Central Turf & Irrigation Supply


The Power of Customer Retention: Tips for Professional Contractors

There's an old maxim in marketing that says: "good companies find customers to make a sale, great companies make a sale to find a customer."

Loyal customers are a source of steady income, yet many contractors neglect efforts to retain and nurture business from past clients.

Here are some reasons why your company needs a customer retention marketing program:

1) Loyal customers are the biggest source of referral business. For many contractors, referrals account for over 70% of new customers acquired each season.

2) Loyal customers are most likely to buy additional and repeat services, spending 30-40% more than non-loyal accounts.

3) Closing rates on quotes given to current loyal customers are 3-4 times higher than win rates with new customers.

How do you market to current customers to keep them loyal?

1) Invest in a regular customer e-mail marketing campaign that keeps your company top-of-mind with key accounts in the critical parts of the season. You should touch customers 4-6 times in a season.

2) Send direct mail postcards to cross-sell additional services and upgrades. These not only sell new items, but also they serve to remind customers of your brand.

3) Budget $3-$5 per customer, per year for a customer retention marketing program from a professional service. It's a smart investment that will yield big returns.