Industry Blogs

By Jimmy Speyer

The first customer support teams were developed in the 1700s following the Industrial Revolution, and businesses around the world have tried to scale by delighting their base ever since.

Home and property service companies are no different.

And, while we should always strive to do the best job we can for our clients, we can’t create promoters out of every single one. The service provider/customer relationship should be a partnership—a two-way street where both parties benefit from the association.

With an increasingly competitive market full of wide-net solutions that may not bring in qualified leads, it’s imperative that home service companies focus their marketing budget on attracting customers who will be a strong fit for the services they offer.

Anyone who has worked in HVAC, plumbing or electrical service marketing knows that their company has an ideal customer. These are customers who need your services, have the income to pay for your services, and want to develop an ongoing partnership with your company so that it’s a mutually-beneficial relationship.

But identifying your avatar customer can be difficult. It costs a lot of money and time to build lists that encompass these ideal customers, and even more to get your name in front of them.

Even before the world was at our fingertips, the homeowner has had the advantage in their relationships with their home service companies. The customer has multiple ways to research, pre-qualify, and rate a home service business, while the business has to worry that turning any customer down could result in a significant loss of revenue.

But companies are beginning to realize that focusing on the right customer can result in a substantial increase to their bottom line and a boost to their reputation. And there are now new and innovative digital tools on the market to help home service companies create lists of their avatar customers using data-driven information pulled from a variety of sources.

Increasing Profitability

In the not-so-recent past, it was common practice for technicians to note the demographics of a neighborhood when they went on house calls. Because most houses in a particular neighborhood are built around the same time, it stands to reason that their HVAC systems would be of similar age and would need replacement around the same time.

If the neighborhood also consists of homeowners with some means, taking some time to knock on doors to introduce your services could result in new customers.

But, these days, it pays to develop a “digital door knocking” campaign that helps you create more prospects from your existing marketing spend.

Unfortunately, most of the advertising campaigns built to target a particular neighborhood result in a declining return on investment. You may spend $1,000 for 20 leads, but only receive another 10 qualified prospects with your next $1,000. That means that increasing your ad spend might drive top-line revenue, but not bottom-line profits.

So, when you have the opportunity to unlock a prospect with little to no additional cost and when these potential customers are located close together, you save money on marketing and save time by packing your clients close to one another. Your next job is next door.

Boosting Good Reviews

In the home services game, good reviews are your company’s lifeblood. Recent research has shown that 92% of homeowners surveyed would seek out and consider online reviews before hiring a local service business, and another 63% said they trust online reviews as much as word-of-mouth recommendations.

Google and other review sites use your company’s overall review average, velocity and quantity to rank you and your competitors. That means that if you have a high volume of good reviews, you’ll be found in search results more often.

The problem, of course, is that your company is at the whim of the homeowner’s mood, and their review isn’t always reflective of the exchange.

For example, in my work with GlassHouse Inc., we discovered one homeowner who only gave one-star reviews. Out of the 91 reviews they gave, not one of them was more than one-star. It only stands to reason that not everyone this customer did business with was that bad and that the homeowner gave one-star reviews as their default.

With new digital tools that pull information from a variety of sources, you cannot only choose your avatar customer based on their income, location and ability to pay for your services, you can also ensure that you pick customers who aren’t known for only giving poor reviews.

Building up Your Sales Funnel

Imagine if you could book customers in or around a certain neighborhood and target those who want, need and can afford to pay for your services, but who also give reasonable reviews.

With the use of data-driven research, you could target your marketing campaigns to customers who meet those criteria, ensuring that you earn a better ROI.

By targeting homeowners in locations where you already have jobs booked, you can get the most out of your marketing spend. If one or two of your booked jobs yields another job, you’ve increased your ROI on advertising money you’ve already spent by 10-20%.

If you can segment your target audience by the factors that most favor your preferred demographics, preferences, behaviors or disposable income, you improve the effectiveness of your sales funnel. This improves your sales team’s conversion rates and engagement. It also helps you build relationships that allow you to retain customers for a much longer period of time.

Creating the Avatar Customer Profile

Think about your best customers. These aren’t always the customers who generate the biggest tickets. They are usually the customers who pay on time, have disposable income and need your services regularly.

When you understand the value of a certain customer type, you can more easily figure out how much you need to spend to go after them as a client. If you have an outbound campaign and don’t know the value of your targets, you can lose money on your campaign.

But if you know that adding a new client will give you four to five times your return on investment over the next two to three years, you will not only make a profit, but you can also set up specific teams for a more personalized approach.

Creating the avatar customer template used to take years to develop. But with today’s digital tools, you can now review income and credit ranges, generate information about a home’s age, size and value, and get information on their Google review history with the touch of a few buttons.

For several decades, the customer has had the upper hand in their relationships with their home service companies. They have had the ability to read and write reviews about the companies they work with, but the home service company has had no insight into potential customers.

But, now, home service companies can make data-driven decisions to prioritize business in ways that allow them to operate at higher margins and avoid risky or expensive engagements. Using available data to help make these choices can help your company uncover the real story about a prospect’s history and know your customers inside and out.

And that is exactly what you need to scale your business.

GlassHouse Inc. co-founder and CEO Jimmy Speyer has worked in software sales, customer service and marketing for more than 14 years, focusing on growing and scaling revenue teams in multiple verticals. He supported the revenue team at Logixboard, a supply chain management firm, to help the company lead the digitization of the freight and customs brokerage industries globally. Speyer is passionate about scaling teams, go-to-market planning and coaching high-growth organizations with data-driven practices.

Written By Josh Koplin

Consider this scenario: You’re online shopping, hopping from one site to another, comparing products and prices. You find a product you like, but there’s no price listed. How likely are you to reach out to the company for more information? If you’re like most consumers, you’re not going to waste your time; you’ll just move on to a site that gives you what you need.

In today’s digital-first world, the business landscape, particularly within the HVAC industry, has dramatically evolved. Transparent and efficient online quoting is now crucial because it directly influences homeowners’ decisions. Reducing barriers to contact and providing clear, transparent information are essential for building trust with customers and preventing them from turning away to seek other options.

Shifting Homeowner Demographics

This shift can be traced back to our increasingly digital lifestyle as well as changing homeowner demographics. According to the National Association of Realtors, millennials currently constitute the largest share of home buyers at 38%, followed by Gen X at 24%. Additionally, The Builders Daily reports that Gen Z accounted for 15% of first-time homebuyer mortgage applications in 2023, a figure that is expected to rise. These younger, digital-native generations demand quick and accurate information, especially when making significant decisions like home investments.

Building Trust Through Transparency

Marcus Sheridan’s exploration of consumer psychology in “They Ask You Answer” provides a stark reminder of the importance of transparency in pricing.

“The absence of price information doesn’t just inconvenience potential buyers; it actively drives them away,” Sheridan wrote in his book. “The modern consumer doesn’t just give up; they move on to someone who will meet their needs for information transparency.”

This perspective is especially relevant in the HVAC industry, where decisions are both infrequent and significant, making the stakes of transparency even higher.

Reflecting this, a recent survey from Clear Seas Research and The ACHR NEWS reveals a compelling trend: 71% of all homeowners express a preference for transparent online pricing and the figure jumps to 100% among Gen X and younger demographics. This data not only emphasizes the importance of clear pricing but also signals a shift towards greater consumer empowerment and expectation, challenging HVAC companies to adapt swiftly or risk losing out to more transparent competitors.

The Critical Role of Speed in Service

The concept of ‘speed to lead’ emphasizes the importance of quick responses to customer inquiries, which is vital in the HVAC industry. Equally crucial is the ‘speed to quote’, especially for younger generations who are accustomed to immediate gratification. The relationship between quick quote delivery and customer satisfaction is clear, particularly in industries like HVAC where timely decision-making is crucial. Speedy responses to quote requests reflect a company’s efficiency and responsiveness, qualities highly valued by today’s consumers.

Strategies for Fast, Accurate Quotes and Instant Gratification

Shifting homeowner demands and evolving demographics necessitate a strategic adaptation by HVAC contractors. This requires not only the implementation of best practices such as training customer service representatives and integrating digital tools like CRMs, texting platforms, but also new and innovative online sales tools. The ‘speed to quote’ race begins as soon as a potential customer lands on a contractor’s website, and using new online sales tools allows contractors to capture these potential customers and convert them into closed sales.

Adopting these new technologies not only meets the growing expectations for transparency, speed, and convenience but also ensures that contractors are aligned with the needs of Gen X, Millennial and Gen Z homeowners. By streamlining the quoting process and maintaining a focus on transparency, HVAC companies can significantly enhance their market appeal and meet the demands of a new generation that prioritizes quick, clear, and efficient service.

 

Josh Koplin is a co-founder of EDEN, a Seattle-based startup with a mission to empower contractors with innovative technology, helping them to grow their businesses and provide exceptional customer experiences. Founded in 2021, EDEN provides a digital sales enablement tool to help HVAC contractors provide quick and accurate instant quotes for HVAC systems. By leveraging technology to provide prices and detailed breakdowns of eligible incentives and expected utility savings online, EDEN helps promote high-efficiency systems that contribute to sustainability and benefits both homeowners and contractors. For more information, visit https://www.e-denhomes.com/.

Sustainability in building systems has become a trending topic in the past several years. Although equipment with a higher level of efficiency and overall sustainability tends to cost more to produce and install, interest continues to grow. Property owners want the assurance of knowing that their systems can handle changes in the availability of energy and interruptions to the power grid, while still providing excellent indoor comfort. These trends highlight the ongoing development of sustainable HVAC technology for residential, commercial and industrial customers.

Efficient HVAC Systems

A push toward greater efficiency makes sense in terms of sustainability and lower carbon emissions. Efficient systems, with proper installation and routine maintenance, can significantly reduce the energy consumption for the same amount of cooling or heating output. To accommodate the need for more effective HVAC systems, the U.S. Department of Energy set new standards in 2023 for the minimum efficiency of certain types of HVAC equipment. New systems with cooling capability must meet a minimum seasonal energy efficiency ratio of 14 or 15, depending on region. Heat pumps must also follow a minimum heating seasonal performance factor of 8.8.

Sustainable Energy Sources

As worry about the availability of fossil fuels increases, manufacturers look for ways to decrease their dependence on these fuels. In the past decade, technological advances allowed consumers and businesses to implement sustainable HVAC solutions, such as geothermal heat pumps. Innovation continues as the market adds and refines options. Hydronic systems rely on systems of water to extract heat for indoor heating, water heating, and other purposes, conserving the water for use. Solar thermal systems allow for the large-scale production of electricity — enough for applications in residential, commercial and industrial sectors.

Tools to Improve Indoor Air Quality

Ventilation is one of the most important aspects of heating and cooling systems, and recent advancements can make ventilation easier and more effective. The COVID-19 pandemic and the rise in the number of wildfires highlighted the importance of indoor air quality, which is often worse than the air outside. New systems can accommodate a variety of additional features, including UV bulbs, antimicrobial air filters and other types of air purification systems. HVAC technicians installing a series of these air cleaning options can help to improve the indoor air quality without compromising air flow or efficiency.

Smart Technology

Smart technology allows residences and businesses to maximize comfort while working on decreasing energy consumption and improving energy efficiency. Automated systems simplify the process of managing a commercial building, with the ability to seamlessly integrate HVAC into lighting, security, and other systems. Smart technology continues to improve in ways that decrease the need for human attention. Advanced sensors can help users monitor the temperature, humidity and air quality of various parts of the building, as well as locating problems and identifying the best times for heating and cooling maintenance.

Self-Cleaning HVAC Systems

Although professional maintenance twice a year offers the best case for long-term equipment efficiency, the time between those visits can wreak havoc on a system. Dirty equipment leads to lower efficiency, drops in performance and system breakdowns. The latest technology incorporates some elements of self-maintenance, so that users can provide ideal protection for their systems between maintenance services. For example, HVAC systems need to be kept clean and dry for proper operation. A self-cleaning function for an air conditioning unit might focus on drying each component, to prevent water buildup, icing and dust accumulation.

The rising cost of fuel, coupled with potential interruptions to the power grid, turns people’s heads to the possibilities of renewable energy technology. New HVAC systems can rely on heat and energy sources that allow property owners to minimize their dependence on fossil fuels or an overworked power grid. These technologies provide other benefits, including decreasing energy consumption, lowering carbon emissions and improving indoor air quality.

 

Author bio: Leslie Erickson is the Marketing Manager at Air Mechanical. She has been working for Air Mechanical for most of her life and specializes in marketing. She is dedicated to bringing customers the best experience possible for their family and their homes.

 

 

SOURCES

https://www.eia.gov/todayinenergy/detail.php?id=40232

Sustainable HVAC Trends: What Clients are Asking for in 2024

Smart Tech & Innovations for Sustainability in the Future of HVAC

https://www.grainger.com/know-how/operations/facility/kh-hvac-evolving-for-sustainability

 

https://www.eia.gov/todayinenergy/detail.php?id=40232

 

 

By Heather Ripley

As a local home service business owner, you no doubt value having a lot of positive online reviews.

But, outside of some kind words from customers on Google or Yelp, is your local reputation positive? Does it reflect what you consider your company’s brand values?

Your reputation influences the public’s perception of your company, and every business has one. The trick is to ensure that your employees and other company representatives know your company’s core values and what it means to live by them every day.

 

Perception Versus Reality

When you first started your plumbing company, chances are your business consisted of you, a helper and a truck.

During those early days, it may have been difficult to find the time to chart your vision and create a business plan so that you could scale your growth. But as you grew, you had to take the time to build a game plan that would help you work on your business and not just in it.

At this point in your business development, you began to list and define your company’s core values. Your goal was to embed these values into your company’s standards, norms, processes and behaviors.

Developing a clear mission statement and a consistent brand voice are key to boosting your reputation. Not only does it help your employees understand your vision for the future, it also gives you something to measure your capabilities against.

You may  believe that quality service and commitment to community are two of your top five values, for example. But unless you are regularly monitoring your online reviews, surveying your customers and educating your employees on what sets you apart from your competition, your perception of your company’s standing might not be the reality.

Find Out Who You Are

Recent studies have shown that as many as 92% of consumers read online reviews before deciding to do business with a company. If sales are faltering or you’re not meeting customer needs, it might be time to investigate the disconnect between what you think your reputation is and how others see you.

Here are a few steps to take:

1. Track your social media. Take a look at what customers are saying on your posts or see if they are saying anything at all. If you have a lot of complaints on Facebook or your marketing department’s posts aren’t aligned with your vision, it may be time to retrain your employees on your key values.
2. Read your online reviews. Most home service companies understand how important online reviews are to the growth of a company. You may have instructed your team to ask for positive reviews, but if they aren’t following up to ensure complaints are answered, you’re opening your company up as a target for trolling behavior.
3. Get involved in your community. If you volunteer for local events or sit on the board of an area nonprofit organization, you’ll have the opportunity to meet new people and get a first-hand look at how others perceive you.

If what you read, see and hear doesn’t match up with what you expect your reputation to be, you may need to concentrate on some reconstructive training and reputation management.

Build a Winning Reputation

Once you’ve determined where you stand in the community, you may need to either repair any damage in the worst-case scenario or simply build up your reputation in the best scenario.

To do this, you might need to do two things: retrain your employees to better represent your brand values and hire a reputable public relations agency that can help you get your message out to the general public.

Training your employees to embody your company’s values and brand identity should be a part of your onboarding process, but it never hurts to have refresher courses. But when it comes to boosting your positive reputation among the community, a PR professional is the expert at building relationships and telling your story.

Virgin Group founder Richard Branson once said, “Your brand is only as good as your reputation,” and ensuring that your local reputation reflects your brand values is a must in the home services industry. Customers have to trust the skilled trades technicians that come into their homes, so if your reputation is suffering in the community, you will lose business.

Don’t leave this to chance. Stay on top of your reputation management. It’s just a part of doing business in today’s connected world.

Heather Ripley is founder and CEO of Ripley PR, an elite, global public relations agency specializing in the skilled trades, franchising and B2B tech industries. Ripley PR is recognized as the top PR agency for the home service industry. It also has been listed by Entrepreneur Magazine as a Top Franchise PR Agency for six consecutive years and was recently named as one of Newsweek’s America’s Best Public Relations Agencies for 2024. Heather Ripley was recently named as a 2024 PRNews Top Women honoree in the business entrepreneur category. She is also the author of “NEXT LEVEL NOW: PR Secrets to Drive Explosive Growth for your Home Service Business,” which is now available on all audiobook platforms. For additional information, visit www.ripleypr.com.