Keeping in Touch With Clients

You know you’re in a good relationship when someone sends you candy and flowers after fixing your toilet.

That’s just one tactic plumbing company Mr. Rooter of Berkeley, Calif., has been using to keep customers. The tradition resurfaced recently, after being shelved some years ago, as a way to thank big commercial customers, and hopefully attract future business.

The company does more than 50 percent in repeat business through varied means, according to Steve Ferguson, the franchise CEO, not the least of which is picking up the phone. “It costs us roughly $50 to get a new customer [through advertising],” he says. “It costs you almost nothing to stay in touch.”

Back to basics
A little more than a year ago, many contractors were turning down business—but times have changed. Small business owners in every corner of construction are rediscovering the value of client referrals and making extra efforts to reach out.

Michael Glassman learned that lesson mid-summer when his phone stopped ringing. “We’d pick it up to make sure it wasn’t broken,” says the owner of Michael Glassman & Associates, a landscape design firm based in Sacramento, Calif.

He’s begun sending flyers to hundreds of past and current customers with a mix of coupons and landscaping tips. “In today’s market we learned you can’t sit back and rest on your laurels,” he says.

The importance of staying connected
As a rule, contractors depend on word of mouth for new business. Take building and remodeling, for example. For those contractors, repeats and referrals account for almost 80 percent of lead activity, according to a 2009 survey by Professional Remodeler magazine. Yet when business is booming, contractors tend to go on autopilot.

“Our clients would buy a house, we’d do [their landscaping], they’d sell and upgrade, and they’d call us to do their new home,” says Glassman. With repeat customers dwindling, small business owners are cranking into high gear to reach out to past clients and expand and retain their overall client base.

And for anyone who entices new clients by showing off past projects—from painting jobs to remodeled kitchens to new homes—maintaining good relationships isn’t just a luxury. It’s often a necessity for gaining access to past clients.  

Wooing the customer
As people tend to forget names, it’s important to remind them you exist, one way or another, and make sure your contact information is in their hand and on their fridge.

But really wowing them requires some finesse, and the eight plumbers Ferguson employs also target residential customers. After each job, clients receive a handwritten note from the plumber, as well as a follow-up call from a receptionist asking how the service went. Though business is down somewhat, it could be worse, and Ferguson feels such measures are paramount to staying in clients’ minds.

What works?
There are endless ways to remind clients of your services. Check out these tried-and-true methods, as well as some new ones:

• Accessorize—Along with their business cards, Ferguson’s employees give customers coupons and magnets with their business information to remind who to call during their next emergency.
• Follow up—Calling clients lets them know you care about them and are committed to providing good customer service.
• Pamper them—When business was booming, many people were burned by contractors, says Glassman. To regain their confidence, contractors should check in with them, see how everything is going and ask if they need anything.
• Surveys—Whether by email, phone,or in person, surveys can improve relationships with clients past and present. Questionnaires are inexpensive, stimulate improvement and provide an opportunity to get in touch with people.
• New media—About a quarter of those surveyed by Professional Remodeler named online referrals as a common marketing tactic. By eliminating paper and postage costs, email and other online tools save money, as well.
• Discounts—Many businesses are offering discounts to entice people, particularly to smaller jobs that won’t break the bank. Glassman has begun offering discounts for consulting services in the form of coupons and gift certificates.
• Image—What kinds of people are representing your name? When Mr. Rooter plumbers go to jobs, says Ferguson, “They’re selling themselves. They’re neat, smart and sharp—[we] become their plumber for life.”
• Holiday gifts—During the holidays, Mr. Rooter doles out gifts such as tape measures and flashlights.
• Scale it down—Going forward, Glassman is offering a variety jobs to attract a broader client base. Now he asks, “Does your landscaping need tweaking, a mini makeover, pruning, or just fresh set of eyes to look at yard?”
• Incentive programs—Customer advantage programs have built up business in the past, says Ferguson. They charge an initial, one-time fee, but customers get a 15 percent discount, priority service and their own personal plumber. These customer are usually committed to staying in touch.
• Advice—Everyone loves free advice. Be sure any newsletters, flyers or mailings include helpful tips in your area of expertise.