Social Media has changed marketing has shifted the way customers make their buying decisions and how they interact with the companies they buy from. You HVAC business better adapt to the new way.
One of the challenges I see a lot of local business face in their digital marketing strategy is that many business owners are approaching it with a traditional marketing mindset.
This is true across a wide spectrum of industries, but I see a prevalence in it in the HVAC, plumbing, and home service type industries where many owners are still resistant to a huge transformation that has taken place across the business landscape.
There has been a dramatic shift in the way business and marketing are done today, from traditionally successful approaches. Since the invention of the internet, we’ve watched purchasing dollars shift from brick and mortar purchases, to a rapid transition to online sales.
This transition can be directly attributed to a dramatic change in consumer buying behavior and that means home service customers especially.
It goes without saying that we’re dealing with the most educated generation of consumer in history. Another byproduct of the internet and the access
to information that it affords everyone.
Buying decisions are now being made online. Before a customer even picks up the phone to ask you anything, they’ve already researched you
and decided almost completely who their buying from and what they’re buying.
With the change in the buying decision process comes a significant change in what comprises a successful marketing strategy.
The ad dollars spent on traditional approaches are dwindling causing huge disruptions in many of those industries. All while the amount of online ad
dollars are exploding and do you know why?
Because of the effectiveness of properly ran digital marketing campaigns and the long-term assets they can create.
Now, when it comes to companies and their experience of, we also run into two different stories.
Either companies are really benefiting and have really latched on and are doing well with the digital approach, or what we here is “You know, we tried digital
marketing and it just didn’t work. We didn’t convert, we didn’t get good leads. It just didn’t work. We spent a lot of money and it didn’t produce any results”.
I would say in the vast majority of the cases, when I dig into companies that say this, when I look at the way that they approached digital marketing
it was from a traditional marketing approach.
The thing to understand is that while the internet has opened up all of this opportunity in ways to reach and talk to our, it’s also created a much pickier customer who is surrounded by a lot more marketing “noise.”
There is a new KPI that is going to rule in 2020 and we’re already seeing the impact of it on conversion rates and return on investment when it comes to digital marketing strategies.
Customer experience is the new king when it comes to the results you get back off of your marketing budget.
The most important part of that and what a lot of people don’t realize is, customer experience begins at the first interaction a customer has with your brand.
Let that sink in for a minute
The customer’s experience of your brand and their impression of its service begins the FIRST time the come into contact with your brand or it’s messaging in any way.
In the days of the internet, this just opens the door into what those initial customer experiences can be. The problem is a lot of businesses are approaching their digital marketing strategy from a traditional marketing mindset. You hope you reach enough people to expose enough people, enough times to a particular advertisement to steer the customer into a sale.
The challenge with this is that the modern consumer is looking for a much more personalized experience.
They want a business to talk to them where they’re at, about what they’re interested in, at the point in the buying process that they’re in.
The good news is that with digital marketing that’s all possible, when properly set up and executed. You can speak to the specific person in a fashion that speaks directly to them, whether they’re just trying to find out more about product information or whether they’re further along in the buying decision process.
The modern consumer is expecting customized messaging that brings them value and won’t accept anything less from a brand.
In 2020, the KPI that’s going to determine the success of a business more than any other analytic is going to be customer experience
Customer experience starts the moment that customer comes into contact with you online. From that point on they are judging whether or not you’re addressing what they’re interests are and whether you’re providing them real value at every point in their customer journey.
Meeting that expectation builds their belief that your brand will not only solve their problem but treat them well as a customer. This is what will result in them spending their money with you not only this time but every time in the future as well.
Bear in mind, chances are if you’re not doing it, I you have a competitor that is not only doing it but doing it effectively. And if you don’t, you can bet it won’t be long before there is.
To say that the HVAC industry is in a state of flux, would be a dramatic understatement. From dramatic shifts in customer buying behaviors and workforce shortages; to rapid evolution in systems and cutting-edge products. You name it, it’s changing!
The key to making this state of transition profitable for you and your company is staying at the forefront of the trends.
We’ve seen a consistent pattern of growth since 2011 which is projected to increase through next year perhaps even surpassing the levels this year is projected to close at. This growth will be fueled in significant part by the legacy systems of the 1990 coming to the end of their lifecycles.
This level of growth is a good thing but comes with challenges.
One of the most pressing that owners have been coming face-to-face with is the labor shortage. Baby boomers are phasing into retirement and millennials aren’t as active in the skilled trade sectors with HVAC being one of the hardest hit industries.
Gone are the days of help wanted ads attracting more attention than need. Today’s market requires creative and strategic approaches to hiring and employee retention. Partnering with a vocational college either through instruction or support has been an especially effective solution but, in many cases, doesn’t address the whole problem.
In a lot of regions, the demand for techs far exceeds the availability creating quite the challenge when it comes to finding quality, experienced individuals. This coupled with the millennial exodus from blue collar trades has created severe immediate shortage of capable talent. Including bonuses or employee appreciation programs go a long way towards not only keeping current talent but can be used to incentivize their focus on increased professional development.
In today’s market effectively cultivating new industry workers by keeping them loyal while inspiring them to increase their skill base while providing them with the opportunity to do it, can go a long way to helping your company avoid this current industry challenge.
According to the 2019 Economic Outlook Survey, there will be huge opportunities in the HVAC industry for 2020 but they will not be seen in all markets or segments. Certain areas of the country are experiencing more significant economic downturns than others, but even within the more anemic regions there are still opportunities.
With a potential global recession looming as a backdrop, really understanding your market and their needs is going to be key in making your decisions over the next couple years. There should be a definite focus on market research and brand positioning taking place within organizations ahead of the potential economic tightening.Which technology?
We’re seeing the face of HVAC technology options shift almost overnight with the advancement and permeation of smart home technology. These new gadgets not only change the industry but also change the consumer trends. What was hot yesterday is quickly becoming obsolete in the new environment. People are more and more viewing their homes as a system and are becoming more trusting as well as dependent on technology that allows them to integrate that system.
While significant advancement has been made with thermostats, humidifiers, and environmental sensors; we’re also seeing ground being made on the mechanical side with products like Cold-Plus a refrigerant additive which has been proven to significantly reduce the energy consumption of HVAC/refrigeration systems and dramatically extend the lifespan of the unit.
Aeroseal is another technology that although has been around a while, has seen significant advancements in application and system efficiency. The patented technology is connected the heating and air systems to distribute sealing formula throughout the entire system sealing all holes in the air ducts and vents.
Staying knowledgeable and abreast of these types of advancements allows you to have the most appropriate and valuable options available to you to ensure your business stays profitable while others might not be as well equipped to weather the storm.
Any business owner today knows the challenges of dealing with the most educated, pampered, and option driven customer base in history. Todays customers can be extremely demanding and price driven.
One of the most significant contributing factors to the change in customer buying behavior transforming today’s business world is that everyone is connected and sharing their experiences. This means your customers are not only researching and seeing what your previous customers are saying about their experience, but they also trust these what they say.
Meaning it is essential that you are staying on top of what people are saying about you and where they are saying it. If you are not present in the digital realm in a proactive way then you are not even hitting the radar of a majority of your market.
While these challenges can seem daunting and definitely pose a threat to the continued health of any business that isn’t responsive to the changes, they also present dramatic opportunities for growth for those who do. Understanding the shift in technology and customer behavior then will allow you to position your business to take advantage of the wave. With transformation comes new opportunities for those who choose to take them.
Do you see it?
Are you already using it?
Or maybe you’re just curious.
Either way if you aren’t already putting a digital marketing strategy together
then you’re about to get left far behind by your competition!
What am I going on about?
Why the HUGE opportunity that the internet represents.
ESPECIALLY for local businesses!
There have been other events along the way that dramatically shifted every
aspect of Life, especially business.
The printing press which revolutionized not only production but also forever
changed the face of commerce not to mention every other aspect of Life.
Then there was the original internet, radio. There’s no denying how it transformed our communication, especially the way we promoted our thoughts and creations.
Did you know that:
Compared to the internet which is now only 36 years old:
Do me a favor.
Draw a circle. That’s your market. That represents every dollar that can be made in your specific industry for your specific product and services.
Now how much of that market are you winning?
How much of it do you own?
Are you winning enough, or do you need to be winning more?
Your market share is determined in a large part by your marketing strategy, or more so today by your digital marketing strategy.
How are you reaching your customers?
Now you can climb right into the conversation your customer is having, and join in in a way that builds trust and establishes you as an authority.
Leading them to realize they would be missing out if they didn’t buy from you!
Of course the problem is that, just like you there are millions of other businesses out
there trying to do the same thing.
So where do you start?
Reduce ad spend and increase your ROI by targeting your PERFECT BUYERS every time! Define your audience and discover targeting opportunities that you might be missing. Stop losing money by including the wrong people in your targeting. Zero in on the exact type of customer who is most likely to purchase from you.
Get My FREE Perfect Buyer Cheat Sheet Now!The first thing is to understand who you’re targeting.
A lot of business owners skip this step or don’t really dig in to this question as deep as they should.
Understanding the exact type of person you’re trying to reach is vital in helping to craft the message and even knowing where to put your message.
The better you understand your customer the more effective every aspect of your marketing will be. From ad copy to the offer itself, knowing your customer is vital.
Take the time to create as thorough a customer avatar as possible.
Here are the areas you want to look at when thinking about your customers.
Customer Targeting
Here are some key areas you can use to target your ideal customers
Without thoroughly understanding your market and competition, you're leaving a lot of money on the table. This template provides important information which helps to identify new market opportunities and competitive advantages. Stop leaving money on the table for your competitors!
Get My Free Market Research TemplateAlthough there are hundreds of social platforms out there to choose from, I recommend picking one or two to start. You can always expand as you grow your marketing efforts, but especially in the beginning it’s important not to spread yourself too thin.
The platforms to start with is directly dependent on your target customers.
Where do they hang out online?
There’s Facebook, Instagram, LinkedIn, Twitter, YouTube, Snapchat, Google Adwords, Ad Roll, Native Ads, email marketing, and about a few hundred thousand other choices of platforms and mediums for marketing.
So, what do you do?
If you’re not sure dig through your current data and knowledge of your customers.
You can also use social listening tools like Sprout,Mention, or Hootsuite to see which platforms subjects related to your industry are discussed on.
That’s where you want to start.
One thing that a lot of businesses forget about social media marketing, is that it’s SOCIAL.
Yes, that’s right. People actually go on there to be social. Not to see ads or buy something, but rather to chat with their family and friends.
So if you just go on their to vomit on them about what a great service or product you have, they’re most likely going to simply ignore you.
The average consumer is exposed to around 5000 ads per day.
Let’s say that you’re a Buddhist monk, with a superhuman level of mental control and were able to block out 50% of that messaging.
That means yesterday you saw about 2500 ads.
Name 5.
That’s right, just 5 and don’t cheat.
Don’t just name ads you remember seeing at some point. Name 5 ads you saw yesterday.
(I’ve asked this question to a few hundred business owners and I’ve only had a handful that could do it and I’m convinced that most of them were because they simply refused to not be able to answer.)
One of the ways to overcome the noise you’re competing with, is to make sure that you respond to everyone that engages with your brand online.
Don’t treat your online profile like a billboard. Provide value, engage, help educate your customers and you will be well rewarded with lower marketing cost and increased conversion rates.
Pro Tip: The key is to be top of mind when the person is ready to make their purchase.
Effective digital marketing will lower the cost of customer acquisition while simultaneously increasing both the immediate and lifetime value of your customers.
This isn’t achieved by one ad.
This journey starts with awareness, then into analysis, conversion, and then through the retention and ascension phases.
The first part of this funnel is the awareness stage.
This is when you are first reaching out and making people aware of you, your brand, and what you offer. This is also the time when it’s easiest to segment your audience into their specific interests.
I don’t care what your business is, not all your customers are going to be interested in all your products or services.
By segmenting your new prospects immediately, it allows you to speak to each of them regarding what they are most interested in.
Pro Tip: Segmenting also allows you to easily discern which services or funnels convert best and troubleshoot the ones that don’t.
After the awareness phase comes the engagement phase.
This is the phase where your new prospect is aware of you, aware of what you have to offer, and is deciding on whether they want to purchase now and whether they want to purchase from you.
This is the juncture where you are attempting to provide enough of the right type of value to initially acquire the customer.
Conversion rates at the end of the funnel tend to be significantly higher when you start by offering the potential client, some type of specific value in exchange for their contact information.
In the subscription phase the client is usually given this “Lead Magnet” in exchange for their email address which then allows you to market to them for free via email for as long as the remain on your list. This can also be achieved through subscription to social channels.
Pro Tip: The key to a well converting lead magnet is that it must offer a specific solution to a unique problem or challenge. It must be easily consumable 5 -15 minutes and be congruent with the offers in the funnel, especially your core offer!
Build a perfect Quick Conversion Offer with this checklist. Use this as a quick reference guide of how to build a Quick Conversion Offer that converts. Click here to access your Perfect Buyer Cheat Sheet.
After the lead has made it through the awareness stage and has taken the lead magnet, the next phase is the conversion phase.
There are several ways this can be done but I strongly recommend that the initial conversion be an offer with the lowest possible barrier to entry.
What we refer to as a “Quick Conversion” product.
This can be combined with the lead magnet offer as an up sell or delivered later in the follow-up email series. Either way this product should be under $50 (depending on the industry) and it should be an over sized value for the potential client.
Digital marketing offers an amazing opportunity for local businesses that has never been seen before. The ability to really reach your customers and compete with big box stores without having millions of dollars into advertising but there is a catch.
YOU HAVE TO DO IT RIGHT!
You can’t just vomit all over the audience and expect to make sales. At least not many.
Today’s audience is over saturated with marketing messages and has become also blind to it. But if you know how to properly structure and execute your digital marketing strategy, there’s never been a more cost effective or higher producing form of marketing ever before in history.
