Proactive Vs. Reactive
Goodman’s Dealer First philosophy has never been more critical than it is right now. We are committed to providing your business with the support and value it needs to maintain your small business goals.
Please join us on Friday, May 1st, at 12:00 PM CST for the 7th in our 16-week series, How to Thrive in the New Normal.
You can view all Thriving in the New Normal broadcasts at www.goodmanbusinesstoolbox.com, www.amanabrandbusinessacademy.com, or www.franklinhvacuniversity.com. Select Dealer > Training Resources and look for the Thriving in the New Normal logo.
In session seven, “Proactive Vs. Reactive”, you will learn about specific key performance indicators that when measured will help you be able to anticipate, plan, and respond rather than react to the day to day business challenges that we all face.
- Proactive Vs. Reactive Customers
You are probably very familiar with the Vilfredo Pareto rule or the 80/20 rule which applies to our customers just as it applies to our economy. 80% of our customers by systems in a reactive manner vs. a proactive approach. Yet 80% of the marketing and sales focus of the residential replacement HVAC industry segment focuses on the 20% of the proactive buyers. What happens when you align your marketing efforts with customer buying habits and trends?
- Appointment Made – Book every call even thou you are already booked
When customers are in a reactive mode that things influence their buying decisions most? Is it price, BOGO, or other gimmicks designed to create some sort of a call to action? These are all fine strategies when you are trying to attract low-margin proactive customers or shoppers. A reactive customer wants, timeliness, confidence, empathy, and more than ever personal contact. Do you have a call center that is trained to deliver on the needs of 80% of the explorer and vacationer customer needs?
- Problem Identified – Proactive Pricing Strategies
What is the right price for your market? No matter what area of North America you travel to there are three distinct groups of contractors that every contractor can identify when it comes to pricing. The contractors that are priced too high and are gouging customers, the contractors that are priced too low and giving away their work and then that contractors pricing that you are talking to that is priced just right. The goal of any business is to be profitable and the price that you charge should be a means to that end. We will contrast strategies of retail, airlines, hotels and the automobile industry and see how these strategies apply to our industry.
- Problem Solution – Make Hay While The Sun Shines
Once we understand a majority of our business is reactive in nature, it forces us to look at our business in a seasonal one just like agriculture. Just like agriculture we need to store up resources while they are bountiful during peak demands so that we have reserves when reactive customers are scarce or even nonexistent low demand periods. Learn how monthly reoccurring revenue programs can help build both cash reserves and value in your business.
- Compensated for Services – Making Solutions Affordable
Since most Residential Replacement HVAC customers are reactive in nature the chances of them having budgeted for this unplanned expense is very low. Learn how you can help make your solutions affordable to these customers by following a couple of simple guidelines for financing. Offer it every time, Keep the payments as close to $100 per month as possible, and offer deferred payment solutions when applicable. By following these simple guidelines you will close more jobs at a higher ticket and have happier customers.
- Customer for Life – Customer Lifetime Value by segment
What is the value of a customer? What is the value of my business? Learn how to use the CLV Calculator and what this calculator can tell you about your business. What are the impacts of Maintenance agreements, IAQ offerings, preventative maintenance and services and other factors that contribute to your CLV.
- Marketing Plan – Limo Ride
When a customer does find you and decides to do business with you are there expectations met, exceeded, or are they disappointed in the overall experience
- Customer Reaches Out – Strategies to ensure you are an option on page 1 of google
Where does the reactive customer go when they have a problem? Probably, the same place you would go if you had a problem. Google, Alexa, Search Engines, etc., are you an option when your customers have a problem? If you are not on the top of google for the searches your reactive customers are using you don’t exist to the reactive customer and your customer base is shrinking. You only have access to low-profit proactive customers, prisoners, and free-loaders through traditional means of advertising. The journey to the top does take time and is not easy but the view is well worth it once you arrive.
- Embrace Technology
Now is the time to identify the process for every transaction within your business! Use technology to help increase your business’s overall efficiency. What manual process does your company utilize that could be automated? Review your current business operation methods and identify those that can be improved with technology.
- Thank and Encourage your People
Your staff is one of your most valuable assets. They may have concerns, need reassurances, and want to know how they can help. They need to hear from you. Even in these unprecedented times, find ways for employees to enjoy their workplace and take time to recognize extraordinary efforts.
Be sure to join us on Friday, May 1st, at 12:00 PM CST for the 7th in our 16-week series, How to Thrive in the New Normal.
This event is hosted by the Goodman Business Toolbox, Amana Brand Business Academy, and Franklin HVAC University.
National Sales Training Manager