Customers, Service Plans and Hiring
Customers treat our product and service like they would a trip to the dentist. How
do I help them feel like this is a valuable service to them?
In my experience, customers respond best to people who are passionate about what they do. Most of us in this business are very strong technicians. Those who illicit the best responses from customers are those who are truly passionate, not only about what they do but the companies they work for. Your energy, enthusiasm and commitment will shine through. I've found that participation on industry
boards and committees is a great way to draw on the passion of your peers as well, while staying abreast of what's happening.
The second thing that usually gets a good response is to communicate well.
Spell out the expectations a customer can have as you take them through the process, whether it is a furnace service call or an air conditioner installation. Be an active listener to ensure that you address the customer's concerns. If they know what to expect, there is a positive sense of anticipation. After all, if the dentist can make you appreciate when the drill is coming, there is less apprehension about the drill actually arriving. The buzz words today are experiential marketing.We need to
create an experience for the homeowner that is better than what they get from other service providers in their home. We need to be on time, respect their home, give them options, spell out expectations, reassure them at every step and be passionate about what we do. If they enjoy the experience, they will value the service. And, most importantly, they will talk about it.
Should I be selling service plans? Do you have any tips that will help us
develop a service agreement that is in everyone's best interests - the
customer and my company?
We have an obligation to our customers to get them into the maintenance habit. With so many warranties today, many consumers think they don't need maintenance because if something breaks they will just have it fixed under warranty. Of course, maintenance encompasses far more than good repair. It is about keeping the filters clean, avoiding an emergency situation, managing energy consumption and keeping things safe. These benefits for homeowners sometimes get lost in the discussion about extended warranties.
The advantages to the contractor are considerable, too. We ensure steady work for our technicians, generate regular cash flows and create opportunities to be in front of customers. I think service contracts are an opportunity for us to be a true partner in our customer's HVAC requirements. I suggest to our technicians, when they talk to customers with older equipment, that they should tell them to begin budgeting for replacement. This is a great phrase. People should not feel forced into having to buy today, but merely that they should begin preparing to make a replacement purchase in the next couple of years. This means there is no surprise when the time comes. Prepare a long-range needs sheet so you can help
customers plan.
Finally, I think it is important to offer convenient monthly payments - it takes a little effort with a bank to set this up, and there may be a small fee involved, but the advantages far outweigh these issues. Twenty-five dollars a month is a lot more attractive to most consumers than paying $300 all at once, and the renewal is automatic so there is less risk of losing plan members each year.
The shortage of skilled workers is affecting my business, and I've got two guys ready to retire next year. Where do you get good people, and how do you keep them?
I believe this is one of the most pressing concerns for any skilled trades-related business. Supply is simply not keeping up with demand. Contractors need to actively recruit, and by this I mean we need to participate at the high school level, both in talking to classes of students and in hiring co-op students. We can participate in the technical colleges by being involved in advisory boards, as well as speaking to classes and participating in career fairs. If you do that, you will find it is not a crowded field and that young people are looking for someone who shows
an interest in them when they look to choose a career.
At my company, we strive to be an employer of choice, by celebrating our people, compensating our field staff at the highest levels in the industry, through profit-sharing, and by involving them in other areas of the business, such as marketing.
They are permanent staff, not contractors who work only when there are service calls, so there is more job security.
Three other pieces of advice: training, training, training. I like to think of training as an investment. We think nothing in this industry of spending $30,000 on a truck that depreciates the minute we drive it, and only serves to get one man to one job. When you invest in your people's skills, they appreciate in value and deliver this to every customer, every day, as long as they continue to work for you. I believe it is money well spent.
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