1994 won’t work in 2020. How technology with a personal touch is the answer to the Home Service industry

1994 won’t work in 2020. How technology with a personal touch is the answer to the Home Service industry

The sounds of dialup internet, the squeal of an incoming fax, the yell of a coworker to “exit out of a ticket”, the phones are ringing and often ending with an outdated answering machine message, these are the sounds dominating the scene in 1994.

These are among many nostalgic memories of the 90s that are sadly still prevalent today.  In the last 20 years, we have seen a rise in “on-demand” service and “gig” economy resulting in the ability to touch a phone and have a sandwich delivered in 6 minutes.

Yet many of us will finish this article, put our phones in our pockets, and head back to our desks to encounter the same 30-year-old system that is still the mainstay of the service industry. According to Gartner Consulting, the home services industry is the second oldest to postal carriers. That’s right… postal carriers!

 

The Old vs The New

In the service industry, we often struggle with the balance between technology and culture, digital tools and personal connection, canned messaging and empathy. It’s easy to be tempted to one side or the other, “human” or “technology” when repeat business and customer connections are the building blocks of success in the service industry.

In many ways, the SaaS (Service as a Software) solutions for our industry is polarizing, Old (familiar but broken) or New (scary and impersonal).

OLD ways die hard. We have many shops using software and programs over 30 years old. These solutions require a large amount of human responsibility, communication, and old fashioned service to give our customers a great experience.

On one hand, this is a benefit as it makes us feel in “control” of the experience and simple to use. On the other hand, these old technologies are antiquated, outdated, and most importantly inconsistent (human nature). The friction with this old tech lies in our inability to “speak the modern customer language”, offer consistent delivery of communication, all while creating a lasting “human” connection.

NEW is scary. New service industry technology can open doors to an array of tools that can automate, measure, scale, respond, chat, and even do your bookkeeping. However, these tools require learning, changing, friction.

New technology can be intimidating, it can feel “impersonal” and overwhelming. Many of the new features (smart routing, AI, automation) can seem lifeless and demoralizing to a service-based “human” industry.

 

Making the leap into new technology

How do we reconcile these two extremes? How do we strengthen the legacy of personal connection, empathy, face to face communication to a world that is constantly changing? How do we change with it? We at BidClips believe in both. OLD fashioned personal connection, empathy, customer connection, and service can blend with NEW tools, techniques, preferences.

We call this “personal automation”. This blend of personal touch and modern tools will deliver amazing results. Some of the specific personal automation includes, individual customer journeys (led by digital journey templates), personalized communication (guided by canned messages), and service-specific presentation (enhanced by crowdsourced bid templates), along with consistency, automation, multi-channel communication, and 24-hour payment and booking tools fill the gaps between 1994 antiquated tech and consumer expectations of the 2020 economy.

Change is required, in all things. We are quick to buy a new tool at Lowes, quick to have our grade school nephew show us how to log into Hulu, but when it comes to new business tech, we are afraid.

It is time to connect to the very thing that drew us into the service industry in the first place, the love of service, connection, a job well done and well communicated. Consider taking a leap in 2020 to embrace tools that will make your customers happy to hire you again.

The Power of the Follow Up

The Power of the Follow Up

Building Relationships Through Empathy

One of the core concepts we teach our salespeople at Service Station is demonstrating empathy toward the customer at every point of contact they make with that customer. In the home and auto service industries, customers are not often contacting us because they have some awesome projects they are super excited about getting done.

More often, a problem occurred with their home or car, both of which are significant, if not the most significant investments your customers will make in their lives, and they are experiencing powerful feelings of loss, frustration, and fear. They begin to ask themselves questions such as “What happens next?” “How long is the process to get this fixed?” “It works well enough; do I need to spend all this money to fix this now?”

Even in instances where a customer is making an upgrade or update to their home, the significant investments of time and money they put into the project cause Buyer’s Remorse to be a deep feeling you must address. Questions enter their minds, such as, “Will this update increase my home value?” “Can I make my money back in a resale?” “Will I like the results of the completed project?”

It is overcoming the internal dialogue your customers are having with themselves, or rather, empathizing with it, that will win you jobs.

 

Follow-ups are about the customer

The best time to position ourselves as empathetic listeners is at the onset of our relationships with our customers. Unfortunately, we are unable to do so at times. Perhaps we didn’t listen properly. Maybe the customer didn’t wholly express themselves. Perhaps we weren’t in the proper frame of mind to respond as we would like.

Following up provides us with the opportunity to refocus, relisten, and respond.

A well worded follow-up will say to customers, “We heard you, and we understand you are facing some difficulties. We are here for you and want to help.” This subtle message transforms the buying experience for the customer from being about you getting work out of them to you working to achieve their goals.

This subtlety is important because customers know that when you follow-up, you are looking to close a sale, which is inherently about you. You must combat their wariness toward being sold by approaching all follow-ups, and interactions in general, with the mindset that the sale is 100% about the customer.

 

Introducing empathy in your emails

You can achieve this in your follow-ups by demonstrating that you have been thoughtful toward the customer first and that your primary objective is not merely to close a job. Homes and vehicles are very personal items, and customers should receive similarly personal experiences.

Take the following example of two follow-ups attempting to achieve the same goal of closing a sale.

Example 1:
Hello, Mrs. Smith. I am calling to see if you received the bids we sent you. We would love to get started on this project, do you think you are ready?

Example 2:
Hello, Mrs. Smith. It was great to speak with you the other day. I was reviewing the bids we sent you, and I think the frameless clear channel with brass fixtures would look great in your bathroom. I know there are important decisions to make on this project, so I wanted to gather your thoughts and help you make a great choice.

The simple changes in the second example help to reshape your customers’ perspective about you. First, it establishes a personal experience because you demonstrated enough care to review the customer’s bids and put your own thoughts into their choices.

Second, it reinforces to the customer that you understand they have some decisions to make, which may not be easy ones.

Third, you demonstrate that you are interested in a collaborative discussion by leaving the call to action open-ended. This also has the secondary benefit that customers will have more difficulty merely responding that they are not interested at the time.

Ultimately, following up will position you in your customers’ minds as the shop who legitimately heard their needs and is coming back around to make sure they are taken care of. Even if you don’t close the sale, a customer will remember your efforts for the next time they have a need, and your follow-up will set you up to forge a long-lasting relationship that will result in future sales or referral business.

Power 1: Following up provides another point of contact to address customers’ questions and concerns with empathy.

Power 2: Following up strengthens your relationships with customers by being at the forefront of their minds and demonstrating persistence in helping them achieve their goals.

Selling to Deciders with a Value Proposition

In sales psychology, there is a thought experiment where a salesperson is talking to a couple, and he asks them a question about their preference for a feature for the car they are interested in buying. He closely observes the couple’s interaction, and carefully notes which person is given the ultimate say in response to his question. He knows that person is the person he is selling to because that person is likely the most crucial decision-making persona in the buying process – the Decider.

The Decider has the final say in the purchase decision-making process and is ultimately the person a salesperson is selling to. The Buyer persona (the one stroking the check) has sway throughout the process. Still, any objections they have over price will ultimately be overruled by the Decider if they feel their needs are met by the value presented in excess of the price. A great salesperson will overcome the objections of the Decider by learning about their needs and selling to the benefits which best fulfill those needs.

We must remember that the goal of every sale is to present enough value to a customer to overcome any objections that arise over price. Through this complex back and forth of delivering value vs. price, we will encounter and need to overcome objections from various personas throughout the decision-making process.

 

Dealing with the Decider persona

In some instances, the same person is every persona, and you only need to sell to that person. But because we are in the home and auto service industries, and we are dealing with homes and cars, which typically represent significant family level investments, there are generally multiple parties involved, with various needs, and strong opinions. You may have one person who is every persona, two people who split all the personas evenly, or even multiple people acting as each persona at different times!

In fact, we track the reasons customers don’t immediately book when we present them with a bid, and 23% (n = 36,258) of the time, their response is, “I have to speak with my partner or another third party.” That means for nearly one out of every four jobs you are unable to close, you failed to do so because you were not selling directly to the Decider.

This happens for several reasons, and we see it every day, even in our own lives. One partner wants something around the house taken care of, so they ask the other partner to present them with solutions. A tenant needs an issue addressed, and they call a provider without realizing the landlord needs to be involved. Your estimator sits down with a couple to present a bid, and they make the wrong assumption about the needs of the Decider or are unable to recognize who the Decider is.

 

Offer your value proposition

Unfortunately, not selling directly to the Decider is a dangerous, and often losing position to be in. If you spoke with the Decider but didn’t recognize their needs and or didn’t correctly translate benefit to those needs, you aren’t going to close the sale. If you haven’t spoken with the Decider, and your message is being presented through another party, even if that other party is close to the situation, you likely won’t close the sale.

The only person who can completely understand and present your price to value proposition is you. How often have we asked our partner to get an estimate on a job, and they say, “The person I talked to said it would be $987.67 to get it done.”? There is no value or competitive differentiation expressed in that statement, and that is the danger of relying on someone else to present your message.

This is where following up comes in. By giving yourself more opportunities to speak directly to the Decider and reiterate your value offering, you are going to see better sales results.

Power 3: Following up gives you another opportunity to get in front of the Decider.

Power 4: Following up allows you to present or restate, your value offering.

Streamline Sales Processes and Generate Results

The most compelling reasons for following up with customers are the simple reasons that follow-ups are effective at generating results. They give you a good idea on which leads are strong leads and should be worked, and which are most likely lost and should just be monitored.
This categorization of leads will increase the productivity of your workforce by giving everyone a unified direction on which customers are valuable in pursuing. This streamlined focus will save your business time, effort, and money in the long run.

Follow-ups are also very effective at closing jobs. Across the BidClips customer base, when our customers use automated follow-ups, they experience a 12% (n = 2,729) average increase in overall sales, with some experiencing as high as a 23% increase. When we layer on following up via phone call or direct message, the increase in sales rises even further to between 20% and 30% (n = 56,982).

While those numbers are significant, the hidden power of closing an already bid lead is that an already bid lead is much more valuable than a new lead. The saying “a bird in the hand is worth two in the bush” is extremely appropriate when applied to follow-ups.

By the time you get to the follow-up, you have already put in 80% or more of the time and money needed to close the sale. The cost of the lead from PPC or other lead generation, and the overhead cost of bidding the project, are sunk costs you could recoup by closing.

Power 5: Following up helps your team prioritize leads so their efforts are focused on closing high-value customers and not wasted on pursuing lost opportunities.

Power 6: Following up results in better closing results, which translates into more sales and less wasted resources.

Follow-ups are powerful. There are many more direct and indirect benefits your business will receive by doing follow-ups other than the ones listed here. If you aren’t doing them, you need to be.