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Marketing
The Wizard’s 2024 Predictions for Residential Home Services
Last year, I predicted three things that all came true for residential home service companies, here are my predictions for 2024.
Last year, I predicted three things that all came true for residential home service companies.
- Customers will be more cautious.
- Replacement opportunities will not change.
- Customers will be more price-sensitive.
We saw customers looking for repair solutions over replacement more often. Buyers were more inclined to leave the repair to the bitter end, sometimes to their own detriment.
We also saw many customers look to DIY and handymen solutions as many residential home service companies struggled to shift to a repair mindset.
We saw finance options used more often, more shopping around, and more customers trying to squeeze out every last drop from their home's equipment.
In 2024, we are walking into one of the toughest years in your company's history.
With household debt DOUBLE that of the 2009 housing crisis, even people with good credit will struggle to get approved on finance terms this coming year as they run out of runway.
With inflation persisting, people simply don’t have any more money and are not earning enough to catch up with the cost of living.
And a looming election year always causes uncertainty, lowering consumer confidence.
Companies who’ve not invested in a strong mass media brand story to build and grow trust, will face a tumultuous year of lead generation.
If you're thinking of cutting your marketing budget in 2024, be sure to cut your revenue expectations in league with that decision.
For those companies who haven't worked on their efficiencies and productivity, will face razor-thin margins or simply fail to close the sale.
And for those companies who haven't shifted to a repair-first mindset, will face the inevitability of lower replacement conversions and, thus, revenues.
Now, this doesn't mean that you won't have replacement opportunities. It just means that chasing replacement opportunities in your advertising is going to have you fishing from a small pool with small fish.
2024 Action Steps: Slow down your sales process and love the customers you are with.
Don't try to smash your database too heavily. Be a farmer, not a miner.
Look for opportunities to buy mass media. As your competitors retract, there will be deals to be had in speaking to the masses in a less noisy market.
Build trust BEFORE they need you, and win the game before the game has even started in Google search results.
You don't need more leads this year. You need more good leads to run your limited resources out to.
A powerful brand campaign will get more people to know, like, and trust you BEFORE they need you.
With rising costs of acquisition, a mass media campaign will eventually 4X your marketing spend. All you have to do is deliver on the promises made in your advertising.
If you need help growing your business in a shrinking economy or improving your marketing efficiency for a higher Net EBITDA, give me a call. I specialize in helping residential home service companies become BIG brands.
To learn more about how we can help you, book a call with Ryan Chute of Wizard of Ads™ today
Operations
Do you have a Bob problem? When critical processes are in a black box.
An extremely common problem that I see in small businesses is the proverbial guy who knows the answers no one else has. Who's your Bob?
Importance of Standard Operating Procedures
There are many reasons for having Standard Operating Procedures for most roles in the company. SOPs allow an employee to understand the requirements and expectations of their role. They also allow management to measure the performance of that employee in that role. SOPs allow for faster expansion of departments by reducing the training time required of existing employees working with new hires. As there are more people doing the same job, SOPs ensure that regardless of who does the job, it is done the same way, which brings additional benefits from standardization. Customers will see a consistent result from the company if each person they interact with follows the same SOP. For business continuity, SOPs make it possible for temporary help to provide some basic level of help, even if it is outside their department. Of course, it also means replacing an employee who quits or is terminated also becomes easier.
With this many reasons to have SOPs, why is it that I still find only a fraction of companies have them in place? The simple but honest answer is probably that most people don’t associate working on SOPs with increased bottom-line profit or even with increased sales. So using the question, “Does this bring more money to the company?” It is no wonder that SOPs are rare among small businesses. I’ll even go a step further. Even among the Fortune 1000 companies I’ve worked in, quite often, part of what I needed to do was help them develop Processes, Procedures, and Standards. Ideally, every business has all of these, but at the very least, developing SOPs is an important step in allowing the business to grow beyond its current size.
While it is true that I would have a hard time showing how an SOP increased sales, it is quite easy to show, after developing and implementing SOPs, how they increase the flexibility, efficiency, and resiliency of the company. All of which should reduce operating costs, which in turn should increase bottom-line profitability.
The Bob Problem
Another extremely common problem that I see in small businesses is the proverbial guy who knows the answers no one else has. This is often a long-term employee of the company who seems to be the only one with certain knowledge. He may be in IT or Marketing or any other department. I know he is there when I ask questions about different areas of operation of a company during my interview process at the start of a consulting engagement, and the answer is always something like, “Oh, Bob is the only one who would know that.” It happens in virtually every company I visit.
Surprisingly, people are willing to live with the risk of Bob having a stranglehold on certain types of data, although all my other questions can be answered by multiple people.
The problem can usually be traded to two things. First, Bob is notorious for not developing or even adhering to processes. For Bob, everything is done the first time, each time. As my British colleagues would say, Bob is all about bespoke. If everything has to be done from scratch each time, then the person who has done the most from-scratch things will seem very skilled at finding answers. The reality, of course, is that if Bob had developed standard procedures, then he would not have to do everything from scratch, and in fact, others could follow his procedures, and maybe then Bob wouldn’t be the only one who knows the answers.
Second, Bob is always busy. He probably works more than 40 hours a week and sometimes has to come in on weekends. This creates a false persona of someone who cares deeply for the company and is willing to spend his own time for the company’s sake. This is again self-serving because if Bob had developed some standard procedures for doing his job, then not only would he be able to do his job faster and more efficiently, but others would be able to fill in for him when Bob was not around.
When I work with a CEO on improving the company’s efficiency, and I find out about a Bob, I know that Bob’s days are numbered. Before I leave that project, Bob will be looking for another job, and someone probably significantly junior to Bob will easily have taken over his responsibilities and is accomplishing more in less time. Get rid of your Bobs and be sure that every role is defined either before you bring a person in to do that job, or by the first person actually doing that role.
Even if they are not the model of efficiency, it’s important to create a set of SOPs that can then be modified and improved as time goes on. Once the SOPs are created, it will make it much easier to see if a process is redundant and unnecessary. SOPs allow for more clarity within the organization because they show relationships between tasks and how they lead up to the full product and sales workflow. Many employees will not care about the big picture, but it will be much easier to see nonetheless.
To learn more about how we can help you, book a call with Ryan Chute of Wizard of Ads® today.
Corporate Culture
Beyond Tenure & Attitude: Building a Team To Keep Up With Your Growth
Are the right people in the right positions? Are you re-evaluating employees and moving them around to the most efficient utilization within the organization?
HUMAN RESOURCES OPTIMIZATION
Are the right people in the right positions?
In an earlier post I talked about hiring well. In this chapter, we continue looking at employees. One area that I’ve seen neglected in all but the largest companies is that of re-evaluating employees and moving them around to the most efficient utilization within the organization. So how does a company go about doing that?
I talk frequently about the evolution of employees both from a business need and from an employee perspective. An early-stage startup business needs flexible people who are jacks-of-all-trades and masters of none. The need to ‘jump in and help’ is much greater in an early startup than in a billion-dollar corporation. That ability to jump in and help becomes a liability as the company grows large enough to have managers and specialists. Specialization in departments is the key to growing a business from $10 million to $100 million and beyond. So does that mean that most businesses start replacing their founding employees as soon as they reach $10 million? On the contrary, most businesses simply promote their generalists, jacks-of-all-trades to senior management positions as the company grows. Do these people grow with the company’s needs, specialize in some departments, and become experts? Sometimes, but mostly not.
Many large companies are filled with managers who know less about their departments than both their boss and their employees. These generalists are quick to offer to help and jump in – that is why they were hired in the first place, remember? But this ability is rarely a good thing for a manager. They are loved by their employees because they act just like one of the guys, always covering for their team and throwing themselves on any failures, knowing that their long service to the company and their ability in the early years to do what was needed will ensure that their departmental failures are overlooked. This behavior is not good for the business.
So am I saying that an HR optimization is simply the elimination of all tenured employees from a company? No, of course not. Some employees do indeed find a specialization and end up focusing on it as the company itself grows. These people represent truly the only group of employees that it pays to hang on to for extended periods of time. They grew with the company, grew into specialists, and yet hold a lot of wisdom – knowledge, and experience about failures in the early days. These are the employees who have been with Apple and Microsoft for 25+ years. The people at Google and Amazon have been there for over 15 years. There are very few of them, and they have shown upward progress within the companies, not simply because of tenure, but rather because they have changed as the needs of the company have changed.
So the real question is how do you separate the people who have changed with the needs of the company from the people who have merely hung on? After all, the latter group may very well be more liked by their staff, and their willingness to always say “yes” to helping others is seen as an asset. It is very challenging for most business owners, and even nonowner executives, to admit that these employees are replaceable.
However, for the betterment of the company, the trees need to be pruned on a regular basis. The only way that I’ve experienced this happening is by having an outsider come in to observe and evaluate management. Generally, this will be a management consultant or some similar outsider. Their job is to figure out if the people in the roles within the organization are the ideal people who would be hired if that position were open today, or if they are simply filling that role by default, or as a reward for being with the company a long time, or perhaps for being the only person who didn’t take a step back when the role needed to be filled during a busy growth phase in the past. A business consultant will be able to figure out who is accelerating the growth of the company, and who is slowing it down.
The one exception that I’ve experienced was in a Fortune 500 company years ago. I had been closely working with a senior employee who had been with the company for nearly 20 years. One of my jobs was to evaluate his performance and report back to management. As I got to know this person I started to recognize him as a very dedicated employee who had a bit too much generalist in him. I didn’t think he would be climbing the management ladder but felt that he would be a great asset to any quick response team in the company – essentially a “jump into the fire” team inside the organization.
I was surprised when I found out he had in fact years earlier been promoted to a large department manager. I was wondering if he had failed to be demoted back to a senior non-management employee. As it turned out he had not! He realized after a few years that he hated running a team of 40 people. He much preferred to be the guy in the trenches that others could turn to for help, rather than planning staff reviews and working with project managers and business analysts. He actually saw his own strengths and weaknesses and made the proactive decision to leave management. This was a big benefit to the company because he was able to do what he was good at, rather than be a shitty manager.
Unfortunately, after I was done with that client, I found out they had laid him off anyway. I didn’t hesitate one moment and recommended him to be brought onto a project I was now running for another Fortune 500 company. This new team needed precisely this kind of experience and energy. He was much more valuable as the lead triage guy than as a director or group manager. Of course, his experience level would pay at the level of a director!
This was not the only instance I’ve found someone a position after they were let go from a company I was consulting. If you read my earlier book I’m sure you will remember a few of those stories.
To learn more about how we can help you, book a call with Ryan Chute of Wizard of Ads® today.
Branding
Google Ads: The Tax You Pay For Not Having a Strong Brand
Do you think if more people knew about your company and how you care for customers, they would want to work with you?
In your city today, people are looking for a solution to the exact problem your company solves. They are looking for someone who does what you do, but they don’t know you.
Typing their problem into Google produces a list of you and all your competitors.
They want someone they can believe in, someone they can trust. Someone just like you. But since they don’t know you, they don’t choose you.
Thousands of 5-star ratings help make you a little more attractive, but an unknown name on a list is just an unknown name on a list.
Of course, Google will let you bid to be at the top of the list, but you’re still just an unknown name on a list. Plus, there’s no guarantee the expensive clicks you are paying for will become actual customers. In fact, there’s no guarantee the clicks are even real people.
A better way
But what if your name was known? What if a lot of people you’ve never met not only recognized your name but already liked and trusted you?
Well, for one thing, you wouldn’t need to bid away your profits to be at the top of a list. When someone needs what you do, they already know who to contact.
And once your company is the recognized solution, you will be less likely to have to compete on estimates. Instead of being one of many, yours will be the only company most people will trust.
Do you think if more people knew about your company and how you care for customers, they would want to work with you? You’re damn right they would!
Your name + your story = your brand
When you’re the company people think of first and the one they feel best about, the rest of the list becomes irrelevant.
Google exists for companies that don’t have a good name or don’t know how to tell their story effectively.
You need to start sharing brand stories that people fall in love with. Craft messaging (ads) that engage and delight. Tell your story in a way that makes people want to do business with you before they ever meet you. Then share your engaging and delightful story with incredible efficiency and effectiveness.
We can help. But there’s a catch. We only work with honorable people who truly care for the welfare of their customers.
If you are tired of bidding for clicks, hoping there are customers attached, and you want to be the company people know they want to work with, let’s talk.
Book a call with Ryan Chute of Wizard of Ads®, and let's create those mind-blowing ads.
Customer Journey
Avoid This Mistake To Convert Deal Hunters into Loyal Customers
Discover the transformative power of customer relationships in the residential service market.
Two critical factors are pivotal in driving business growth and security when customers worry about a troubled economy:
- word-of-mouth referrals;
- and repeat customers.
The industry grapples with challenges such as potential recessions, labor shortages, and reduced access to working capital. That is why the importance of cultivating lasting customer relationships has never been greater. ServiceTitan’s recent Residential Contractor Report market report reveals that a staggering 71% of business volume last year was attributed to word-of-mouth referrals, while repeat customers accounted for 39% of annual revenue. Word of mouth includes, reviews, posts on social media, referral in local neighborhood groups as well as neighbor to neighbor recommendations.
The Most Common Mistake
This is where we see the most common mistake; companies send out the least trained and experienced technician.
- Are they truly ready to represent the value of your people and your brand?
- Do they carry themselves with the confidence that your customers need to know you are the best solution for them in the future?
- Have you wowed your customer, and delivered an over the top experience in this simple transaction?
- Does the customer realize there is no reason to ever call anyone else?
Please invest the time and effort in thinking through why this is so important.
Understanding Transactional vs. Relational Customers
Let’s delve into the importance of transforming one-time deal seeking, transactional customers into brand loyal relational ones, and the profound impact this shift can have on the residential service contracting business.
Wizard of Ads Partner, Ryan Chute breaks down the difference between transactional and relational customers. Transactional customers are primarily driven by price and deals. They are the bargain hunters, often lacking loyalty and prone to switch brands for better deals. On the contrary, relational customers look beyond price, valuing aspects like quality, trust, and the overall experience. They are the ones who form emotional attachments with brands, often turning into advocates and repeat buyers.
The Shift from Transactional to Relational
Transforming a transactional customer into a relational one is not just beneficial but essential for sustained growth in the home services market. The process begins with exceptional service, that is BETTER than they expect, you must exceed the basic expectations of a customer. When a contractor goes the extra mile, it creates a lasting impression, laying the foundation for a long-term relationship.
Engaging customers on a human level helps in understanding their unique needs and preferences, allowing for tailored services that are relevant to them. Educating customers about the value offered, beyond just the cost, also plays a crucial role in this transformation. This value-centric approach can shift the focus from price to the overall benefits and satisfaction derived from the service and the overall business.
Leveraging Word-of-Mouth and Repeat Business
The power of word-of-mouth in this sector, as indicated by the 71% business volume it drives, is monumental. Satisfied customers not only return but also become brand ambassadors, recommending services to others. This organic form of marketing is cost-effective and highly impactful. Repeat customers, contributing to 39% of the annual revenue, are indicative of the trust and loyalty earned by businesses. They represent a stable revenue stream and are less price-sensitive, often willing to pay a premium for trusted services.
The initial interaction with a customer sets the tone for the future relationship. Investing in this initial experience is critical. It’s not just about making a sale; it’s about starting a journey with the customer. This includes understanding their requirements, offering customized solutions, and ensuring they feel valued and heard. Such investment in the early stages of customer interaction can significantly elevate the chances of converting them into long-term, loyal clients.
The Role of Brand Values and Community Involvement
Aligning customers with a brand’s values can transform their perception from seeing a service as a mere transaction to being part of a larger community. Involving customers in brand-related activities, sharing stories of the brand’s mission and values, and consistently delivering on promises strengthens this bond.
The Way Forward: Focusing on Relationships
The path to success in the home service contractor market is intricately linked to the ability to build and nurture customer relationships. By transitioning from a transactional to a relational approach, businesses can not only enhance their immediate revenue but also pave the way for long-term growth and sustainability.
The emphasis should be on creating memorable customer experiences, leveraging word-of-mouth, valuing repeat business, and marketing to both relational and transactional customers effectively. As the industry continues to evolve, those who master the art of relationship building will undoubtedly emerge as leaders, charting a course of profitability and resilience in an increasingly competitive landscape.
Book a call with Ryan Chute of Wizard of Ads®, and we’ll hook you up.
Customer Journey
Why You Need to Rethink Your CSR Department
Why do you need to invest time and money in your car department? If you don't someone else is stealing your leads...
You may think of your Customer Service Reps in terms of how many calls they can handle in an hour.
Or by how much you pay them per hour.
But here’s how you should really think of them:
By the amount of money that flows through them every shift.
If you’re a Home Service Company then understand that ALL of your mass media budget ultimately flows through your CSR reps before it can add to your top-line sales.
That may be hard to hear, but it’s true.
And that means months and years worth of effective mass media branding can be undone in a single phone call.
If the goal of your branding ads was to get the customer to think of you first and feel the best about you when they finally need what you sell…
And if the ads achieved that goal, garnering you the prospective customer’s phone call during their moment of need…
Then you’d darn sure better make sure that:
1) You answer the phone with a real human who can help promptly.
And that doesn’t mean after putting the customer through a seven-stage phone tree or putting them on hold for five minutes or having them talk to an answering service run out of India, etc.
2) You “Show Up” on the Phone as the Same Company that Appears In Your Ads
Your CSR Reps should:
- use your brandable chunks,
- show empathy,
- be personable,
- be aware of your advertising & current offers, etc.
If the employees speaking to customers are mere “Order Takers” with no personality or empathy, you’ll damage your brand.
That makes your CSR reps some of the most important people in your company.
You are used to thinking of your working techs, plumbers, or electricians in terms of how much money they earn the business in a year.
For example, a tech in a truck should be bringing in roughly $500K to the business through his work.
But do you ever think of customer service reps in the same light?
Well, you should.
Because every job that tech went on had to pass through CSR first.
If the job doesn’t get booked through CSR, it doesn’t get run.
And, yet, while tech turnover is a major concern for managers, CSR turnover is often considered ordinary and expected.
So go ahead and calculate how much money flows through your CSR employees.
Now that you have that number,
- Do you think it’s worth paying them better and offering performance bonuses to keep them on board?
- Do you think it’s worth your personal time and attention to the CSR department to ensure they feel like valued team members?
- Do you think calls might be answered differently if the reps knew you personally sampled calls every week and rewarded great calls while addressing bad calls?
In a world where leads are fewer and more expensive to get, investing time and money to ensure every lead is handled properly on the phones is simply smart business.
Book a call with Ryan Chute of Wizard of Ads® today.
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Frequently asked questions
Questions? We’ve got answers.
Why Wizard of Ads®?
Are you ready to transform your business into a distinctive, emotionally resonant brand? Here's why hiring Ryan Chute and Wizard of Ads® Services is the game-changer your business needs:
Distinctiveness Beyond Difference: Your brand must be distinctive, not just different, to stand out. We specialize in creating emotional connections with your customers to make your brand unforgettable.
Building Real Estate in the Mind: Branding with us helps your customers remember your brand when they need your service again, creating a lasting impression.
Value Proposition Integration: We ensure that your brand communicates a compelling value proposition that resonates with your audience, creating a powerful brand strategy.
Who Should Work with The Wizard of Ads®?
Wizard of Ads® offers services that start with understanding your marketing challenges.
We specialize in crafting authentic and disruptive brand stories and help build trust and familiarity with your audience. By partnering with Wizard of Ads®, you can transform your brand into one people remember and prefer. We understand the power of authentic storytelling and the importance of trust.
Let us elevate your marketing strategy with our authentic storytelling and brand-building experts. We can take your brand to the next level.
What Do The Wizard of Ads® Actually Do?
Maximize Your Marketing Impact with Strategic Alignment.
Our strategy drives everything we do, dictating the creative direction and channels we use to elevate your brand. Leveraging our national buying power, we ensure you get the best media rates for maximum market leverage. Once your plan is in motion, we refine our strategy to align all channels—from customer service representatives to digital marketing, lead generation, and sales.
Our goal is consistency: we ensure everyone in your organization is on the same page, delivering a unified message that resonates with your audience. Experience the power of strategic alignment and watch your brand thrive.
What can I expect working with The Wizard of Ads®?
Transform Your Brand with Our Proven Process.
Once we sign the agreement, we visit on-site to uncover your authentic story, strengths, and limitations. Our goal is to highlight what sets you 600 feet above the competition. We'll help you determine your budgets and plan your mass media strategy, negotiating the best rates on your behalf.
Meanwhile, our creative team crafts a durable, long-lasting campaign designed to move your brand beyond mere name recognition and into the realm of household names. With an approved plan, we dive into implementation, producing high-quality content and aligning your channels to ensure your media is delivered effectively. Watch your brand soar with our comprehensive, strategic approach.
What Does A Brand-Foward Strategy Do?
The Power of Strategic Marketing Investments
Are you hungry for growth? We explain why a robust marketing budget is essential for exponential success. Many clients start with an 8-12% marketing budget, eventually reducing it to 3-5% as we optimize their marketing investments.
While it takes time to build momentum, you'll be celebrating significant milestones within two years. By the three to five-year mark, you'll see dramatic returns on investment, with substantial gains in net profit and revenue. Discover how strategic branding leads to compound growth and lasting value. Join us on this journey to transform your business.
Ready to transform your world?
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