The Goldmine Marketing Strategy You’re Sitting On

Ange
Well, today we’re diving into the gold mine of repeat business, otherwise known as retention marketing. This strategy is so powerful. It could transform your trade business with just a few tiny tweaks. 

Andy
Seriously, you can make your profits skyrocket with this stuff and we’ve got real stats to back that up too. Lots of tradies are quite surprised at how effective this can be on their bottom line. So buckle up for a jam packed episode because we’re going to help you make your current customers Your biggest fan. So let’s get into it.  

You’re listening to The Tradie Show. This is the podcast for trade business and contracting bosses like you, who want to lead with confidence, make more profit and create a better lifestyle. 

Ange
We’re your hosts, Andy and Angela Smith. Husband & wife team and co-founders of Lifestyle Tradie. Are you ready to have some fun? 

Andy
Hell yeah! Are you ready to take your trade business to the next level? Imagine transforming your business in just one day. At Lifestyle Tradie on Tour, we understand that being a great tradie isn’t just about the tools you use, it’s about the business you build. Join us for a power pack day where you’ll discover systems to set your business on autopilot, financial strategies to boost your bottom line, marketing tactics that fill your months, and much, much more. This isn’t just another business seminar. It’s a day of learning for real tradies ready to grow their business and improve their life. One day can change everything. Are you ready? Spaces are limited, so secure your spot today and join us at Lifestyle Tradie on Tour. It’s time to build the business and life that you deserve. 

Today we’re unpacking a topic that’s a bit like that trusty old toolbox in your garage that you forgot had so much value in it. We’re going to give you a whole lot of repeat business strategies so you can kick butt with your marketing. We have a huge list to go through so you can stop being such a slave to the never ending hustle of attracting new customers.

Ange
Well, you know, we often hear tradies talking about the hustle of finding new customers, like chasing their next job and the next and the next. And to be honest, it’s actually just exhausting.
But what we know from experience and from teaching thousands of other trade business owners, there is a much more efficient way of marketing your trade business.

Andy
But guess what Ange? 

Ange
What Andy? 

Andy
As well as being a more efficient way of marketing, retention marketing is a lot cheaper than just trying to attract new customers all the time. And they also help increase your profits as well. And I’m not just blowing smoke here. This has been proven in studies and also from our own experience.

Ange
I actually think tradies have no idea about the literal gold mine that they’re sitting on. Just by servicing our customers, we’re always building a robust database of information. Like their name, address, mobile number, and in our trade as a plumber, the age of the hot water heater and the work we’ve completed to date, for example, all this is worth lots of money if you’re collecting the right data and if you know what to do with it.

Andy
Side note, even if you’re not a maintenance style business, today’s show is still relevant because we’ll also talk about cross selling and getting referrals. 

Ange
Yeah, that’s a really good point, Andy. The thing is, I truly believe that retention marketing shouldn’t just be some afterthought. It should actually be a priority in your trade business.

Andy
And we focused really hard on retention marketing in Dr. Drip. And that’s why at the time of selling Dr. Drip, we sat at 77 percent repeat business. And you know what? I was super proud of that because it was so much easier not having to fill out a job schedule with only new customers. Repeat customers did a great job of that and they were super reliable and came back time and time again.

Ange
Yeah, it really was a game changer, that’s for sure. As we share these strategies today, I want to highlight what specific strategies we did in Dr Drip, plus I want to share stories from our Lifestyle Tradie members. If you want to get your hands on a full list of all 39 retention strategies to drive repeat business that we’re going to cover today, there’s actually a download available. So just simply go to the link in the show notes or it’ll be on our podcast page on our website. But before we get into the strategies, I want to start by asking you a question, Andy, why don’t tradies do more to get repeat customers? 

Andy
Well, I think honestly, Ange, I reckon that most of them don’t even think about it. You know, when you’re in the grind of the day to day with your phone buzzing, your team asking you endless, endless questions and the customer demands are always increasing. You’re just really turning the wheels and your aim is literally just to get through the day and get through the week. You’re sometimes in just simple survival mode and you’re always on the hunt for the next job.

Ange
Well, when you’re in that mindset. It’s easy to see why you’d completely overlook a goldmine of customers that you’re literally sitting on. 

Andy
Well, to be fair, the goldmine of a database only exists as your business grows as well. So if you’re only just starting out, you have no choice but to seek new customers. It’s ingrained into us to constantly find new customers, new customers, new customers. To ensure our business survives, what is important is knowing that within only a few months as your database grows, staying in contact with your customers becomes super important. 

Ange
Yeah, but it’s just not something that most tradies think about, right? Retention marketing is not a topic you hear being discussed that often and most tradies simply do what they’ve seen their previous boss do, right? Who may or may not have been very good at marketing or selling. 

Andy
And the other thing is Most people think if they did an okay job at the start that the customer will just come back on their own. But as we know, and we’ve talked about in the past, sometimes customers just don’t remember who you are. But as I mentioned in our plumbing business, Dr. Drip, we had 77 percent of our work was repeat business and we were a maintenance plumbing company that did Mr. and Mrs. Jones. So it wasn’t like big clients, but we worked very hard to keep that percentage up at that level.

Ange
I think it’s important to say that we actually did that strategically and it actually helped us get out of that survival mode. So when you have a fairly reliable source of profitable work that keeps the team busy, you are in a position to make really clear decisions and take considered and decisive steps to lead your team.

Andy
Yes, good point. But you’ve got to remember too, you’re the leader of the pack. You need to lead the team and the business in the right directions, you know, towards that success that you’ve always wanted and not just where the wind blows and that’s where it takes you. But I get it. It’s pretty hard to do when you’re always wondering where that next job and paycheck is coming from. Now, Ange, I know you’ve got some stats to share that relates to retention marketing that are pretty impressive. Can you share that with us all? 

Ange
Yep, Andy, you know I love some good stats. So according to Harvard Business School, acquiring a new customer can be up to 5 to 25 times more expensive than retaining an existing one. Let me say that again. Finding a whole new customer is going to cost you 5 to 25 times more than just encouraging one of your existing customers to book again. Who might I add? Probably already like and trust you. 

Andy
Five to 25 times more. That is crazy.

Ange
I know. So doesn’t it make sense to keep in contact with existing customers and ensure that they stay loyal and long term customers of your business if you can?

Andy
Look, I know and you know I’m a simple man, but that is plain and freaking simple to me. Do what you need to do to make your best customers happy. So they’ll book time and time again. 

Ange
Yeah. Well, here’s another reason why retention marketing is so important. A mere 5 percent increase in customer retention where customers booking again can result in profit increases ranging from 25 to 95%. 

Andy
Ooh, you’re killing it with the stats today, Ange, but let’s face it. That is a massive jump and just highlights the point. Retention marketing efforts can have a huge impact on a company’s bottom line. 

Ange
I think it’s actually important to also share that with Dr. Drip, we increased our average dollar sale three times when we managed to get back inside to that house with our repeat customers, it basically means that their transaction value was way higher on the second and third visit and onwards. Because they actually already trusted us to complete whatever necessary work that we suggested. 

Andy
Yeah. Okay. So let’s change it a bit and let’s talk about what happens when you’re not a maintenance style business. 

Ange
Sure.

Andy
Just like Lifestyle Tradie Member Simon from The Heater Man. You know, he started his business in Sydney installing heaters, gas heaters at first and would just sell and install the box, but he’s always looking at how we can increase the money made from each customer from a value add point of view. So he decided to start offering more of an end to end service like building out the whole fireplace. So this meant a $2, 000 job could have been up to a $25, 000 job. 

Ange
Oh my gosh, that is just incredible. That is upselling at its best. And it’s all for the benefit of the customer. 

Andy
When we do not say, and let’s face it, a lot of times the customers are happy because they’re not dealing with multiple trades. They’re dealing with one person.

Ange
Absolutely. And you as a business are happy too. You can do this in lots of different industries. Let’s say you build pools. Could you also offer the landscaping around the pool or maybe you also offer the yearly checks or even the maintenance of the pool? 

Andy
Yeah, there’s a lot of things that I think a lot of trade businesses out there can offer more and when times maybe aren’t as busy, then that’s the time to try some of these things as well. Okay. Okay. I’m itching to get into these strategies, Ange. So what do you want to share with us first? 

Ange
Well, first I want to point out that retention marketing can come by actually a couple of forms. So one could be through contracts with specific marketing segments like strata companies or commercial places like schools. And then the other way is specifically through marketing. And the thing is, Andy, sometimes it’s as simple as asking for the repeat business. 

Andy
Actually, I’ve got a story that relates to that. A friend of ours, Tina, was just telling me the other day how she hired this lawn mowing guy and she did a yard a few weeks ago and she’s actually got him after seeing him in a local Facebook group.

Ange
Right. Supporting locals. That’s nice. 

Andy
Yeah. Yeah, it was. And the guy came and they did the lawn. Let’s call him Adam. I can’t, I don’t really know the name, but she was really happy with Adam and she paid him on the spot. Adam left and Tina got on with her busy day. And a month or so later, she was like, hang on, I need my lawns done again. But guess what? There was a problem. She couldn’t remember Adam’s phone number. She couldn’t remember where she found him in Facebook land. And all of a sudden she was singing to herself. Well, how the hell do I actually get in contact with him? And then she said to me, if he actually asked me, I was so happy with what he did the first time, I would have said, why don’t you come every two to three weeks or every month and just keep it ongoing? But he didn’t even ask. So you know what she did? 

Ange
Tell me. 

Andy
One of the neighbor’s kids wanted to earn some money. So she paid them to do it, which is pretty cool. 

Ange
Absolutely. But that could have been such a simple repeat customer. If only he’d asked that simple question, like, when would you like your lawns done again? Or seeing it’s summer, Tina and the grass grow quicker. I’d suggest we mow every two weeks. How about I come back then? 

Andy
Yeah. Or Adam could have done a simple Facebook message or a text message. If she had, I think he had her details. Yes. So, you know, the interesting thing is you’ve got to get inside the head of your ideal customer. If you’re dealing with mums running around a household like Tina, because they’ve got thousands of things going on in their mind. And sometimes they appreciate just being asked a friendly reminder by a text or by a phone call, maybe through socials.  Hey, what about we come out and do your lawns again? Or why don’t we come and do some pressure cleaning for your driveway or whatever it is. You might even be a pest control business and we know they’re very good at this or they should be very good at this. And they come around either six monthly or yearly. 

Ange
Yeah. Look, I love that story because it’s so simple, but it’s actually super effective. And what you’ve actually done is generated repeat work for yourself. So you don’t need to keep going hunting for new customers. So many tradies either forget or are actually just too scared to ask for the sale. 

Andy
And you know what, that’s a whole other story. And perhaps you’re one of those people that just feel sales is confronting or hard and listen, I’m not going to go down that rabbit hole today, but in regards to Tina, she would have just rather the lawn mowing guy asked if she wanted to read a book on a regular basis. And she would have done that just like she does her fortnightly cleaner that she’s got. 

Ange
Yeah. So guys, that’s a great insight for you. If your ideal customer is a mom with young kids, she’s busy trying to manage a busy calendar and think about how you can make her life easier. Just ask for the sale.

Andy
Ask for the sale. I’m not going to rant, but the amount of tradies I talk to and they go, Oh yeah, but I just feel a bit awkward. Why? Don’t feel awkward. Ask for the sale. 

Ange
Well, if you’re in an industry to make this a regular gig, then ask what’s the worst that can happen. They say, no, thanks. I don’t want to do that. But what if they say yes. 

Andy
All right. So we have 38 other retention strategies to drive repeat business. And as much, I’d love to go through all of them. We don’t have three hours for a masterclass right now. 

Ange
It could be detailed. Yeah. So let’s spend some time then just listing them out. But if you want to ask any questions on how to do these in your trade business or find out why we believe they work so well and how to actually implement them. 

Andy
Not believe, they do.

Ange
They do. And I suggest you grab a free ticket to our upcoming event called Lifestyle Tradie on Tour. I’ll pop the details in the show notes, or you can just go to the website, lifestyletradie.com.au.

Andy
Okay. Let’s play a game. Let’s play a game. If you start by listing the retention strategies. And if I want to elaborate on one, I’ll yell out, hell yeah.

Ange
Okay. All right. This will be interesting. 

Andy
Yeah, it will be.

Ange
So there is a mix of online and offline retention marketing in here, plus low cost and high cost. And then you need to consider your avatar and the market segments you work with. And this will depend obviously on the strategies that you may choose. Okay. So let’s go. Business cards. So today people often have business cards featuring a QR code, which I think is pretty cool. There is still a place for these depending on your market segment, I suppose. Fridge magnets, still a big fan. People are super tactile. Then there are stickers for things like hot water heaters, electrical safety boxes, and incredible for high value emergency work. You can print branded products like pens, hats, and leaves as a gift for customers. And now your brand is floating around their house. And blogs on your website. They are still a thing, people, despite what people might believe. 

Andy
And as we know from Nathan, from Nathan Lawns and Gardens, who we had on the show a while back, TikTok and Instagram videos are amazing ways to remind current customers about you in addition to building some loyal customers. And I know he has a full roster of repeat customers. He is a legend, this bloke. 

Ange
Let’s keep going. So then there’s email marketing.  Okay. I’m glad you stopped me on this one. This actually is so important and a huge missing piece of the puzzle for heaps of trade business owners.

Andy
Well, tradies think their job management systems are enough, but they’re definitely not. You need a proper CRM system, which stands for Customer Relationship Management. It’s a system and it’s used specifically for marketing to nurture prospects and stay in contact with existing customers, just like with emails. 

Ange
Yeah. You can send email updates to your whole database. It might be a monthly drip email or maybe emails at specific times of year, alerting them to say specials or maybe your holiday opening hours or helpful tips and blogs. Or with a specific offer or what we call, a call to action so that they actually get in contact with you to book a job. Let’s keep moving because I still have more. I’d have to say a very powerful strategy is a membership program. 

Andy
Hell yeah. I’m back.

Ange
I think I’m just lucky to get that out. 

Andy
You jumped out of the, jumped out of your skin. You almost hit the roof. 

Ange
I said a membership program and he went a bit mental. 

Andy
Oh, sorry. Yeah. You know what? Powerful is right, Ange, in a big part of our plumbing business, it has to be executed the right way. But in short Everyone wants to feel special and be given priority service, especially in this day and age where customers are becoming even less and less tolerant and they’re, let’s face it, they’re becoming more demanding every day, aren’t they?

Ange
Yeah, I totally agree. So let’s move on. There’s also award communication. 

Andy
Hell yeah!  

Ange
Oh, here we go. 

Andy
Oh, I’m on a roll. 

Ange
Are you just going to say hell yeah to every single one of them now? 

Andy
There’s a couple of things there I was like, I’m just there, you know? 

Ange
Okay. 

Andy
So with awards, this is where you communicate to all your existing databases that you’re a finalist and hopefully you’re a winner. It’s a great reason for a touch point to thank them for being so amazing. And when you send an offer that they can book a job, it always results in new work for us. But the way that we’ve sent that out was really not to gloat about how amazing we are, even though we sort of did, it was actually to thank them for being such amazing clients and helping us win this award. 

Ange
Yeah, absolutely. We all know that we love an award. 

Andy
And when you say thank you to someone and when you put it in such a personal letter like we did, it makes them feel warm and fuzzy. I know that seems weird, but it did. And they felt like it. Hang on, our plumbers are award winning and we helped them get there. Oh, I love Andy and Ange. You know, I could go on and on, but it’s definitely worth it. 

Ange
Well, weirdly, we actually found with Dr. Drip that our customers actually stayed loyal and recommended us as they wanted to actually brag about the fact that their plumber was an award winning business.

Andy
Yeah, it’s actually really surprising, but I was surprised at how well it worked.

Ange
Yeah, proof is in the pudding. All right, let’s keep moving. Banners? Or be the first to have this new thing offer. We can look at birthday cards or gifts. We can do competitions. We can do credibility. Okay. I’m going to keep going. Facebook retargeting using only your customer database or magic moments. We call them when you’re like gifting, cause you know, they’ve had a new baby or a pet, or they’ve moved into a new home or some milestone that, you know, that you’re aware of. What about morning tea drop ins? 

Andy
Hell yeah! Okay. Oh, I love this game. Why don’t we play this game more? You must hate this game. I’m seeing you every time I do it, you’re jumping a mile high. 

Ange
I just know we’ve got so many to get through. Okay. Tell me about morning tea drop ins. 

Andy
Okay. Okay. This is one of my favorites. Who doesn’t love it when someone drops in with some fresh donuts or freshly baked croissants. It’s great if you’re dealing with real estates and stratas, it doesn’t matter what customers, but everyone loves it when you walk in. Welcome to the office at the right time and bring in something hot, fresh and delicious.  

Ange
Well that’s true. At the end of the day, we’re only human, right?  So the list retention marketing points also include, let’s keep going, networking events, newsletters, both online and offline, postcards with a specific offer or what we mentioned before, call to action, partnerships and joint ventures. We need to keep up with public relations. Spear emails and text messages, referral cards, reminder systems, safety inspection, targeted communication. 

Andy
Ding, ding, ding, ding, ding, ding, ding, ding, hell yeah.  I gave you a warning that time. 

Ange
You did, I like the warning. 

Andy
Something like this is where you’d have cause or scheduled emails and text messages going out based on the expiry date of say, a hot water heater, a smoke alarm, water filters, you name it, but there’s just a couple of examples.

Ange
Yes. So simple, but so effective. And the last lot, let’s keep going. Okay. Service contracts, signage on buildings that you work at, sponsorship, tags on water and gas units or switchboards, thank you cards, calling after a job, I thought of you, random notes and gifts, even vehicle branding can be considered.

Andy
And not forget the Christmas ones as well, the Christmas cards with communication to inform them that you’re open over the Christmas break. If you are Christmas gifts, but we’ve talked about this, you make sure you do your Christmas gifts really early. Be first. Be first. Like we always aim for the first three or four days in December to get it out there. And also do a Christmas fly around October, November, cause they get a Christmas flyer Then, and they go, Oh my God, Christmas is just around the corner. But what that does is it makes them think, Oh yes, I do need to get that done before the whole family comes over for Christmas and the rush starts. So it does help to get people booking in at that time as well.

Ange
Yeah. Look, we’ve listed a lot of ideas and strategies. 

Andy
And I could have done a lot more hell yeahs, but I held back. I held back. But what I like about some of these is it’s just so simple and you can literally implement them tomorrow. Whereas some require a little bit more thought, such as setting up a membership program or planning out some email marketing, whatever you choose. I want you to understand this, a healthy database of repeat customers is worth a great deal of money. Yes. It’s literally like a pot of gold and it makes your business a lot more valuable. 

Ange
Yeah, really good point. Savvy business owners will pay good money for a business that has a loyal database of people who are repeat customers because they know if they buy the business, they’re going to make money immediately the day they take over.

Andy
And that’s what happened obviously with our plumbing business, Dr. Drip. I mean, we knew the business was super valuable to any buyer and they were keen to beef up their residential arm and they wanted immediate help. Return on their investment. And we knew and they knew we could deliver that. So the question is in your business, if someone bought you out, would your business be worth a lot more? And could you deliver that? 

Ange
Yeah, look, good point. Either way, there is absolutely no excuse for every trade business owner now to not include retention marketing in your planning for the year. Just think about your avatar and the market segments you work with. And connect the dots on what is going to have the most bang for your buck.

Andy
It’s time for action, guys and girls, and you can use our guide to help you out. With this, remember the link for your free download on implementing retention marketing strategies is in the show notes.  

Ange
It’s tradie dilemma time. This is our Q&A segment where you let us know what you’re having trouble with in your business, and we give you our best advice.

Andy
And today we have a question from Dino. Well, his name’s Dean in Queens. Everyone got to know, after  a date. And  he writes, I’m a sparky and I quite enjoy the work, but my body is starting to feel the pinch. Hand up everyone out there. If you’re a tradie and your body is starting to feel the pinch, um, he’s only 30 and while he enjoys the freedom of working on his own. At times, he spends a day or two on a roof on his own and his knees are feeling like dog shit. I’ve been there, mate. But there’s no provision at the moment for an apprentice. So, he tends to carry the full burden. Do I have or do we have any tips or advice? 

Ange
Wow. Thanks for your question, Dean. I reckon there’s lots of people or lots of tradies that can actually resonate with your question. Being a tradie can be so tough on your body and you know this firsthand, don’t you, Andy?

Andy
Yeah, over the years, you know, it is tough being a tradie. It doesn’t matter what trade you’re in, digging, crawling through roofs. I had a reconstruction. I’ve played football or soccer all my life. You know, it is very, very tough at times and sometimes you just go, I just need that other set of hands. But you mentioned there, Dean, that you didn’t feel like you’re in a position to have that person. What can you do? And what I find is most people not in that position have not set the foundations of their business up the right way from the start. Yes. You’ve heard, hear me say this all the time. You don’t understand your numbers enough. You’re not maybe charging enough. You don’t have enough money in the bank to pay for someone else. And that all comes down to the way you’re running your business. And I know you’re not sitting down on the beach drinking pina coladas. You’re working bloody hard, but you’re probably not charging enough to get that reward you need. And once you do that, then you’ll have the money to take on an apprentice, maybe even get a bookkeeper. And this is the first step for big growth in business. If you want that. And realistically, that’s what we do. Isn’t it, Ange? Lifestyle Tradie. 

Ange
Yeah, that is what we do in Lifestyle Tradie, but I think it is important to what you just said, Andy, that you need to start planning for the future because Dean, if you’re truthfully telling us that this pain is not going away and going to a physio can only help so far and you know, you get out there again tomorrow and it hurts yet again, then you actually have to plan to get off the tools. So what does that look like for you? 

Andy
Yeah. And I think, you know, we talk about fitness and strength and going to the gym and looking after your body. I know if you go to a gym and you’re doing an hour a day at the gym and you’re hurting just from the gym, but then you’re obviously hurting when you’re out on site as well. And you still have bad knees and all this kind of stuff. But the people that I know that are training quite hard, their body’s used to it. I’m seeing more and more people that are letting themselves slip, so to say, maybe not a 30 Dino, but going on 40 and all of a sudden, because they don’t look after their body enough, they’re drinking too much piss, they’re eating the wrong food, what you name it, they’re doing it. Life is getting a lot harder as you get older. And that’s where I felt it firsthand. And that’s where getting fit, eating the right food, training regularly will make a huge difference to you as well. And from a mindset point of view, Dino, Get out there and do that. And anyone out there that feels like shit, you’re overworked, as you said, may feel like dog shit, then you’ve got to put that oxygen mask on first. Look after yourself first and then build your business the right way. And then that will definitely be the solution. 

Ange
Great question Dean, thanks for writing in and sharing your dilemma. 

Andy
And remember, if you have any questions or a dilemma in your business, reach out to us and let us know how we can help you.

Ange
Well, alternatively, if you want to come and meet us and ask your question in person, then grab a free ticket to our one day event where you’ll learn how to get off the tools, make more profit, and gain back your time. Go to lifestyletradie.com.au or check out the show notes to book your seat today.

Andy
Hell yeah!  Just need to do one last one. 

Ange
That’s the best. 

Andy
Subscribe to The Tradie Show, wherever you get your favorite podcasts. Rate and write us a review or for more information about Lifestyle Tradie, head to lifestyletradie.com au.