Customer Retention Strategies for Plumbers, HVAC, and Electrical Companies
Measuring Customer Retention and Key Metrics
The phrase “customer retention” refers to the actions a company takes to reduce customer defection. The goal of any customer retention program is to help a company retain their loyal customers, usually through brand loyalty initiatives.
Several key metrics can measure customer retention, including:
- Customer lifetime value – By measuring the value (or net profit) each customer individually brings to your company, you can assess your company’s retention health and project its future success.
- Repeat customer rate – This rate measures customer loyalty improvement over time, revealing what percentage of your customer base returns over time.
- Net promoter score – This score measures how likely customers are to recommend your business or service to their friends and family.
To measure customer retention and key metrics, your best option, as a business, is to hire an outside, experienced professional to do the research.
Customer Retention Solutions
In the past, your highly satisfied customers would save your business card or mark your page in the phone book. Now, with the convenience of the internet, a majority of people search for services and information online, where you will be judged by your website and reviews. As a result, customer loyalty has disappeared. If potential repeat customers search for a local plumbing, HVAC, or electrical company and your name doesn’t appear on the first or second page then you’ve already lost them—they’re calling another company. Unless you make the effort to market to your existing customer base, you will never maintain any consistent loyalty, and this will cost you future sales. However, there is a solution.
Contractor 20/20 has the customer retention program that will ensure your success. Mike Morosi and his team of experts can show you how to increase your referrals and sales with marketing programs that are tested and have been proven to work with other contractors. Using a combination of direct mail, happy calls (calls to see if your customers are happy with the work), and specialty marketing products, we’ll make sure your customers never forget your name or your number and are never lost to a competitor’s coupon. Plus, we set the program up and manage it for you so it’s one less thing you need to worry about. Believe it or not, the average business will lose around 20% of its customer base annually. This happens because most businesses fail to properly attend to their customer relationships. The cost of losing such business is absolutely staggering. Call Contractor 20/20 today and we’ll get you the results you need!