Gratuitous sorcery and incantations from actual Wizards.

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. 

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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. 

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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. 

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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. 

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To learn more about how we can help you, book a call with Ryan Chute of Wizard of Ads™ today

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.

So there’s a meme making the rounds about Gen-Z / texting slang that’s worth some study if you want to create powerfully persuasive advertising. Check it:

As you know “stuff” is inevitably lost in translation.

But in a great translation, important “stuff” is also added to the mix.

So what’s lost in translating from adult / corporate speak to teenage?

And, most importantly, what’s added?

What’s lost is formality. And not the good kind.

We’re not talking about the high formality of solemn occasions and deep rituals.

We’re talking about the bullshit formality of corporate speak. That’s totally ditched in the translation to teenager.

So what’s gained?

• Personality.
• Attitude.
• Emotion.
• Vulnerability, and
• Real Perspective.

In other words, EVERYTHING that matters when it comes to distinguishing your ads and brand from the background clutter.

Look past the slang to see the attitude, emotion, and perspective embodied in this way of speaking.

The lack of caps and opening “sup?” are meant to convey the casual, friendly familiarity of equals. The person writing this doesn’t take herself too seriously.

Moreover, she implicitly recognizes that she’s asking the reader for a favor with her plea to “Hook Me Up at [phone number] by pointing out anything that’s “sus.”

A sentiment that’s echoed with the admission of “need your help fam” as the sign-off. Note the no-BS vulnerability of this phrasing.

Now compare this to the rather distant and bland “Please don’t hesitate…” opening of the adult sign, which automatically puts the reader at a remove, and then pretends that the writer is offering to do the reader a favor should the reader be responsible enough to report “anything that needs our attention.”

Note also how the teenage translation provides concrete examples: “like IDK a toilet that got REKT or something.”

Most important is the unabashed, vulnerable willingness to admit to big goals.

Contrast “We want to make this campground as relaxing and comfortable as possible” with “TBH we high-key tryna glow-up this campground. can’t stop, won’t stop until this place straight up slays.”

What Kind of Language Is In Your Ads?

Are your ads using language that conveys personality, attitude, vulnerability, and perspective?

Are you presuming an intimate familiarity with the audience?

Or are you insisting on an awkward formality?

[Hint, if you introduce yourself in every ad, you’re inadvertently insisting on an awkward formality]

Do you use the casual language of close friends?

Or do you use the artificial language of corporate-speak?

Do you have a recognizable attitude towards your profession and your customers?

Do you have an articulable “advocated position”?

Do your ads have personality? And recognizable branded chunks?

In other words, are your ads closer to the teenager version of the sign?

Or are your ads imitating the blah-blah-blah of the adult sign?

If you need new branding guidance, book a call with no other than Wizard of Ads®. We'll help you figure out what new perspective on branding can work for your business.  

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.

Two critical factors are pivotal in driving business growth and security when customers worry about a troubled economy:

1. word-of-mouth referrals;
2. 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.

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.