In our dynamic world of home improvement contracting, success isn’t driven by any one area in your company; it’s a multifaceted approach that demands finesse in various aspects of your business. At Certified Contractors Network (CCN), we always stress to our members that navigating this landscape requires a comprehensive understanding of what we call the six pillars of success in the contracting business. These six pillars are: Marketing, Sales, Sales Management, Production, Operations, and Managing by the Numbers (KPIs). Let’s look at each of these pillars and unpack the best practices that will help you scale revenues, gross profits and net profits, all while consistently delivering a world class customer experience.
Marketing: Building Your Brand
The foundation of any successful contracting business lies in effective marketing strategies. Let’s look at key best practices in marketing. It’s not just about showcasing your services; it’s about crafting a compelling Unique Value Proposition (UVP), a narrative that clearly differentiates you from your competition. This is about educating the customer to focus on value and not price, and this messaging must resonate with your target audience.
Before you can create your UVP, you need to go through an exercise and repeat it quarterly, as your business and the environment in which you operate in are dynamic and not static, meaning updates and adjustments must be made along the way.
This exercise is a SWOT Analysis where you identify your company’s strengths, weaknesses, opportunities, and threats. This puts you in a much stronger position to craft your UVP. Second, you must do a deep dive in learning as much about your competitors as possible. You can accomplish this by researching their website, their social media channels and their reviews. The better you get to know your competitors, the easier it will be for you to create a value proposition that is truly unique.
Utilize digital platforms to your advantage, harnessing the power of social media, websites, and search engine optimization (SEO) to amplify your presence. Additionally, invest in traditional marketing channels such as flyers, brochures, canvassing, home shows, 5-5-10 radius marketing, and local media advertising to reach potential clients in your market area. To do all of this effectively, you must highlight your company’s UVP, as it will clearly differentiate you from the competition.
By establishing a strong brand identity and consistently delivering a consistent message, you can cultivate trust and credibility among homeowners seeking your services. You will generate more leads, deliver more demos, and close more sales with a strong UVP.
At CCN, we have seen so many of our members improve their performance with a strong Unique Value Proposition (UVP). We have seen a rise in gross margins and higher close rates when our members have focused on consistent marketing messages with a strong UVP.
Sales: Turning Inquiries into Contracts
Once your marketing efforts have piqued interest, it’s time to capitalize on opportunities through effective sales techniques. First and foremost, you must utilize a proven sales process and every sales rep on your team should be following the same process. Listen intently to the needs and desires of your clients, demonstrating empathy and understanding throughout the sales process. Ask open-ended questions, talk less and listen more. This is the only way you can best understand a customer’s pain points and desires.
At CCN, we train our members on our 5P Sales Methodology. The 5Ps stand for Problems, Products, Process, People and Price. We have seen so many of our CCN members thrive with using this 5P methodology, and it can be used for both one and two call closes. We highly recommend tailoring solutions that address the customer’s specific concerns, highlighting the value proposition of your services. Remember, effective selling isn’t about pushing a product; it’s about building relationships and fostering trust. Remember, your customers are not buying a new roof, siding, kitchen, or bath; they are buying the best contractor for them, and that should be you. By adopting a consultative approach and focusing on customer satisfaction, you can transform inquiries into lucrative contracts.
Sales Management: Orchestrating Success
Managing a sales team requires a delicate balance of leadership, motivation, and accountability. At CCN, we train our members’ sales managers to focus on beliefs, behaviors, and skills. This means it is the sales managers job to build the belief system within each sales rep. They truly must believe in your company and that your company offers the best and most reliable solutions. Finally, it is the sales manager’s responsibility to raise the bar on each sales rep’s skills. Set clear objectives and expectations for your sales representatives, providing them with the tools and resources needed to excel. Implement regular training sessions and role plays to hone their skills and improve their close rates. Additionally, establish metrics to track performance, allowing you to identify areas for improvement and celebrate successes. By fostering a culture of collaboration and continuous improvement within your sales team, you can drive sustained growth and profitability.
Our CCN members who drive home the concept of beliefs, behaviors, and skills, are the same members who are seeing a stronger sales performance.
Production: Delivering a World Class Experience
The heart of any contracting business lies in its ability to deliver exceptional results on time and within budget. The production team needs to hone their skills too, and I am not just talking about expert installation. They should be building strong firewalls, improve their scheduling process, improve conflict resolution and communication with the customer. Cultivate a production team of skilled professionals who take pride in every aspect of their work from the time sales hands off the job to them all the way through delivering a world class customer experience, ensuring that every project meets the highest standards of quality. Implement efficient workflows and project management systems to streamline operations and minimize delays. Again, communicate openly and transparently with clients throughout the production process, keeping them informed of progress and addressing any concerns promptly. By prioritizing excellence in every aspect of production, you can earn rave reviews and referrals that fuel your business’s success.
We have many CCN members who are seeing more 5-star reviews and repeat and referral business. IT is critically important to focus on excellence through every aspect of production.
Operations: Optimizing Efficiency
Behind the scenes, meticulous attention to operational details is essential for sustained success. From office management to procurement, logistics to scheduling and resource allocation, every aspect of your business must operate like a well-oiled machine. Embrace technology to automate repetitive tasks and streamline administrative processes, freeing up valuable time and resources. Regularly assess and optimize your operations to identify inefficiencies and implement improvements. By maintaining a sharp focus on operational excellence, you can enhance productivity, minimize costs, and maximize profitability.
At CCN, we teach a Business Operations course that provides an in-depth system for running a smooth operation. So many CCN members have mastered critically important functions through these trainings, including Total Quality Management (TQM).
Managing by the Numbers: Data-Driven Decision Making
In the dynamic world of home improvement contracting, data-driven insights are invaluable for informed decision-making. Establish key performance indicators (KPIs) that align with your business objectives, allowing you to measure progress and identify areas of opportunity or concern. Monitor critical metrics such as conversion rates, project profitability, and customer satisfaction scores to gauge your business’s performance effectively. Leverage advanced analytics tools to analyze trends and forecast future demand, empowering you to adapt proactively to changing market conditions. At CCN, many of our members found that our Managing by the Numbers course does a great job of helping them create a dashboard with key metrics that drive data-driven decision making.
In conclusion, mastering the six pillars of success in the home improvement contracting space requires dedication, expertise, and a relentless commitment to excellence. Embrace innovation, cultivate strong relationships, and never compromise on quality, and you’ll be well-positioned to thrive in this competitive industry.
