their ears.
As a business owner, you’ve likely been an advertising victim – constantly
wasting money, not really knowing what works and what doesn’t, and
constantly reinventing the wheel too often, and to be blunt, getting where
you’re going by paddling faster and harder, without a fail-safe navigation
system.
I’m here to warn you that will NO LONGER WORK.
Despite their apparent power, these industry giants are really big, dumb
companies that use sloppy and wasteful “mass advertising” practices that
leave them weak and vulnerable to a smart and savvy independent
competitor.
The reason they so successfully slaughter companies just like yours is your
lack of knowing how to systematically, efficiently and affordably target ready
to buy, high value customers. Without an innovative system in place, your
defenses are limited.
The key word is SYSTEM. By definition, a system is organized, reliable and
consistent and therefore capable of delivering consistently predictable
results.
Here are two vital facts:
1. All wealth derived from business is based on systems.
5. 2. Most contractors have some sort of operations system but
lack the more valuable marketing system.
To truly build an iron fence around your business and not only survive these
increasing threats but THRIVE, you cannot afford to let any prospective
customer slip through your fingers. This trapping of customers does not
begin when they book an appointment with you – it must begin from the
moment they first visit your website.
6. STEP #1: PATIENTLY & SYSTEMATICALLY
EDUCATE PROSPECTS UNTIL THEY’RE READY
Traditional Marketing relies on TV, radio, flyers, trade shows, Pay-Per-Click,
organic search results or even Social Media to drive prospects to either call
your office or visit your website with the single goal of booking an
appointment. All the marketing money is aimed at bringing in traffic – but
you’re only giving people one reason to respond. In fact, nearly 85% of
people on website aren’t ready to invite you into their homes (aka “buy now”)
so they’re not going to book an appointment no matter how you attempt to
sell or bribe them.
So Step #1 is really about bringing people into your lead funnel before they’re
ready to get an in-home quote. This is where the real skill comes in, knowing
how to set things up, so that people want to meet with you.
The key is that you understand they will only meet with you when they are
ready.
So how do you get them ready?
First, you educate them. Provide them with free information on topics that are
of great interest to them and answer the burning questions that they have
about their renovation. Ideally, you want to provide this free information as a
trade for the prospect’s contact information, so that you can nurture them into
an ideal client.
But…
You can’t just educate people and send them free information and expect
that they will just line up to come in to see you.
People need prompting.
We’re all basically shy, and reluctant to start an interaction. Plus, contractors
make people nervous.
7. That thinking makes us meek in the way we talk to prospects. We say things
like “If there’s anything I can do for you, or if you have any questions...don’t
hesitate to give me a call, I’m more than happy to help”
Now, we may be sincere in saying that, but it’s a very weak proposition.
We’re essentially asking our prospects to be the leader, and initiate, by asking
you for something...which you would be happy to provide. The problem is,
most people don’t like asking for anything...but we’re helpless against people
offering us something, because we equally don’t like to reject people.
It’s a strange social dynamic.
Understanding that dynamic helps you realize that people are silently
begging to be led. They don’t want to lead. They want someone to tell them
what to do...and make it EASY for them to do it.
The goal of the information that you’re providing is to educate the
homeowner so that even if they never do business with you, they will know
what they didn’t know they didn’t know before, so they can make an
informed, intelligent decision. And now, equipped with that information,
they’re a more confident buyer. And a more confident buyer is exactly the
type of buyer you want. You want them to have confidence with you, and
that’s why you are providing that information. And since you are the one
providing them that information, who did they have the most rapport and trust
with? They have it with YOU!
Unless they are price shoppers, and the free information you’re providing
would sift, sort and screen the price shoppers, and it will present to you the
ideal sort of prospects.
And the ideal prospects will love the fact that you presented them with that
education, because it helps them make a buying decision, and they will do
business with you.
WHY IT’S POINTLESS TO DRIVE TRAFFIC TO YOUR WEBSITE
IF YOU DON’T DO LEAD NURTURING
“You don’t have a traffic problem.”
This is a pretty hard thing for any business owner to hear, especially if you
have thousands of people coming to your website every month without the
leads to show for it. Nonetheless, it’s the sad truth if you’re not following a
specific set of repeatable, automated processes to turn every single website
visitor into a customer.
8. If you fail to put a lead capture and lead nurture process in place you are
relying on the HOPE that your prospects will remember your company when
they are ready to enter the Quote stage – and that they won’t see a better
offer from your competition before they dial your number. The biggest
problem with this strategy is that you’ve already paid to reach these prospects!
So, by using some form of a “magnet” and lead nurturing on your company’s
website, you have the opportunity to turn a situation where someone who is
not yet a lead and is “just looking,” into a situation where you’ve acquired a
lead, and they’re one step closer to making their first purchase.
STEP #2: DELIVER A DREAM COME TRUE
EXPERIENCE
What experience does your customer have with your company?
Do they walk away merely satisfied that the work was completed or do they
excitedly call up a friend to say “that was the best contractor experience I’ve
ever had!”
Map out the experience that your customer has. Write down the steps that the
prospect takes to do business with you – or the hoops that you’re making them
jump through. By mapping out the customer experience, you’ll not only gain
insight into your own business but you’ll see all the different opportunities that
you’re missing for to provide a rave-worthy experience.
The experience that you provide is where you can carve out a true unfair
advantage in your marketplace. The big-box contractors and corporate
behemoths aren’t looking within for ways to improve the customer experience
and increase their business – they have blinders on, focusing purely on new
business.
9. The very best way to think of your client experience is to imagine what would
be a Dream-Come-True from their perspective?
When you begin with an attitude that you’re going to create the ultimate
experience for your client...as if you were one of them...it really creates a
powerful vision for you.
One of the best client experience design exercises is to ask two simple
questions.
1. What does everyone LOVE about [insert your category here]?
2. What does everyone HATE about [insert your category here]?
That process will help you clarify your thinking...but you can really take it to the
next level by imagining what they would REALLY love if they thought it was
possible.
This is your opportunity to imagine a dream scenario for your clients. Don’t
censor yourself by thinking “well I can’t do that”...or “that’s impossible”...just let
your mind go, and then ask yourself “If I could do it...how would I do it?”
All of the interacting you are going to do with your clients is going to give them
less than what they expected, exactly what they expected, or more than what
they expected. Why not give them something beyond what they even could
imagine?
The more rave-worthy experience, the more referrals you’ll generate. Imagine
what it would do for your business if half the people that went through your
process, that went through your experience, referred somebody else to you
before that transaction even ended.
10. STEP #3: STRATEGICALLY PLAN REFERRALS
Are you familiar with a magician’s sleight of hand?
They make you look one way and use your distraction to complete their trick,
pulling a brightly colored handkerchief out of their sleeve.
You want to perfect sleight of hand with your competition.
While they’re looking for new business, you’re generating profit from your
existing customer database. When they finally look back, won’t they be
surprised?
Orchestrating referrals is about really doing things, saying things, and
communicating in a way that make referrals happen on purpose.
A lot of times, people get referrals, but when you really look at it, the referrals
that people get are mostly either passive referrals, meaning somebody calls
you up and says, “Hey, my brother just got his carpets cleaned, and he said I
should give you a call to come and clean mine.” So, it’s happening without
you really doing anything to make it happen. Everybody gets those kinds of
referrals.
Or, they’re reactive referrals, where somebody calls up and says, “Hey, my
brother John is thinking about getting his carpets cleaned. You should give
him a call.” Now, you have to react to that referral and do something to make
it happen.
But where the real value is, where the real opportunity is, the only type of
referral that you can control 100% is the orchestrated referral, where you are
asking for and getting a very specific type of referral.
The biggest adjustment in your thinking is realizing that the REAL reason
people refer is not as a favor to you, but they do it to make themselves feel
good.
Nobody is referring you as a favor to you.
11. That’s something that a lot of contractors struggle with. Most people are
generally reluctant to ask for referrals because, in their mind, they’re
positioning it that somebody is doing them a favor.
When you have that mindset, it leads to reluctance...because you don’t want
to be seen as begging for business, or seen as weakness, like you can’t
generate enough business on your own.
But the reality of why people refer is that they do it because they want to feel
good. The fact is if you’ve ever had a great experience with someone, it’s just
natural human nature to want to tell other people about it.
When it comes to books, when it comes to movies, when it comes to
restaurants, when it comes to businesses, if something’s going to make
someone laugh, smile, fill their belly with good food, provide something that’s
going to help them have a better (name the category), and I know of a
company, a service, or a person that can do it, I’m certainly going to refer that
person because it’s just the way we’re wired.
Your clients are in conversations all the time that are related to your business.
BUT...in order for that conversation to turn into a referral...three things have to
happen.
1. They have to NOTICE the conversation is about [something related
to your business]
2. They have to THINK about YOU.
3. They have to INTRODUCE you into the conversation
Those kinds of conversations are happening to your clients about something
that applies to YOUR business every day. The moneymaking idea is to be
aware of what those “high probability” conversations are, and make sure that
your clients know EXACTLY what to do to introduce you into the
conversation.
12. ABOUT CONTRACTOR PROSPERITY
Contractor Prosperity helps contractors enjoy financial security
and independence using real world experience where results rule
and marketing dollars can’t be wasted on theory.
WHAT ARE MY NEXT STEPS?
If you want to figure out how you can automate most of the sales
and marketing processes in your business and save your company
quite a bit of time and money, a sensible next step would be to
evaluate a solution that will help you do that.
If you haven’t already requested a Maximized Marketing
demonstration, head over to:
www.ContractorProsperity.com/Maximized-Marketing
