By Mark Herbert, President and CEO, Incentive Solutions
As the country continues to weigh the effects of the coronavirus pandemic on the economy, businesses are slowly settling into an altered landscape. From plumbing product manufacturers to mechanical contracting professionals, all areas of the B2B channel are facing production hurdles and transformed business practices for the unforeseeable future. In times of uncertainty, the tendency for businesses is to react, often making swift decisions to reduce spending and minimize financial loss. It is in these defining moments, however, that a business must do its best to respond, contemplating strategy and investing in viable solutions. These decisions of calculated action will decide its ability to overcome the trials of a pandemic.
Communicating a Clear Brand Value According to a study conducted by Google and CEB Leadership Marketing, customer loyalty is far more influenced by a company’s brand value and trustworthiness than its business value. In times of crisis, security is scarce, which reveals an opportunity for a brand to embrace this role. This is the time to revisit current marketing strategies and determine the best brand message that will address the pain points of customers and the current business climate.
What steps can plumbing and heating businesses take to stand out from the competition? Maybe it is enhanced digital technology that enables safer and more convenient appointment fulfillment during this time of social distancing. Or perhaps a business has a cost-effectiveness component that can appeal to those who need heating and plumbing services but are struggling financially during the pandemic. Finding each business’s message of value and reiterating it to customers during this time of uncertainty will keep the brand top of mind when services are needed in the future.
Technology for Customer Communication and Experience
Digital acceleration, while not a new concept, has grown exponentially during the pandemic, leaving many heating and plumbing professionals scrambling to adapt business practices. Whether a business has been successfully utilizing technological routes for years, or is in desperate need of updating, there is no time like the present to begin cultivating and enhancing the brand’s online presence.
While quality product and high-level customer service play a role in customer retention, the foundation of customer loyalty lies in satisfying customers’ needs quickly and easily. In today’s world of technology, digital communication routes make connection easier than ever. E-commerce strategies allow customers to find a business, absorb its value proposition, and purchase products or schedule services all from the convenience of their own home. It is not uncommon for today’s modern consumer to conduct independent research of various companies before deciding on a service supplier, and those with a strong online presence stand out.
Other benefits of digital communication include email, SMS, or push notifications from a mobile app; these features provide customers with a guaranteed open line of communication. Investing in these platforms increase customer engagement with both an instant and cost-efficient connection.
Identifying Top Customers
It is a well-known that 80% of revenue comes from 20% of the client base. In an economic downturn, an overall decrease in spending is inevitable and identifying top plumbing and heating customers is the key to keeping business afloat.
Once top earners are identified, it’s time to formulate a more targeted marketing strategy, including individualized messages and calls to action that fit their current concerns and business needs. This can be as simple as a personalized message or a follow-up survey after the completion of service. No two clients are the same and cultivating an understanding of their needs guarantees longer-lasting relationships.
Offering Incentives for Greater Customer Loyalty
Continuing on the path of relationships, it’s crucial to remember that customers are people, and showing appreciation for their business goes a long way. One of the most advantageous techniques is the use of a customer loyalty program, which provides an online platform to implement both sales and marketing strategies. Digital customer engagement has never been more necessary in these remote circumstances and encouraging behaviors that help business while rewarding customers is a win-win.
Even if customers are unable to fully participate in a sales promotion, there are alternate ways to maintain engagement, increase channel enablement, and reinforce brand character. Offering rewards for virtual training on products, providing referrals, or completing surveys are just some of the ways to collect pertinent data for strategy building while educating customers in ways to better sell a product. Providing structure and reward options in a time of need will have customers remembering the brand’s name well after the pandemic subsides.
The Importance of Growth
Each business in the mechanical contracting profession is undergoing a unique experience at the hands of this pandemic. Regardless of where business was at the start, it is important to never stop growing. Retaining and growing proven marketing strategies with the help of technology and incentives is an investment that will pay off now and in the long-term, as businesses continue to adapt to the ever-evolving sales channel.
Mark Herbert is President and CEO of Incentive Solutions (www.incentivesolutions.com). He has more than 30 years of experience overseeing business operations within the incentives industry. Incentive Solutions currently manages more than 220 programs, many of which are in the plumbing industry. Mark Herbert may be reached at [email protected].