Why New Customer Acquisition Matters
In the virtual Lemonade Stand, Crystal and Emily sit down to assess strategies for new customer acquisition! They discuss attracting these customers, pointers for financing opportunities, and when to divert focus around your audiences.
0:08 - New Customer Acquisition Strategies
11:22 - Strategic Marketing and Pivoting Strategy
20:08 - Monthly Group Coaching Call on Marketing
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We’ll see you next time, Lemon Heads!
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Speaker 1: 0:08
Oh, what's up? Lemonheads, welcome back to another episode of From the Yellow Chair. I'm Emily and I'm Crystal, and you got the dynamic duo today. We've been doing lots of solo episodes. It's hard to get us together. I know you would think it'd be very easy, but it is hard and no guests. So you got Crystal and Emily here today, whether you like it or not.
Speaker 2: 0:28
So we're going to talk through some new customer acquisition that must be on your radar this summer. We're going to talk about the why, the who and what we need to do to get some things put in place so that we can add a lot of new customers during the busiest time of the year for most of us, especially my HVAC contractors. So, hey, you know what's going on right now Lots of opportunities. So let's dip some lemonade, let's do it All. Right, Emily, I know we talk about this all the time, but what in the whole heck is new customer acquisition? I know that's a fancy way for saying like we got to get new people into our database.
Speaker 1: 1:07
People that we've never serviced before.
Speaker 2: 1:10
Right so and you know a lot. This also is like a good topic of conversation. A lot of my clients will say well, I was out there in 1997 and I mean we did a coal cleaning and by God that's my customer and I'm like, well, they came to you from a PPC ad, so they are not. They are not your customer. They came to you from a totally different place.
Speaker 1: 1:31
And so if they had to call someone again today, would they even remember that it was you who came out there and cleaned that coil for them? Like you still have to earn that right to be their guy, that you can still claim them as your customer Correct.
Speaker 2: 1:44
And like I tell people that it's not meant to be like a challenge, right, it's more meant for people to understand, like y'all, people do not care about us as much as we care about ourselves. They don't care what we do until they need us right. So that new customer acquisition is how do we strategically and intentionally acquire new customers? And so a lot of times you hear us talk about our three bucket method. We're not going to talk about that a ton today, but we are going to talk about the fact that you need to be running that report as much as you can. So how many new customers did I get this month and where did I get them? Because you know we're always trying to earn the right customer. So when we're talking about new customer acquisition, it's 1000% going to make sure that we get the right person right, the right customer. And so when we do that like Emily and I, we've even been talking about that for a living seat like who is the right client, because not everybody fits every business model.
Speaker 1: 2:42
Sure and I know that might sound so elementary that we're like, oh, we're going to talk about getting new customers. Like duh, you got to get new customers. But sometimes I think there's so many different marketing and advertising tactics out there that sometimes I think people don't realize everything they're doing has to. There has to be some effort in actually getting those new customers. Like I remember us talking to someone and they're like I don't want to do anything other than focusing on maximizing marketing pro inside of service titan and like, yes, that's great, you need to be maximizing what you're spending there and cultivating that existing customer. But the problem is those are all currently your customers.
Speaker 2: 3:18
You're not getting anybody new oh yeah, they'll be like, oh yeah, I'm using chir. I'm like, hey, chirp's fantastic, right, like new, brand new people, and so that's why I really yeah, today. I just thought you know, really, this is like your gentle reminder, like we're still early enough in the summer, like guys like dial it up right now to service people when everybody else doesn't. Be strategic about not taking tune-ups and things like that. Be ready for those demand calls when people are like, hey, oh my gosh, it's 100 degrees and I need somebody to let me in. Also, those of you that are in climates that are like not hot, yet you know the heat is coming. So, better, you need to be getting those tune-ups, those maintenance checks, all of that stuff out of the way right now.
Speaker 2: 4:04
But what type of customer do we want to earn? So I'm going to tell you we need to be earning the more affluent client that owns their home, that understands the importance of good service, that has the expendable income. But right now, everybody is what Very, very service-focused right. So not everybody's like you. You know what?
Speaker 2: 4:24
Let me give you 20k for a new system. They'd rather give you 2,000 for this thing, yeah, so right now is definitely a time to launch um repair, um strategy where you can really help your technicians understand, like, how do I upsell a full system replacement, not a partial system? Like, how does my technician educate the homeowner? Like, hey, you know, I can certainly replace the AC and not the furnace, but here's what's going to happen. You know now you're going to be very off and one's going to be new, one's going to be old, the efficiency will be down, blah, blah, blah.
Speaker 2: 5:05
But if your guy's like oh, thank God, I'll just take anything I can get, so don't let us lose gold for those customers of like, hey, we're trying to acquire people that understand the value of a full system replacement, getting like, get aggressive with your financing offers. I've seen a couple of financing offers just today with one of our clients. That's a 5.25% buy down on 12 months, no payments, no interest. Well, you know what that gets you right on through an election. Right, it'll get it. It'll sliders right on through November.
Speaker 1: 5:30
No for sure. But that's also another point of why we have to have. So to be able to fix people, to be a full system replacement versus just a fix, if you will, or just repairing it, we've got to have some lucrative offers, either one that's going to entice them to even call you. So what is attractive to a brand new customer? Or to help them go up to that higher system. Okay, so like what is kind of creative and disruptive and what is like lucrative enough to them to shift up to that top tier or to that next level, or to actually get a new system versus just fixing it. It takes a little bit creativity and intentionality there.
Speaker 2: 6:04
get a new system versus just fixing it. It takes a little bit of creativity and intentionality there, yeah. And you know like, not being a wimp, like that's also important. You know like, well, I shouldn't have to give anything away during the summer. I'll tell you what well you sit there and do that, okay, and your biggest competition.
Speaker 2: 6:20
So you know, I remember back in the days when McWilliams was just getting started so well, when I say just getting started, like when my dad really turned on marketing for the company, and I can remember thinking like, are we giving away a whole TV? And people were calling the office and literally saying, hey, I want one of them TVs. You know, welcome to East Texas. But and I can remember being like for real, but what it is is like man, I've already need to replace my system. But what it is is like man, I've already need to replace my system, that TV or that cruise or that fifteen hundred dollars in a gas card, whatever little fun thing you're using, it's just an incentive to go ahead and pull the trigger, right? So can anybody just be like you know what, I don't need a system, but I do need a 65 inch TV. That's not what happens, right? So you have to have set expectations for yourself about when you're gaining these new customers. It's got to be the people that are like man, I know I kind of needed one also. I know I'm kind of getting off track for just a second, but you know I'm good at that.
Speaker 2: 7:16
I talked to a client yesterday or friday and they were like man, my marketed leads are down and I'm like okay, so marketed leads are the hardest leads to close, because normally those are what tire kickers, right, like you don't already have a relationship with them, they're searching. And for most, yes, and for at least most of my clients or our clients here at Lemon Seed, our clients are not the cheap guys, right? So you're not going to win that battle, right? So you know somebody will install it for three hundred dollars more than they bought it for, right? A chuck in a truck, right? Um, you know, a vinnie in a van or whatever you want to call them. So what you have to do is, man, if you're not really good at building value from the moment that the phone rings and really grabbing that customer and being quick to the response and showing a lot of value, you're going to constantly be in a battle with marketed leads.
Speaker 2: 8:07
In my opinion, if you're closing 40% of marketed leads, you've got a rock star roll with it, because, again, you're probably not going to win that battle if they are just a shopper, a tire kicker, right On the other side of that. It should show you the importance of maintenance club memberships, because you do not want them. You do not want people that just go start working, going around town to see who the cheapest guy is, because I don't know about y'all but I'm not in a race to the bottom Right, you know. So those are just some encouragement. Like understand who you're going after is a higher end client. Not everybody is your forte. Like you do not need to go on that window unit job right, unless you're going to go sell them a new system.
Speaker 1: 8:51
And, like you said, you gotta be adding that value, doing something that is completely unexpected. So, like the expectation is, a customer can call any HVAC company and they could probably install something, get it up and running at least for a little bit. Like that is the expectation. But what can you do beyond that? So we were talking to a client and they mentioned how they, as the technician is on their way over there, like, hey, mrs Williams, I'm going to be there in 30 minutes.
Speaker 1: 9:15
While I'm on my way there, do you need anything while I'm out? Like, do you need me to pick up a gallon of milk or a cup of coffee for you there? And that is so unexpected that that is like memorable to them and it it provides a level of service that they aren't expecting, and so that helps somewhat justify the cost of whatever your price might be. And it helps also that word of mouth like them, that memorable aspect of something that was so unexpected, that can also relay your word of mouth and your raving fan aspect a lot further than just that one lead, if you will and I know that sounds ridiculous, but like 99% of people are not going to take you up on to bring a gallon of milk to them, but just the simple fact of like asking for that and the 1% of those people that do go pick them up a gallon of milk. Ok yeah, let's not buy $6.
Speaker 2: 10:05
Yes, yes, but you're right, like doing something unexpected. So, you know, as we're thinking through this, like this new customer again getting new customers all summer long. Customer again getting new customers all summer long. Like emily said, win them with these unexpected things. Be quick to respond. Be the friendly people because, listen, you know who's not fun to talk to someone that is hot in the middle of july in the south, right, you're all ticked off, right and you're mad, and, at the end of the day, so are your technicians. They don't want to be working in it either. And so, really being the voice of reason, setting clear expectations, having an affordable way, like if your CSR is like I mean, sir, we're booked up till tomorrow afternoon, so the earliest that we can see you is tomorrow afternoon as if like, why don't you go somewhere else? Yeah, I'm sorry to bother you. Yeah, you know I'm so sorry. I'm trying to, you know, do these things. Also, on your new customer acquisition, it is the responsibility of your vendors to be providing you with solutions. So a lot of contractors will be like in full panic mode, like I just don't know why it's not working. Well, you pay that digital vendor. Ask them why it's not working and be open to the fact that it could be operations. I said this to Emily today Marketing is normally always going to be the villain, but never the hero, right?
Speaker 2: 11:22
So when business is down, all of a sudden marketing sucks. Y'all are terrible, everybody sucks, y'all aren't fast enough, y'all aren't moving enough. And then, when times are good, you're like dang, my team is killing it, right? Which all of that is true. Sometimes the marketing does suck, sometimes you need to pivot, but in a lot of situations, weather naturally drives capacity, naturally drives lead volume. No matter what we do, whether it's hot, cold, rainy, windy, stormy, it's going to drive it up or down right. So we have to be prepared to always be getting new customers. And when there are no new customers to be had, that is when you need to dive into that existing database. But if you never get new customers, you will burn out that existing database faster than you can get new customers. Sure, sure.
Speaker 1: 12:14
And so this is all about strategy, no, and to have a real strategic approach and a plan to it, you've got to be tracking your efforts and measuring what you're doing. So and then being willing to pivot. So not just so stuck and well, this is what we plan to do. So, by God, we're going to do it. Well, you know what? The weather hasn't helped us at all. This didn't fly as great as we were thinking to do so, like having that capability to be willing to pivot, but also having, like, what is that backup plan going to be? Or what is this lever that I'm going to pull now, you know, as a little extra hump, a little extra jump, if you will. You got to kind of have those already in place, but you got to have that track ability to know this was working, this isn't working. When do I know when to sit still and when do I know when to pivot?
Speaker 2: 12:58
Yeah, and you know, I'm telling you, we as contractors I'm going to put myself in this category we also suck at pivoting because, well, let me go ask Jimmy if he thinks that you know, well, let me see what everybody thinks out there in the shop. Because, you know, I mean, my guys, they don't like that. Well, I'm telling you right now, I can tell you right now, literally I could take our limited clients and split them down the middle. Okay, because, like, I'll have a client that's like, well, you know this, my competitor, they're always changing. And I'm like, okay, well, let's do this. And they like, well, I don't, I don't really want to offer financing.
Speaker 2: 13:43
Okay, well, you just told me you needed more leads, right, yeah, I mean, there aren't enough leads coming through. Okay, well, why don't we offer this? Like what if we did a 79? Oh, that's too low. My team doesn't like tune-ups. There is a train coming through my office at the moment, that's what it sounds like. But you know, like my team doesn't like tune ups, right, my team is not strong enough to do that. My team's, you know, and I'm like man, so you can't pivot when you're handcuffed to the floor right.
Speaker 1: 14:07
How do you get approval from every single person?
Speaker 2: 14:10
It's two months later before you get everybody's buy-in and approval and stuff you're not nimble so when you're looking at these bigger, like these companies that are like, oh my gosh, all of a sudden they're doing facebook ads, and then it's because they're more nimble, now, not always, a lot of times, guys, these pe companies that you're going up against, they are not nimble. There's a they've got a hierarchy that they've got to go through and so they can't really be super nimble. If you are a small, if you still run your own circus, friend, hello, you're the ringmaster, like, call it. Like. Worst case scenario is you try something. You're like that was not good, then you take it all down, right, but like we're so caught up with, does my service manager like it? My install guys like it? Do my technicians like it? Well, you know, mama answers the phone and she ain't gonna like answering questions. Well, you must not like making money either, because we're just trying to do something right now, you know, and so when you're tracking.
Speaker 2: 15:04
So a couple things I want to say about the tracking side. So those of you that are on a crm, like service, titan field, edge, start any of those and you can have the ability to have tracking numbers. You need to be actually utilizing labeling and tracking your tracking numbers correctly and you should be looking at them. You can set up automated reports through most of those to be able to see. So it's really important. I call it managing the expectations here.
Speaker 2: 15:31
So, like, what is the expectation of a mass media campaign? It is not immediate calls to action, it's not. So if you're like, well, my billboard made me zero dollars this month, you absolutely cannot know that very directly Right there. If you're saying that you're like, well, it made me no money, sir, it's a mass media tactic. You may not see it directly. Now, a direct mail campaign that you sent out. There should be a lot more directional review that you're able to do there. So tracking it and pivoting. If you're like man, I don't really have a way to track, I don't know what's working. That is the issue, because now you're left to just making decisions based off your gut, and so for some of you, that's the last thing y'all need to be trusting. So, yeah, some of y'all just that's not it.
Speaker 1: 16:22
Yeah, so you want to be super intentional about your tracking and knowing when to pivot and being nimble enough to pivot and make some things to where you haven't missed the entire summer, because you're still sitting on your thumbs or getting approval from everyone.
Speaker 1: 16:33
But then, also giving some intentionality to retargeting. So we talked about how a lot of some of these new customers are kind of tire kickers or maybe they're just kind of getting started in this process. Like I know, my system's starting to act a little funny. It's not an emergency just yet. So how can we be having those multiple touch points, retargeting, remarketing to them beyond just that one initial phone call? Maybe they didn't book right then for whatever reason, and then fine, we never talked to them again.
Speaker 2: 17:00
Right. So you know this is key. So retargeting tends to be a little bit more expensive. So, speaking of tire kickers, you also have analyzers, right? People that are just trying to like oh, I need to do it. I'm limping it along right now. My electric bill's high. My kids are home all summer. I need to do something Right. So they're visiting your website because they saw an ad there. They're on your social media because that financing offer really has piqued their interest. Or, hello, a video testimonial really piqued their interest. I didn't realize that Jack and Susan did it Like. Now you know I've been needing to do it. Let me read that right.
Speaker 2: 17:33
Or you put out like five tips to know why your electric bill is too high, right? And people start kind of like trying to figure out what, how it would work. Those are the people that now like listen, I want, you are the spider and you have a web. You now have them in your web. So now we must devour them, right. So we must like come for them, right.
Speaker 2: 17:54
So you've got to be like hey, I saw that you were interested. How can I stay in contact with you? And it's kind of one of those. I call it like a little hidden gem. Now here's when it will not work. You cannot retarget someone that you never targeted in the beginning. Okay, so if you have no ads going to drive website traffic, then there is no one to retarget because you have not targeted them originally.
Speaker 2: 18:21
So this is designed for people that have pay-per-click going, maybe Facebook ads even active on Google local service ads, good SEO, things like that. You have to have those things in place because, remember, you have to have like an igniter. Something had to like send them to the site first, so now you can say, oh, these people are interested in my services. This, again, is great for new customer acquisition. It is not great. Well, it is fine for reaching out to your existing customers, but it's expensive to do it that way. Remember, most of you are paying like a flat fee for Marketing Pro or MailChimp or something like that. Use those email platforms to stay in contact with your existing customers. We're really focusing on grabbing people that have shown interest. So maybe they're not at the smallest part of the marketing funnel, but they're definitely towards the bottom and you just want to be able to grab them.
Speaker 1: 19:13
So all right, as you said, you are a spider. Yes, yes, I never know with all your analogies, but I love you so well.
Speaker 2: 19:23
Guys, just to summarize today's discussion, I know it was kind of short and sweet and to the point, but a lot of you are just driving from job to job or just trying to get to somewhere and deal with stuff this summer. But listen, at the end of the day, I want you to just start paying attention to the amount of new customers you're getting every month and where you're getting them from. Ok, be intentional. And I want you to be creative and stop being scared of offering some things. If, at any point, you're interested in a full marketing strategy and implementation, we would love to talk to you. We do have Emily. I'm going to let you tell them a little bit about Juiced, just in case they're interested.
Speaker 1: 19:57
Sure. So if you're not, maybe willing to come on full plan with Lemon Seed, or maybe you're a tire kicker yourself you want a low entry. Like what is the Lemon Seed offerings? What is their knowledge? What is everything all about? Juice is a super affordable monthly group coaching call. We discuss a different marketing tactic every month. We try to make it very relevant in real time to what is happening. So like, it is summertime now. So like, how should you be thinking and planning for summer versus in fall, versus in winter? So very real time, very factual, actual information, but a great way to kind of soak up some of that limited knowledge that we've learned throughout our many, many years of experience in the home service industry and just relaying that to you. So if you want to, you can use a code, discount code for 50 off your first month. Just use code podcast and you'll get 50 off your first month. You can click the link in the bio to sign up and, um, yeah, we'd love to see you on juice.
Speaker 2: 20:52
Um, thank you for listening to another episode absolutely write us a review, give us a follow, let us know something. But thanks for sipping some lemonade with us. See you next time.
